CHELMSFORD, Mass., July 30, 2020 /PRNewswire/ -- Brooks Automation,
Inc. (Nasdaq: BRKS) today reported financial results for the third
fiscal quarter, ended June 30,
2020.
Financial Results Summary
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Quarter Ended
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Dollars in millions, except per share
data
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June 30,
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March 31,
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June 30,
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Change
vs.
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|
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2020
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2020
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|
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2019
|
|
Prior
Qtr
|
|
Prior
Year
|
|
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Revenue
|
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$
|
220
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$
|
220
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$
|
204
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|
0
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%
|
8
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%
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|
|
Semiconductor
Solutions
|
|
$
|
127
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$
|
125
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$
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116
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|
2
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%
|
9
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%
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|
Life
Sciences
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$
|
93
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$
|
95
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$
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88
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|
(2)
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%
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6
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%
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Diluted EPS
Continuing Operations
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$
|
0.19
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$
|
0.12
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|
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$
|
0.01
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|
49
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%
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N/M
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Diluted EPS
Total
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$
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0.19
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$
|
0.12
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|
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$
|
0.10
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|
50
|
%
|
85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Non-GAAP Diluted EPS
Continuing Operations
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$
|
0.32
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$
|
0.25
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|
|
$
|
0.20
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|
26
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%
|
60
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%
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|
Management Comments
"Despite the current environment's headwinds, we delivered a strong
performance in the quarter," commented Steve Schwartz, president and CEO. "Our Life
Sciences business witnessed robust demand for its sample management
offerings and gene synthesis services. Due to many customer
lab closures around the world, our gene sequencing business had a
slow start to the quarter but has steadily increased and is now
approaching pre-COVID levels. We continue to see a ramp in
Semiconductor with increased demand for both automation systems and
robots. The real story here is about the relentless team of
Brooks employees working through the most difficult of environments
without missing a beat!"
Summary of GAAP Results for Continuing Operations
- Revenue for the third fiscal quarter was $220 million, up 8% year over year. Diluted
EPS from continuing operations was $0.19 per share compared to $0.01 per share in the third quarter of
2019.
- Life Sciences revenue of $93
million grew 6% year over year and was down 2%
sequentially. Year-over-year organic growth was 5%, led by
consumables, instruments, and storage services. GENEWIZ
revenue declined 9% sequentially but remained 1% above the third
quarter 2019 revenue.
- Semiconductor Solutions revenue was $127
million, an increase of 9% year over year and 2%
sequentially.
- GAAP operating income was $19
million, compared to $16
million in the third quarter of 2019. GAAP operating
margin at 8.7% was 60 basis points higher year over year and 210
basis points higher sequentially.
- Net interest expense was $0.8
million for the quarter, a $7.1
million reduction from the third quarter of 2019.
Summary of Non-GAAP Results for Continuing Operations
- Diluted EPS from continuing operations for the third quarter
was $0.32, up 26% from the second
quarter of 2020 and up 60% over the prior year.
- Operating income was $30 million,
an increase of 15% sequentially and year over year. Operating
margin was 13.5%, up 180 basis points sequentially and 80 basis
points year over year. The margin expansion was driven
primarily by stronger gross margin.
- Gross margin was 43.5%, an increase of 130 basis points
sequentially and 110 basis points year over year. Gross
margin expansion in both segments, Life Sciences and Semiconductor
Solutions, drove the improvement year over year, while the
sequential momentum was driven by the Semiconductor business.
- Life Sciences operating margin was 7.1%, approximately flat
year over year and lower by 150 basis points from the prior
quarter. Gross margin performance of 44.6%, up 140 basis
points year over year and lower by 120 basis points sequentially,
was the primary driver. The Life Sciences Products business
reported 40 basis points of improvement sequentially but was more
than offset by the lower margins of the Life Sciences Services
business.
- Semiconductor Solutions operating margin was 18.4%, an increase
of 100 basis points from the prior year and up 510 basis points
from the second quarter of 2020. Gross margin of 42.7%, up
100 basis points year over year and 320 basis points sequentially,
was the primary driver of operating margin
expansion.
- Adjusted EBITDA was $40 million,
up 12% from the third quarter of 2019 and 16% sequentially.
A reconciliation of non-GAAP measures to the most nearly
comparable GAAP measures follows the consolidated balance sheets,
statements of operations and statements of cash flows included in
this release.
Cash and Liquidity
- Cash flow from operations was $26
million for the quarter and on a year-to-date basis, and
cash flow from operations, excluding the $92
million tax payment made in the second quarter on the gain
on the sale of the Semiconductor cryogenics business, was
$78 million, an increase of
$19 million from the same period the
prior year.
