Exhibit 99.1
Brooks Automation Reports Results for Fiscal 3rd Quarter Ended June 30, 2003
CHELMSFORD, Mass., July 23 /PRNewswire-FirstCall/ -- Brooks Automation,
Inc. (Nasdaq: BRKS), which delivers total automation for semiconductor
manufacturing and other industries, today announced results for the fiscal
third quarter ended June 30, 2003.
Revenues for the third quarter were $84.0 million, a 9.6 percent
sequential decline from the preceding quarter revenues of $92.9 million.
Bookings for the quarter were $73.4 million, a sequential decline of 14.4
percent from the preceding quarter bookings of $85.7 million. The company had
estimated in its second quarter earnings report on April, 24, 2003 that in the
third quarter both revenues and bookings would decline in the range of 10 to
15 percent from second quarter results.
The net loss for the third quarter on a GAAP ("Generally Accepted
Accounting Principles") basis was $36.4 million, or $0.99 per share, compared
to a net loss on the same basis of $28.8 million, or $0.79 per share in the
immediately preceding quarter. The GAAP loss included a restructuring charge
of $20.7 million consisting of previously anticipated items of $7.0 million
for severance and $3.2 million for divestiture of the company's Swiss
subsidiary as well as an additional charge of $10.5 million taken after re-
evaluation of lease obligations.
The net loss for the third quarter on a "pro forma" basis, defined as net
loss before amortization of acquired intangible assets and other acquisition
and disposition related charges, net of income taxes, was $10.9 million or
$0.29 per share, compared to the preceding quarter pro forma loss of $12.7
million or $0.34 per share, and better than the guidance of $0.35 to $0.40
loss per share. It has been the practice of Brooks and of many other
companies as well to report pro forma financial results since management
believes that presenting the operating results before taking into account such
charges provides useful information to aid in understanding ongoing, recurring
operations. As in previous earnings reports, a reconciliation of GAAP to pro
forma losses for the quarter is included in the attached exhibits.
The net cash balance at the end of the third quarter was $209.6 million,
including cash, cash equivalents, short-term and long-term marketable
securities, compared to a balance of $212.9 million in the immediately
preceding quarter.
Robert J. Therrien, chairman and chief executive officer of Brooks
Automation, said: "The company continued to make good progress during the June
quarter in achieving near term objectives for restructuring and managing the
cash flow. 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. The decline in the
company's cash for the quarter was only $3 million despite significant cash
expenditures of $11 million related to restructuring and $4 million for a
semi-annual interest payment. We were able to achieve this by continuing to
focus on reducing our working capital. Since finishing the December 2002
quarter with a cash balance of $215 million, the decline in cash for the March
and June quarters combined was less than $6 million. We will complete
essentially all the workforce reductions as well as the facilities
consolidations by the end of the September quarter, leaving us with fewer than
2,000 employees worldwide and 3 main manufacturing sites -- down from 3,300
employees and 14 sites one year ago -- as we drive towards our goal of
reaching operating profitability by the end of the calendar year. We continue
to leverage our world class manufacturing capability as a competitive
advantage for the company. As a result, Brooks has successfully positioned
itself as a leading provider of systems and custom manufacturing for its OEM
customers, who are increasingly outsourcing their automation."
Mr. Therrien reviewed some of the highlights of the third quarter:
"Brooks introduced a number of new and enhanced products at SEMICON West
earlier this month, including the OneFab(TM) AMHS (automated material handling
system). We believe this new system is the most advanced fourth generation
AMHS available today and when combined with industry-leading factory
management and logistics software from Brooks, provides the most complete and
robust factory automation solution for 300mm semiconductor manufacturers. The
introduction of OneFab significantly improves Brooks' competitive position in
several AMHS opportunities in the second half of this year. We hope to
sustain the momentum from the excitement and interest generated by the recent
launches of products such as the OneFab AMHS, the new iReticles(TM) software
for managing critical reticle data, the enhanced equipment front end module
FabExpress(TM) with high throughput 5-axis robot and industry-leading
FixLoad(TM) loadport, the Particle Detection System for 100 percent inspection
of reticles, the CleanFlow(TM) fan filter unit for mini-environments and a
number of other offerings. The new flow of products and technology is
essential for the company to maintain its number one position in semiconductor
automation, as most recently reported by Dataquest in April 2003."
