CHELMSFORD, Mass., Aug. 9, 2012 (GLOBE NEWSWIRE) -- Brooks Automation, Inc. (Nasdaq:BRKS), a leading worldwide provider of automation, vacuum and instrumentation solutions for multiple markets including semiconductor manufacturing and life sciences, today reported financial results for the third quarter and nine-months ended June 30, 2012.

Fiscal Third Quarter of 2012 Financial and Operational Highlights:
  • Revenues were $140.4 million; Order Bookings were $128.0 million;
  • GAAP EPS was $0.12 and EPS excluding special charges was $0.14;
  • Adjusted EBITDA was $17.2 million;
  • Cash, Cash Equivalents and Marketable Securities as of June 30th were $203.7 million, or $3.10 per diluted share;
  • Generated 61 Design-in-Wins with OEM Customers during the first nine months of fiscal 2012.

Summary of GAAP and Non-GAAP Earnings
             
  Fiscal 2012 Fiscal 2012 Fiscal 2011   9 months ended 9 months ended
$ 000's except EPS 3rd Quarter 2nd Quarter 3rd Quarter   June 30, 2012 June 30, 2011
             
GAAP Net Income attributable to Brooks  8,028  9,721  66,915    20,572  117,693
GAAP Diluted Earnings per share  $ 0.12  $  0.15  $ 1.03    $ 0.31  $ 1.81
             
Adjusted Net Income attributable to Brooks    8,943  13,260  24,073    25,810   75,311
Adjusted Diluted Earnings per Share  $ 0.14  $ 0.20  $ 0.37    $ 0.39  $ 1.16
             

The results above reflect certain immaterial revisions to prior periods related to equity in earnings from our joint venture with Ulvac Cryogenics, Inc. Refer to our quarterly report on Form 10-Q for the quarter ended June 30, 2012 for details regarding these revisions.

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 included in this release.

Management Comments

"While we achieved the bottom end of our revenue guidance in an increasingly difficult market environment, the mix of those revenues resulted in our net income slightly below our earnings guidance," stated Steve Schwartz, President & Chief Executive Officer of Brooks. "Additionally, our Life Science Systems revenue was temporarily affected in the third quarter by the timing of tender awards for major systems, notably in Europe. The planning for significant investment by research institutes in Sample Storage and Management Systems continues and we are confident in the longer term growth profile of this market-leading business."

Dr. Schwartz continued, "During the first nine months of this fiscal year we generated $48.7 million of adjusted EBITDA, and have made improvements within our business. We have also demonstrated market leadership as evidenced by the 61 Design-in-Wins within the technology business over this period. Despite negative macro-economic events we are well-positioned to generate higher margins in the coming quarters and continue market share gains in many areas of our business."

Martin Headley, Executive Vice President and Chief Financial Officer of Brooks, noted "We have built a very strong balance sheet with cash and cash equivalents at the end of the quarter of $203.7 million and no debt. We continue to be active in working appropriate opportunities for exercising our capital structure."

Third Quarter of Fiscal 2012 Results

Revenues for the third quarter of fiscal 2012 were $140.4 million, compared to revenues of $139.3 million in the second quarter of fiscal 2012 and $186.1 million in the third quarter of fiscal 2011, which included $42.3 million from the Contract Manufacturing business that was sold at the end of the third quarter of fiscal 2011. Revenues for the Brooks Product Solutions segment increased 4.1% on a sequential basis compared to the second fiscal quarter of 2012. Revenues for the Brooks Life Science Systems segment decreased 23.6% sequentially primarily due to fewer systems opportunities awarded during the quarter while revenues for the Brooks Global Services segment increased 1.4% sequentially on higher pump service revenues.

Order bookings for the third quarter of fiscal 2012 decreased to $128.0 million, compared to order bookings in the fiscal second quarter of $155.3 million. The decrease in bookings was impacted by an overall decrease in semiconductor industry bookings and aforementioned reductions in bookings for Brooks Life Science Systems. The Company expects its bookings from Brooks Life Science Systems to increase in the fourth quarter of fiscal 2012 for fiscal 2013 delivery.

Gross profit margin was 32.9% for the third quarter of fiscal 2012, compared to gross profit margins of 34.7% for the second quarter of fiscal 2012 and 30.6% for the third quarter of fiscal 2011. The third quarter of fiscal 2012 improved 230 basis points compared to the third quarter of fiscal 2011 primarily due to revenue mix with higher Brooks Life Science Systems revenue and the divestiture of lower margin Contract Manufacturing segment business. On a sequential basis, gross margin was down 180 basis points primarily due to revenue mix in the Brooks Product Solutions segment as well as the Brooks Global Services segment. The Company expects an improvement in overall gross margin during the fourth quarter of fiscal 2012 compared to fiscal third quarter of 2012.