- The Company ended the third quarter with a total balance of
cash, cash equivalents, restricted cash, and marketable securities
of $263 million. With total
debt of $51 million, net cash was
$212 million.
Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has
reiterated a dividend of $0.10 per
share payable on September 25, 2020
to stockholders of record on September
4, 2020. 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 Quarter Fiscal 2020
The Company announced revenue and earnings guidance for the fourth
quarter of fiscal 2020. Revenue is expected to be in the
range of $229 million to $241 million and non-GAAP diluted earnings per
share is expected to be in the range of $0.32 to $0.40. GAAP diluted earnings per share for
the fourth fiscal quarter is expected to be in the range of
$0.19 to $0.27.
Conference Call and Webcast
Brooks management will webcast its third 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.investorroom.com, and will be archived online on this
website for convenient on-demand replay. In addition, you may
call 800-754-1366 (US & Canada
only) or +1-212-231-2930 for international callers to listen to the
live webcast.
Regulation G – Use of Non-GAAP financial Measures
The Company supplements its GAAP financial measures with certain
non-GAAP financial measures to provide investors a better
perspective on the results of business operations, which the
Company believes is more comparable to the similar analysis
provided by its peers. These measures are not presented in
accordance with, nor are they a substitute for, U.S. generally
accepted accounting principles, or GAAP. These measures should
always be considered in conjunction with appropriate GAAP
measures. A reconciliation of non-GAAP measures to the most
nearly comparable GAAP measures is included at the end of this
release following the consolidated balance sheets, statements of
operations and statements of cash flows.
"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 impact of the COVID-19 global pandemic on the
markets we serve, including our supply chain, and on the global
economy generally, 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.
About Brooks Automation
Brooks (Nasdaq: BRKS) is a
leading provider of life science sample-based solutions and
semiconductor manufacturing solutions worldwide. The
Company's Life Sciences business provides a full suite of reliable
cold-chain sample management solutions and genomic services across
areas such as drug development, clinical research and advanced cell
therapies for the industry's top pharmaceutical, biotech, academic
and healthcare institutions globally. Brooks Life Sciences'
GENEWIZ division is a leading provider of DNA gene sequencing and
gene synthesis services. With over 40 years as a partner to
the semiconductor manufacturing industry, Brooks is a provider of
industry-leading precision vacuum robotics, integrated automation
systems and contamination control solutions to the world's leading
semiconductor chip makers and equipment manufacturers. Brooks
is headquartered in Chelmsford,
MA, with operations in North
America, Europe and
Asia. For more information, visit www.brooks.com.
INVESTOR CONTACTS:
Mark Namaroff
Director, Investor Relations
Brooks Automation
978.262.2635
mark.namaroff@brooks.com
Sherry Dinsmore
Brooks Automation
978.262.2400
sherry.dinsmore@brooks.com
BROOKS AUTOMATION,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
(In thousands, except
per share data)
|
|
|
Three Months Ended
|
|
|
Nine Months
Ended
|
|
June 30,
|
|
|
June 30,
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
$
|
142,323
|
|
$
|
128,397
|
|
|
$
|
413,329
|
|
$
|
381,827
|
Services
|
|
78,027
|
|
|
75,483
|
|
|
|
237,748
|
|
|
199,810
|
Total
revenue
|
|
220,350
|
|
|
203,880
|
|
|
|
651,077
|
|
|
581,637
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
81,989
|
|
|
77,203
|
|
|
|
245,930
|
|
|
229,580
|
Services
|
|
45,573
|
|
|
43,167
|
|
|
|
137,092
|
|
|
115,951
|
Total cost of
revenue
|
|
127,562
|
|
|
120,370
|
|
|
|
383,022
|
|
|
345,531
|
Gross
profit
|
|
92,788
|
|
|
83,510
|
|
|
