W O W Brooks Automation Announces Fiscal 1999 Third Quarter Results; Strong Sequential Growth: Revenue up 13%, Net Income Up 87%, New Orders Up 49%
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Wednesday July 21, 5:57 pm Eastern Time
Company Press Release
SOURCE: Brooks Automation, Inc.
Brooks Automation Announces Fiscal 1999 Third Quarter Results; Strong Sequential Growth: Revenue up 13%, Net Income Up 87%, New Orders Up 49%
CHELMSFORD, Mass., July 21 /PRNewswire/ -- Brooks Automation, Inc. (Nasdaq: BRKS - news) today announced continued profitability in its fiscal third quarter ended June 30, 1999. Net income attributable to common stockholders for the 1999 third quarter was $253,000, on revenues of $26.4 million, compared to a net loss of $3.1 million, on revenues of $25.8 million in the fiscal 1998 third quarter. Revenues increased sequentially by 13% and net income by 87% from the fiscal 1999 second quarter. All financial results for 1998 have been restated to include the acquisition of FASTech on September 30, 1998 in a pooling of interests transaction.
The Company also reported that new orders in the quarter, including results from software business units, increased to $32 million, up 49% sequentially from $21.5 million booked in Q2 FY99.
Robert J. Therrien, President and Chief Executive Officer, said: ''We are very pleased with our continued progress toward profitability as well as our overall performance this quarter. The company continues to achieve revenue growth, product wins and continued cost controls. This success is a result of our continued attention to our core businesses as we also integrate our recent acquisitions of Hanyon Technology and Domain Manufacturing Corporation into the Brooks business.
''We believe we are very well positioned for the semiconductor industry recovery. In Q3 we experienced a combination of orders from new hardware customers such as TEL's CVD business unit, shipments to new customers including KLA-Tencor and first shipment of our fourth generation flat panel display robotic products, MagnaTran 70 and 77. In addition, our STATIONworks software displaced competitive products at 3 major customers and over $1 million in new orders were received for FACTORYworks, our leading MES (manufacturing execution system) software solution.''
Major accomplishments included:
-- Momentum in new orders continues and Q3 up 49% sequentially
-- Two consecutive profitable quarters
-- Sequential quarterly revenue gain of 13%; net income gain of 87%
-- Acquisition of Domain Manufacturing enhanced Brooks' leadership in
factory automation software through integrated process control and
optimization solutions
-- Reached agreement to acquire Smart Machines Inc., a supplier of SCARA
arm atmospheric robots
-- Announced letter of intent to purchase assets of Infab, a leading
supplier of mini-environment automation
-- Continued strong balance sheet management
-- Strong customer interest shown at Brooks' SEMICON West display of
intelligent automation products
Pre-tax income for the quarter was $485,000, compared with a pre-tax loss of $3.2 million in the third quarter of fiscal 1998. The improvement in pre-tax results continues as a result of improvements in gross margin percentage. The gross margin improvement was due to a combination of lower materials cost/favorable mix/higher unit volumes within the hardware area, and increased percentage of software revenues. The overall gross profit margin percentage in the fiscal 1999 third quarter increased to 45.4 percent from 28.5 percent in the comparable period a year ago.
Research and development expenses decreased as a percentage of revenues from 19.6 percent to 18.4 percent as well as in absolute dollars, while SG&A increased from 24.2 percent to 27.4 percent of revenues, reflecting investments in infrastructure associated with the acquisitions. Mr. Therrien commented: ''The Company continues to invest for the future while remaining focused on the financial performance of business today.
''As we recently announced, Brooks has signed an agreement to acquire Smart Machines, Inc. of San Jose, CA and a letter of intent to acquire the assets of Infab from Jenoptik AG of Jena, Germany. Smart Machines is a leader in SCARA (Selectively Compliant Assembly Robot Arm) technology and provides Brooks with advanced atmospheric robot capabilities and a manufacturing and engineering presence in Silicon Valley. It also augments our patent portfolio in direct drive technology. Smart Machines will position Brooks to penetrate markets in metrology and yield management. Infab is a leader in overall SMIF/FOUP (Standard Mechanical Interface Facility/Front Opening Unified Pod) mini-environment automation and brings impressive design wins at OEMS' for 300mm process tools. Infab will position Brooks to compete for large orders as advanced 200mm lines are built and pilot 300mm lines are planned. Finally, Infab will bring Brooks important intellectual property rights in FOUP patents.
''These pending transactions complement the earlier announced additions of Hanyon Technology, Domain Manufacturing and FASTech to the growing Brooks family of brand names. Hanyon, Domain and FASTech position Brooks as the leading supplier of factory automation and control software solutions for the semiconductor industry. Furthermore, these new business units enable Brooks to expand beyond traditional MES systems and provide integrated process control/optimization functionality together with cell control automation that address advanced 200mm and 300mm fab requirements.
