Exhibit 99.1
Brooks Automation Reports Results for Fiscal 2004 Second Quarter Ended
March 31, 2004
Record bookings, revenues and earnings for the quarter exceed guidance
CHELMSFORD, Mass., April 22 /PRNewswire-FirstCall/ -- Brooks Automation,
Inc. (Nasdaq: BRKS), which delivers hardware and software systems that enable
semiconductor and other complex industries to improve manufacturing
efficiencies, today announced results for its fiscal second quarter ended
March 31, 2004.
Revenues for the second quarter 2004 were $138.0 million, a 67 percent
sequential increase from the preceding quarter revenues of $82.5 million, and
a 48 percent increase from the second quarter 2003 revenues of $93.0 million.
Bookings for the quarter increased to $152.7 million, a sequential increase of
20 percent from the preceding quarter bookings of $127.0 million, and an
increase of 78 percent over the second quarter 2003 bookings of $85.7 million.
The net income for the second quarter 2004 on a GAAP ("Generally Accepted
Accounting Principles") basis was $6.9 million, or $0.15 per diluted share,
compared to a net loss of $8.9 million, or $0.23 loss per share in the
immediately preceding quarter, and a net loss in the second quarter 2003 of
$28.8 million or $0.79 loss per share. Included in GAAP net income were
restructuring charges totaling $2.2 million, amortization of acquired
intangibles totaling $0.9 million and deferred compensation of $0.8 million.
These charges negatively impacted earnings by $0.09 per share.
"Brooks had a record-breaking fiscal second quarter," said Robert J.
Therrien, chairman and chief executive officer of Brooks Automation. "Our
ability to execute our disciplined growth strategy along with the pace of the
industry recovery in semiconductor capital equipment spending resulted in
bookings, revenues and profitability that exceeded our guidance for the
quarter. The December quarter's bookings of $127 million were the most for
any quarter in company history, and we surpassed that level by another 20
percent in the March quarter with $152.7 million in bookings. Revenues
reached a new quarterly record of $138.0 million. This 67 percent sequential
growth included revenues of approximately $17 million from the completion and
resulting revenue recognition of a large software contract, whose impact was
included in the revenue guidance for the quarter. Even without this large
contract, the underlying business grew by 47 percent in the quarter and was
$13 million above the high end of our guidance. Our OEM business was a major
contributor to the growth in revenues for the quarter, increasing by 74
percent over the preceding quarter fueled by a broad-based industry increase
in customer demand and market share gains. Our software business grew
strongly quarter over quarter, benefiting from the completion of the large
300mm software project in Europe previously mentioned. On the factory
hardware side of the business, we have a number of projects being installed
and prepared for acceptance at customer sites. At the beginning of April,
Gartner Dataquest released their annual survey of market share for calendar
2003 and Brooks was reported to be the world's largest automation company in
the semiconductor industry for the third consecutive year. We have seen
calendar 2004 get off to an outstanding start."
Edward C. Grady, president and chief operating officer, said "Our
worldwide hardware production increased substantially over the preceding
quarter shipments, a testament to the outstanding performance of our global
operations team's ability to ramp our factory production. I believe the
market is rewarding us for our commitment to manufacturing excellence, a core
competency which we have never surrendered. In this supply-constrained
environment, customers put a premium on companies which can deliver quality
products on time. This ability to meet the market demand has turned into a
major competitive advantage for Brooks. We are winning significant
incremental business from both OEM and fab customers. Although we still have
room for improvement, our efforts over the past year to restructure our fixed
and variable costs are beginning to result in strong earnings leverage."
Mr. Therrien commented on Brooks' financial performance and provided
guidance on the business outlook. "Our net income on a GAAP basis was $0.15
per diluted share compared to guidance of $0.01 to $0.05 per diluted share at
the start of the quarter. Income from operations on a non-GAAP basis was
$0.24 per diluted share, far better than our guidance of $0.10 to $0.15 at the
start of the quarter. Operating expenses on a non-GAAP basis for the quarter
were within our guidance at $37.3 million. Gross margin was 37 percent, also
within our guidance. The stage is now set for improved performance, as both
the industry fundamentals and our operating platform strengthen. We expect
gross margin to improve approximately one to two percent in the June quarter.