Adjusted EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) for the third quarter of fiscal 2012 was $17.2 million, which compared to $20.9 million in the second quarter of fiscal 2012 and $30.2 million in the third quarter of fiscal 2011. 

Net cash provided by operating activities for the third quarter of fiscal 2012 was $10.9 million. The Company ended the third quarter of fiscal 2012 with total cash and marketable securities of $203.7 million at June 30, 2012.

Nine Months ended June 30, 2012 Results

Revenues for the nine months ended June 30, 2012 were $400.0 million, compared to revenues of $557.2 million for the nine months ended June 30, 2011, which included $137.3 million from the Contract Manufacturing business that was sold at the end of the third quarter of fiscal 2011.

  Quarterly Cash Dividend

The Company additionally announced that the Board of Directors had declared a dividend of $0.08 per share payable on September 28, 2012 to stockholders of record on September 7, 2012. Future dividend declarations, as well as the record and payment dates for such dividends, are subject to the final determination of the Company's Board of Directors.

Guidance for Fourth Fiscal Quarter of Fiscal 2012

The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2012. Revenues are expected to decrease between 15 and 20%. Non-GAAP diluted earnings per share, excluding special charges are expected to range between $0.00 and $0.06. The Company did not provide GAAP earnings guidance given uncertainties surrounding special charges including charges associated with the termination of an existing defined benefit pension plan and potential tax benefits from reversing certain valuations allowance against deferred tax assets.

Conference Call

Brooks management will webcast its third quarter earnings conference today at 4:30 p.m. Eastern Time to discuss the fiscal third quarter 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.

The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Brooks' website at www.brooks.com, and will be archived online on this website for convenient on-demand replay. In addition, you may call (888) 339-2688 (U.S. only) or (617) 847-3007 to listen to the live broadcast. The passcode for this telephone access is 141 084 80.

About Brooks Automation, Inc.

Brooks is a leading worldwide provider of automation, vacuum and instrumentation solutions for multiple markets including semiconductor manufacturing, life sciences, and clean energy. Our technologies, engineering competencies and global service capabilities provide customers speed to market, and ensure high uptime and rapid response, which equate to superior value in their mission-critical controlled environments. Since 1978, we have been a leading partner to the global semiconductor manufacturing market and through product development initiatives and strategic business acquisitions, we have expanded our reach to meet the needs of customers in the life sciences industry, analytical & research markets and clean energy solutions. Brooks is headquartered in Chelmsford, MA, with direct operations in North America, Europe and Asia.

For more information, please visit 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 operating margin expectations, our ability to develop further our business in new and adjacent markets, and our ability to achieve financial success in the future. Factors that could cause results to differ from our expectations include the following: volatility of the industries the Company serves, particularly the semiconductor industry; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; the timing and effectiveness of cost reduction and cost control measures; price competition; disputes concerning intellectual property; 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.
     
     
BROOKS AUTOMATION, INC. 
CONSOLIDATED BALANCE SHEETS 
(unaudited) 
(In thousands, except share and per share data) 
     
     
  June 30, 2012 September 30, 2011
Assets    
Current assets     
Cash and cash equivalents  $61,564 $58,833
Restricted cash  762 1,293
Marketable securities  87,606 65,695
Accounts receivable, net  87,297 76,701
Inventories  106,819 107,654
Prepaid expenses and other current assets  10,396 10,348
Total current assets  354,444 320,524
Property, plant and equipment, net  65,024 68,596
Long-term marketable securities  54,498 81,290
Goodwill  88,440 84,727
Intangible assets, net  41,111 44,314
Equity investment in joint ventures  35,785 34,950
Other assets  6,021 2,557
Total assets  $645,323 $636,958
     
Liabilities and equity    
Current liabilities     
Accounts payable  $46,606 $40,199
Deferred revenue  10,789 14,073
Accrued warranty and retrofit costs  7,370 7,438
Accrued compensation and benefits  15,187 17,288
Accrued restructuring costs  751 293
Accrued income taxes payable  4,317 4,015
Accrued expenses and other current liabilities  14,105 12,433
Total current liabilities  99,125 95,739
Income taxes payable  10,092 11,728
Long-term pension liability  7,161 7,161
Other long-term liabilities  3,397 3,394
Total liabilities  119,775 118,022
     
