Beat the Zacks estimate by 1 cent. i.e. loss of $0.13 forecast, actual was only 12. ;-)
Company Press Release
Brooks Automation Announces Second Quarter Fiscal 1998 Results
CHELMSFORD, Mass.--(BUSINESS WIRE)--April 16, 1998--Brooks Automation, Inc. (Nasdaq:BRKS - news) today
announced financial results for its fiscal 1998 second quarter ended March 31, 1998. Revenues for the quarter were $20.2
million, up from revenues of $16.4 million in the second quarter of fiscal 1997. The net loss for the quarter was $1.2 million
($.12 loss per share ) before a nonrecurring pre-tax charge of $4.0 million to provide additional reserves for slow-moving and
obsolete inventories. These reserves reflect management's assessment of the currently required inventory reserve level in
view of the accelerating decline, particularly in the current quarter, in customer demand for semiconductor and flat panel
display fabrication equipment, coupled with our expectations for a prolonged recovery period. This compares to a net loss of
$1.5 million ($.20 loss per share) in the second quarter of fiscal 1997. The net loss for the current quarter was $3.8 million
($.38 loss per share), after the nonrecurring inventory charge.
As stated in the Company's preliminary release on March 16, 1998, revenues for the quarter were below the expectations of
securities analysts reflecting the continuing softness in demand for semiconductor and flat panel display fabrication equipment,
as well as ongoing uncertainty about business conditions in Asia. As noted in that release, the Company remains cautious
about when growth in the semiconductor fabrication equipment sector will return and based upon current visibility, revenues in
the second half of fiscal 1998 could be flat as compared with the first half.
For the six months ended March 31, 1998, revenues were $44.8 million, an increase of 38% over revenues of $32.5 million for
the comparable period of fiscal 1997. The net loss for the six months ended March 31, 1998 was $1.4 million ($.14 loss per
share) before the aforementioned inventory-related charge, compared to a net loss of $1.5 million ($.20 loss per share) for the
six months ended March 31, 1997. The net loss for the first half of fiscal 1998 was $4.0 million ($.40 loss per share), after the
nonrecurring inventory charge.
Bookings were $23.7 million ($17.4 million, net of cancellations) in the second quarter of fiscal 1998, representing a .86 to 1
book-to-bill ratio. Sequentially, net bookings and revenues decreased from the prior quarter 38% and 18%, respectively.
Backlog at March 31, 1998 was $45.2 million, down from $48.0 million at December 31, 1997.
Commenting on the quarter, Robert J. Therrien, President and Chief Executive Officer of Brooks Automation, said: ''As a
result of the continuing softness in demand for semiconductor and flat panel display fabrication equipment, discretionary
spending has been curtailed company-wide and we are moving ahead with product cost reduction initiatives to further align
the Company's cost structure with market conditions. The near-term challenge for Brooks is to manage costs and expenses
over this prolonged period of recovery in the semiconductor equipment industry. While the second quarter financial results
were disappointing, we achieved revenue growth over the same quarter and the first half of last year and we continue to
believe our ongoing product development and infrastructure initiatives will enable us to emerge from the current downturn
poised for growth.''
Brooks Automation, Inc. is an independent supplier of substrate material handling robots, modules, software controls and fully
integrated cluster tool platforms to semiconductor, flat panel display and data storage manufacturers worldwide. Founded in
1978, the Company has distinguished itself as a technology and market leader, particularly in the demanding cluster-tool
vacuum-processing environment. In addition to corporate facilities in Chelmsford, Massachusetts, Brooks Automation
maintains a software technology center in British Columbia, Canada, as well as sales and service offices in the United States,
Europe, Japan, Korea and Taiwan.
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: The foregoing discussion of revenues,
earnings and other financial results contains projections and other information that constitute 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 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 projections 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 Sheet
(in thousands)
(unaudited)
March 31, September 30,
1998 1997
Cash and cash equivalents $ 65,462 $71,753
Accounts receivable, net 23,522 28,408
Inventories 26,659 23,253
Other current assets 7,356 3,690
Total current assets 122,999 127,104
Fixed assets, net 19,161 19,054
Other assets 3,528 3,572
Total assets $145,688 $149,730
Current liabilities $14,290 $14,436
Long-term liabilities 980 1,095
Total liabilities 15,270 15,531
Stockholders' equity 130,418 134,199
Total liabilities and
stockholders' equity $145,688 $149,730
-0-
Brooks Automation, Inc.
Condensed Consolidated Statement of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
1998 1997 1998 1997
Revenues $20,211 $16,433 $44,841 $32,544
Cost of revenues 18,951 12,035 35,560 22,666
Gross profit 1,260 4,398 9,281 9,878
Operating expenses:
Research and development 4,620 3,298 9,733 6,108
Selling, general & administrative 3,997 2,983 8,044 5,537
Loss from operations (7,357) (1,883) (8,496) (1,767)
Interest (income) expense, net (906) 186 (1,705) 241
Loss before income taxes (6,451) (2,069) (6,791) (2,008)
Income tax benefit (2,651) (525) (2,761) (504)
Net loss $(3,800) $(1,544) $(4,030) $(1,504)
Basic earnings (losses)
per share $ (0.38) $ (0.20) $ (0.40) $ (0.20)
Diluted earnings (losses)
per share $ (0.38) $ (0.20) $ (0.40) $ (0.20)
Basic weighted average common
shares outstanding 10,107 7,625 10,080 7,600
Diluted weighted average common
and common equivalent shares
outstanding 10,107 7,625 10,080 7,600
Contact:
Brooks Automation Inc., Chelmsford
Michael Pippins / Deborah D. Fox, 978/262-2566
or
Kehoe, White, Savage & Co. Inc., New York
Van Negris/Philip J. Denning, 212/888-1616 |