Revenues for the June quarter are expected to be in a range of $140 to $150
million. Our earnings per share is expected to be in the range of $0.20 to
$0.25 per diluted share on a GAAP basis. This guidance is inclusive of about
$0.04 per share of restructuring and amortization expenses. Quoting activity
for new fab opportunities is at the highest level in two years, but being
timing-dependent, may translate into increased bookings over the next two
quarters. Our commitment to building shareholder value in this and subsequent
investment cycles is our first priority. We are proud of our workforce and
our management team and I would like to thank them for their hard work and
dedication during the challenging times of the past two and a half years. The
resiliency and focus of our people played a critical role in restoring
profitable operations."
As in previous earnings reports, the GAAP and non-GAAP operating results
showing the adjustments for the quarter are reconciled in the attached
exhibits.
Q2 Fiscal 2004 Highlights
* Ranked by Gartner Dataquest as the world's largest semiconductor
automation company in calendar year 2003.
* OEM business achieved second consecutive quarter of record quarterly
bookings.
* Factory hardware business achieved record bookings in the quarter.
* Factory shipments of manufactured hardware products increased
approximately 83 percent over the preceding quarter shipments.
* OEM systems revenues increased 170 percent quarter over quarter, driven
by strong demand in semiconductor capital equipment and market share
gains.
* Received 14 new design-in wins during the quarter from OEM customers.
* Booked order for Guardian bare reticle stocker from a major DRAM
manufacturer in Korea. This customer is the 3rd 300mm fab since the
start of fiscal year 2004 to order a lithography automation solution
from Brooks.
* Booked multi-million dollar expansion for AMHS from a major fab in
China.
* Selected by a major fab in China for a significant 200mm SMIF expansion,
displacing the incumbent supplier.
* Received acceptance of the initial pilot line implementation of the
OneFab(TM) AMHS at a 300mm North American DRAM fab.
* Completed the implementation of a large software automation system at a
300mm fab in Europe, resulting in revenues of approximately $14 million
consisting of software licenses and services plus additional $3 million
in reimbursable expenses.
* Booked multi-million dollar order for factory software, including the
manufacturing execution system (MES), real time dispatching, and
material control system (MCS), from a major DRAM manufacturer in Korea
for its second 300mm production fab.
* Booked multi-million dollar order from a Taiwanese flat panel display
(FPD) manufacturer for LCDworks, Brooks' MES for FPD manufacturing.
* Booked order from ProMOS Technologies, a top DRAM manufacturer in
Taiwan, for the implementation of Activity Manager in its 300mm fab.
Brooks will act as the prime contractor for the implementation and
integration of the full automation solution. Activity Manager is an
important new software product that automates the job and exception
management across a fab's automation systems.
* Received acceptance of Activity Manager from a 300mm North American DRAM
fab.
* Selected by a major foundry in Asia to provide computer integrated
manufacturing (CIM) software for its new 300mm fab.
* Selected by a major FPD manufacturer in Korea to provide the next
generation adaptive MES software to automate its leading edge LCD Gen 7
fab.
* Selected by a major semiconductor manufacturer in China to provide MES
software for its first 300mm fab.
Conference Call and Webcast
Brooks Automation will host a conference call on Thursday, April 22, 2004
at 5:00 PM Eastern to review its fiscal second quarter results. On the call,
management will discuss the information contained in this announcement and
answer related questions.
Conference Call Date: Thursday, April 22, 2004
Time: 5:00 p.m. Eastern
4:00 p.m. Central
3:00 p.m. Mountain
2:00 p.m. Pacific
Dial in #: (719) 457-2638
Passcode: 209524
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 2004 Second Quarter Earnings Webcast". A telephone replay will also be
made available following the call at the following number: (719) 457-0820
beginning @ 9:00 p.m. Thursday, April 22, 2004, and available 7 days. The
passcode for the replay is 209524.
