Brooks Automation, Inc. (Nasdaq:BRKS), a leading worldwide provider
of automation and cryogenic solutions for multiple markets,
including semiconductor manufacturing and life sciences, today
reported financial results for the second quarter of 2017, ended
March 31, 2017.
Fiscal Second Quarter of 2017 Financial and Operational
Highlights:
- Revenue was $169.3 million, 25% higher compared to Q2 2016 and
6% higher than Q1 2017;
- GAAP net income was $14.0 million with diluted EPS of
$0.20;
- Non-GAAP net income was $19.8 million with diluted EPS of
$0.28; and
- Cash flow from operations was $24.6 million.
Summary of GAAP and Non-GAAP Earnings
|
Quarter Ended |
|
March 31, |
|
December 31, |
|
March 31, |
Dollars in thousands,
except per share data |
2017 |
|
2016 |
|
2016 |
GAAP net income
(loss) |
$ |
14,005 |
|
|
$ |
13,871 |
|
|
$ |
(83,939 |
) |
GAAP diluted earnings
(loss) per share |
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
(1.22 |
) |
|
|
|
|
|
|
Non-GAAP net
income |
$ |
19,839 |
|
|
$ |
17,301 |
|
|
$ |
4,920 |
|
Non-GAAP diluted
earnings per share |
$ |
0.28 |
|
|
$ |
0.25 |
|
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of non-GAAP measures to the most nearly
comparable GAAP measures follows the consolidated statements of
operations, balance sheets, and statements of cash flows included
in this release.
Management Comments
“In the second quarter, Brooks achieved several new performance
milestones,” commented Steve Schwartz, CEO of Brooks
Automation. "Revenue grew 25% year over year, 6%
sequentially, driven by continued strength in both segments. Life
Sciences revenue grew 31% year over year and is more than 20% of
total revenue despite strong Semiconductor growth, up 24% over the
2016 second quarter. Our strong top line contributed to the highest
gross margins we have seen in more than ten years, $25 million of
operating cash flow, and non-GAAP diluted earnings per share of
$0.28 per share. Our continuing performance improvement is
reflected in our results, and we thank our employees for their hard
work and dedication to our customers."
GAAP Summary
Revenue for the second quarter of fiscal 2017 increased 6% to
$169.3 million compared to the first quarter of fiscal 2017. The
growth was driven by a 6% increase in the Brooks Semiconductor
Solutions Group segment and a 4% increase in the Brooks Life
Science Systems segment. Gross margin was 38.1%, up 250 basis
points from the first quarter of fiscal 2017. Operating
expenses of $49.7 million increased 14% from the previous
quarter. Primary drivers of increased operating expense were
higher accruals in this second fiscal quarter for performance-based
compensation reflecting an improved performance outlook, and
increased consulting expense. In the second quarter, the
Company incurred $0.9 million of restructuring charges compared to
$1.0 million in the first quarter. GAAP net income in the second
fiscal quarter was $14.0 million and diluted earnings per share was
$0.20, which was even with the first fiscal quarter.
The amortization of intangible assets, restructuring charges,
impact of purchase price accounting adjustments and special charges
are appropriately included in the GAAP summary of earnings
discussed above. The impact on earnings of such non-GAAP
adjustments is referenced in the unaudited table included within
this press release.
In the following analysis of the non-GAAP results, Brooks
adjusted the GAAP results for the impact of amortization of
intangible assets, restructuring charges, and purchase price
accounting adjustments to provide investors better perspective on
the results of operations, which the Company believes is more
comparable to the similar analysis provided by its
peers. Brooks also excludes special charges or gains, such as
impairment losses, gains or losses from the sale of assets, as well
as other gains and charges that are not representative of the
normal operations of the business. Brooks currently includes a
valuation allowance reserve against U.S. deferred tax assets in its
GAAP results. In assessing the appropriate tax rate for the
non-GAAP results, the Company evaluated the adjustments discussed
above and concluded it was appropriate to maintain the valuation
allowance reserve in deriving the non-GAAP tax rate.
Results of Fiscal Second Quarter of 2017 (Non-GAAP
Discussion)
Non-GAAP net income was $19.8 million in the second quarter,
resulting in non-GAAP earnings per share of $0.28. This compares to
non-GAAP net income of $17.3 million and non-GAAP earnings per
share of $0.25 in the first quarter of fiscal 2017, and non-GAAP
net income of $4.9 million and non-GAAP earnings per share of $0.07
in the second quarter of fiscal 2016.