''As a pure play automation company, Brooks is committed to delivering a value proposition to our customers focused on improved fab performance. We believe our emphasis on the best people, the best practices and the best products will enable us to deliver on this commitment.''
Cash remained flat at $68 million at the end of the fiscal 1999 third quarter compared to the end of the fiscal year 1998. Aggregated days sales outstanding improved sequentially from 89 to 80 days. The company's working capital position remains strong as capital expenditures were $1.4 million during the current quarter. ''We continue to emphasize balance sheet management, as evidenced by our strong cash position in the midst of combined cash outlays of approximately $8 million for Domain Manufacturing and Hanyon Technology, as well as internally funding revenue growth. Cash flow from operations was positive for the quarter,'' Mr. Therrien commented.
Brooks Automation Inc. is a leading supplier of factory and tool automation solutions for the global semiconductor, data storage, and flat panel display manufacturing industries. As an established market leader in hardware and software automation, Brooks continues to pioneer best-in-class technologies that outperform their competitors in every class -- from vacuum and atmospheric robots, cluster tool platforms and modules to factory and tool automation software and integration services. Both OEM and fab customers leverage Brooks' automation technologies to maximize factory-wide equipment productivity in dynamic manufacturing environments. Based in Chelmsford, MA, Brooks Automation has direct global operations in the United States, Canada, Europe, Japan, Korea, Taiwan, and Singapore.
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: The foregoing discussion of revenues, earnings and other financial results contains forward-looking statements. These statements involve known and unknown risks and uncertainties including, without limitation, risks relating to the Company's dependence on the cyclical semiconductor industry, the Company's dependence on relatively few customers for a significant portion of its revenues, the Company's reliance on sales to OEM customers and the lengthy sales cycles of those customers, the ability of the Company to continue to successfully develop and market new products and product enhancements on a timely basis, the ability to integrate FASTech, Hanyon Technology and Domain Manufacturing into the Company, the ability to successfully complete pending and intended acquisitions, the highly competitive nature and rapid technological change that characterize the industries in which the Company competes, and other risks and uncertainties described in the Company's reports and registration statements filed with the Securities and Exchange Commission. As a result, there can be no assurance that the Company's future results will not be materially different than those projected. The forward-looking statements contained herein speak only of the Company's expectations as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.
Brooks Automation, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
June 30, Sept. 30,
1999 1998
(unaudited)
Cash and cash equivalents $68,101 $68,161
Accounts receivable, net 25,340 20,701
Inventories 19,085 19,589
Other current assets 10,114 9,641
Total current assets 122,640 118,092
Fixed assets, net 17,230 18,606
Other assets (incl investment) 10,079 4,254
Total assets $149,949 $140,952
Current liabilities $24,850 $18,171
Long-term liabilities 3,018 1,018
Total liabilities 27,868 19,189
Stockholders' equity 122,081 121,763
Total liabilities and stockholders' equity $149,949 $140,952
Brooks Automation, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
1999 1998* 1999 1998*
Revenues $26,364 $25,827 $69,449 $79,550
Cost of revenues 14,404 18,462 38,381 56,811
Gross profit 11,960 7,365 31,068 22,739
Operating expenses:
Research and development 4,864 5,050 13,661 17,994
Selling, general and
administrative 7,225 6,249 19,145 20,750
12,089 11,299 32,806 38,744
Income (loss) from operations (129) (3,934) (1,738) (16,005)
Other (income) expense, net (614) (728) (2,087) (2,236)
Income (loss) before
income taxes 485 (3,206) 349 (13,769)
Income tax provision (benefit) 232 (254) 536 (1,541)
Net income (loss) 253 (2,952) (187) (12,228)
Dividends on preferred stock 0 (130) 0 (391)
Net income (loss) attributable
to common stockholders $253 $(3,082) $(187) $(12,619)
Basic earnings (loss)
per share $0.02 $(0.30) $(0.02) $(1.23)
Diluted earnings (loss)
per share $0.02 $(0.30) $(0.02) $(1.23)
Basic weighted average
common shares outstanding 11,061 10,285 11,039 10,252
Diluted weighted average
common and common equivalent
shares outstanding 11,814 10,285 11,039 10,252
* Amounts for 1998 have been restated to reflect the acquisition of
FASTech Integration, Inc. on September 30, 1998, which was accounted for
as a pooling of interests.
For further information contact:
Ellen Richstone, Chief Financial Officer
Brooks Automation, Inc.
tel: 978-262-2600
fax: 978-262-2502
Jim Chiafery, Director of Investor Relations
Brooks Automation, Inc.
tel: 978-262-5855
fax: 978-262-2502 |