|
268,055
|
|
|
236,106
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
14,004
|
|
|
14,235
|
|
|
|
43,727
|
|
|
41,485
|
Selling, general and
administrative
|
|
59,714
|
|
|
52,596
|
|
|
|
178,866
|
|
|
158,509
|
Restructuring
charges
|
|
(29)
|
|
|
256
|
|
|
|
1,125
|
|
|
685
|
Total operating
expenses
|
|
73,689
|
|
|
67,087
|
|
|
|
223,718
|
|
|
200,679
|
Operating
income
|
|
19,099
|
|
|
16,423
|
|
|
|
44,337
|
|
|
35,427
|
Interest
income
|
|
29
|
|
|
108
|
|
|
|
865
|
|
|
847
|
Interest
expense
|
|
(810)
|
|
|
(8,041)
|
|
|
|
(2,265)
|
|
|
(21,348)
|
Loss on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(9,051)
|
Other income
(expenses), net
|
|
498
|
|
|
(309)
|
|
|
|
(1,318)
|
|
|
(1,116)
|
Income before income
taxes
|
|
18,816
|
|
|
8,181
|
|
|
|
41,619
|
|
|
4,759
|
Income tax
benefit
|
|
5,120
|
|
|
7,260
|
|
|
|
5,557
|
|
|
400
|
Income from
continuing operations
|
|
13,696
|
|
|
921
|
|
|
|
36,062
|
|
|
4,359
|
Income (loss) from
discontinued operations, net of tax
|
|
—
|
|
|
6,333
|
|
|
|
(182)
|
|
|
20,731
|
Net income
|
$
|
13,696
|
|
$
|
7,254
|
|
|
$
|
35,880
|
|
$
|
25,090
|
Basic net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
0.19
|
|
$
|
0.01
|
|
|
$
|
0.48
|
|
$
|
0.06
|
Income (loss) from
discontinued operations, net of tax
|
|
-
|
|
|
0.09
|
|
|
|
(0.00)
|
|
|
0.29
|
Basic net income per
share
|
$
|
0.19
|
|
$
|
0.10
|
|
|
$
|
0.49
|
|
$
|
0.35
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
0.19
|
|
$
|
0.01
|
|
|
$
|
0.49
|
|
$
|
0.06
|
Income (loss) from
discontinued operations, net of tax
|
|
-
|
|
|
0.09
|
|
|
|
(0.00)
|
|
|
0.29
|
Diluted net income
per share
|
$
|
0.19
|
|
$
|
0.10
|
|
|
$
|
0.49
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding used in computing net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
73,759
|
|
|
72,188
|
|
|
|
73,473
|
|
|
71,903
|
Diluted
|
|
73,860
|
|
|
72,470
|
|
|
|
73,766
|
|
|
72,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROOKS AUTOMATION,
INC.
|
CONSOLIDATED BALANCE
SHEETS
|
(unaudited)
|
(In thousands, except
share and per share data)
|
|
|
June 30,
|
|
September 30,
|
|
2020
|
|
2019
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
256,633
|
|
$
|
301,642
|
Marketable
securities
|
|
136
|
|
|
34,124
|
Accounts receivable,
net
|
|
183,167
|
|
|
165,602
|
Inventories
|
|
117,686
|
|
|
99,445
|
Prepaid expenses and
other current assets
|
|
44,389
|
|
|
46,332
|
Total current
assets
|
|
602,011
|
|
|
647,145
|
Property, plant and
equipment, net
|
|
111,416
|
|
|
100,669
|
Long-term marketable
securities
|
|
2,939
|
|
|
2,845
|
Long-term deferred tax
assets
|
|
3,489
|
|
|
5,064
|
Goodwill
|
|
500,062
|
|
|
488,602
|
Intangible assets,
net
|
|
226,623
|
|
|
251,168
|
Other
assets
|
|
57,377
|
|
|
20,506
|
Total
assets
|
$
|
1,503,917
|
|
$
|
1,515,999
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
828
|
|
$
|
829
|
Accounts
payable
|
|
70,344
|
|
|
58,919
|
Deferred
revenue
|
|
31,162
|
|
|
29,435
|
Accrued warranty and
retrofit costs
|
|
7,881
|
|
|
7,175
|
Accrued compensation
and benefits
|
|
33,847
|
|
|
31,375
|
Accrued restructuring
costs
|
|
437
|
|
|
1,040
|
Accrued income taxes
payable
|
|
16,253
|
|
|
99,263
|
Accrued expenses and
other current liabilities
|
|
45,053
|
|
|
44,234
|
Total current
liabilities
|
|
205,805
|
|
|
272,270
|
Long-term
debt
|
|
49,563
|
|
|
50,315
|
Long-term tax
reserves
|
|
19,609
|
|
|
18,274
|
Long-term deferred tax
liabilities
|
|
10,613
|
|
|
20,636
|
Long-term pension
liabilities
|
|
5,724
|
|
|
5,338
|
Long-term operating
lease liabilities
|
|
29,280
|
|
|
—
|
Other long-term
liabilities
|
|
8,470
|
|
|
10,212
|
Total
liabilities
|
|
329,064
|
|
|
377,045
|
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, 87,222,115 shares issued
and 73,760,246 shares outstanding at June 30, 2020,
85,759,700 shares issued and 72,297,831 shares outstanding at
September 30, 2019
|
|
872
|
|
|
857
|
Additional paid-in
capital
|
|
1,936,619
|
|
|
1,921,954
|
Accumulated other
comprehensive income
|
|
10,977
|
|
|
3,511
|
Treasury stock at cost
- 13,461,869 shares
|
|
(200,956)
