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Brooks Automation, Inc. Message Board

  • the2ofusinca the2ofusinca Jul 30, 2003 12:08 PM Flag

    THE FOOD CHAIN

    I arrived at BRKS through a series of mergers and or acquistions matter of fact, I don't recall the name of the company I initially invested in. If there are posters on this board who know how I arrived here or can refer me to a site where I can obtain the information I will appreciate your help.

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    • Anyone on this board remember METAMOR WORLDWIDE? I do believe that is where I came aboard and ended up with BRKS. Seems to me PRIA, acquired them then BRKS took them over. Perhaps I invested in another company and METAMOR took them over. If any of you had a similar experience with this company and have good records, please inform me what the share price was for each merger.

    • Thanks for the good GM data.

      One thing to keep in mind however, in 1996-1998, about 90% of bussines came from vacuum automation. The "below the line expenses" were very reasonable (R&D,SGA etc). The model has changed I suspect as both FAB SW and Equipment have been added. SW improved the GM line I am sure, offset by much higher R&D, expenses. PRI, if there are any sales in fab, will hurt both GM and expense based on past PRI performance.

      It is now much more complicated. I don't think the GM line tells the story anymore as much as product mix, and that data is not public.

      In any event I hope you are right.

    • if it like .50 profit to just make $20 price tag. I wonder what profit does it take to make what JP Morgan's $51 price tag.

      JP Morgan is a big joke.

      BRKS isn't profitable and they are seeing a little light and giving them a big price tag. What a JOKE! Instead of calling Focus List they should call Stock Ready to be dumped List.

    • So, to cut through all the bullshit-

      In what year do you think they'll post $.50 in earnings to justify even a $20 stock price, which would be 40X earnings? Anyone here care to take a stab at it?

    • Gross margins at BRKS have been around 50% in good times, maybe 40-45% in average times, around 30% at bottoms, like now. The numbers: 1996 -- 48%
      1997 -- 41%
      1998 -- 28%
      1999 -- 44%
      2000 -- 47%
      2001 -- 40%
      2002 -- 27%
      2003 -- 30% (9 mos)
      So current margins are within the range of historical results for the company. Acquistions may actually help improve margins as they eliminate duplication throughout the organization. This quarter, at least, they lowered operating expense 10% sequentially: "The pro forma operating expenses for the third quarter decreased to $37.0 million, a $4.2 million reduction from the preceding quarter, as we again realized the benefits of our cost reduction efforts."

      So I think with a "significant upturn in business" the operating leverage will be there to provide a series of earnings surprises. At least that is what has happened in the past.

    • Of course,

      The question is one of sales leverage to the EPS line. After the 20-30 acquisitions does BRKS still have the strong model they had in the past? Or, will growth be large and fast enough to overshadow poor flow through in the short term.

      I hope so, and based on the stock performance there are quite a few who hope so as well.

    • >"Barring a significant upturn in business, O'Neill does not expect the company will earn a profit on a GAAP, or generally accepted accounting principles, basis until fiscal 2005.<

      Isn't a significant upturn in business what we are speculating on?

    • "Barring a significant upturn in business, O'Neill does not expect the company will earn a profit on a GAAP, or generally accepted accounting principles, basis until fiscal 2005.

      "By the time we see profitability in our model, the company will have lost money for 14 quarters," he noted."

    • "The model looks broken," O'Neill told clients, noting that the company has spent hundreds of millions of dollars in the past four years to remake its business from a single product into a multi- product line powerhouse but has recently written off the value of nearly every one of the acquisitions while keeping the costs."


      Or to put this another way- When is Brooks going to demonstrate that there was an ROI on all of those aquisitions by announcing some major customer full fab 300mm automation wins?

    • http://www.brooks.com/pages/62_recent_acquisitions.cfm

      Got to this BRKS site. It lists all the aquisitions.

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BRKS
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