Contingencies     
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, 79,694,001 shares issued and 66,232,132 shares outstanding at June 30, 2012, 79,737,189 shares issued and 66,275,320 shares outstanding at September 30, 2011  797 797
Additional paid-in capital  1,815,114 1,809,287
Accumulated other comprehensive income  13,429 17,324
Treasury stock at cost, 13,461,869 shares at June 30, 2012 and September 30, 2011  (200,956) (200,956)
Accumulated deficit  (1,103,435) (1,108,105)
Total Brooks Automation, Inc. stockholders' equity  524,949 518,347
Noncontrolling interest in subsidiaries  599 589
Total equity  525,548 518,936
Total liabilities and equity  $645,323 $636,958
         
         
BROOKS AUTOMATION, INC. 
CONSOLIDATED STATEMENTS OF OPERATIONS 
(unaudited) 
(In thousands, except per share data) 
         
  Three months ended June 30, Nine months ended June 30,
  2012 2011 2012 2011
         
Revenues        
Product  $119,172 $166,658 $333,891 $502,783
Services  21,265 19,478 66,111 54,371
Total revenues  140,437 186,136 400,002 557,154
         
Cost of revenues        
Product  77,821 115,299 217,553 342,933
Services  16,376 13,867 47,570 38,258
Total cost of revenues  94,197 129,166 265,123 381,191
         
Gross profit  46,240 56,970 134,879 175,963
         
Operating expenses        
Research and development  11,691 10,025 36,169 28,365
Selling, general and administrative  25,344 24,676 76,356 74,399
Restructuring charges  880 97 1,125 557
In-process research and development  —  —  3,026 — 
Total operating expenses  37,915 34,798 116,676 103,321
         
Operating income  8,325 22,172 18,203 72,642
Interest income  292 350 844 886
Interest expense  (5) (10) (12) (39)
Sale of contact manufacturing business  —  45,009 —  45,009
Other income, net  202 1,068 497 1,485
         
Income before income taxes and equity in earnings of joint ventures 8,814 68,589 19,532 119,983
Income tax provision  985 3,300 626 5,323
Income before equity in earnings of joint ventures  7,829 65,289 18,906 114,660
Equity in earnings of joint ventures    196 1,632 1,676 3,057
Net income  $8,025 $66,921 $20,582 $117,717
Net loss (income) attributable to noncontrolling interests  3 (6) (10) (24)
Net income attributable to Brooks Automation, Inc.  $8,028 $66,915 $20,572 $117,693
         
Basic net income per share attributable to Brooks Automation, Inc. common stockholders  $0.12 $1.03 $0.32 $1.83
         
Diluted net income per share attributable to Brooks Automation, Inc. common stockholders  $0.12 $1.03 $0.31 $1.81
         
Shares used in computing earnings per share        
Basic  65,264 64,668 65,038 64,481
Diluted  65,781 65,141 65,677 64,941
     
     
BROOKS AUTOMATION, INC. 
CONSOLIDATED STATEMENTS OF CASH FLOWS 
(unaudited) 
(In thousands) 
     
     
  Nine months ended June 30,
  2012 2011
Cash flows from operating activities    
Net income  $20,582 $117,717
Adjustments to reconcile net income to net cash provided by operating activities:     
Depreciation and amortization  16,159 12,336
Stock-based compensation  6,903 5,211
Amortization of premium on marketable securities  1,804 1,534
Undistributed earnings of joint ventures  (1,676) (3,057)
(Gain) loss on disposal of long-lived assets  (62) 24
Sale of contract manufacturing business  —  (45,009)
Changes in operating assets and liabilities, net of acquisitions and disposals:     
Accounts receivable  (10,007) (461)
Inventories  961 (11,248)
Prepaid expenses and other current assets  (1,141) 3,245
Accounts payable  6,496 (11,812)
Deferred revenue  (3,625) (1,410)
Accrued warranty and retrofit costs  (72) (638)
Accrued compensation and benefits  (3,869) (72)
Accrued restructuring costs  465 (2,943)
Accrued expenses and other current liabilities  (344) 3,802
     
Net cash provided by operating activities  32,574 67,219
     
Cash flows from investing activities    
Purchases of property, plant and equipment  (6,364) (4,163)
Purchases of marketable securities  (93,306) (145,821)
Sale/maturity of marketable securities  96,499 78,644
Proceeds from the sale of the contract manufacturing business  —  75,664
Proceeds from assets sold  —  4,372
Acquisitions, net of cash acquired  (8,716) (3,381)
Other investment  (3,000) — 
Decrease (increase) in restricted cash  531 (760)
     