|
|
|
(200,956)
|
Accumulated
deficit
|
|
(572,659)
|
|
|
(586,412)
|
Total stockholders'
equity
|
|
1,174,853
|
|
|
1,138,954
|
Total liabilities and
stockholders' equity
|
$
|
1,503,917
|
|
$
|
1,515,999
|
BROOKS AUTOMATION,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
(In
thousands)
|
|
|
Nine Months
Ended
|
|
June 30,
|
|
2020
|
|
2019
|
Cash flows from
operating activities
|
|
|
|
|
|
Net income
|
$
|
35,880
|
|
$
|
25,090
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
49,760
|
|
|
40,429
|
Impairment of
property, plant and equipment
|
|
301
|
|
|
—
|
Stock-based
compensation
|
|
12,348
|
|
|
15,172
|
Amortization of
premium on marketable securities and deferred financing
costs
|
|
177
|
|
|
766
|
Earnings of equity
method investments
|
|
—
|
|
|
(4,876)
|
Deferred income
taxes
|
|
(9,319)
|
|
|
(9,207)
|
Loss on extinguishment
of debt
|
|
—
|
|
|
9,051
|
Other gains on
disposals of assets
|
|
163
|
|
|
156
|
Loss on sale of
divestiture, net of tax
|
|
319
|
|
|
—
|
Taxes paid stemming
from divestiture
|
|
(91,500)
|
|
|
—
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
Accounts
receivable
|
|
(15,719)
|
|
|
(6,456)
|
Inventories
|
|
(17,695)
|
|
|
(6,431)
|
Prepaid expenses and
current assets
|
|
12,554
|
|
|
2,109
|
Accounts
payable
|
|
11,032
|
|
|
(6,761)
|
Deferred
revenue
|
|
214
|
|
|
4,959
|
Accrued warranty and
retrofit costs
|
|
580
|
|
|
1,022
|
Accrued compensation
and tax withholdings
|
|
1,928
|
|
|
(9,404)
|
Accrued restructuring
costs
|
|
(609)
|
|
|
(361)
|
Proceeds from recovery
on insurance claim
|
|
—
|
|
|
1,082
|
Accrued expenses and
current liabilities
|
|
(4,347)
|
|
|
1,901
|
Net cash (used in)
provided by operating activities
|
|
(13,933)
|
|
|
58,241
|
Cash flows from
investing activities
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(29,685)
|
|
|
(15,548)
|
Purchases of
marketable securities
|
|
(10,843)
|
|
|
(1,290)
|
Sales of marketable
securities
|
|
2,492
|
|
|
48,904
|
Maturities of
marketable securities
|
|
42,226
|
|
|
2,557
|
Acquisitions, net of
cash acquired
|
|
(15,743)
|
|
|
(442,704)
|
Purchase of other
investment
|
|
(1,000)
|
|
|
—
|
Net cash used in
investing activities
|
|
(12,553)
|
|
|
(408,081)
|
Cash flows from
financing activities
|
|
|
|
|
|
Proceeds from term
loans, net of discount
|
|
—
|
|
|
686,386
|
Proceeds from issuance
of common stock
|
|
2,332
|
|
|
1,548
|
Payments of financing
costs
|
|
—
|
|
|
(687)
|
Principal payments on
debt
|
|
(828)
|
|
|
(354,940)
|
Payments of capital
leases
|
|
(957)
|
|
|
(849)
|
Common stock dividends
paid
|
|
(22,127)
|
|
|
(21,658)
|
Net cash (used in)
provided by financing activities
|
|
(21,580)
|
|
|
309,800
|
Effects of exchange
rate changes on cash and cash equivalents
|
|
3,095
|
|
|
(816)
|
Net decrease in cash
and cash equivalents
|
|
(44,971)
|
|
|
(40,856)
|
Cash and cash
equivalents and restricted cash, beginning of period
|
|
305,171
|
|
|
197,708
|
Cash and cash
equivalents and restricted cash, end of period
|
$
|
260,200
|
|
$
|
156,852
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the consolidated
balance sheets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
256,633
|
|
$
|
156,802
|
Restricted cash
included in prepaid expenses and other current assets
|
|
3,567
|
|
|
50
|
Total cash, cash
equivalents and restricted cash shown in the consolidated
statements of cash flows
|
$
|
260,200
|
|
$
|
156,852
|
Notes on Non-GAAP Financial Measures:
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 adjusted the GAAP results for the impact of
amortization of intangible assets, restructuring charges, purchase
price accounting adjustments and charges related to M&A 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. Management also excludes
special charges and gains, such as impairment losses, gains and
losses from the sale of assets, as well as other gains and charges
that are not representative of the normal operations of the
business. Management strongly encourages investors to review our
financial statements and publicly-filed reports in their entirety
and not rely on any single measure.
