Brooks Automation Reports Fiscal 2003 Second Quarter Results
Wednesday April 23, 4:40 pm ET
CHELMSFORD, Mass., April 23 /PRNewswire-FirstCall/-- Brooks Automation, Inc. (Nasdaq: BRKS - News), which delivers total automation for semiconductor manufacturing, today announced financial results for its fiscal second quarter ended March 31, 2003.
Revenues for the quarter were $92.9 million, a sequential increase of 9.6 percent over the preceding quarter revenues of $84.9 million. Bookings for the second quarter were $85.7 million, a sequential increase of 5.7 percent over the preceding quarter bookings of $81.0 million.
The net loss for the quarter on a GAAP ("Generally Accepted Accounting Principles") basis was $28.8 million, or $0.79 per share, compared to a net loss on the same basis of $71.0 million, or $1.95 per share, in the immediately preceding quarter.
It has been the practice of the Company and of many other companies as well to report "pro forma" financial results, defined as net income or loss before amortization of acquired intangible assets and other acquisition and disposition related charges, net of income taxes. Management believes that presenting the Company's operating results before taking into account such charges provides useful information to aid in understanding ongoing, recurring operations. The pro forma net loss for the quarter was $12.7 million, or a loss of $0.34 per share compared to a pro forma loss in the immediately preceding quarter of $24.0 million, or $0.66 per share. As in previous earnings reports, a reconciliation of GAAP to pro forma earnings for the quarter is included in the attached exhibits.
Robert J. Therrien, chairman and chief executive officer of Brooks Automation, said: "As we said in our previous quarter's comments, the fundamental focus for all of us at Brooks is on reducing our cost structure, managing the cash flow and gaining market share for the Company. I am pleased with the progress the Company is making against these metrics. During the quarter we were able to manage our working capital and cash flow so that our net cash burn for the quarter was approximately $2 million, leaving us with a balance of $213 million of cash, cash equivalents and marketable securities at the end of March. Both revenues and bookings grew in the March quarter even while the industry showed signs of weakening, an indication that we continued to strengthen our market share. We were able to win a number of significant new business opportunities from fab customers during the quarter, notably new software orders from two new 300mm fabs in Asia, an expansion of an existing automated material handling system for a top tier semiconductor manufacturer and an order for the expansion of a 200mm SMIF fab in Asia. During the quarter our OEM business had strong growth over the preceding quarter, a direct result of ongoing relationships with top tier equipment suppliers and the record number of new design wins in the past year. The revenues coming from 300mm were $31.4 million, an increase of approximately $2 million from the prior quarter. Our ability as the industry's largest provider of automation to serve a broad base of customers with the industry's most diversified product portfolio has enabled us to weather some of the severe fluctuations of our industry."
Mr. Therrien provided an update of the Company's restructuring initiatives. "I have been committed to putting an industry-leading senior management team in place and I'm pleased to report that this has been done. During the quarter, the Company announced the hiring of Ed Grady as chief operating officer, Bob Woodbury as chief financial officer and Joe Bellini as senior vice-president of the software systems group. Their operational experience and skill are critical to the execution of our strategy. In addition, the Company hired Tom Grilk at the end of last year as general counsel to lead our efforts in the area of corporate governance. As a company, Brooks is on track to complete the consolidation of its facilities as outlined in the past. We expect that the actions we have taken this quarter will allow us to realize a benefit of approximately $3 to $4 million starting in the June quarter. There is still some work left to do and we anticipate approximately $10 to $12 million in additional restructuring charges for the June quarter, but we continue to make good progress on all fronts."
