EXHIBIT 99.1
CONTACT:
Mark Chung
Director of Investor Relations
Brooks Automation, Inc.
(978) 262-2459
MARK.CHUNG@BROOKS.COM
BROOKS AUTOMATION REPORTS FISCAL 2003 SECOND QUARTER RESULTS
CHELMSFORD, MASS. -- APRIL 23, 2003 -- Brooks Automation, Inc. (NASDAQ: BRKS),
which delivers total automation for semiconductor manufacturing, today announced
financial results for its fiscal second quarter ended March 31, 2003.
Revenues for the quarter were $92.9 million, a sequential increase of 9.6
percent over the preceding quarter revenues of $84.9 million. Bookings for the
second quarter were $85.7 million, a sequential increase of 5.7 percent over the
preceding quarter bookings of $81.0 million.
The net loss for the quarter on a GAAP ("Generally Accepted Accounting
Principles") basis was $28.8 million, or $0.79 per share, compared to a net
loss on the same basis of $71.0 million, or $1.95 per share, in the immediately
preceding quarter.
It has been the practice of the Company and of many other companies as well to
report "pro forma" financial results, defined as net income or loss before
amortization of acquired intangible assets and other acquisition and disposition
related charges, net of income taxes. Management believes that presenting the
Company's operating results before taking into account such charges provides
useful information to aid in understanding ongoing, recurring operations. The
pro forma net loss for the quarter was $12.7 million, or a loss of $0.34 per
share compared to a pro forma loss in the immediately preceding quarter of $24.0
million, or $0.66 per share. As in previous earnings reports, a reconciliation
of GAAP to pro forma earnings for the quarter is included in the attached
exhibits.
Robert J. Therrien, chairman and chief executive officer of Brooks Automation,
said: "As we said in our previous quarter's comments, the fundamental focus for
all of us at Brooks is on reducing our cost structure, managing the cash flow
and gaining market share for the Company. I am pleased with the progress the
Company is making against these metrics. During the quarter we were able to
manage our working capital and cash flow so that our net cash burn for the
quarter was approximately $2 million, leaving us with a balance of $213 million
of cash, cash equivalents and marketable securities at the end of March. Both
revenues and bookings grew in the March quarter even while the industry showed
signs of weakening, an indication that we continued to strengthen our market
share. We were able to win a number of significant new business opportunities
from fab customers during the quarter, notably new software orders from two new
300mm fabs in Asia, an expansion of an existing automated material handling
system for a top tier semiconductor manufacturer and an order for the expansion
of a 200mm SMIF fab in Asia. During the quarter
our OEM business had strong growth over the preceding quarter, a direct result
of ongoing relationships with top tier equipment suppliers and the record number
of new design wins in the past year. The revenues coming from 300mm were $31.4
million, an increase of approximately $2 million from the prior quarter. Our
ability as the industry's largest provider of automation to serve a broad base
of customers with the industry's most diversified product portfolio has enabled
us to weather some of the severe fluctuations of our industry."
Mr. Therrien provided an update of the Company's restructuring initiatives. "I
have been committed to putting an industry-leading senior management team in
place and I'm pleased to report that this has been done. During the quarter, the
Company announced the hiring of Ed Grady as chief operating officer, Bob
Woodbury as chief financial officer and Joe Bellini as senior vice-president of
the software systems group. Their operational experience and skill are critical
to the execution of our strategy. In addition, the Company hired Tom Grilk at
the end of last year as general counsel to lead our efforts in the area of
corporate governance. As a company, Brooks is on track to complete the
consolidation of its facilities as outlined in the past. We expect that the
actions we have taken this quarter will allow us to realize a benefit of
approximately $3 to $4 million in the June quarter. There is still some work
left to do and we anticipate approximately $10 to $12 million in additional
restructuring charges for the June quarter, but we continue to make good
progress on all fronts."
In discussing the outlook for the third fiscal quarter that ends on June 30,
2003, Mr. Therrien said, "The two biggest issues we are facing in our industry
at the present time are excess capacity, which cannot be absorbed overnight, and
sluggish spending on information technology (IT). Although the lack of
visibility in our industry makes forecasting difficult, the excess capacity
issue and the cautious end market spending environment would suggest lower capex
spending in the June quarter. As a result, we estimate both bookings and
revenues for the June quarter to be down approximately 10 to 15 percent from the
March quarter. We want to maintain a net cash balance above $200 million for the
June quarter. The GAAP earnings for the June quarter is estimated to be in the
range of $0.75 to $0.80 loss per share and pro forma earnings to be in a range
of $0.35 to $0.40 loss per share. We believe Brooks is favorably positioned to
withstand the short term business challenges we confront while providing a
strong platform for revenue growth and operating leverage for the next upturn."
Q2 FISCAL 2003 HIGHLIGHTS
- Announced that shareholders had approved the name change back to
Brooks Automation, Inc. from Brooks-PRI Automation, Inc. at the
annual shareholders' meeting on February 26, 2003.
