Exhibit 99.1
BROOKS AUTOMATION REPORTS RESULTS FOR FISCAL 2005 SECOND QUARTER ENDED
MARCH 31, 2005
Company exceeds guidance for revenues and bookings and FirstCall consensus for
EPS; grows #1 market share position in semiconductor automation in 2004.
CHELMSFORD, Mass., May 3 /PRNewswire-FirstCall/ -- Brooks Automation, Inc.
(Nasdaq: BRKS), which develops and produces hardware, software and systems that
enable manufacturing efficiencies for the semiconductor and other complex
manufacturing industries, today announced results for its fiscal 2005 second
quarter ended March 31, 2005.
Revenues for the second quarter of fiscal 2005 were $129.5 million, a 9.9
percent sequential increase from the preceding quarter revenues of $117.8
million and a decline of 6.2 percent from a year ago revenues of $138.0 million
for the same period. Bookings during the quarter were $115.1 million, an
increase of 13.2 percent over the preceding quarter reported bookings of $101.7
million.
Net income for the second quarter of fiscal 2005 on a GAAP ("Generally
Accepted Accounting Principles") basis was a loss of $2.5 million, which
included a charge of $6.7 million for restructuring, $0.7 million for
amortization of acquired intangible assets, and $0.6 million of other charges.
The GAAP loss of $0.06 per share for the quarter included a greater than
anticipated restructuring charge related to the accelerated consolidation of the
Company's manufacturing operations in Jena, Germany, which was originally
expected to be a third quarter event but agreement with the workers' council was
successfully reached in the second quarter ahead of schedule. The net impact on
EPS from the charges related to restructuring, amortization of acquired
intangible assets, and other charges was $0.18 per share.
Edward C. Grady, president and chief executive officer of Brooks Automation,
said "The Company accomplished most of its objectives for the quarter and
finished better than our guidance for bookings and revenues. I'm also pleased
with our progress in the markets that we serve, once again being recognized as
the market share leader in semiconductor automation in calendar year 2004 for
the fourth consecutive year, as reported in April 2005 by the independent market
research firm Gartner Dataquest. In our core business, the tool automation
segment, we increased our market share by approximately 6 percentage points to
55 percent of the market. This segment is also growing the fastest within
automation and also outpaced the wafer fab equipment industry according to
Dataquest. Overall, we are well positioned in the sweet spot of the market with
outstanding technology, good customer relationships and exciting new products
that we hope will help us continue to increase our leadership position and drive
profitable growth. In the quarter, our tool
automation business had solid growth driven by strong systems level shipments to
OEM customers, reflecting the ongoing outsourcing trend that increases our
served markets. We successfully started shipping some of our next generation
vacuum robots and a vacuum system to strategic customers. Both revenues and
bookings increased sequentially over the preceding quarter for this segment. Our
software business closed on another robust bookings quarter, contributed solid
operating profit and continued to make progress introducing the real time
enterprise initiative to major global enterprises. Software revenues grew
slightly in the quarter and we maintained strong market share in 300mm fabs and
in China, an important emerging market. Factory hardware exceeded our
expectations for revenue for the quarter as we gained final acceptance on a
number of backlog projects. I was pleased with our continued focus on managing
cash and working capital. The cash and securities balance at the end of the
quarter increased by $12.8 million over the preceding quarter's balance, the
Company's fourth consecutive quarter of positive cash flow and fifth in the past
six quarters, a period in which the industry has gone through a sharp upturn and
then a slowdown. We reduced inventories by $9.0 million and DSO improved to 63
days."
Mr. Grady continued, "We believe that the business environment for Brooks
remains relatively stable but will reflect some of the softness in the near term
end market demand. For our fiscal third quarter ending in June, revenues for the
Company are expected to be in the $115 to $120 million range, while bookings are
expected to stay flat with some possible upside. The earnings per share on a
GAAP basis are anticipated to be in the range of negative $0.01 to positive
$0.06 per share. Restructuring and other charges are expected to impact EPS by
approximately $0.04 per share. We continue to focus on positive cash flow and
operating income leverage while improving gross margins of our hardware
products. Remember that margins in the tool automation segment are reduced by
our CDA, or Customer Designed Automation, business which has low gross margins
but good operating margins that are above our corporate average. Looking at the
big picture, I believe the Company as a whole has never been as well positioned
as we are today, with an established base of customers, proven products,
talented people and a strong R&D program. Regardless of the uncertainty in the
market, we have made tremendous progress as an organization, and I am proud of
what our people have accomplished to date."
Business Segment Data
The following table summarizes the four business segments of Brooks for
fiscal Q2.
Factory Factory
Equipment Automation Automation
Automation Hardware Software Other Total
---------- ---------- ---------- ---------- ----------
Three months
ended
March 31, 2005:
Revenues,
in thousands $ 70,727 $ 32,704 $ 26,023 $ 19 $ 129,473
Gross margin,
in thousands $ 20,566 $ 5,093 $ 18,202 $ (291) $ 43,570
Gross margin, % 29.1% 15.6% 69.9% - 33.7%
Operating
margin,
in thousands $ 5,033 $ (719) $ 3,526 $ (1,429) $ 6,411
Amortization
of acquired
intangible
assets $ 737
Restructuring
charges $ 6,690
Total operating
income (loss) $ (1,016)
Q2 Fiscal 2005 Highlights
-- Recognized by Gartner Dataquest as #1 market share leader for
semiconductor automation in calendar 2004, holding the top spot for the
fourth consecutive year. Within semiconductor automation, Brooks grew its
#1 position in equipment automation. Brooks remained in the #1 position
in fab management software, a category in the factory automation software
segment. Brooks also won the #1 position in reticle management systems, a
category in the factory automation hardware segment.
