Brooks Automation Reports Third Quarter Financial Results
- Press Release
- Source: Brooks Automation, Inc.
- On 4:00 pm EDT, Thursday August 6, 2009
CHELMSFORD, Mass., Aug. 6, 2009 (GLOBE NEWSWIRE) -- Brooks Automation, Inc. (Nasdaq:BRKS - News) announced financial results for the Company's third quarter of fiscal year 2009 ended on June 30, 2009.
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| Symbol | Price | Change |
|---|---|---|
| BRKS | 8.00 | +0.29 |
Revenues for the third quarter of 2009 were $43.9 million, compared to revenues of $124.0 million in the third quarter of 2008, a decrease of 64.6%. Sequentially, revenues grew 17.6% from second quarter revenues of $37.3 million.
Net loss for the third quarter of fiscal 2009 amounted to $25.7 million, or $0.41 per diluted share. Excluding special charges totaling $2.7 million, the non-GAAP net loss for the third quarter of fiscal 2009 was $23.0 million, or $0.37 per diluted share. The special charges taken during the quarter were $2.3 million of restructuring charges, primarily for severance and $0.4 million of asset impairments associated with closing one of the company's facilities.
The fiscal 2009 third quarter results compare with a net loss from continuing operations of $10.3 million, or $0.17 per diluted share in the third quarter of the prior year. Sequentially, the net loss was $152.5 million or $2.43 per diluted share in the second quarter of 2009. Excluding special charges, the net loss from continuing operations for the third quarter of the prior year was $7.8 million, or $0.12 per diluted share. Sequentially, the net loss for the second quarter excluding special charges was $36.2 million or $0.58 per diluted share. Special charges are identified in the tables to this release.
Adjusted Earnings (Loss) before Interest, Tax, Depreciation and Amortization for the third quarter of fiscal 2009 was ($17.2) million, which compared to $1.8 million in the prior year period and ($26.7) million in the second quarter of fiscal 2009. Effective working capital management and reduced levels of losses reduced the sequential use of cash for operations to $16.0 million during the quarter. The Company closed the quarter with $114.4 million of cash and marketable securities.
Revenues for the nine months ended June 30, 2009 were $154.6 million, a 63.1% decrease from the prior period revenues of $419.5 million. The loss from continuing operations for the current fiscal nine month period was $213.4 million, as compared to the prior year's net loss of $20.4 million. Excluding special charges of $124.4 million in the current fiscal year and $8.6 million in the prior year, the loss from continuing operations before special charges was $89.0 million or $1.42 per share and $11.8 million or $0.18 per share, respectively. Special charges are identified in the tables to this release.
Commenting on recent activities, Robert J. Lepofsky, President and Chief Executive Officer of Brooks stated, "We have experienced accelerating revenue growth as the quarter progressed which, combined with the benefits of our restructuring activities, narrowed the losses during the quarter. We see continuing momentum, particularly for our semiconductor business, and our internal plans are for sequential revenue growth of at least 25% in the September ending quarter. In addition, our use of cash continues to substantially diminish as we maintain our focus on working capital management programs and we move beyond the use of cash for restructuring and IT investments. We are delivering the expected high drop-thru on every incremental dollar of revenue as projected in our business model which will accelerate our return to profitability. The recovery in the semiconductor capital equipment industry is progressing and Brooks' leadership position as a strategic extension of our customer's engineering, manufacturing and product support capabilities is clearly strengthening. With increasing revenues, important design-in wins, the improving utilization rates of existing wafer fabs driving our Global Customer Operations business, and the expected returns from our product development initiatives across multiple market sectors, we believe Brooks will emerge from the current business downturn very well positioned to deliver excellent returns to our shareholders."
A reconciliation of non-GAAP measures to the most nearly comparable GAAP measure follows the consolidated statements of operations, balance sheets and statements of cash flows attached to this release.
Brooks management will webcast its June quarter earnings conference call on Thursday, August 6, 2009 at 4:30 p.m. Eastern Time to discuss the attached quarterly results and business highlights. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Their responses could contain information that has not been previously disclosed.
Analysts, investors and members of the media can access the live broadcast available on Brooks' website at www.brooks.com. The call will be archived on this website for convenient on-demand replay until Brooks reports fiscal 2009 fourth quarter results in mid-November, 2009.
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation, vacuum and instrumentation solutions to the global semiconductor and related industries. The company's advanced offerings in hardware and services are critical to customers where equipment productivity and availability are essential for successful manufacturing. Brooks' products and global services are used in virtually every fab in the world as well as in a number of diverse industries outside semiconductor manufacturing. For more information see www.brooks.com or email co.csr@brooks.com.