As noted above, revenue for the second fiscal quarter of 2017
was $169.3 million, up 6% compared to the first fiscal quarter of
2017. The semiconductor segment revenue increased 6% sequentially
to $134.7 million. While all key semiconductor product lines
grew, cryogenic pump products led with 20% expansion from the first
quarter. The life science segment revenue grew 4% sequentially to
$34.7 million. This segment reported a seasonal drop in
genomic services of approximately $4 million dollars, where we
observe customers consume remaining budgets in the December
month. Excluding the genomic services, the remaining balance
of the life science segment grew 20% sequentially. The
primary growth driver was consumables and instruments, which
expanded 45% sequentially and store systems which expanded 23%.
Adjusted gross margin, which excludes amortization, purchase
accounting impacts and special charges, was 39.0% in the second
quarter, up 270 basis points from the prior quarter. The
semiconductor segment non-GAAP adjusted gross margin was 38.7% in
the second quarter compared to 36.4% in the prior period reflecting
improved absorption of overhead, particularly in cryogenic pump
products, and improved services cost of repair. The life
science segment non-GAAP adjusted gross margin was 40.1% in the
second quarter compared to 35.7% in the prior period, primarily due
to a lower mix of genomic service revenue within the BioStorage
service offerings. In summary, the total non-GAAP adjusted gross
profit increased by $8.0 million compared to the prior sequential
quarter, driven by $9.4 million of increased revenue and improved
margins across both segments.
Bookings for the semiconductor segment in the second quarter
totaled $171.6 million, compared to $122.8 million in the first
quarter. The life science segment booked a total of $48.1
million of new contract value in the quarter, compared to $64.2
million in the first quarter.
Non-GAAP operating expense of $44.6 million increased 13%, or
$5.1 million sequentially. The growth was $0.5 million in Research
and Development expense, and $4.6 million in SG&A. The SG&A
expansion was driven primarily by increased accruals for higher
performance based compensation and increased consulting
expense.
Adjusted EBITDA was $30.8 million, which improved 20% from the
first fiscal quarter. The semiconductor segment reported non-GAAP
segment operating profit of $20.8 million, or 15.4% of revenue. The
life science segment reported $2.0 million of operating profit, or
5.7% of revenue.
Cash flow from operations was $24.6 million in the second
quarter. The Company's cash, cash equivalents, and marketable
securities was $110.1 million as of March 31, 2017, an increase of
$21.1 million from the end of the first fiscal quarter.
Quarterly Cash Dividend
The Company additionally announced that the Board of Directors
has reiterated a dividend of $0.10 per share payable on June 23,
2017 to stockholders of record on June 2, 2017. 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 Third Fiscal Quarter 2017
The Company announced revenue and earnings guidance for the
third quarter of fiscal 2017. Revenue is expected to be in the
range of $175 million to $180 million and non-GAAP diluted earnings
per share is expected to be in the range of $0.29 to $0.33. GAAP
diluted earnings per share for the third quarter is expected to be
in the range of $0.21 to $0.25, reflecting the impact of
amortization, purchase price accounting and anticipated
restructuring charges.
Conference Call
Brooks management will webcast its second quarter earnings
conference call today at 4:30 p.m. Eastern Time. During the call,
Company management will respond to questions concerning, but not
limited to, the Company's financial performance, business
conditions and industry outlook. Management's 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 800-679-0308
for domestic callers and +1 303-223-2684 for international
callers.
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation and
cryogenic solutions for multiple markets, including semiconductor
manufacturing and life sciences. Brooks' 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, Brooks has been a leading partner
to the global semiconductor manufacturing market as a provider of
precision automation and cryogenic vacuum solutions. Since
2011, Brooks has applied its automation and cryogenics expertise to
meet the sample storage needs of customers in the life sciences
industry. Brooks' life sciences offerings include a broad
range of products and services for on-site infrastructure for
sample management in temperatures of ‑20°C to -150°C, as well as
comprehensive outsource service solutions across the complete life
cycle of biological samples including collection, transportation,
processing, storage, protection, retrieval and disposal.
Brooks is headquartered in Chelmsford, MA, with operations in North
America, Europe and Asia. For more information, 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, but are not limited to statements about our revenue and
earnings expectations, our ability to increase our profitability,
our ability to improve or retain our market position, and our
ability to deliver financial success in the future. Factors that
could cause results to differ from our expectations include the
following: the 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; uncertainties in global political
and economic conditions, and other factors and other risks,
including those 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.
