CHELMSFORD, Mass., Aug. 7, 2008 (PRIME NEWSWIRE) -- Brooks Automation, Inc. (Nasdaq:BRKS) announced financial results for the Company's third quarter and first nine months of fiscal 2008 ended on June 30, 2008.
Revenues for the third quarter of 2008 were $124.0 million, compared to revenues of $190.5 million in the third quarter of 2007, a decrease of 34.9%. Sequentially, revenues were down 16.0% from fiscal 2008 second quarter revenues of $147.6 million.
Loss from continuing operations for the third quarter of fiscal 2008 amounted to $10.3 million, or $0.17 per diluted share. This compares with income from continuing operations of $22.9 million, or $0.30 per diluted share in the third quarter of the prior year. Sequentially, the loss from continuing operations increased $1.6 million compared to a second quarter loss of $8.7 million. The loss from continuing operations for the third quarter of fiscal 2008 before special charges was $7.8 million, or $0.12 per diluted share, which came in at the low end of the Company's guidance. The special charge taken during the quarter was comprised entirely of $2.6 million of restructuring charges. The loss from continuing operations reported in the second quarter of fiscal 2008 included $5.4 million of special charges, including restructuring charges of $2.5 million and a loss on an investment of $2.9 million.
Adjusted Earnings before Interest, Tax, Depreciation and Amortization for the third quarter of fiscal 2008 was $1.8 million compared to $24.3 million in the prior year period and $7.2 million in the second quarter of fiscal 2008. Together with cash generated from managing operating assets, this resulted in cash flows from operations for the third quarter of fiscal 2008 of $1.4 million compared to $34.8 million in the prior year period and $11.3 million in the second quarter of fiscal 2008.
Revenues for the first nine months of fiscal year 2008 were $419.5 million, a 27.3% decrease from prior year revenues of $576.8 million. The net loss for the first nine months of fiscal 2008 was $20.0 million, or $0.31 per diluted share compared to the prior year's net income of $152.8 million or $2.03 per diluted share. The loss for fiscal 2008 included restructuring charges of $5.7 million, a $2.9 million loss on an investment which was partially offset by a $0.4 million gain in discontinued operations related to the resolution of certain contingencies in connection with the sale of the Brooks Software division, which in total amounted to $0.13 per diluted share. Net income for fiscal 2007 included an $83.9 million gain on the March 30, 2007 sale of the Brooks Software division and $13.3 million of income from that discontinued operation, restructuring charges of $3.5 million and a gain on an investment of $5.1 million, which in total amounted to $1.31 per diluted share.
Commenting on the third quarter results, Robert J. Lepofsky, President and Chief Executive Officer of Brooks said, "Our results for the quarter were in line with industry commentary reflecting on the continued softness in the semiconductor capital equipment sector. Despite currently difficult external conditions, Brooks moved forward on a number of fronts that give us a very positive view of both our near and longer-term future. The restructuring of Brooks has significantly lowered our breakeven level, simplified our organization and improved our customer responsiveness. One excellent measure of our progress is our pace of new customer engagements. Several of our major semiconductor equipment OEMs are now looking to Brooks for an expanded scope of supply. Even in a flat new equipment market some of these new requirements will have a positive impact on Brooks beginning as early as the December quarter."
Mr. Lepofsky continued, "Today approximately 15% of our revenues come from customers outside of the semiconductor industry and we see that number increasing in the future. Looking forward, we expect that our continuing product and market development investments will increase our penetration in the data storage, analytical instrument and solar sectors. At the present time we are particularly pleased with the pace of implementation of Brooks' vacuum solutions by both established and emerging companies in the growing solar cell industry."
Mr. Lepofsky concluded, "During this challenging period the employees of Brooks remain focused on turning potential into performance and ensuring that Brooks emerges from the downturn stronger, better positioned and more profitable than ever before."
Business Outlook
In providing guidance for the fourth quarter of fiscal 2008 ending on September 30, 2008, Brooks expects revenues could be in the range of $110 million to $125 million with a net loss between $0.15 per share and a net loss of $0.05 per share. The guidance for loss per share provided above does not include restructuring costs that are likely to be incurred during the quarter.