In discussing the outlook for the third fiscal quarter that ends on June 30, 2003, Mr. Therrien said, "The two biggest issues we are facing in our industry at the present time are excess capacity, which cannot be absorbed overnight, and sluggish spending on information technology (IT). Although the lack of visibility in our industry makes forecasting difficult, the excess capacity issue and the cautious end market spending environment would suggest lower capex spending in the June quarter. As a result, we estimate both bookings and revenues for the June quarter to be down approximately 10 to 15 percent from the March quarter. We want to maintain a net cash balance above $200 million for the June quarter. The GAAP earnings for the June quarter is estimated to be in the range of $0.75 to $0.80 loss per share and pro forma earnings to be in a range of $0.35 to $0.40 loss per share. We believe Brooks is favorably positioned to withstand the short term business challenges we confront while providing a strong platform for revenue growth and operating leverage for the next upturn."
Q2 Fiscal 2003 Highlights
-- Announced that shareholders had approved the name change back to Brooks
Automation, Inc. from Brooks-PRI Automation, Inc. at the annual
shareholders' meeting on February 26, 2003.
-- Maintained the #1 worldwide position in manufacturing automation and
control for calendar year 2002, and the #11 rank overall for
semiconductor front end capital equipment suppliers, in the results of
the Dataquest industry survey released in April 2003. Brooks finished
as the top company in both the fab automation and tool automation
hardware categories. Brooks was the top company as well for the
category of fab software, excluding systems integration services.
-- Won new software orders from a 300mm DRAM customer in Korea and a joint
venture foundry in Singapore for factory automation software products
such as manufacturing execution systems (MES), real time dispatching
and scheduling, and material control system.
-- Won a large order for the expansion of an automated material handling
system from a major semiconductor manufacturer.
-- Shipped 300mm wafer stockers for wafer storage and retrieval to a
European wafer manufacturer.
-- Won a multi-million dollar order for a 200mm SMIF expansion in Asia.
-- Installed bare reticle stockers for lithography automation at customers
in Japan, Taiwan and China, while booking new orders from fabs in
Korea, North America and Europe.
-- Completed "The Power to Optimize" seminar series in early March for
Southeast Asia, attracting over 200 attendees.
-- Hosted the Asian Users Symposium in Shanghai, China in March.
Conference Call
Brooks Automation will host a conference call on Thursday, April 24 at 9:00 am ET to review its fiscal second-quarter results. On the call, management will discuss the information contained in this announcement and answer related questions.
Date: Thursday, April 24, 2003
Time: 9:00 a.m. Eastern, 8:00 a.m. Central, 7:00 a.m.
Mountain, 6:00 a.m. Pacific
Dial In #: (719) 457-2601
Passcode: 774767
Replay: (719) 457-0820 (beginning @ 2:00 p.m. Thursday,
April 24, 2003) available 7 days
Passcode: 774767
This call will also be Webcast live, and can be accessed through the Brooks investor relations web page at investor.brooks.com. Click on the link, Webcasts, and then the link for "Brooks Automation Fiscal 2003 Second Quarter Earnings Webcast."
An archive of this Webcast will be made available following the conference call, and can be accessed for at least the next twelve months on the section for Webcasts at investor.brooks.com under the title "Brooks Automation Fiscal 2003 Second Quarter Earnings Webcast."
About Brooks Automation, Inc.
Brooks Automation (Nasdaq: BRKS - News) is a leading worldwide provider of automation solutions to the global semiconductor and related industries. The company's factory and tool automation hardware, software and professional services can manage every wafer, reticle and data movement in the fab, helping semiconductor chip manufacturers optimize throughput and yield while reducing both cost and time to market. Brooks products and services are used in virtually every fab in the world. For more information, visit brooks.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995:
Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Brooks' financial results to differ materially from our expectations. These forward-looking statements include statements regarding our revenue and profit and loss expectations, future cash position, bookings, semiconductor industry performance, our future business strategy, market share and other market opportunities, improvements in our business, our site consolidation, restructuring and cost reduction activities, demand for our products and the general economic outlook. Factors that could cause results to differ from our expectations include the following: our dependence on the cyclical semiconductor industry; the possibility of further downturns in market demand for electronics (including especially the market for semiconductor products); further downturn in the economy of the United States and other countries brought about by hostilities in the Middle East or political tensions arising between Western nations and North Korea; the possible impact of the spread of SARS, especially in Asian nations; the highly competitive nature and rapid technological change that characterizes the industries in which we compete; decisions by customers to cancel or defer orders that previously had been accepted; the fact that many of the company's orders are non-binding; the fact that design-in wins do not necessarily translate to significant revenue; the timing and effectiveness of restructuring, cost-cutting and expense control measures, including activities such as facility consolidations; the possibility of intense price competition and the possible resulting need to lower our prices to our customers and thereby possibly our revenue; our ability to manage the effects of past or future acquisitions or divestitures, including the need to integrate acquired businesses successfully; the possibility that the value of certain acquired assets or businesses may have to be written down in light of prevailing market conditions and other factors; and other risks that we have described in our filings with the Securities and Exchange Commission, including but not limited to Brooks Automation's Annual Report on Form 10-K and our quarterly reports on Form 10-Q. As a result there can be no assurance that our future results will not be materially different from those projected. Brooks expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.