CONTACTS:Lynne YassemedisBrooks
Automation978.262.2400lynne.yassemedis@brooks.com
John MillsPartnerICR, LLC646.277.1254john.mills@icrinc.com)
|
BROOKS AUTOMATION, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(unaudited) |
(In thousands, except per share data) |
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenue |
|
|
|
|
|
|
|
Products |
$ |
132,613 |
|
|
$ |
101,462 |
|
|
$ |
254,727 |
|
|
$ |
190,642 |
|
Services |
36,720 |
|
|
33,819 |
|
|
74,561 |
|
|
64,594 |
|
Total
revenue |
169,333 |
|
|
135,281 |
|
|
329,288 |
|
|
255,236 |
|
Cost of revenue |
|
|
|
|
|
|
|
Products |
82,023 |
|
|
65,226 |
|
|
157,701 |
|
|
123,258 |
|
Services |
22,786 |
|
|
23,255 |
|
|
50,120 |
|
|
44,624 |
|
Total
cost of revenue |
104,809 |
|
|
88,481 |
|
|
207,821 |
|
|
167,882 |
|
Gross profit |
64,524 |
|
|
46,800 |
|
|
121,467 |
|
|
87,354 |
|
Operating expenses |
|
|
|
|
|
|
|
Research
and development |
11,345 |
|
|
13,111 |
|
|
22,190 |
|
|
26,389 |
|
Selling,
general and administrative |
37,518 |
|
|
32,692 |
|
|
69,479 |
|
|
66,813 |
|
Restructuring and other charges |
860 |
|
|
7,336 |
|
|
1,835 |
|
|
8,811 |
|
Total
operating expenses |
49,723 |
|
|
53,139 |
|
|
93,504 |
|
|
102,013 |
|
Operating income
(loss) |
14,801 |
|
|
(6,339 |
) |
|
27,963 |
|
|
(14,659 |
) |
Interest income |
227 |
|
|
50 |
|
|
294 |
|
|
255 |
|
Interest expense |
(97 |
) |
|
(16 |
) |
|
(193 |
) |
|
(19 |
) |
Gain on settlement of
equity method investment |
— |
|
|
— |
|
|
1,847 |
|
|
— |
|
Other loss, net |
(283 |
) |
|
(124 |
) |
|
(534 |
) |
|
(183 |
) |
Income (loss) before
income taxes and equity in earnings of equity method
investments |
14,648 |
|
|
(6,429 |
) |
|
29,377 |
|
|
(14,606 |
) |
Income tax
provision |
3,420 |
|
|
78,220 |
|
|
6,220 |
|
|
74,850 |
|
Income (loss) before
equity in earnings of equity method investments |
11,228 |
|
|
(84,649 |
) |
|
23,157 |
|
|
(89,456 |
) |
Equity in earnings of
equity method investments |
2,777 |
|
|
710 |
|
|
4,719 |
|
|
869 |
|
Net income (loss) |
$ |
14,005 |
|
|
$ |
(83,939 |
) |
|
$ |
27,876 |
|
|
$ |
(88,587 |
) |
Basic net income (loss)
per share |
$ |
0.20 |
|
|
$ |
(1.22 |
) |
|
$ |
0.40 |
|
|
$ |
(1.30 |
) |
Diluted net income
(loss) per share |
$ |
0.20 |
|
|
$ |
(1.22 |
) |
|
$ |
0.40 |
|
|
$ |
(1.30 |
) |
Dividend declared per
share |
$ |
0.10 |
|
|
$ |
0.10 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding used in computing net income (loss) per share: |
|
|
|
|
|
|
|
Basic |
69,600 |
|
|
68,556 |
|
|
69,388 |
|
|
68,342 |
|
Diluted |
70,149 |
|
|
68,556 |
|
|
70,073 |
|
|
68,342 |
|
|
|
|
|
|
|
|
|
BROOKS AUTOMATION, INC. |
CONSOLIDATED BALANCE SHEETS |
(unaudited) |
(In thousands, except share and per share data) |
|
|
|
|
|
March 31, 2017 |
|
September 30, 2016 |
Assets |
|
|
|
Current
assets |
|
|
|
Cash and
cash equivalents |
$ |
103,939 |
|
|
$ |
85,086 |
|
Marketable securities |
1,495 |
|
|
39 |
|
Accounts
receivable, net |
115,171 |
|
|
106,372 |
|
Inventories |
99,104 |
|
|
92,572 |
|
Prepaid
expenses and other current assets |
17,518 |
|
|
15,265 |
|
Total
current assets |
337,227 |
|
|
299,334 |
|
Property,
plant and equipment, net |
53,273 |
|
|
54,885 |
|
Long-term
marketable securities |
4,681 |
|
|
6,096 |
|
Long-term
deferred tax assets |
1,495 |
|
|
1,982 |
|
Goodwill |
210,617 |
|
|
202,138 |
|
Intangible assets, net |
79,375 |
|
|
81,843 |
|
Equity
method investments |
29,803 |
|
|
27,273 |
|
Other
assets |
5,708 |
|
|
12,354 |
|
Total
assets |
$ |
722,179 |
|
|
$ |
685,905 |
|
Liabilities and
Stockholders' Equity |
|
|
|
Current
liabilities |
|
|
|
Accounts
payable |
$ |
49,832 |
|
|
$ |
41,128 |
|
Deferred
revenue |
29,065 |
|
|
14,966 |
|
Accrued
warranty and retrofit costs |
7,073 |
|
|
6,324 |
|
Accrued
compensation and benefits |
19,547 |
|
|
21,254 |
|
Accrued
restructuring costs |
2,044 |
|
|
5,939 |
|
Accrued
income taxes payable |
8,295 |
|
|
7,554 |
|
Accrued
expenses and other current liabilities |
23,917 |
|
|
22,628 |
|
Total
current liabilities |
139,773 |
|
|
119,793 |