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
customers 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 as well as by many customers in industries outside of semiconductor
manufacturing. For more information, visit http://www.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 revenue and profit and loss expectations, our
future business strategy and market opportunities, the quality and
effectiveness of our manufacturing processes, continuing improvements in our
ability to manage expenses and to meet customer expectations and demand, level
of capital expenditures and bookings expectations in the semiconductor
industry, demand for our products, and the outlook of the general economy and
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 future downturns in market demand
for electronics; the possibility that the upturn in market demand for
electronics will not be sustained; 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 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 and expense control measures; intense price
competition; possible disputes concerning intellectual property; continuing
uncertainties in global political and economic conditions, especially arising
out of conflict in the Middle East; 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 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.
All trademarks contained herein are the property of their respective
owners.
Contact:
Mark Chung
Director of Investor Relations
Brooks Automation, Inc.
Telephone: (978) 262-2459
mark.chung@brooks.com
BROOKS AUTOMATION, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, September 30,
2004 2003
ASSETS
Cash, cash equivalents and marketable
securities $199,817 $129,480
Accounts receivable, net 103,379 69,374
Inventories 80,447 53,212
Other current assets 10,802 17,946
Total current assets 394,445 270,012
Property, plant and equipment, net 60,587 64,825
Long-term marketable securities 109,991 69,108
Intangible assets, net 78,578 79,550
Other assets 9,384 9,206
Total assets $652,985 $492,701
LIABILITIES, MINORITY INTERESTS AND
STOCKHOLDERS' EQUITY
Current liabilities $164,976 $134,857
Convertible subordinated notes 175,000 175,000
Other long-term liabilities 18,699 19,851
Total liabilities 358,675 329,708
Minority interests 956 707
Stockholders' equity 293,354 162,286
Total liabilities,
minority interests and
stockholders' equity $652,985 $492,701
Cash, cash equivalents, short-
term and long-term marketable
securities
March 31, 2004 $309,808
December 31, 2003 $312,680
September 30, 2003 $198,588
June 30, 2003 $209,646
March 31, 2003 $212,933
BROOKS AUTOMATION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three months ended Six months ended
March 31, March 31,
2004 2003 2004 2003
Revenues $137,984 $92,964 $220,530 $177,819
Cost of revenues 87,074 68,312 139,375 128,793
Gross profit 50,910 24,652 81,155 49,026
Operating expenses:
Research and development 16,634 19,754 32,702 39,428
Selling, general and
administrative 21,469 23,022 41,236 57,128
Acquisition-related and
restructuring charges 2,168 4,728 2,168 25,824
40,271 47,504 76,106 122,380
Income (loss) from operations
before amortization of
acquired intangible assets 10,639 (22,852) 5,049 (73,354)
Amortization of acquired
intangible assets 939 941 1,882 2,988
Income (loss) from operations 9,700 (23,793) 3,167 (76,342)
Interest expense, net 1,083 1,529 2,516 2,349
Other (income) expense, net (469) 3,323 (511) 16,035
Income (loss) before income taxes
and minority interests 9,086 (28,645) 1,162 (94,726)
Income tax provision 1,829 53 2,842 4,868
Income (loss) before minority
interests 7,257 (28,698) (1,680) (99,594)
Minority interests in earnings of
consolidated subsidiary 317 103 249 193
Net income (loss) $6,940 $(28,801) $(1,929) $(99,787)
Income (loss) per share:
Basic $0.16 $(0.79) $(0.05) $(2.73)
Diluted $0.15 $(0.79) $(0.05) $(2.73)
Shares used in computing income
(loss) per share:
Basic 44,412 36,682 41,417 36,521
Diluted 44,995 36,682 41,417 36,521
Pro Forma Net Income (loss) Before Amortization of Acquired Intangible
Assets and Other Acquisition and Disposition Related Charges
Net income (loss) before
amortization of acquired
intangible assets
and other acquisition and
disposition related charges,
net of taxes $10,829 $(12,652) $3,861 $(36,684)
Income (loss) per share before
amortization of acquired
intangible
assets and other acquisition and
disposition related
charges, net of taxes
Basic $0.24 $(0.34) $0.09 $(1.00)
Diluted $0.24 $(0.34) $0.09 $(1.00)
Shares used in computing income
(loss) per share before
amortization
of acquired intangible assets and
other acquisition and
disposition related charges, net
of taxes
Basic 44,412 36,682 41,417 36,521
Diluted 44,995 36,682 42,036 36,521
BROOKS AUTOMATION, INC.