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 7, 2008 at 4:30 p.m. ET 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 2008 fourth quarter results in mid-November, 2008.
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation solutions and integrated subsystems to the global semiconductor and related industries. The company's advanced offerings in hardware and services can help customers improve manufacturing efficiencies, accelerate time-to-market and reduce cost-of-ownership. Brooks' products and global services are used in virtually every semiconductor fab in the world as well as in a number of diverse industries outside of 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 bookings, revenues, profit and loss and cash flow expectations, expected restructuring charges and other charges, the impact of anticipated workforce reductions, future business strategy and market opportunities, level of capital expenditures and bookings expectations in the semiconductor industry, demand for our new and existing products, purchasing and manufacturing trends among semiconductor manufacturing OEMs, our strategy of sourcing from low cost regions, and the outlook of the semiconductor industry. Factors that could cause results to differ from our expectations include the following: our dependence on the cyclical semiconductor industry; the possibility of downturns in market demand for electronics; 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; a decision by semiconductor manufacturing OEMs not to outsource increasing amounts of their manufacturing operations; our ability to continue to effectively implement our flexible manufacturing model and our supply chain consolidation; the highly competitive nature and rapid technological change that characterizes the industries in which we compete; decisions by customers to accelerate delivery under or to cancel or defer orders that previously had been accepted; decisions by customers to reject the products we ship to them; the possibility that we may not be able to fulfill customer orders within a period of time acceptable to them; the fact that design-in wins do not necessarily translate to significant revenue; the timing and effectiveness of restructuring, cost-cutting, low cost sourcing and expense control measures; intense price competition; disputes concerning intellectual property; expenses associated with legal disputes and litigation, continuing uncertainties in global political and economic conditions, 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,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenues
Product $ 92,958 $160,235 $331,531 $485,375
Services 31,058 30,226 87,965 91,380
-------- -------- -------- --------
Total revenues 124,016 190,461 419,496 576,755
-------- -------- -------- --------
Cost of revenues
Product 70,420 108,499 244,087 326,145
Services 24,739 24,526 71,664 71,002
-------- -------- -------- --------
Total cost of revenues 95,159 133,025 315,751 397,147
-------- -------- -------- --------
Gross profit 28,857 57,436 103,745 179,608
-------- -------- -------- --------
Operating expenses
Research and development 10,270 12,817 34,255 39,185
Selling, general and
administrative 25,636 29,924 84,635 91,482
Restructuring charges 2,571 411 5,677 3,451
-------- -------- -------- --------
Total operating expenses 38,477 43,152 124,567 134,118
-------- -------- -------- --------
Operating income (loss) from
continuing operations (9,620) 14,284 (20,822) 45,490
Interest income 1,237 4,344 6,252 8,874
Interest expense 93 48 536 503
Gain (loss) on investment -- 5,110 (2,931) 5,110
Other (income) expense, net 1,244 491 426 1,416
-------- -------- -------- --------
Income (loss) from continuing
operations before income
taxes, minority interests and
equity in earnings of joint
ventures (9,720) 23,199 (18,463) 57,555
Income tax provision 843 605 2,398 2,729
-------- -------- -------- --------
Income (loss) from continuing
operations before minority
interests and equity in
earnings of joint ventures (10,563) 22,594 (20,861) 54,826