|
Long-term
tax reserves |
2,111 |
|
|
2,681 |
|
Long-term
deferred tax liabilities |
2,783 |
|
|
2,913 |
|
Long-term
pension liabilities |
2,398 |
|
|
2,557 |
|
Other
long-term liabilities |
4,500 |
|
|
4,271 |
|
Total
liabilities |
151,565 |
|
|
132,215 |
|
Commitments and contingencies |
|
|
|
Stockholders'
Equity |
|
|
|
Preferred
stock, $0.01 par value, 1,000,000 shares authorized, no shares
issued or outstanding |
— |
|
|
— |
|
Common
stock, $0.01 par value, 125,000,000 shares authorized, 83,105,485
shares issued and 69,643,616 shares outstanding at March 31, 2017;
82,220,270 shares issued and 68,758,401 shares outstanding at
September 30, 2016 |
831 |
|
|
821 |
|
Additional paid-in capital |
1,863,449 |
|
|
1,855,703 |
|
Accumulated other comprehensive income |
10,402 |
|
|
15,166 |
|
Treasury
stock at cost - 13,461,869 shares |
(200,956 |
) |
|
(200,956 |
) |
Accumulated deficit |
(1,103,112 |
) |
|
(1,117,044 |
) |
Total
stockholders' equity |
570,614 |
|
|
553,690 |
|
Total
liabilities and stockholders' equity |
$ |
722,179 |
|
|
$ |
685,905 |
|
|
|
|
|
|
|
|
|
BROOKS AUTOMATION, INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(unaudited) |
(In thousands) |
|
|
|
Six Months Ended March 31, |
|
2017 |
|
2016 |
Cash flows from
operating activities |
|
|
|
Net
income (loss) |
$ |
27,876 |
|
|
$ |
(88,587 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
13,730 |
|
|
13,849 |
|
Gain on
settlement of equity method investment |
(1,847 |
) |
|
— |
|
Stock-based compensation |
6,884 |
|
|
6,568 |
|
Amortization of premium on marketable securities and deferred
financing costs |
28 |
|
|
315 |
|
Undistributed earnings of equity method investments |
(4,719 |
) |
|
(869 |
) |
Deferred
income tax provision |
334 |
|
|
73,454 |
|
Gain on
disposal of long-lived assets |
(117 |
) |
|
— |
|
Changes
in operating assets and liabilities, net of acquisitions: |
|
|
|
Accounts
receivable |
(9,672 |
) |
|
(664 |
) |
Inventories |
(7,341 |
) |
|
(374 |
) |
Prepaid
expenses and other current assets |
(2,256 |
) |
|
(2,046 |
) |
Accounts
payable |
10,072 |
|
|
(7,073 |
) |
Deferred
revenue |
14,425 |
|
|
15,538 |
|
Accrued
warranty and retrofit costs |
792 |
|
|
(333 |
) |
Accrued
compensation and tax withholdings |
(1,799 |
) |
|
(7,297 |
) |
Accrued
restructuring costs |
(3,799 |
) |
|
5,323 |
|
Accrued
expenses and other current liabilities |
707 |
|
|
(7,433 |
) |
Net cash
provided by operating activities |
43,298 |
|
|
371 |
|
Cash flows from
investing activities |
|
|
|
Purchases
of property, plant and equipment |
(5,153 |
) |
|
(6,090 |
) |
Purchases
of marketable securities |
— |
|
|
(12,900 |
) |
Sales and
maturities of marketable securities |
— |
|
|
139,388 |
|
Acquisitions, net of cash acquired |
(5,346 |
) |
|
(125,498 |
) |
Disbursement for a loan receivable |
— |
|
|
(741 |
) |
Purchases
of other investments |
(170 |
) |
|
(250 |
) |
Net cash
used in investing activities |
(10,669 |
) |
|
(6,091 |
) |
Cash flows from
financing activities |
|
|
|
Proceeds
from issuance of common stock |
960 |
|
|
948 |
|
Payment
of deferred financing costs |
(27 |
) |
|
— |
|
Common
stock dividends paid |
(13,945 |
) |
|
(13,738 |
) |
Net cash
used in financing activities |
(13,012 |
) |
|
(12,790 |
) |
Effects of exchange
rate changes on cash and cash equivalents |
(764 |
) |
|
(50 |
) |
Net increase (decrease)
in cash and cash equivalents |
18,853 |
|
|
(18,560 |
) |
Cash and cash
equivalents, beginning of period |
85,086 |
|
|
80,722 |
|
Cash and cash
equivalents, end of period |
$ |
103,939 |
|
|
$ |
62,162 |
|
|
|
|
|
Supplemental disclosure
of non-cash investing activities: |
|
|
|
Purchases
of property, plant and equipment included in accounts payable |
$ |
543 |
|
|
$ |
835 |
|
Fair
value of non-cash consideration for the acquisition of Cool Lab,
LLC |
10,348 |
|
|
— |
|
|
|
|
|
|
|
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 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. Tables
reconciling GAAP to the non-GAAP measures are presented below.