Mr. Therrien commented on Brooks' business environment. "Even though
visibility is still limited, we have reason to believe that bookings have
bottomed in the June quarter and are likely to increase by as much as 10 to 15
percent in the next quarter as a number of semiconductor fabs begin investing
in capital equipment. We expect revenues for the September quarter to be down
3 to 5 percent sequentially from the June quarter based on the lower bookings
number in the preceding quarter. The GAAP loss for the September quarter is
estimated to be in the range of $0.45 to $0.50 per share and pro forma loss to
be in a range of $0.24 to $0.29 per share. While there are signs of a
recovery for the semiconductor device sector in the second half of the year,
capital equipment spending will likely lag the chip recovery and therefore we
remain conservative in our planning and are staying focused on improving the
operating leverage of the company and managing our cash for the next quarter."
Q3 Fiscal 2003 Highlights
-- Announced strategic alliance with Angstron Systems, Inc., a Santa Clara
based start up company, to provide Brooks' vacuum tool system, the
Gemini Express (GX) cluster tool platform, for Angstron's advanced ALD
(atomic layer deposition) tool, the ATOMOS(TM).
-- Announced Philips Advanced Metrology Systems, Inc., the metrology
business unit of Royal Philips Electronics has purchased Brooks'
atmospheric tool system, the integrated EFEM (equipment front-end
module) and mini-environment system for Philips' advanced copper
metrology tool, the Series 3300.
-- Selected by a major Japanese semiconductor manufacturer to provide the
FACTORYworks(TM) manufacturing execution system for its fab.
-- Captured 12 new design-in wins for the quarter, of which 6 were for
systems.
-- Participated in SEMICON West from July 14-16, 2003, hosting a
presentation for investors during the show on July 15. Introduced a
number of new and enhanced products, highlighted by the unique
OneFab(TM) AMHS, the industry's only fourth generation automated
material handling system for 300mm semiconductor factory automation.
-- Hosted the annual Analyst Day for financial analysts and shareholders
on May 21, 2003, in Chelmsford, Massachusetts.
Conference Call
Brooks Automation will host a conference call on Thursday, July 24 at 9:00
AM Eastern to review its fiscal third-quarter results. On the call,
management will discuss the information contained in this announcement and
answer related questions.
Date: Thursday, July 24, 2003
Time: 9:00 a.m. Eastern, 8:00 a.m. Central, 7:00 a.m. Mountain,
6:00 a.m. Pacific
Dial In #: (719) 457-2646
Passcode: 257426
Replay: (719) 457-0820 (beginning @ 2:00 p.m. Thursday, July 24, 2003)
available 7 days
Passcode: 257426
This call will also be Webcast live, and can be accessed through the
Brooks investor relations web page at http://investor.brooks.com. Click on
the link, Webcasts, and then the link for "Brooks Automation Fiscal 2003 Third
Quarter Earnings Webcast".
An archive of this Webcast will be made available following the conference
call, and can be accessed for at least the next twelve months on the section
for Webcasts at http://investor.brooks.com under the title "Brooks Automation
Fiscal 2003 Third Quarter Earnings Webcast".
Pro Forma Results
In addition to disclosing results that are determined in accordance with
Generally Accepted Accounting Principles (GAAP), Brooks also discloses pro
forma, or "non-GAAP", results of operations. These pro forma results are
comprised of net income or net loss before the amortization of acquired
intangible assets and other acquisition and disposition related charges, net
of income taxes. Pro forma results are provided as a complement to the
results provided in accordance with GAAP on the basis of management's belief
that presenting the Company's operating results before taking such charges
into account provides useful information to aid in understanding ongoing,
recurring operations.
About Brooks Automation, Inc.