Minority interests in income
(loss) of consolidated
subsidiaries (13) 58 (5) 110
Equity in earnings of joint
ventures 224 328 447 878
-------- -------- -------- --------
Income (loss) from continuing
operations (10,326) 22,864 (20,409) 55,594
Income (loss) from discontinued
operations, net of income
taxes -- (25) -- 13,273
Gain on sale of discontinued
operations, net of income
taxes -- -- 371 83,898
-------- -------- -------- --------
Income (loss) from discontinued
operations, net of income
taxes -- (25) 371 97,171
-------- -------- -------- --------
Net income (loss) $(10,326) $ 22,839 $(20,038) $152,765
======== ======== ======== ========
Basic income (loss) per share
from continuing operations $ (0.17) $ 0.30 $ (0.31) $ 0.74
Basic income (loss) per share
from discontinued operations 0.00 0.00 0.01 1.30
-------- -------- -------- --------
Basic net income (loss) per
share $ (0.17) $ 0.30 $ (0.31) $ 2.04
======== ======== ======== ========
Diluted income (loss) per share
from continuing
operations $ (0.17) $ 0.30 $ (0.31) $ 0.74
Diluted income (loss) per share
from discontinued operations 0.00 0.00 0.01 1.29
-------- -------- -------- --------
Diluted net income (loss) per
share $ (0.17) $ 0.30 $ (0.31) $ 2.03
======== ======== ======== ========
Shares used in computing
income (loss) per share
Basic 62,483 75,046 65,196 74,802
Diluted 62,483 75,737 65,196 75,376
BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
June 30, Sept. 30,
2008 2007
---------- ----------
Assets
Current assets
Cash and cash equivalents $ 109,962 $ 168,232
Marketable securities 34,238 80,102
Accounts receivable, net 73,229 105,904
Insurance receivable for litigation 8,151 --
Inventories, net 111,154 104,794
Prepaid expenses and other current assets 17,382 20,489
---------- ----------
Total current assets 354,116 479,521
Property, plant and equipment, net 83,763 80,747
Long-term marketable securities 34,207 26,283
Goodwill 318,548 319,302
Intangible assets, net 64,788 76,964
Equity investment in joint ventures 26,764 24,007
Other assets 6,482 8,014
---------- ----------
Total assets $ 888,668 $1,014,838
========== ==========
Liabilities, minority interests and
stockholders' equity
Current liabilities
Accounts payable $ 39,553 $ 57,758
Deferred revenue 3,933 5,424
Accrued warranty and retrofit costs 8,503 10,986
Accrued compensation and benefits 17,216 23,850
Accrued restructuring costs 8,141 6,778
Accrued income taxes payable 5,283 5,934
Accrual for litigation settlement 7,750 --
Accrued expenses and other current
liabilities 14,662 21,908
---------- ----------
Total current liabilities 105,041 132,638
Accrued long-term restructuring 6,265 8,933
Income taxes payable 10,649 10,159
Other long-term liabilities 2,509 2,866
---------- ----------
Total liabilities 124,464 154,596
---------- ----------
Contingencies
Minority interests 457 463
---------- ----------
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, 76,926,823 shares issued
and 63,464,954 shares outstanding at June 30,
2008, 76,483,603 shares issued and 70,423,603
shares outstanding at September 30, 2007 769 765
Additional paid-in capital 1,786,712 1,780,401
Accumulated other comprehensive income 26,087 18,202
Treasury stock at cost, 13,461,869 shares and
6,060,000 shares at June 30, 2008 and
September 30, 2007, respectively (200,956) (110,762)
Accumulated deficit (848,865) (828,827)
---------- ----------
Total stockholders' equity 763,747 859,779
---------- ----------
Total liabilities, minority interests and
stockholders' equity $ 888,668 $1,014,838
========== ==========
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
Nine months ended
June 30,
------------------
2008 2007
-------- --------
Cash flows from operating activities
Net income (loss) $(20,038) $152,765
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 25,867 24,280
Stock-based compensation 5,612 5,880
Discount on marketable securities (782) (1,006)
Undistributed earnings of joint ventures (447) (878)
Minority interests (5) 110
Loss on disposal of long-lived assets 925 568
Gain on sale of software division, net (371) (81,813)