CALCULATION OF PRO FORMA NET INCOME
BEFORE AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS
AND OTHER ACQUISITION AND DISPOSITION RELATED CHARGES
FOR THE THREE MONTHS ENDED MARCH 31, 2004
(in thousands, except per share data)
U.S. GAAP Adjustments Pro Forma
Revenues $137,984 $- $137,984
Cost of revenues 87,074 - 87,074
Gross profit 50,910 - 50,910
Operating expenses:
Research and development 16,634 10 (A) 16,624
Selling, general and administrative 21,469 772 (B) 20,697
Acquisition-related and
restructuring charges 2,168 2,168 -
40,271 2,950 37,321
Income from operations before
amortization of
acquired intangible assets 10,639 (2,950) 13,589
Amortization of acquired intangible
assets 939 939 -
Income from operations 9,700 (3,889) 13,589
Interest expense, net 1,083 - 1,083
Other income, net (469) - (469)
Income before income taxes and
minority interests 9,086 (3,889) 12,975
Income tax provision 1,829 - 1,829
Income before minority interests 7,257 (3,889) 11,146
Minority interests in earnings of
consolidated subsidiary 317 - 317
Net income $6,940 $(3,889) $10,829
Income per share:
Basic $0.16 $0.24
Diluted $0.15 $0.24
Shares used in computing income per
share:
Basic 44,412 44,412
Diluted 44,995 44,995
Adjustments include amortization of
acquired intangible assets and other
acquisition and disposition related
charges.
(A) Comprised of:
Deferred compensation expense
- IAS $10
$10
(B) Comprised of:
Deferred compensation expense
- IAS $772
$772
BROOKS AUTOMATION, INC.
CALCULATION OF PRO FORMA NET INCOME
BEFORE AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS
AND OTHER ACQUISITION AND DISPOSITION RELATED CHARGES
FOR THE SIX MONTHS ENDED MARCH 31, 2004
(in thousands, except per share data)
U.S. GAAP Adjustments Pro Forma
Revenues $220,530 $- $220,530
Cost of revenues 139,375 237 (A) 139,138
Gross profit 81,155 (237) 81,392
Operating expenses:
Research and development 32,702 229 (B) 32,473
Selling, general and administrative 41,236 1,274 (C) 39,962
Acquisition-related and
restructuring charges 2,168 2,168 -
76,106 3,671 72,435
Income from operations before
amortization of
acquired intangible assets 5,049 (3,908) 8,957
Amortization of acquired intangible
assets 1,882 1,882 -
Income from operations 3,167 (5,790) 8,957
Interest expense, net 2,516 - 2,516
Other income, net (511) - (511)
Income before income taxes and
minority interests 1,162 (5,790) 6,952
Income tax provision 2,842 - 2,842
Income (loss) before minority
interests (1,680) (5,790) 4,110
Minority interests in earnings of
consolidated subsidiary 249 - 249
Net income (loss) $(1,929) $(5,790) $3,861
Income (loss) per share:
Basic $(0.05) $0.09
Diluted $(0.05) $0.09
Shares used in computing income
(loss) per share:
Basic 41,417 41,417
Diluted 41,417 42,036
Adjustments include amortization of
acquired intangible assets and other
acquisition and disposition related
charges.
(A) Comprised of:
Deferred compensation expense
- PRI $237
$237
(B) Comprised of:
Deferred compensation expense
- PRI $208
Deferred compensation expense
- IAS 21
$229
(C) Comprised of:
Deferred compensation expense
- IAS $772
Deferred compensation expense
- PRI 502
$1,274
SOURCE Brooks Automation, Inc.
-0- 04/22/2004
/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
IN: STW HRD SEM
SU: ERN CCA MAV