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
Dollars in thousands,
except per share data |
$ |
|
per diluted share |
|
$ |
|
per diluted share |
|
$ |
|
per diluted share |
GAAP net income
(loss) |
$ |
14,005 |
|
|
$ |
0.20 |
|
|
$ |
13,871 |
|
|
$ |
0.20 |
|
|
$ |
(83,939 |
) |
|
$ |
(1.22 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Purchase
accounting impact on inventory and contracts acquired |
382 |
|
|
0.01 |
|
|
70 |
|
|
— |
|
|
250 |
|
|
— |
|
Amortization of intangible assets |
4,355 |
|
|
0.06 |
|
|
4,058 |
|
|
0.06 |
|
|
3,809 |
|
|
0.06 |
|
Restructuring charges |
860 |
|
|
0.01 |
|
|
975 |
|
|
0.01 |
|
|
7,336 |
|
|
0.11 |
|
Merger
costs |
936 |
|
|
0.01 |
|
|
249 |
|
|
— |
|
|
215 |
|
|
0.00 |
|
Establishment of valuation allowance against deferred tax
assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
79,340 |
|
|
1.15 |
|
Fair
value adjustment of equity investment |
— |
|
|
— |
|
|
(1,847 |
) |
|
(0.03 |
) |
|
— |
|
|
— |
|
BioCision
stub period adjustment |
— |
|
|
— |
|
|
203 |
|
|
— |
|
|
— |
|
|
— |
|
Tax
effect of adjustments |
(699 |
) |
|
(0.01 |
) |
|
(278 |
) |
|
— |
|
|
(2,091 |
) |
|
(0.03 |
) |
Non-GAAP
adjusted net income |
19,839 |
|
|
0.28 |
|
|
17,301 |
|
|
0.25 |
|
|
4,920 |
|
|
0.07 |
|
Stock
based compensation, pre-tax |
4,386 |
|
|
— |
|
|
2,498 |
|
|
— |
|
|
1,855 |
|
|
— |
|
Tax
rate |
17 |
% |
|
— |
|
|
15 |
% |
|
— |
|
|
16 |
% |
|
— |
|
Stock-based compensation, net of tax |
3,641 |
|
|
0.05 |
|
|
2,123 |
|
|
0.03 |
|
|
1,556 |
|
|
0.02 |
|
Non-GAAP
adjusted net income - excluding stock-based compensation |
$ |
23,480 |
|
|
$ |
0.33 |
|
|
$ |
19,424 |
|
|
$ |
0.28 |
|
|
$ |
6,476 |
|
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
used in computing non-GAAP diluted net income per share |
— |
|
|
70,149 |
|
|
— |
|
|
69,870 |
|
|
— |
|
|
69,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
March 31, 2017 |
|
March 31, 2016 |
Dollars in thousands,
except per share data |
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
GAAP net income
(loss) |
$ |
27,876 |
|
|
$ |
0.40 |
|
|
$ |
(88,587 |
) |
|
$ |
(1.30 |
) |
Adjustments: |
|
|
|
|
|
|
|
Purchase
accounting impact on inventory and contracts acquired |
452 |
|
|
0.01 |
|
|
375 |
|
|
0.01 |
|
Amortization of intangible assets |
8,413 |
|
|
0.12 |
|
|
7,316 |
|
|
0.11 |
|
Restructuring charges |
1,835 |
|
|
0.03 |
|
|
8,811 |
|
|
0.13 |
|
Merger
costs |
1,185 |
|
|
0.02 |
|
|
3,211 |
|
|
0.05 |
|
Less:
Fair value adjustment of equity investment |
(1,847 |
) |
|
(0.03 |
) |
|
— |
|
|
— |
|
Add:
True-up of BioCision stub period adjustment |
203 |
|
|
— |
|
|
— |
|
|
— |
|
Establishment of valuation allowance against deferred tax
assets |
— |
|
|
— |
|
|
79,340 |
|
|
$ |
1.14 |
|
Tax
effect of adjustments |
(976 |
) |
|
(0.01 |
) |
|
(4,300 |
) |
|
(0.06 |
) |
Non-GAAP adjusted net
income |
37,141 |
|
|
0.53 |
|
|
6,166 |
|
|
0.09 |
|
Stock-based compensation, pre-tax |
6,884 |
|
|
— |
|
|
6,568 |
|
|
— |
|
Tax
rate |
16 |
% |
|
— |
|
|
26 |
% |
|
— |
|
Stock-based
compensation, net of tax |
5,783 |
|
|
$ |
0.08 |
|
|
4,855 |
|
|
$ |
0.07 |
|
Non-GAAP adjusted net
income - excluding stock-based compensation |
$ |
42,924 |
