Exhibit 99.1
For Further Information: Michael W. McCarthy Director – Investor Relations Office: (978) 262-2459 michael.mccarthy@brooks.com |
Press Release
For Immediate Release
August 7, 2008
August 7, 2008
Brooks Automation Reports Third Quarter Financial Results
Chelmsford, Massachusetts August 7, 2008 — 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.
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Brooks Automation, Inc. u15 Elizabeth DriveuChelmsford, Massachusetts 01824u(978)262-2400u www.brooks.com.
Brooks Reports Third Quarter Financial Results | page two |
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 atwww.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.
# # #
Brooks Automation, Inc. u15 Elizabeth DriveuChelmsford, Massachusetts 01824u(978)262-2400u www.brooks.com.
Brooks Reports Third Quarter Financial Results | page three |
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 seewww.brooks.com or emailco.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.
08-17
Brooks Automation, Inc. u15 Elizabeth DriveuChelmsford, Massachusetts 01824u(978)262-2400u www.brooks.com.
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
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. u15 Elizabeth DriveuChelmsford, Massachusetts 01824u(978)262-2400u www.brooks.com.
BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
June 30, | September 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. u15 Elizabeth DriveuChelmsford, Massachusetts 01824u(978)262-2400u www.brooks.com.
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
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.t 15 Elizabeth Drivet Chelmsford, Massachusetts 01824t (978)262-2400 twww.brooks.com.
BROOKS AUTOMATION, INC.
Supplemental Information
(unaudited)
(In thousands, except per share data)
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 operations | $ | (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 | ) | ||||||||||||||||
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 | ) | ||||||||||
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 | ||||||||||
Brooks Automation, Inc.t 15 Elizabeth Drivet Chelmsford, Massachusetts 01824t (978)262-2400 twww.brooks.com.