- Maintained the #1 worldwide position in manufacturing automation and
control for calendar year 2002, and the #11 rank overall for
semiconductor front end capital equipment suppliers, in the results
of the Dataquest industry survey released in April 2003. Brooks
finished as the top company in both the fab automation and tool
automation hardware categories. Brooks was the top company as well
for the category of fab software, excluding systems integration
services.
- Won new software orders from a 300mm DRAM customer in Korea and a
joint venture foundry in Singapore for factory automation software
products such as manufacturing execution systems (MES), real time
dispatching and scheduling, and material control system.
- Won a large order for the expansion of an automated material
handling system from a major semiconductor manufacturer.
- Shipped 300mm wafer stockers for wafer storage and retrieval to a
European wafer manufacturer.
- Won a multi-million dollar order for a 200mm SMIF expansion in Asia.
- Installed bare reticle stockers for lithography automation at
customers in Japan, Taiwan and China, while booking new orders from
fabs in Korea, North America and Europe.
- Completed "The Power to Optimize" seminar series in early March for
Southeast Asia, attracting over 200 attendees.
- Hosted the Asian Users Symposium in Shanghai, China in March.
CONFERENCE CALL
Brooks Automation will host a conference call on Thursday, April 24 at 9:00 am
ET to review its fiscal second-quarter results. On the call, management will
discuss the information contained in this announcement and answer related
questions.
Date: Thursday, April 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) 457-2601
Passcode: 774767
Replay: (719) 457-0820 (beginning @ 2:00 p.m. Thursday, April 24, 2003)
available 7 days
Passcode: 774767
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 Second Quarter 2003 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 Audio Archives
section at http://investor.brooks.com under the title "Brooks Automation Fiscal
2003 Second Quarter Earnings Webcast".
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 optimize 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. These forward-looking statements include statements regarding
our revenue and profit and loss expectations, future cash position, bookings,
semiconductor industry performance, our future business strategy, market share
and other market opportunities, improvements in our business, our site
consolidation, restructuring and cost reduction activities, demand for our
products 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 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 hostilities in the Middle East or political tensions
arising between Western nations and North Korea; the possible impact of the
spread of SARS, especially in Asian nations; 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 many of the company's orders are non-binding; 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, including activities such as facility consolidations; the possibility
of intense price competition and the possible resulting need to lower our prices
to our customers and thereby possibly our revenue; our ability to manage the
effects of past or future acquisitions or divestitures, including the need to
integrate acquired businesses successfully; the possibility that the value of
certain acquired assets or businesses may have to be written down in light of
prevailing market 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 Brooks Automation's 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.
# # #
All trademarks contained herein are the property of their respective owners.
BROOKS AUTOMATION, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, September 30,
2003 2002
---- ----
(unaudited)
ASSETS
Cash, cash equivalents and marketable securities $ 143,947 $ 150,650
Accounts receivable, net 73,167 89,150
Inventories 67,355 78,193
Other current assets 15,310 15,560
--------- ---------
Total current assets 299,779 333,553
Property, plant and equipment
Buildings and land 37,707 37,259
Computer equipment and software 41,585 45,558
Machinery and equipment 18,947 23,658
Furniture and fixtures 10,014 14,706
Leasehold improvements 16,539 25,238
Construction in progress 3,564 13,768
--------- ---------
128,356 160,187
Less: Accumulated depreciation (60,353) (75,395)
--------- ---------
Net property, plant and equipment 68,003 84,792
Long-term marketable securities 68,986 95,087
Intangible assets, net 120,641 118,804
Other assets 10,749 25,261
--------- ---------
Total assets $ 568,158 $ 657,497
========= =========
LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities $ 145,763 $ 157,215
Convertible subordinated notes 175,000 175,000
Other long-term liabilities 16,285 16,554
--------- ---------
Total liabilities 337,048 348,769
Minority interests 686 493
Stockholders' equity 230,424 308,235
--------- ---------
Total liabilities, minority interests and stockholders' equity $ 568,158 $ 657,497
========= =========
====================================================================================
Cash, cash equivalents, short-term and long-term marketable securities
March 31, 2003 $212,933
December 31, 2002 $214,973
September 30, 2002 $245,737
June 30, 2002 $286,721
March 31, 2002 $283,467
BROOKS AUTOMATION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three months ended Six months ended
March 31, March 31,