|
|
$ |
0.61 |
|
|
$ |
11,021 |
|
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP diluted net income per share |
— |
|
|
70,073 |
|
|
— |
|
|
69,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
Dollars in
thousands |
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
GAAP gross profit/gross
margin percentage |
$ |
64,524 |
|
|
38.1 |
% |
|
$ |
56,943 |
|
|
35.6 |
% |
|
$ |
46,800 |
|
|
34.6 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
1,061 |
|
|
0.6 |
% |
|
993 |
|
|
0.6 |
% |
|
718 |
|
|
0.5 |
% |
Purchase
accounting impact on inventory and contracts acquired |
382 |
|
|
0.2 |
% |
|
70 |
|
|
— |
% |
|
250 |
|
|
0.2 |
% |
Non-GAAP
adjusted gross profit/gross margin percentage |
65,967 |
|
|
39.0 |
% |
|
58,006 |
|
|
36.3 |
% |
|
47,768 |
|
|
35.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
March 31, 2017 |
|
March 31, 2016 |
Dollars in
thousands |
$ |
|
% |
|
$ |
|
% |
GAAP Gross profit/gross
margin percentage |
$ |
121,467 |
|
|
36.9 |
% |
|
$ |
87,354 |
|
|
34.2 |
% |
Adjustments: |
|
|
|
|
|
|
|
Amortization of intangible assets |
2,054 |
|
|
0.6 |
% |
|
2,014 |
|
|
0.8 |
% |
Purchase
accounting impact on inventory and contracts acquired |
452 |
|
|
0.1 |
% |
|
375 |
|
|
0.1 |
% |
Non-GAAP adjusted gross
profit/gross margin percentage |
$ |
123,973 |
|
|
37.6 |
% |
|
$ |
89,743 |
|
|
35.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
March 31, |
|
March 31, |
Dollars in
thousands |
2017 |
|
2016 |
|
2016 |
|
2017 |
|
2016 |
GAAP net income
(loss) |
$ |
14,005 |
|
|
$ |
13,871 |
|
|
$ |
(83,939 |
) |
|
$ |
27,876 |
|
|
$ |
(88,587 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
Less:
Interest income |
(227 |
) |
|
(68 |
) |
|
(50 |
) |
|
(294 |
) |
|
(255 |
) |
Add:
Interest expense |
97 |
|
|
96 |
|
|
16 |
|
|
193 |
|
|
19 |
|
Add:
Income tax provision |
3,420 |
|
|
2,800 |
|
|
78,220 |
|
|
6,220 |
|
|
74,850 |
|
Add:
Depreciation |
2,623 |
|
|
2,695 |
|
|
3,596 |
|
|
5,318 |
|
|
6,534 |
|
Add:
Amortization of completed technology |
1,061 |
|
|
993 |
|
|
718 |
|
|
2,054 |
|
|
2,014 |
|
Add:
Amortization of customer relationships and acquired intangible
assets |
3,294 |
|
|
3,064 |
|
|
3,091 |
|
|
6,358 |
|
|
5,302 |
|
Earnings (losses)
before interest, taxes, depreciation and amortization |
$ |
24,273 |
|
|
$ |
23,451 |
|
|
$ |
1,652 |
|
|
$ |
47,725 |
|
|
$ |
(123 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
March 31, |
|
March 31, |
Dollars in
thousands |
2017 |
|
2016 |
|
2016 |
|
2017 |
|
2016 |
Earnings (losses)
before interest, taxes, depreciation and amortization |
$ |
24,273 |
|
|
$ |
23,451 |
|
|
$ |
1,652 |
|
|
$ |
47,725 |
|
|
$ |
(123 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
Less:
Fair value adjustment of equity method investment |
— |
|
|
(1,847 |
) |
|
— |
|
|
(1,847 |
) |
|
— |
|
Add:
Stock-based compensation |
4,386 |
|
|
2,498 |
|
|
1,855 |
|
|
6,884 |
|
|
6,568 |
|
Add:
Restructuring charges |
860 |
|
|
975 |
|
|
7,336 |
|
|
1,835 |
|
|
8,811 |
|
Add:
BioCision stub period adjustment |
— |
|
|
203 |
|
|
— |
|
|
203 |
|
|
— |
|
Add:
Purchase accounting impact on inventory and contracts acquired |
382 |
|
|
70 |
|
|
250 |
|
|
452 |
|
|
375 |
|
Add:
