Brooks Automation Reports Preliminary Results for Q2 of Fiscal 2006 Ended March 31, 2006
Tuesday May 2, 4:23 pm ET
* GAAP net income of $5.9 million exceeds guidance;
* Company achieves record level bookings of $193.0 million;
* Revenues of $169.2 million also record for Company;
* Quarter reflects full impact of Helix acquisition;
* Filing of Form 10-Q expected to be delayed.
CHELMSFORD, Mass., May 2 /PRNewswire-FirstCall/ -- Brooks Automation, Inc. (Nasdaq: BRKS - News), which produces hardware, software and systems to enable manufacturing efficiencies for the semiconductor and other complex manufacturing industries, today announced preliminary results for its second quarter of fiscal 2006 ended March 31, 2006. The second quarter results include results of Helix Technology (acquired October 26, 2005) for the full quarter, while the first quarter results included only two months of Helix results.
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Revenues for the second quarter of fiscal 2006 increased to $169.2 million, compared to preceding quarter revenues of $127.2 million, which included only two months of Helix results. Bookings for the second quarter were $193.0 million, compared to preceding quarter bookings of $141.3 million, which also included only two months of Helix results.
Net income on a Generally Accepted Accounting Principles (GAAP) basis was $5.9 million or $0.08 per diluted share for the second quarter of fiscal 2006, compared to a net loss for the first quarter of $11.2 million, or $0.17 per share. GAAP net income in Q2 included a total of $10.4 million, or $0.14 per share, in charges and special items, which consisted of a $4.2 million charge related to the purchase accounting for the Helix inventory step-up, $3.7 million for amortization of acquired intangible assets, and $1.1 million for restructuring. Additionally, stock option expense related to the adoption of SFAS 123 ® "Stock Based Compensation" was $1.4 million. For comparison purposes, GAAP net income in Q1 included a total of $12.6 million, or $0.19 per share, in certain charges and special items, which included a $7.0 million charge related to the purchase accounting inventory step-up, $2.8 million for amortization of acquired intangible assets, stock option expense of $1.6 million and $1.2 million for restructuring. Without the charges and special items, non-GAAP net income in Q2 was $0.22 per diluted share and in Q1 was $0.02 per diluted share. A reconciliation of GAAP to non-GAAP results is provided elsewhere in this release.
Edward C. Grady, President and Chief Executive Officer of Brooks Automation, said "We are pleased with our performance in Q2, which can be attributed not only to the strength of the current investment cycle of the semiconductor industry, but also to the underlying strength of our business model. We were able to realize good financial leverage from our market position and our focus on operations, as well as from the positive synergies of the Helix merger. Our $193 million in bookings in Q2 was the highest quarterly bookings level in the Company's history."
Mr. Grady further commented, "In Q2, the gross margin for the Company improved for the fourth consecutive quarter to 39.4 percent, excluding acquisition-related charges and stock option expense. Our cash balance was essentially flat at $373 million even while the business ramped up. We are also pleased that we were able to settle patent litigation related to a certain software product enabling us to obtain closure on that issue for Brooks and for our customers, resulting in an expense that is included in the 'other expense' line in our income statement. Looking forward to the June quarter, we expect the end markets to remain strong but with slowing growth. Revenues for the June quarter are expected to be $170 to $180 million. GAAP EPS is expected to be in the range of $0.14 to $0.20 per share, which is expected to include approximately $0.09 per share in certain charges and special items comparable to those referenced with respect to Q2. Finally, I would like to add that we are highly encouraged by the continuing success of the Helix integration. We thank our customers, our shareholders and our employees for their continued support."
The Company also announced that it expects to delay the filing of its Form 10-Q for the quarter ended March 31, 2006. As previously announced, a special committee of independent directors has been established to review all facts and circumstances relating to the granting of stock options to employees and directors of the Company. The Company does not expect to file its fiscal 2006 second quarter Form 10-Q until the special committee has completed its review, due in part to the potential impact of the review on prior years' financial results. The results of fiscal 2006 second quarter are preliminary pending the completion of the review. The Company is also evaluating the impact of this matter on its system of internal controls.
Business Segment Data
The following table (unaudited) summarizes the two reporting segments of
Brooks for fiscal Q2.
Hardware Software Total
Three months ended
March 31, 2006:
Revenues, in thousands $148,772 $20,405 $169,177
Gross margin, in thousands $45,843 $13,857 $59.700
Gross margin, % 30.8%(A) 67.9%(B) 35.3%©
Operating margin,
in thousands $9,510 $676 $10,186
Operating margin, % 6.4% 3.3% 6.0%
Amortization of
other acquired
intangible assets $1,272
Restructuring charges $1,143
Total income from
continuing operations $7,771
Note:
(A) Gross margin for the Hardware segment was 35.2 percent excluding $4.2 million in inventory step-up charge related to the acquisition of Helix, $2.1 million of amortization of completed technology and $0.2 million of FAS 123R expenses;
(B) Gross margin for the Software segment was 69.8 percent excluding $0.3 million of amortization of completed technology and $0.1 million of FAS 123R expenses; and
© Gross margin for the total company was 39.4 percent without the aforementioned charges.
Discussion of Non-GAAP Financials
The financial results that exclude certain charges and special items are not in accordance with GAAP. Management believes the presentation of non-GAAP financial measures, which exclude the costs associated with acquisitions and other special items, is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results, especially to help explain financials subsequent to the acquisition of Helix Technology. The following table is provided to summarize costs that are not included in the non-GAAP discussion.
Second Quarter 2006 First Quarter 2006
Charge or item Amount EPS Amount EPS
($thousands) impact ($thousands) impact
Acquisition-related
inventory write-off $4,232 $0.06 $6,983 $0.11
Stock options expenses $1,354 $0.02 $1,563 $0.02
Amortization of
acquired intangible
assets $3,683 $0.05 $2,836 $0.04
Acquisition-related
and restructuring
charges $1,143 $0.02 $1,222 $0.02
Total (with rounding) $10,412 $0.14 $12,604 $0.19
A detailed reconciliation of the GAAP to the non-GAAP financials is provided with the financial tables.
Earnings Conference Call Details
Conference Call Date: Tuesday, May 2, 2006
Time: 4:30 p.m. Eastern
Dial in #: (719) 457-2650
Passcode: 2329149
A live Webcast of this conference call will be available in the investor relations section of the Brooks Automation web site, investor.brooks.com under the title "Brooks Automation Second Quarter Fiscal 2006 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 Second Quarter Fiscal 2006 Earnings Webcast." A telephone replay will also be made available following the call at the following number: (719) 457-0820 beginning at 7:00 p.m. Eastern, Tuesday, May 2, 2006, and available 7 days. The passcode for the replay is 2329149.
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation solutions and integrated subsystems to the global semiconductor and related industries. The company's advanced offerings in hardware, software and services can help customers improve manufacturing efficiencies, accelerate time-to-market and reduce cost of ownership. Brooks products and global services are used in virtually every semiconductor fab in the world as well as in a number of diverse industries outside of semiconductor manufacturing. For more information, visit brooks.com. |