Brooks Automation (Nasdaq: BRKS) is a leading worldwide provider of
automation solutions to the global semiconductor and related industries. The
company's factory and tool automation hardware, software and professional
services can manage every wafer, reticle and data movement in the fab, helping
semiconductor chip manufacturers improve throughput and yield while reducing
both cost and time to market. Brooks products and services are used in
virtually every fab in the world. For more information, visit
http://www.brooks.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995:
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 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 revenue and profit and loss expectations, future
level and sufficiency of our cash position, our future business strategy and
market opportunities, improvements in our business, our restructuring and cost
reduction activities, our integration of acquired businesses, demand for our
products, bookings, backlog and design-ins and the general economic outlook.
Factors that could cause results to differ from our expectations include the
following: our dependence on the cyclical semiconductor industry; the
possibility of further or future downturns in market demand for electronics
(including especially the market for semiconductor products); further downturn
in the economy of the United States and other countries brought about by the
war in the Iraq or political tensions arising between Western nations and
North Korea; the highly competitive nature and rapid technological change that
characterizes the industries in which we compete; decisions by customers to
cancel or defer orders that previously had been accepted; the fact that
certain of the company's orders are non-binding; the timing and effectiveness
of restructuring, cost-cutting and expense control measures, including
activities such as facility consolidations and staffing reductions; the
possibility of intense price competition and the possible resulting need to
lower our prices to our customers and thereby possibly our revenue; the effect
of being required to account for stock options as an expense; our ability to
manage the effects of past or future acquisitions or divestitures, including
the need to integrate acquired businesses successfully; our ability to
protect our intellectual property; the possibility that the value of certain
acquired assets or businesses may have to be written down in light of
prevailing market conditions; the impact of the outbreak of SARS in various
parts of the world; and other factors and other risks that we have described
in our filings with the Securities and Exchange Commission, including but not
limited to Brooks' Annual Report on Form 10-K and our quarterly reports on
Form 10-Q. As a result there can be 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.
All trademarks contained herein are the property of their respective
owners.
BROOKS AUTOMATION, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, September 30,
2003 2002
(unaudited)
ASSETS
Cash, cash equivalents and marketable
securities $139,790 $150,650
Accounts receivable, net 67,477 89,150
Inventories 58,179 78,193
Other current assets 14,657 15,560
Total current assets 280,103 333,553
Property, plant and equipment, net 67,696 84,792
Long-term marketable securities 69,856 95,087
Intangible assets, net 120,268 118,804
Other assets 9,793 25,261
Total assets $547,716 $657,497
LIABILITIES, MINORITY INTERESTS AND
STOCKHOLDERS' EQUITY
Current liabilities $142,624 $157,215
Convertible subordinated notes 175,000 175,000
Other long-term liabilities 23,229 16,554
Total liabilities 340,853 348,769
Minority interests 704 493
Stockholders' equity 206,159 308,235
Total liabilities,
minority interests and
stockholders' equity $547,716 $657,497
Cash, cash equivalents, short-
term and long-term marketable
securities
June 30, 2003 $209,646
March 31, 2003 $212,933
December 31, 2002 $214,973
September 30, 2002 $245,737
June 30, 2002 $286,721
BROOKS AUTOMATION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three months ended Nine months ended
June 30, June 30,
2003 2002 2003 2002
Revenues $84,045 $85,762 $261,864 $201,068
Cost of revenues 56,451 59,090 185,244 134,704
Gross profit 27,594 26,672 76,620 66,364
Operating expenses:
Research and development 18,103 20,679 57,531 50,254
Selling, general and