Merger costs |
936 |
|
|
249 |
|
|
215 |
|
|
1,185 |
|
|
3,211 |
|
Adjusted earnings
before interest, taxes, depreciation and amortization |
$ |
30,837 |
|
|
$ |
25,599 |
|
|
$ |
11,308 |
|
|
$ |
56,437 |
|
|
$ |
18,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
March 31, |
|
March 31, |
Dollars in
thousands |
2017 |
|
2016 |
|
2016 |
|
2017 |
|
2016 |
GAAP selling, general
and administrative expenses |
$ |
37,518 |
|
|
$ |
31,962 |
|
|
$ |
32,692 |
|
|
$ |
69,479 |
|
|
$ |
66,813 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Less:
Amortization of customer relationships and acquired intangible
assets |
(3,294 |
) |
|
(3,064 |
) |
|
(3,091 |
) |
|
(6,358 |
) |
|
(5,302 |
) |
Less:
Merger costs |
(936 |
) |
|
(249 |
) |
|
(215 |
) |
|
(1,185 |
) |
|
(3,211 |
) |
Non-GAAP adjusted
selling, general and administrative expenses |
$ |
33,288 |
|
|
$ |
28,649 |
|
|
$ |
29,386 |
|
|
$ |
61,936 |
|
|
$ |
58,300 |
|
Research and
development expenses |
$ |
11,345 |
|
|
$ |
10,845 |
|
|
$ |
13,111 |
|
|
$ |
22,190 |
|
|
$ |
26,389 |
|
Non-GAAP adjusted
operating expenses |
$ |
44,633 |
|
|
$ |
39,494 |
|
|
$ |
42,497 |
|
|
$ |
84,126 |
|
|
$ |
84,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
March 31, |
|
March 31, |
Dollars in
thousands |
2017 |
|
2016 |
|
2016 |
|
2017 |
|
2016 |
GAAP equity in earnings
of equity method investments |
$ |
2,777 |
|
|
$ |
1,942 |
|
|
$ |
710 |
|
|
$ |
4,719 |
|
|
$ |
869 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Add:
BioCision stub period adjustment |
— |
|
|
203 |
|
|
— |
|
|
203 |
|
|
— |
|
Non-GAAP adjusted
equity in earnings of equity method investments |
$ |
2,777 |
|
|
$ |
2,145 |
|
|
$ |
710 |
|
|
$ |
4,922 |
|
|
$ |
869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks Semiconductor Solutions
Group |
|
Brooks Life Science Systems |
|
Quarter Ended |
|
Quarter Ended |
Dollars in
thousands |
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
|
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
GAAP gross profit |
$ |
51,325 |
|
|
$ |
45,468 |
|
|
$ |
36,943 |
|
|
$ |
13,199 |
|
|
$ |
11,475 |
|
|
$ |
9,857 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
626 |
|
|
627 |
|
|
390 |
|
|
435 |
|
|
366 |
|
|
328 |
|
Purchase
accounting impact on inventory and contracts acquired |
125 |
|
|
— |
|
|
250 |
|
|
257 |
|
|
70 |
|
|
— |
|
Non-GAAP adjusted gross
profit |
$ |
52,076 |
|
|
$ |
46,095 |
|
|
$ |
37,583 |
|
|
$ |
13,891 |
|
|
$ |
11,911 |
|
|
$ |
10,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks Semiconductor Solutions
Group |
|
Brooks Life Science Systems |
|
Six Months Ended |
|
Six Months Ended |
Dollars in
thousands |
March 31, 2017 |
|
March 31, 2016 |
|
March 31, 2017 |
|
March 31, 2016 |
GAAP gross profit |
$ |
96,794 |
|
|
$ |
71,602 |
|
|
$ |
24,673 |
|
|
$ |
15,752 |
|
Adjustments: |
|
|
|
|
|
|
|
Amortization of intangible assets |
1,253 |
|
|
1,294 |
|
|
801 |
|
|
721 |
|
Purchase
accounting impact on inventory and contracts acquired |
125 |
|
|
375 |
|
|
327 |
|
|
— |
|
Non-GAAP adjusted gross
profit |
$ |
98,172 |
|
|
$ |
73,271 |
|
|
$ |
25,801 |
|
|
$ |
16,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks Semiconductor Solutions
Group |