|
|
|
Quarter Ended
|
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
|
|
|
per
diluted
|
|
|
|
per
diluted
|
|
|
|
per
diluted
|
Dollars in
thousands, except per share data
|
|
$
|
|
share
|
|
$
|
|
share
|
|
$
|
|
share
|
Net income from
continuing operations
|
|
$
|
13,696
|
|
$
|
0.19
|
|
$
|
9,192
|
|
$
|
0.12
|
|
$
|
921
|
|
$
|
0.01
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
|
|
10,390
|
|
|
0.14
|
|
|
10,355
|
|
|
0.14
|
|
|
9,050
|
|
|
0.12
|
Restructuring
charges
|
|
|
(29)
|
|
|
(0.00)
|
|
|
578
|
|
|
0.01
|
|
|
256
|
|
|
0.00
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Merger
costs
|
|
|
10
|
|
|
0.00
|
|
|
279
|
|
|
0.00
|
|
|
156
|
|
|
0.00
|
Restructuring related
charges
|
|
|
301
|
|
|
0.00
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Tax Reform
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,281
|
|
|
0.06
|
Tax adjustments
(1)
|
|
|
1,502
|
|
|
0.02
|
|
|
1,046
|
|
|
0.01
|
|
|
974
|
|
|
0.01
|
Tax effect of
adjustments
|
|
|
(2,561)
|
|
|
(0.03)
|
|
|
(2,997)
|
|
|
(0.04)
|
|
|
(1,345)
|
|
|
(0.02)
|
Non-GAAP adjusted
net income from continuing operations
|
|
$
|
23,309
|
|
$
|
0.32
|
|
$
|
18,453
|
|
$
|
0.25
|
|
$
|
14,293
|
|
$
|
0.20
|
Stock
based compensation, pre-tax
|
|
|
3,725
|
|
|
0.05
|
|
|
4,214
|
|
|
0.06
|
|
|
5,277
|
|
|
0.07
|
Tax
rate
|
|
|
15
|
%
|
|
—
|
|
|
15
|
%
|
|
—
|
|
|
15
|
%
|
|
—
|
Stock-based
compensation, net of tax
|
|
|
3,166
|
|
|
0.04
|
|
|
3,582
|
|
|
0.05
|
|
|
4,485
|
|
|
0.06
|
Non-GAAP adjusted net
income excluding stock-based compensation - continuing
operations
|
|
$
|
26,475
|
|
$
|
0.36
|
|
$
|
22,035
|
|
$
|
0.30
|
|
$
|
18,778
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP diluted net income per share
|
|
|
—
|
|
|
73,860
|
|
|
—
|
|
|
73,789
|
|
|
—
|
|
|
72,470
|
|
|
|
|
Nine Months
Ended
|
|
|
June 30, 2020
|
|
June 30, 2019
|
|
|
|
|
per
diluted
|
|
|
|
per
diluted
|
Dollars in
thousands, except per share data
|
|
$
|
|
share
|
|
$
|
|
share
|
Net income from
continuing operations
|
|
$
|
36,062
|
|
$
|
0.49
|
|
$
|
4,359
|
|
$
|
0.06
|
Adjustments:
|
|
|
|
|
|
|
|
|
—
|
|
|
|
Purchase accounting
impact on inventory and contracts acquired
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
0.00
|
Amortization of
intangible assets
|
|
|
31,331
|
|
|
0.42
|
|
|
26,230
|
|
|
0.36
|
Restructuring related
charges
|
|
|
301
|
|
|
|
|
|
—
|
|
|
|
Restructuring
charges
|
|
|
1,125
|
|
|
0.02
|
|
|
685
|
|
|
0.01
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
—
|
|
|
9,051
|
|
|
0.13
|
Merger costs
|
|
|
484
|
|
|
0.01
|
|
|
6,546
|
|
|
0.09
|
Tax Reform - rate
change applied to deferred tax liabilities
(2)
|
|
|
—
|
|
|
—
|
|
|
1,796
|
|
|
0.02
|
Tax adjustments
(1)
|
|
|
(2,789)
|
|
|
(0.04)
|
|
|
(1,275)
|
|
|
(0.02)
|
Tax effect of
adjustments
|
|
|
(8,113)
|
|
|
(0.11)
|
|
|
(9,122)
|
|
|
(0.13)
|
Non-GAAP adjusted
net income from continuing operations
|
|
$
|
58,401
|
|
$
|
0.79
|
|
$
|
38,454
|
|
$
|
0.53
|
Stock-based
compensation, pre-tax
|
|
|
12,348
|
|
|
0.17
|
|
|
14,574
|
|
|
0.20
|
Tax
rate
|
|
|
15
|
%
|
|
—
|
|
|
15
|
%
|
|
—
|
Stock-based
compensation, net of tax
|
|
|
10,496
|
|
$
|
0.14
|
|
|
12,388
|
|
|
0.17
|
Non-GAAP adjusted net
income excluding stock-based compensation - continuing
operations
|
|
$
|
68,897
|
|
$
|
0.93
|
|
$
|
50,842
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP diluted net income per share
|
|
|
—
|
|
|
73,766
|
|
|
—
|
|
|
72,313
|
|
|
(1)
|
The Company elected
to apply the tax benefit related to the stock compensation windfall
realized in the quarters ended December 31, 2019 and 2018 to the
non-GAAP full year tax rate. The Company elected to exclude a
deferred tax benefit realized in the three month period ended
December 31, 2019 related to the extension of the 15 percent tax
rate incentive in China.