administrative 21,697 28,244 78,825 66,228
Acquisition-related and
restructuring charges 20,742 10,817 46,566 10,926
60,542 59,740 182,922 127,408
Loss from operations before
amortization of
acquired intangible assets (32,948) (33,068) (106,302) (61,044)
Amortization of acquired
intangible assets 940 5,522 3,928 11,711
Loss from operations (33,888) (38,590) (110,230) (72,755)
Interest (income) expense, net 1,758 184 4,107 2
Other (income) expense, net 754 (400) 16,789 (1,045)
Loss before income taxes and
minority interests (36,400) (38,374) (131,126) (71,712)
Income tax provision (benefit) 16 (14,207) 4,884 (24,964)
Loss before minority interests (36,416) (24,167) (136,010) (46,748)
Minority interests in earnings
(loss) of consolidated
subsidiary 18 30 211 (90)
Net loss attributable to common
stockholders $(36,434) $(24,197) $(136,221) $(46,658)
Loss per share attributable to
common stockholders:
Basic $(0.99) $(0.89) $(3.72) $(2.08)
Diluted $(0.99) $(0.89) $(3.72) $(2.08)
Shares used in computing loss per
share attributable
to common stockholders:
Basic 36,873 27,341 36,638 22,448
Diluted 36,873 27,341 36,638 22,448
Pro Forma Net Loss Before Amortization of Acquired Intangible Assets
and Other Acquisition and Disposition Related Charges
Net loss attributable to common
stockholders
before amortization of
acquired intangible assets
and other acquisition and
disposition related charges,
net of taxes $(10,861) $(12,282) $(47,545) $(29,195)
Net loss attributable to common
stockholders
before amortization of
acquired intangible assets
and other acquisition and
disposition related charges,
net of taxes, assuming
dilution $(10,861) $(12,282) $(47,545) $(29,195)
Loss per share attributable to
common
stockholders before
amortization of acquired
intangible
assets and other acquisition
and disposition related
charges, net of taxes
Basic $(0.29) $(0.45) $(1.30) $(1.30)
Diluted $(0.29) $(0.45) $(1.30) $(1.30)
Shares used in computing loss
per share
attributable to common
stockholders before
amortization
of acquired intangible assets
and other acquisition and
disposition related charges,
net of taxes
Basic 36,873 27,341 36,638 22,448
Diluted 36,873 27,341 36,638 22,448
BROOKS AUTOMATION, INC.
CALCULATION OF PRO FORMA NET LOSS
BEFORE AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS
AND OTHER ACQUISITION AND DISPOSITION RELATED CHARGES
FOR THE THREE MONTHS ENDED JUNE 30, 2003
(in thousands, except per share data)
(unaudited)
U.S. GAAP Adjustments Pro Forma
Revenues $84,045 $- $84,045
Cost of revenues 56,451 1,057 (A) 55,394
Gross profit 27,594 (1,057) 28,651
Operating expenses:
Research and development 18,103 1,005 (B) 17,098
Selling, general and administrative 21,697 1,829 (C) 19,868
Acquisition-related and
restructuring charges 20,742 20,742 -
60,542 23,576 36,966
Loss from operations before
amortization of
acquired intangible assets (32,948) (24,633) (8,315)
Amortization of acquired intangible
assets 940 940 -
Loss from operations (33,888) (25,573) (8,315)
Interest (income) expense, net 1,758 - 1,758
Other (income) expense, net 754 - 754
Loss before income taxes and minority
interests (36,400) (25,573) (10,827)
Income tax provision (benefit) 16 - 16
Loss before minority interests (36,416) (25,573) (10,843)
Minority interests in earnings (loss)
of consolidated subsidiary 18 - 18
Net loss attributable to common
stockholders $(36,434) $(25,573) $(10,861)
Loss per share attributable to common
stockholders:
Basic $(0.99) $(0.29)
Diluted $(0.99) $(0.29)
Shares used in computing loss per
share attributable
to common stockholders:
Basic 36,873 36,873
Diluted 36,873 36,873
Adjustments include amortization of
acquired intangible assets and other
acquisition and disposition related
charges.
(A) Comprised of:
Deferred compensation expense
- IAS $194
Deferred compensation expense
- PRI 863
$1,057
(B) Comprised of:
Deferred compensation expense
- PRI $759
Deferred compensation expense
- KLA 246
$1,005
(C) Comprised of:
Deferred compensation expense
- PRI $1,829
$1,829
Contact:
Mark Chung
Director of Investor Relations
Brooks Automation, Inc.
Telephone: (978) 262-2459
mark.chung@brooks.com
SOURCE Brooks Automation, Inc.
-0- 07/23/2003
/CONTACT: Mark Chung, Director of Investor Relations of Brooks Automation,
Inc., +1-978-262-2459, mark.chung@brooks.com/
/Web site: http://www.brooks.com /
(BRKS)
CO: Brooks Automation, Inc.
ST: Massachusetts, Canada
IN: CPR SEM
SU: ERN CCA