All trademarks contained herein are the property of their respective owners.
Contact:
Mark Chung
Director of Investor Relations
Brooks Automation, Inc.
(978) 262-2459
mark.chung@brooks.com
BROOKS AUTOMATION, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, September 30,
2003 2002
(unaudited)
ASSETS
Cash, cash equivalents and marketable
securities $143,947 $150,650
Accounts receivable, net 73,167 89,150
Inventories 67,355 78,193
Other current assets 15,310 15,560
Total current assets 299,779 333,553
Property, plant and equipment
Buildings and land 37,707 37,259
Computer equipment and software 41,585 45,558
Machinery and equipment 18,947 23,658
Furniture and fixtures 10,014 14,706
Leasehold improvements 16,539 25,238
Construction in progress 3,564 13,768
128,356 160,187
Less: Accumulated depreciation (60,353) (75,395)
Net property, plant and equipment 68,003 84,792
Long-term marketable securities 68,986 95,087
Intangible assets, net 120,641 118,804
Other assets 10,749 25,261
Total assets $568,158 $657,497
LIABILITIES, MINORITY INTERESTS AND
STOCKHOLDERS' EQUITY
Current liabilities $145,763 $157,215
Convertible subordinated notes 175,000 175,000
Other long-term liabilities 16,285 16,554
Total liabilities 337,048 348,769
Minority interests 686 493
Stockholders' equity 230,424 308,235
Total liabilities,
minority interests and
stockholders' equity $568,158 $657,497
Cash, cash equivalents, short-term and long-term marketable
securities
March 31, 2003 $212,933
December 31, 2002 $214,973
September 30, 2002 $245,737
June 30, 2002 $286,721
March 31, 2002 $283,467
BROOKS AUTOMATION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three months ended Six months ended
March 31, March 31,
2003 2002 2003 2002
Revenues $92,964 $57,124 $177,819 $115,306
Cost of revenues 68,312 38,273 128,793 75,614
Gross profit 24,652 18,851 49,026 39,692
Operating expenses:
Research and development 19,754 15,441 39,428 29,575
Selling, general and
administrative 23,022 19,079 57,128 37,984
Acquisition-related and
restructuring charges 4,728 9 25,824 109
47,504 34,529 122,380 67,668
Income (loss) from operations
before amortization of
acquired intangible assets (22,852) (15,678) (73,354) (27,976)
Amortization of acquired
intangible assets 941 2,556 2,988 6,189
Income (loss) from operations (23,793) (18,234) (76,342) (34,165)
Interest (income) expense, net 1,529 64 2,349 (182)
Other (income) expense, net 3,323 (92) 16,035 (645)
Income (loss) before income taxes
and minority interests (28,645) (18,206) (94,726) (33,338)
Income tax provision (benefit) 53 (5,567) 4,868 (10,757)
Income (loss) before minority
interests (28,698) (12,639) (99,594) (22,581)
Minority interests in earnings
(loss) of consolidated subsidiary 103 (63) 193 (120)
Net income (loss) attributable to
common stockholders $(28,801) $(12,576) $(99,787) $(22,461)
Earnings (loss) per share
attributable to common
stockholders:
Basic $(0.79) $(0.63) $(2.73) $(1.12)
Diluted $(0.79) $(0.63) $(2.73) $(1.12)
Shares used in computing earnings
(loss) per share attributable
to common stockholders:
Basic 36,682 20,116 36,521 20,001
Diluted 36,682 20,116 36,521 20,001
Pro Forma Net Loss Before Amortization of Acquired Intangible Assets