|
(2)
|
Adjustments are
related to U.S. Federal Tax Reform Transition Tax.
|
|
|
Quarter Ended
|
|
Nine Months
Ended
|
|
|
June 30,
|
|
March
31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
Dollars in thousands
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP net
income
|
|
$
|
13,696
|
|
$
|
9,127
|
|
$
|
7,254
|
|
$
|
35,880
|
|
$
|
25,090
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Loss (income)
from discontinued operations
|
|
|
—
|
|
|
65
|
|
|
(6,333)
|
|
|
182
|
|
|
(20,731)
|
Less: Interest
income
|
|
|
(29)
|
|
|
(137)
|
|
|
(108)
|
|
|
(865)
|
|
|
(847)
|
Add: Interest
expense
|
|
|
810
|
|
|
718
|
|
|
8,041
|
|
|
2,265
|
|
|
21,348
|
Add: Income tax
benefit
|
|
|
5,120
|
|
|
3,400
|
|
|
7,260
|
|
|
5,557
|
|
|
400
|
Add:
Depreciation
|
|
|
6,290
|
|
|
6,247
|
|
|
5,037
|
|
|
18,429
|
|
|
14,196
|
Add: Amortization of
completed technology
|
|
|
2,779
|
|
|
2,740
|
|
|
2,863
|
|
|
8,194
|
|
|
7,661
|
Add: Amortization of
customer relationships and acquired intangible assets
|
|
|
7,611
|
|
|
7,615
|
|
|
6,187
|
|
|
23,137
|
|
|
18,569
|
Add: Loss on
extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,051
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
|
36,277
|
|
$
|
29,775
|
|
$
|
30,201
|
|
$
|
92,779
|
|
$
|
74,737
|
|
|
|
|
Quarter Ended
|
|
Nine Months
Ended
|
|
|
June 30,
|
|
March
31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
Dollars in thousands
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
|
36,277
|
|
$
|
29,775
|
|
$
|
30,201
|
|
$
|
92,779
|
|
$
|
74,737
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Stock-based
compensation
|
|
|
3,725
|
|
|
4,214
|
|
|
5,277
|
|
|
12,348
|
|
|
14,574
|
Add: Restructuring
charges
|
|
|
(29)
|
|
|
578
|
|
|
256
|
|
|
1,125
|
|
|
685
|
Add: Restructuring
related charges
|
|
|
301
|
|
|
—
|
|
|
|
|
|
301
|
|
|
|
Add: Purchase
accounting impact on inventory and contracts acquired
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
Add: Merger
costs
|
|
|
10
|
|
|
279
|
|
|
156
|
|
|
484
|
|
|
6,546
|
Adjusted earnings
before interest, taxes, depreciation and amortization
|
|
$
|
40,284
|
|
$
|
34,846
|
|
$
|
35,890
|
|
$
|
107,037
|
|
$
|
96,726
|
|
|
|
|
Quarter Ended
|
Dollars in
thousands
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
GAAP gross
profit/margin percentage
|
|
$
|
92,788
|
|
42.1
|
%
|
|
$
|
90,281
|
|
41.0
|
%
|
|
$
|
83,510
|
|
41.0
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
2,779
|
|
1.3
|
|
|
|
2,740
|
|
1.2
|
|
|
|
2,863
|
|
1.4
|
|
Restructuring related
charges
|
|
|
301
|
|
0.1
|
|
|
|
—
|
|
0.0
|
|
|
|
—
|
|
0.0
|
|
Non-GAAP adjusted
gross profit/gross margin percentage
|
|
$
|
95,868
|
|
43.5
|
%
|
|
$
|
93,021
|
|
42.2
|
%
|
|
$
|
86,373
|
|
42.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
Dollars in
thousands
|
|
June 30, 2020
|
|
June 30, 2019
|
GAAP gross
profit/margin percentage
|
|
$
|
268,055
|
|
41.2
|
%
|
|
$
|
236,106
|
|
40.6
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
8,194
|
|
1.3
|
|
|
|
7,661
|
|
1.3
|
|
Purchase accounting
impact on inventory and contracts acquired
|
|
|
—
|
|
—
|
|
|
|
184
|
|
0.0
|
|
Restructuring related
charges
|
|
|
301
|
|
0.0
|
|
|
|
—
|
|
—
|
|
Non-GAAP adjusted
gross profit/gross margin percentage