-- Captured 10 new design-in wins at OEM customers in Q2.
-- Shipped multiple configurations of our next generation vacuum robot to
large US customer.
-- Shipped first next generation vacuum system to key Asian customer.
-- Grew OEM systems business significantly on a sequential basis as tier 1
OEMs continued to outsource their systems business.
-- Won vacuum systems business for Veeco Instruments, a key data storage
supplier.
-- Won new customer in China for lithography reticle management system, the
Guardian(TM) Bare Reticle Stocker, extending market share lead in this
geography.
-- Completed and received acceptance on multi-million dollar AMHS expansion
projects at two 300mm fabs as well as at one 200mm fab.
-- Brooks Software division bookings increased sequentially and achieved its
second highest bookings level in Company history.
-- Booked multi-million dollar order from a Taiwanese 300mm fab for full
suite of software.
-- Booked multi-million dollar order from a Korean 300mm fab for MES and
related software.
-- Booked five new orders from 300mm fabs for Real Time Dispatch software,
continuing near 100 percent market share in this application space for
300mm fabs.
-- Booked orders from two new Gen-6 LCD customers in Taiwan. Brooks now
provides MCS (material control system) software to 3 out of 4 major Gen-6
LCD fabs in Taiwan.
-- Booked multiple orders from large Aerospace & Defense customer, including
joint development project for enterprise application.
Conference Call and Webcast
Brooks Automation will host a conference call on Tuesday, May 3, 2005 at
4:30 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: Tuesday, May 3, 2005
Time: 4:30 p.m. Eastern
Dial in #: (719) 457-2656
Passcode: 2615148
A live Webcast of this conference call will be available in the investor
relations section of the Brooks Automation web site, http://investor.brooks.com
under the title "Brooks Automation Fiscal 2005 Second 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
2005 Second Quarter Earnings Webcast." A telephone replay will also be made
available following the call at the following number: (719) 457-0820 beginning
at 7:00 p.m. Eastern, Tuesday, May 3, 2005, and available 7 days. The passcode
for the replay is 2615148.
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 bookings, revenues, and profit and loss expectations,
gross margin and operating margin expectations, expected restructuring charges,
our future business strategy and market opportunities, level of capital
expenditures and bookings expectations in the semiconductor and discrete
manufacturing industries, demand for our products, and the outlook of the
semiconductor and discrete manufacturing industries. 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;
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 acceptance of
our software products and services in industries outside of the semiconductor
industry; 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; 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, 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.
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,
2005 2004
------------- -------------
ASSETS
Cash, cash equivalents and marketable
securities $ 296,044 $ 255,367
Accounts receivable, net 91,002 124,004
Inventories 63,641 71,891
Other current assets 12,372 9,873
Total current assets 463,059 461,135
Property, plant and equipment, net 56,279 58,810
Long-term marketable securities 55,170 73,743
Intangible assets, net 67,511 68,963
Other assets 4,273 8,388
Total assets $ 646,292 $ 671,039
LIABILITIES, MINORITY INTERESTS AND
STOCKHOLDERS' EQUITY
Current liabilities $ 140,749 $ 166,998
Convertible subordinated notes 175,000 175,000
Other long-term liabilities 13,353 15,228
Total liabilities 329,102 357,226
Minority interests 1,126 918
Stockholders' equity 316,064 312,895
Total liabilities,
minority interests and
stockholders' equity $ 646,292 $ 671,039
Cash, cash equivalents, short-
term and long-term marketable
securities
March 31, 2005 $ 351,214
December 31, 2004 $ 338,377
September 30, 2004 $ 329,110
June 30, 2004 $ 321,385
March 31, 2004 $ 309,808
BROOKS AUTOMATION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three months ended Six months ended
March 31, March 31,
---------------------------- ----------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Revenues $ 129,473 $ 137,984 $ 247,291 $ 220,530
Cost of revenues 85,903 87,074 162,041 139,375
Gross profit 43,570 50,910 85,250 81,155
Operating expenses:
Research and development 16,464 16,634 32,376 32,702
Selling, general and
administrative 20,695 21,469 41,551 41,236
Amortization of acquired
intangible assets 737 939 1,627 1,882
Restructuring and acquisition-
related charges 6,690 2,168 9,351 2,168
44,586 41,210 84,905 77,988
Income (loss) from operations (1,016) 9,700 345 3,167
Interest (income) expense, net 137 1,083 556 2,516
Other (income) expense, net (287) 239 (66) 197
Income (loss) before income taxes
and minority interests (866) 8,378 (145) 454
Income tax provision 1,528 1,829 3,014 2,842
Income (loss) before minority
interests (2,394) 6,549 (3,159) (2,388)
Minority interests in income
(loss) of consolidated subsidiary 78 317 208 249
Net income (loss) $ (2,472) $ 6,232 $ (3,367) $ (2,637)
Earnings (loss) per share:
Basic $ (0.06) $ 0.14 $ (0.08) $ (0.06)
Diluted $ (0.06) $ 0.14 $ (0.08) $ (0.06)
Shares used in computing earnings
(loss) per share:
Basic 44,873 44,412 44,787 41,417
Diluted 44,873 44,995 44,787 41,417
SOURCE Brooks Automation, Inc.
-0- 05/03/2005
/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/