|
Brooks Life Science Systems |
|
Quarter Ended |
|
Quarter Ended |
Dollars in
thousands |
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
|
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
GAAP gross margin |
38.1 |
% |
|
35.9 |
% |
|
33.9 |
% |
|
38.1 |
% |
|
34.4 |
% |
|
37.2 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
0.5 |
% |
|
0.5 |
% |
|
0.4 |
% |
|
1.3 |
% |
|
1.1 |
% |
|
1.2 |
% |
Purchase
accounting impact on inventory and contracts acquired |
0.1 |
% |
|
— |
% |
|
0.2 |
% |
|
0.7 |
% |
|
0.2 |
% |
|
— |
% |
Non-GAAP adjusted gross
margin |
38.7 |
% |
|
36.4 |
% |
|
34.5 |
% |
|
40.1 |
% |
|
35.7 |
% |
|
38.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks Semiconductor Solutions
Group |
|
Brooks Life Science Systems |
|
Six Months Ended |
|
Six Months Ended |
Dollars in
thousands |
March 31, 2017 |
|
March 31, 2016 |
|
March 31, 2017 |
|
March 31, 2016 |
GAAP gross margin |
37.0 |
% |
|
34.4 |
% |
|
36.3 |
% |
|
33.3 |
% |
Adjustments: |
|
|
|
|
|
|
|
Amortization of intangible assets |
0.5 |
% |
|
0.6 |
% |
|
1.2 |
% |
|
1.5 |
% |
Purchase
accounting impact on inventory and contracts acquired |
— |
% |
|
0.2 |
% |
|
0.5 |
% |
|
— |
% |
Non-GAAP adjusted gross
margin |
37.6 |
% |
|
35.2 |
% |
|
37.9 |
% |
|
34.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks Semiconductor Solutions
Group |
|
Brooks Life Science Systems |
|
Total |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
Dollars in
thousands |
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
|
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
|
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
GAAP operating
profit |
$ |
20,003 |
|
|
$ |
17,371 |
|
|
$ |
6,658 |
|
|
$ |
1,290 |
|
|
$ |
112 |
|
|
$ |
(2,217 |
) |
|
$ |
21,293 |
|
|
$ |
17,483 |
|
|
$ |
4,441 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
626 |
|
|
627 |
|
|
390 |
|
|
435 |
|
|
366 |
|
|
328 |
|
|
1,061 |
|
|
993 |
|
|
718 |
|
Purchase
accounting impact on inventory and contracts acquired |
125 |
|
|
— |
|
|
250 |
|
|
257 |
|
|
70 |
|
|
— |
|
|
382 |
|
|
70 |
|
|
250 |
|
Non-GAAP adjusted
operating profit |
$ |
20,754 |
|
|
$ |
17,998 |
|
|
$ |
7,298 |
|
|
$ |
1,982 |
|
|
$ |
548 |
|
|
$ |
(1,889 |
) |
|
$ |
22,736 |
|
|
$ |
18,546 |
|
|
$ |
5,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks Semiconductor Solutions
Group |
|
Brooks Life Science Systems |
|
Total |
|
Six Months Ended |
|
Six Months Ended |
|
Six Months Ended |
Dollars in
thousands |
March 31, 2017 |
|
March 31, 2016 |
|
March 31, 2017 |
|
March 31, 2016 |
|
March 31, 2017 |
|
March 31, 2016 |
GAAP operating
profit |
$ |
37,374 |
|
|
$ |
9,598 |
|
|
$ |
1,402 |
|
|
$ |
(6,819 |
) |
|
$ |
38,776 |
|
|
$ |
2,779 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
1,253 |
|
|
1,294 |
|
|
801 |
|
|
721 |
|
|
2,054 |
|
|
2,015 |
|
Purchase
accounting impact on inventory and contracts acquired |
125 |
|
|
375 |
|
|
327 |
|
|
— |
|
|
452 |
|
|
375 |
|
Non-GAAP adjusted
operating profit |
$ |
38,752 |
|
|
$ |
11,267 |
|
|
$ |
2,530 |
|
|
$ |
(6,098 |
) |
|
$ |
41,282 |
|
|
$ |
5,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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