------------------------- -------------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Revenues $ 92,964 $ 57,124 $ 177,819 $ 115,306
Cost of revenues 68,312 38,273 128,793 75,614
--------- --------- --------- ---------
Gross profit 24,652 18,851 49,026 39,692
--------- --------- --------- ---------
Operating expenses:
Research and development 19,754 15,441 39,428 29,575
Selling, general and administrative 23,022 19,079 57,128 37,984
Acquisition-related and restructuring charges 4,728 9 25,824 109
--------- --------- --------- ---------
47,504 34,529 122,380 67,668
--------- --------- --------- ---------
Income (loss) from operations before amortization of
acquired intangible assets (22,852) (15,678) (73,354) (27,976)
Amortization of acquired intangible assets 941 2,556 2,988 6,189
--------- --------- --------- ---------
Income (loss) from operations (23,793) (18,234) (76,342) (34,165)
Interest (income) expense, net 1,529 64 2,349 (182)
Other (income) expense, net 3,323 (92) 16,035 (645)
--------- --------- --------- ---------
Income (loss) before income taxes and minority interests (28,645) (18,206) (94,726) (33,338)
Income tax provision (benefit) 53 (5,567) 4,868 (10,757)
--------- --------- --------- ---------
Income (loss) before minority interests (28,698) (12,639) (99,594) (22,581)
Minority interests in earnings (loss) of consolidated subsidiary 103 (63) 193 (120)
--------- --------- --------- ---------
Net income (loss) attributable to common stockholders $ (28,801) $ (12,576) $ (99,787) $ (22,461)
========= ========= ========= =========
Earnings (loss) per share attributable to common stockholders:
Basic $ (0.79) $ (0.63) $ (2.73) $ (1.12)
Diluted $ (0.79) $ (0.63) $ (2.73) $ (1.12)
Shares used in computing earnings (loss) per share
attributable to common stockholders:
Basic 36,682 20,116 36,521 20,001
Diluted 36,682 20,116 36,521 20,001
================================================================================
Pro Forma Net Loss Before Amortization of Acquired Intangible Assets
and Other Acquisition and Disposition Related Charges
Net income (loss) attributable to common stockholders before
amortization of acquired intangible assets and other
acquisition and disposition related charges, net of taxes $(12,652) $ (9,378) $(36,684) $(16,913)
Net income (loss) attributable to common stockholders before
amortization of acquired intangible assets and other
acquisition and disposition related charges, net of taxes,
assuming dilution $(12,652) $ (9,378) $(36,684) $(16,913)
Earnings (loss) per share attributable to common stockholders
before amortization of acquired intangible assets and other
acquisition and disposition related charges, net of taxes
Basic $ (0.34) $ (0.47) $ (1.00) $ (0.85)
Diluted $ (0.34) $ (0.47) $ (1.00) $ (0.85)
Shares used in computing earnings (loss) per share
attributable to common stockholders before amortization
of acquired intangible assets and other acquisition and
disposition related charges, net of taxes
Basic 36,682 20,116 36,521 20,001
Diluted 36,682 20,116 36,521 20,001
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 MARCH 31, 2003
(in thousands, except per share data)
(unaudited)
U.S. GAAP Adjustments Pro Forma
--------- ----------- ---------
Revenues $ 92,964 $ -- $ 92,964
Cost of revenues 68,312 5,917(A) 62,395
------------ ------------ ------------
Gross profit 24,652 (5,917) 30,569
------------ ------------ ------------
Operating expenses:
Research and development 19,754 768(B) 18,986
Selling, general and administrative 23,022 780(C) 22,242
Acquisition-related and restructuring charges 4,728 4,728 --
------------ ------------ ------------
47,504 6,276 41,228
------------ ------------ ------------
Income (loss) from operations before amortization of
acquired intangible assets (22,852) (12,193) (10,659)
Amortization of acquired intangible assets 941 941 --
------------ ------------ ------------
Income (loss) from operations (23,793) (13,134) (10,659)
Interest (income) expense, net 1,529 -- 1,529
Other (income) expense, net 3,323 3,025 298
------------ ------------ ------------
Income (loss) before income taxes and minority interests (28,645) (16,159) (12,486)
Income tax provision (benefit) 53 (10) 63
------------ ------------ ------------
Income (loss) before minority interests (28,698) (16,149) (12,549)
Minority interests in earnings (loss) of consolidated
subsidiary 103 -- 103
------------ ------------ ------------
Net income (loss) attributable to common stockholders $ (28,801) $ (16,149) $ (12,652)
============ ============ ============
Earnings (loss) per share attributable to common stockholders:
Basic $ (0.79) $ (0.34)
Diluted $ (0.79) $ (0.34)
Shares used in computing earnings (loss) per share
attributable to common stockholders:
Basic 36,682 36,682
Diluted 36,682 36,682
Adjustments include amortization of acquired intangible assets and other
acquisition and disposition related charges.
(A) Comprised of:
Adjustments to inventory $4,625
Accelerated depreciation on property, plant and equipment 956
Deferred compensation expense - IAS 20
Deferred compensation expense - PRI 316
------
$5,917
======
(B) Comprised of:
Accelerated depreciation on property, plant and equipment $ 327
Deferred compensation expense - PRI 278
Deferred compensation expense - KLA 163
------
$ 768
======
(C) Comprised of:
Deferred compensation expense - PRI $ 669
Accelerated depreciation on property, plant and equipment 111
------
$ 780
======