Net cash (used in) provided by investing activities  (14,356) 4,555
     
Cash flows from financing activities    
Proceeds from the issuance of common stock, net of issuance costs  841 681
Common stock dividend paid  (15,719) — 
     
Net cash (used in) provided by financing activities  (14,878) 681
     
Effects of exchange rate changes on cash and cash equivalents  (609) 837
     
Net increase in cash and cash equivalents  2,731 73,292
Cash and cash equivalents, beginning of period  58,833 59,823
     
Cash and cash equivalents, end of period  $61,564 $133,115

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 non-recurring income and special charges such as restructuring charges and acquisition related charges. 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 operations is presented below:
  Quarter Ended
  June 30, 2012 March 31, 2012 June 30, 2011
  $ per share $ per share $ per share
             
Net income attributable to Brooks Automation, Inc.  $ 8,028  $ 0.12  $ 9,722  $ 0.15  $ 66,915  $ 1.03
             
Purchase accounting impact on contracts acquired  35  0.00  471  0.01  313  0.00
Restructuring charges  880  0.01  42  0.00  97  0.00
Gain on sale of contract manufacturing, net of tax  --   --   --   --   (42,588)  (0.65)
Litigation settlement  --   --   --   --   (664)  (0.01)
In-process R&D purchased  --   --   3,026  0.05  --   -- 
Adjusted net income attributable to Brooks Automation, Inc.  8,943  0.14  13,261  0.20  24,073  0.37
             
Stock-based compensation  1,979  0.03  3,181  0.05  1,595  0.02
Adjusted net income attributable to Brooks Automation, Inc., excluding stock-based compensation  $ 10,922  $ 0.17  $ 16,442  $ 0.25  $ 25,668  $ 0.39
             
             
  Nine Months Ended    
  June 30, 2012 June 30, 2011    
  $ per share $ per share    
             
Net income attributable to Brooks Automation, Inc.  $ 20,572  $ 0.31  $ 117,693  $ 1.81    
             
Purchase accounting impact on contracts acquired  866  0.01  313  0.00    
Restructuring charges  1,125  0.02  557  0.01    
Gain on sale of contract manufacturing, net of tax  --   --   (42,588)  (0.66)    
Litigation settlement  --   --   (664)  (0.01)    
Merger costs  221  0.00  --   --     
In-process R&D purchased  3,026  0.05  --   --     
Adjusted net income attributable to Brooks Automation, Inc.  $ 25,810  0.39  $ 75,311  1.16    
             
Stock-based compensation  6,903  0.11  5,211  0.08    
Adjusted net income attributable to Brooks Automation, Inc. - excluding stock-based compensation  $ 32,713  $ 0.50  $ 80,522  $ 1.24    
             
             
  Quarter ended Nine months ended  
  June 30, 2012 Mar 31, 2012 June 30, 2011 June 30, 2012 June 30, 2011  
             
Net income attributable to Brooks Automation, Inc.  $ 8,028  $ 9,722  $ 66,915  20,572  117,693  
             
Less: Interest income  (292)  (273)  (350)  (844)  (886)  
Add: Interest expense  5  --  10  12  39  
Add: Income tax provision (benefit)  985  (659)  3,300  626  5,323  
Add: Depreciation  3,466  3,280  2,990  10,008  9,444  
Add: Amortization of completed technology  936  935  539  2,660  1,498  
Add: Amortization of acquired intangible assets  1,136  1,138  495  3,491  1,394  
Add: Stock-based compensation  1,979  3,181  1,595  6,903  5,211  
Add: Restructuring charges  880  42  97  1,125  557  
Add: Purchase accounting impact on contracts acquired  35  471  313  866  313  
Add: Merger costs  --   --   --   221  --   
Add: In-process R&D purchased  --   3,026  --   3,026  --   
Less: Gain on sale of contract manufacturing, pre-tax  --   --   (45,009)  --  (45,009)  
Less: Litigation settlement  --   --   (664)  --  (664)  
             
Adjusted EBITDA  $ 17,158  $ 20,863  $ 30,231  $ 48,666  $ 94,913  
CONTACT: Brooks Automation, Inc.         Lynne Yassemedis         978-262-2400         lynne.yassemedis@brooks.com                  John Mills         Senior Managing Director         ICR, LLC         310-954-1105         john.mills@icrinc.com