"Safe Harbor Statement" under Section 21E of the Securities Exchange Act of 1934
Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Brooks' financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. These forward-looking statements include statements regarding our profit and loss and cash flow expectations and our ability to achieve financial success in the future. Factors that could cause results to differ from our expectations include the following: volatility of the industries the Company serves, particularly the semiconductor industry; our possible inability to meet increased demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; the timing and effectiveness of cost reduction and cost control measures; intense price competition; disputes concerning intellectual property; expenses associated with legal disputes and litigation, continuing uncertainties in global political and economic conditions, the impact of global health concerns, and other factors and other risks that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, current reports on Form 8-K and our quarterly reports on Form 10-Q. As a result we can provide no assurance that our future results will not be materially different from those projected. Brooks expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based. Brooks undertakes no obligation to update the information contained in this press release.
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Three months ended Nine months ended
June 30, June 30,
--------------------- ---------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Revenues
Product $ 31,510 $ 105,774 $ 116,479 $ 367,157
Services 12,366 18,242 38,142 52,339
--------- --------- --------- ---------
Total revenues 43,876 124,016 154,621 419,496
--------- --------- --------- ---------
Cost of revenues
Product 29,301 78,308 115,078 266,798
Services 10,617 16,851 36,477 48,953
Impairment of
long-lived assets 408 -- 20,924 --
--------- --------- --------- ---------
Total cost of
revenues 40,326 95,159 172,479 315,751
--------- --------- --------- ---------
Gross profit (loss) 3,550 28,857 (17,858) 103,745
--------- --------- --------- ---------
Operating expenses
Research and
development 7,549 10,270 24,492 34,255
Selling, general and
administrative 19,559 25,636 72,400 84,635
Impairment of
goodwill -- -- 71,800 --
Impairment of long-
lived assets -- -- 14,588 --
Restructuring charges 2,327 2,571 12,293 5,677
--------- --------- --------- ---------
Total operating
expenses 29,435 38,477 195,573 124,567
--------- --------- --------- ---------
Operating loss from
continuing operations (25,855) (9,620) (213,431) (20,822)
Interest income 536 1,237 2,079 6,252
Interest expense 60 93 258 536
Loss on investment -- -- 1,185 2,931
Other (income)
expense, net (114) 1,244 35 426
--------- --------- --------- ---------
Loss from continuing
operations before
income taxes and
minority interests (25,295) (9,720) (212,830) (18,463)
Income tax provision 148 843 728 2,398
--------- --------- --------- ---------
Loss from continuing
operations before
minority interests (25,443) (10,563) (213,558) (20,861)
Minority interests in
income of consoli-
dated subsidiaries 240 (13) 63 (5)
Equity in earnings
of joint ventures (59) 224 253 447
--------- --------- --------- ---------
Loss from continuing
operations (25,742) (10,326) (213,368) (20,409)
Gain on sale of dis-
continued operations,
net of income taxes -- -- -- 371
--------- --------- --------- ---------
Income from discon-
tinued operations,
net of income taxes -- -- -- 371
--------- --------- --------- ---------
Net loss $ (25,742) $ (10,326) $(213,368) $ (20,038)
========= ========= ========= =========
Basic loss per share
from continuing
operations $ (0.41) $ (0.17) $ (3.40) $ (0.31)
Basic income per
share from discon-
tinued operations -- -- -- 0.01
--------- --------- --------- ---------
Basic net loss per
share $ (0.41) $ (0.17) $ (3.40) $ (0.31)
========= ========= ========= =========
Diluted loss per
share from
continuing operations $ (0.41) $ (0.17) $ (3.40) $ (0.31)
Diluted income per
share from discon-
tinued operations -- -- -- 0.01
--------- --------- --------- ---------
Diluted net loss per
share $ (0.41) $ (0.17) $ (3.40) $ (0.31)
========= ========= ========= =========
Shares used in
computing income
(loss) per share
Basic 63,011 62,483 62,835 65,196
Diluted 63,011 62,483 62,835 65,196
BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
June 30, September 30,
2009 2008
------------- -------------
Assets
Current assets
Cash and cash equivalents $ 52,936 $ 110,269