|
|
$
|
276,550
|
|
42.5
|
%
|
|
$
|
243,951
|
|
41.9
|
%
|
|
|
Brooks
Semiconductor Solutions Group
|
|
|
Quarter
Ended
|
Dollars in
thousands
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
GAAP gross
profit/margin percentage
|
|
$
|
53,524
|
|
42.1
|
%
|
|
$
|
48,637
|
|
38.9
|
%
|
|
$
|
47,493
|
|
40.9
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
717
|
|
0.6
|
|
|
|
722
|
|
0.6
|
|
|
|
879
|
|
0.8
|
|
Non-GAAP adjusted
gross profit/margin percentage
|
|
$
|
54,241
|
|
42.7
|
%
|
|
$
|
49,359
|
|
39.5
|
%
|
|
$
|
48,372
|
|
41.7
|
%
|
|
|
|
Brooks Life
Sciences
|
|
|
Quarter
Ended
|
Dollars in
thousands
|
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
GAAP gross
profit/margin percentage
|
|
$
|
39,264
|
|
42.1
|
%
|
|
$
|
41,663
|
|
43.7
|
%
|
|
$
|
36,017
|
|
41.0
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
2,063
|
|
2.2
|
|
|
|
2,017
|
|
2.1
|
|
|
|
1,984
|
|
2.3
|
|
Restructuring related
charges
|
|
|
301
|
|
0.3
|
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
Non-GAAP adjusted
gross profit/margin percentage
|
|
$
|
41,628
|
|
44.6
|
%
|
|
$
|
43,680
|
|
45.8
|
%
|
|
$
|
38,001
|
|
43.3
|
%
|
|
|
|
Brooks Semiconductor Solutions Group
|
|
|
Nine Months
Ended
|
Dollars in
thousands
|
|
June 30, 2020
|
|
June 30, 2019
|
GAAP gross
profit/margin percentage
|
|
$
|
148,443
|
|
40.0
|
%
|
|
$
|
139,393
|
|
40.8
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
2,172
|
|
0.6
|
|
|
|
2,732
|
|
0.8
|
|
Purchase accounting
impact on inventory and contracts acquired
|
|
|
—
|
|
—
|
|
|
|
184
|
|
0.1
|
|
Non-GAAP adjusted
gross profit/margin percentage
|
|
$
|
150,615
|
|
40.6
|
%
|
|
$
|
142,309
|
|
41.7
|
%
|
|
|
|
Brooks Life
Sciences
|
|
|
Nine Months
Ended
|
Dollars in
thousands
|
|
June 30, 2020
|
|
June 30, 2019
|
GAAP gross
profit/margin percentage
|
|
$
|
119,612
|
|
42.7
|
%
|
|
$
|
96,713
|
|
40.3
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
6,022
|
|
2.1
|
|
|
|
4,928
|
|
2.1
|
|
Restructuring related
charges
|
|
|
301
|
|
0.1
|
|
|
|
—
|
|
—
|
|
Non-GAAP adjusted
gross profit/margin percentage
|
|
$
|
125,935
|
|
44.9
|
%
|
|
$
|
101,641
|
|
42.3
|
%
|
|
|
Brooks Semiconductor Solutions Group
|
|
Brooks Life Sciences
|
|
Total
Segments
|
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
|
June 30,
|
|
March
31,
|
|
June 30,
|
|
June 30,
|
|
March
31,
|
|
June 30,
|
|
June 30,
|
|
March
31,
|
|
June 30,
|
Dollars in thousands
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
GAAP operating
profit
|
|
$
|
22,697
|
|
$
|
15,984
|
|
$
|
19,322
|
|
$
|
4,227
|
|
$
|
6,100
|
|
$
|
4,202
|
|
$
|
26,924
|
|
$
|
22,084
|
|
$
|
23,524
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
717
|
|
|
722
|
|
|
879
|
|
|
2,063
|
|
|
2,017
|
|
|
1,984
|
|
|
2,780
|
|
|
2,739
|
|
|
2,863
|
Restructuring related
charges
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
301
|
|
|
—
|
|
|
—
|
|
|
301
|
|
|
—
|
|
|
—
|
Non-GAAP adjusted
operating profit
|
|
$
|
23,414
|
|
$
|
16,706
|
|
$
|
20,201
|
|
$
|
6,591
|
|
$
|
8,117
|
|
$
|
6,186
|
|
$
|
30,005
|
|
$
|
24,823
|
|
$
|
26,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Segments
|
|
Corporate
|
|
Total
|
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
|
June 30,
|
|
March
31,
|
|