and Other Acquisition and Disposition Related Charges
Net income (loss) attributable
to common stockholders
before amortization of
acquired intangible assets
and other acquisition and
disposition related charges,
net of taxes $(12,652) $(9,378) $(36,684) $(16,913)
Net income (loss) attributable
to common stockholders
before amortization of
acquired intangible assets
and other acquisition and
disposition related charges,
net of taxes, assuming
dilution $(12,652) $(9,378) $(36,684) $(16,913)
Earnings (loss) per share
attributable to common
stockholders before
amortization of acquired
intangible assets and other acquisition
and disposition related
charges, net of taxes
Basic $(0.34) $(0.47) $(1.00) $(0.85)
Diluted $(0.34) $(0.47) $(1.00) $(0.85)
Shares used in computing
earnings (loss) per share
attributable to common
stockholders before amortization
of acquired intangible assets
and other acquisition and
disposition related charges,
net of taxes
Basic 36,682 20,116 36,521 20,001
Diluted 36,682 20,116 36,521 20,001
BROOKS AUTOMATION, INC.
CALCULATION OF PRO FORMA NET LOSS
BEFORE AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS
AND OTHER ACQUISITION AND DISPOSITION RELATED CHARGES
FOR THE THREE MONTHS ENDED MARCH 31, 2003
(in thousands, except per share data)
(unaudited)
U.S. GAAP Adjustments Pro Forma
Revenues $92,964 $- $92,964
Cost of revenues 68,312 5,917 (A) 62,395
Gross profit 24,652 (5,917) 30,569
Operating expenses:
Research and development 19,754 768 (B) 18,986
Selling, general and administrative 23,022 780 (C) 22,242
Acquisition-related and
restructuring charges 4,728 4,728 -
47,504 6,276 41,228
Income (loss) from operations before
amortization of
acquired intangible assets (22,852) (12,193) (10,659)
Amortization of acquired intangible
assets 941 941 -
Income (loss) from operations (23,793) (13,134) (10,659)
Interest (income) expense, net 1,529 - 1,529
Other (income) expense, net 3,323 3,025 298
Income (loss) before income taxes and
minority interests (28,645) (16,159) (12,486)
Income tax provision (benefit) 53 (10) 63
Income (loss) before minority
interests (28,698) (16,149) (12,549)
Minority interests in earnings (loss)
of consolidated subsidiary 103 - 103
Net income (loss) attributable to
common stockholders $(28,801) $(16,149) $(12,652)
Earnings (loss) per share
attributable to common stockholders:
Basic $(0.79) $(0.34)
Diluted $(0.79) $(0.34)
Shares used in computing earnings
(loss) per share attributable
to common stockholders:
Basic 36,682 36,682
Diluted 36,682 36,682
Adjustments include amortization of
acquired intangible assets and other
acquisition and disposition related
charges.
(A) Comprised of:
Adjustments to inventory $4,625
Accelerated depreciation on
property, plant and
equipment 956
Deferred compensation expense
- IAS 20
Deferred compensation expense
- PRI 316
$5,917
(B) Comprised of:
Accelerated depreciation on
property, plant and equipment $327
Deferred compensation expense
- PRI 278
Deferred compensation expense
- KLA 163
$768
(C) Comprised of:
Deferred compensation expense
- PRI $669
Accelerated depreciation on
property, plant and
equipment 111
$780
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Source: Brooks Automation, Inc. |