Marketable securities 35,313 33,077
Accounts receivable, net 28,108 66,844
Insurance receivable for litigation 343 8,772
Inventories, net 91,404 105,901
Prepaid expenses and other current
assets 9,149 13,783
------------- -------------
Total current assets 217,253 338,646
Property, plant and equipment, net 78,393 81,604
Long-term marketable securities 26,159 33,935
Goodwill 48,138 119,979
Intangible assets, net 14,909 58,452
Equity investment in joint ventures 28,730 26,309
Other assets 3,502 4,713
------------- -------------
Total assets $ 417,084 $ 663,638
============= =============
Liabilities, minority interests and
stockholders' equity
Current liabilities
Accounts payable $ 15,700 $ 37,248
Deferred revenue 2,884 3,553
Accrued warranty and retrofit costs 5,621 8,174
Accrued compensation and benefits 13,071 18,174
Accrued restructuring costs 8,030 7,167
Accrued income taxes payable 2,702 3,151
Accrual for litigation settlement -- 7,750
Accrued expenses and other current
liabilities 14,063 17,634
------------- -------------
Total current liabilities 62,071 102,851
Accrued long-term restructuring 2,707 5,496
Income taxes payable 10,649 10,649
Long-term pension liability 6,243 --
Other long-term liabilities 2,699 2,238
------------- -------------
Total liabilities 84,369 121,234
------------- -------------
Contingencies
Minority interests 471 409
------------- -------------
Stockholders' equity
Preferred stock, $0.01 par value,
1,000,000 shares authorized, no
shares issued and outstanding -- --
Common stock, $0.01 par value,
125,000,000 shares authorized,
77,740,154 shares issued and
64,278,285 shares outstanding at
June 30, 2009, 77,044,737 shares
issued and 63,582,868 shares
outstanding at September 30, 2008 777 770
Additional paid-in capital 1,794,287 1,788,891
Accumulated other comprehensive
income 16,277 18,063
Treasury stock at cost, 13,461,869
shares at June 30, 2009 and
September 30, 2008 (200,956) (200,956)
Accumulated deficit (1,278,141) (1,064,773)
------------- -------------
Total stockholders' equity 332,244 541,995
------------- -------------
Total liabilities, minority
interests and stockholders'
equity $ 417,084 $ 663,638
============= =============
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
Nine months ended
June 30,
----------------------------
2009 2008
------------- -------------
Cash flows from operating activities
Net loss $ (213,368) $ (20,038)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization 20,841 25,867
Impairment of goodwill 71,800 --
Impairment of long-lived assets 35,512 --
Stock-based compensation 5,007 5,612
Amortization of discount on
marketable securities 70 (782)
Undistributed earnings of joint
ventures (253) (447)
Minority interests 63 (5)
(Gain) loss on disposal of
long-lived assets (12) 925
Loss on investment 1,185 2,931
Gain on sale of software
division, net -- (371)
Changes in operating assets and
liabilities, net of acquisitions
and disposals:
Accounts receivable 38,432 32,220
Inventories 14,324 (5,138)
Prepaid expenses and other
current assets 5,199 2,469
Accounts payable (21,533) (18,344)
Deferred revenue (658) (1,578)
Accrued warranty and retrofit
costs (2,558) (2,454)
Accrued compensation and benefits (4,313) (6,906)
Accrued restructuring costs (1,902) (1,356)
Accrued expenses and other
current liabilities (757) (5,974)
------------- -------------
Net cash provided by (used in)
operating activities (52,921) 6,631
------------- -------------
Cash flows from investing activities
Purchases of property, plant and
equipment (10,843) (17,235)
Purchases of marketable securities (53,316) (137,156)
Sale/maturity of marketable
securities 58,903 174,973
Proceeds from sale of software
division -- 1,500
Proceeds from the sale of long-lived
assets 1,093 --
Purchases of intangible assets (38) (75)
------------- -------------
Net cash provided by (used in)
investing activities (4,201) 22,007
------------- -------------
Cash flows from financing activities
Treasury stock purchases -- (90,194)
Proceeds from issuance of common
stock, net of issuance costs 675 1,473
------------- -------------
Net cash provided by (used in)
financing activities 675 (88,721)
------------- -------------
Effects of exchange rate changes on
cash and cash equivalents (886) 1,813
------------- -------------
Net decrease in cash and cash
equivalents (57,333) (58,270)
Cash and cash equivalents, beginning
of period 110,269 168,232
------------- -------------
Cash and cash equivalents, end
of period $ 52,936 $ 109,962
============= =============
BROOKS AUTOMATION, INC.