June 30,
|
|
June 30,
|
|
March
31,
|
|
June 30,
|
|
June 30,
|
|
March
31,
|
|
June 30,
|
Dollars in thousands
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
GAAP operating profit
(loss)
|
|
$
|
26,924
|
|
$
|
22,084
|
|
$
|
23,524
|
|
$
|
(7,825)
|
|
$
|
(7,512)
|
|
$
|
(7,101)
|
|
$
|
19,099
|
|
$
|
14,572
|
|
$
|
16,423
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
2,780
|
|
|
2,739
|
|
|
2,863
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,780
|
|
|
2,739
|
|
|
2,863
|
Amortization of
customer relationships and acquired intangible assets
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,611
|
|
|
7,615
|
|
|
6,187
|
|
|
7,611
|
|
|
7,615
|
|
|
6,187
|
Restructuring
charges
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29)
|
|
|
578
|
|
|
256
|
|
|
(29)
|
|
|
578
|
|
|
256
|
Merger costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
279
|
|
|
156
|
|
|
10
|
|
|
279
|
|
|
156
|
Restructuring related
charges
|
|
|
301
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
301
|
|
|
—
|
|
|
—
|
Non-GAAP adjusted
operating profit (loss)
|
|
$
|
30,005
|
|
$
|
24,823
|
|
$
|
26,387
|
|
$
|
(233)
|
|
$
|
960
|
|
$
|
(502)
|
|
$
|
29,772
|
|
$
|
25,783
|
|
$
|
25,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks Semiconductor Solutions Group
|
|
Brooks Life Sciences
|
|
Total
Segments
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Dollars in thousands
|
|
June 30, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
GAAP operating
profit
|
|
$
|
52,949
|
|
$
|
53,450
|
|
$
|
14,359
|
|
$
|
8,936
|
|
$
|
67,308
|
|
$
|
62,386
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
2,172
|
|
|
2,732
|
|
|
6,022
|
|
|
4,928
|
|
|
8,194
|
|
|
7,661
|
Purchase accounting
impact on inventory and contracts acquired
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
Restructuring related
charges
|
|
|
—
|
|
|
—
|
|
|
301
|
|
|
—
|
|
|
301
|
|
|
—
|
Non-GAAP adjusted
operating profit
|
|
$
|
55,121
|
|
$
|
56,366
|
|
$
|
20,682
|
|
$
|
13,864
|
|
$
|
75,803
|
|
$
|
70,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Segments
|
|
Corporate
|
|
Total
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Dollars in thousands
|
|
June 30, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
GAAP operating profit
(loss)
|
|
$
|
67,308
|
|
$
|
62,386
|
|
$
|
(22,971)
|
|
$
|
(26,959)
|
|
$
|
44,337
|
|
$
|
35,427
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
completed technology
|
|
|
8,194
|
|
|
7,661
|
|
|
—
|
|
|
—
|
|
|
8,194
|
|
|
7,661
|
Amortization of
customer relationships and acquired intangible assets
|
|
|
—
|
|
|
—
|
|
|
23,137
|
|
|
18,569
|
|
|
23,137
|
|
|
18,569
|
Restructuring
charges
|
|
|
—
|
|
|
—
|
|
|
1,125
|
|
|
685
|
|
|
1,125
|
|
|
685
|
Purchase accounting
impact on inventory and contracts acquired
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
Merger costs
|
|
|
—
|
|
|
—
|
|
|
484
|
|
|
6,546
|
|
|
484
|
|
|
6,546
|
Restructuring related
charges
|
|
|
301
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
301
|
|
|
—
|
Non-GAAP adjusted
operating profit (loss)
|
|
$
|
75,803
|
|
$
|
70,231
|
|
$
|
1,775
|
|
$
|
(1,159)
|
|
$
|
77,578
|
|
$
|
69,072
|
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SOURCE Brooks Automation