(Gain) loss on investment 2,931 (5,110)
Changes in operating assets and liabilities, net
of acquisitions and disposals:
Accounts receivable 32,220 (4,531)
Inventories (5,138) (8,990)
Prepaid expenses and other current assets 2,469 (7,465)
Accounts payable (18,344) (13,637)
Deferred revenue (1,578) 4,212
Accrued warranty and retrofit costs (2,454) (132)
Accrued compensation and benefits (6,906) (5,385)
Accrued restructuring costs (1,356) (2,359)
Accrued expenses and other current liabilities (5,974) (3,717)
-------- --------
Net cash provided by operating activities 6,631 52,792
-------- --------
Cash flows from investing activities
Purchases of property, plant and equipment (17,235) (14,837)
Proceeds from the sale of software division 1,500 130,393
Purchases of marketable securities (137,156) (306,425)
Sale/maturity of marketable securities 174,973 316,181
Acquisition of Synetics Solutions, net of cash
acquired -- (38)
Other (75) 12
-------- --------
Net cash provided by investing activities 22,007 125,286
-------- --------
Cash flows from financing activities
Treasury stock purchases (90,194) --
Proceeds from issuance of common stock, net of
issuance costs 1,473 8,295
-------- --------
Net cash provided by (used in) financing
activities (88,721) 8,295
-------- --------
Effects of exchange rate changes on cash and cash
equivalents 1,813 852
-------- --------
Net increase (decrease) in cash and cash
equivalents (58,270) 187,225
Cash and cash equivalents, beginning of period 168,232 115,773
-------- --------
Cash and cash equivalents, end of period $109,962 $302,998
======== ========
BROOKS AUTOMATION, INC.
Supplemental Information
(unaudited)
(In thousands, except per share data)
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 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 and diluted earnings per share from continuing operations is presented below:
Quarter ended
----------------------------------------------------------
June 30, 2008 March 31, 2008 June 30, 2007
$ per share $ per share $ per share
------------------ ------------------ ------------------
Income
(loss)
from
continuing
oper-
ations $(10,326) $ (0.17) $ (8,664) $ (0.14) $ 22,864 $ 0.30
Restructuring
charges 2,571 0.04 2,506 0.04 411 0.01
Loss (gain)
on
investment -- -- 2,931 0.05 (5,110) (0.07)
------------------ ------------------ ------------------
Net income
(loss)
before
special
charges $ (7,755) $ (0.12) (3,227) $ (0.05) $ 18,165 $ 0.24
================== ================== ==================
Nine months ended
--------------------------------------
June 30, 2008 June 30, 2007
$ per share $ per share
------------------ ------------------
Income (loss) from
continuing
operations $(20,409) $ (0.31) $ 55,594 $ 0.74
Restructuring charges 5,677 0.09 3,451 0.05
Loss (gain)
on investment 2,931 0.04 (5,110) (0.07)
------------------ ------------------
Net income (loss)
before special
charges $(11,801) $ (0.18) $ 53,935 $ 0.72
================== ==================
Quarter ended Nine months ended
------------------------------------------------
June 30, March 31, June 30, June 30, June 30,
2008 2008 2007 2008 2007
-------- -------- -------- -------- --------
Income (loss) from
continuing
operations $(10,326) $ (8,664) $ 22,864 $(20,409) $ 55,594
Less: Interest
income (1,237) (1,806) (4,344) (6,252) (8,874)
Add: Interest expense 93 310 48 536 503
Add: Income
tax provision 843 885 605 2,398 2,729
Add: Depreciation 4,718 4,407 4,225 13,616 12,770
Add: Amortization of
completed
technology 2,331 2,331 2,331 6,993 6,993
Add; Amortization of
acquired intangible
assets 1,786 1,787 1,482 5,258 4,458
Add: Stock
compensation expense 1,069 2,534 1,810 5,612 5,880
Add: Restructuring
charges 2,571 2,506 411 5,677 3,451
Add: Loss (gain)
on investment -- 2,931 (5,110) 2,931 (5,110)
-------- -------- -------- -------- --------
Adjusted EBITDA $ 1,848 $ 7,221 $ 24,322 $ 16,360 $ 78,394
======== ======== ======== ======== ========
CONTACT: Brooks Automation, Inc.
Michael W. McCarthy, Director - Investor Relations
(978) 262-2459
michael.mccarthy@brooks.com