Supplemental Information
(In thousands, except per share data)
(unaudited)
Notes on Non-GAAP Financial Measures:
The information in this press release is for: internal managerial purposes; when publicly providing guidance on future results; and as a means to evaluate period-to-period comparisons. These financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management believes these financial measures provide an additional way of viewing aspects of our operations, that, when viewed with our GAAP results and the accompanying reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of our business. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.
The press release includes financial measures which exclude the effects of charges associated with our non-cash impairment charges, restructuring programs and gains or losses on investments. Management believes these measures are useful to investors because it eliminates accounting charges that do not reflect Brooks' day-to-day operations. A table reconciling income (loss) and diluted earnings (loss) per share from continuing operations is presented below:
Quarter ended
-----------------------------------------------
June 30, 2009 March 31, 2009
----------------------- ----------------------
$ per share $ per share
----------- ----------- ----------- -----------
Loss from continuing
operations $ (25,742) $ (0.41) $(152,543) $ (2.43)
Impairment charges -
cost of revenues 408 0.01 20,516 0.33
Impairment charges -
operating expense -- -- 86,388 1.37
Restructuring charges 2,327 0.04 5,861 0.09
Restructuring related
inventory charges -- -- 3,612 0.06
Loss on investment -- -- -- --
----------- ----------- ----------- -----------
Adjusted loss from
continuing
operations $ (23,007) $ (0.37) $(36,166) $ (0.58)
=========== =========== =========== ===========
Quarter ended
-----------------------
June 30, 2008
-----------------------
$ per share
----------- -----------
Loss from continuing operations $(10,326) $ (0.17)
Impairment charges - cost of revenues -- --
Impairment charges - operating expense -- --
Restructuring charges 2,571 0.04
Restructuring related inventory charges -- --
Loss on investment -- --
----------- -----------
Adjusted loss from continuing
operations $ (7,755) $ (0.12)
=========== ===========
Nine months ended
-----------------------------------------------
June 30, 2009 June 30, 2008
----------------------- -----------------------
$ per share $ per share
----------- ----------- ----------- -----------
Loss from continuing
operations $(213,368) $ (3.40) $(20,409) $ (0.31)
Impairment charges -
cost of revenues 20,924 0.33 -- --
Impairment charges -
operating expense 86,388 1.37 -- --
Restructuring charges 12,293 0.20 5,677 0.09
Restructuring related
inventory charges 3,612 0.06 -- --
Loss on investment 1,185 0.02 2,931 0.04
----------- ----------- ----------- -----------
Adjusted loss from
continuing
operations $ (88,966) $ (1.42) $(11,801) $ (0.18)
=========== =========== =========== ===========
Quarter ended
------------------------------------
June 30, Mar 31, June 30,
2009 2009 2008
----------- ----------- -----------
Loss from continuing
operations $ (25,742) $ (152,543) $ (10,326)
Less: Interest income (536) (646) (1,237)
Add: Interest expense 60 72 93
Add: Income tax provision
(benefit) 148 189 843
Add: Depreciation 3,679 3,620 4,718
Add: Amortization of
completed technology 457 2,331 2,331
Add; Amortization of
acquired intangible assets 381 1,993 1,786
Add: Stock compensation
expense 1,613 1,870 1,069
Add: Restructuring related
inventory charges -- 3,612 --
Add: Impairment charges -
cost of revenues 408 20,516 --
Add: Impairment charges -
operating expense -- 86,388 --
Add: Restructuring charges 2,327 5,861 2,571
Add: Loss on investment -- -- --
----------- ----------- -----------
Adjusted EBITDA $ (17,205) $ (26,737) $ 1,848
=========== =========== ===========
Nine months ended
-------------------------
June 30, June 30,
2009 2008
------------ -----------
Loss from continuing operations (213,368) (20,409)
Less: Interest income (2,079) (6,252)
Add: Interest expense 258 536
Add: Income tax provision (benefit) 728 2,398
Add: Depreciation 11,455 13,616
Add: Amortization of completed technology 5,119 6,993
Add; Amortization of acquired intangible
assets 4,267 5,258
Add: Stock compensation expense 5,007 5,612
Add: Restructuring related inventory charges 3,612 --
Add: Impairment charges - cost of revenues 20,924 --
Add: Impairment charges - operating expense 86,388 --
Add: Restructuring charges 12,293 5,677
Add: Loss on investment 1,185 2,931
----------- -----------
Adjusted EBITDA $ (64,211) $ 16,360
=========== ===========
Contact:
Brooks Automation, Inc.
Barbara Culhane, Corporate Marketing Manager
978-262-2400
www.brooks.com
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