Brooks Automation Announces Return to Profitability in Fiscal 1999
Second Quarter; New Orders Up 12 Percent and Revenues Increase by 18
Percent from Fiscal 1999 First Quarter
CHELMSFORD, Mass., April 27 /PRNewswire/ -- Brooks Automation, Inc.
(Nasdaq: BRKS - news) today announced a return to profitability in the
fiscal second quarter ending March 31, 1999. Net income attributable
to common stockholders for the 1999 second quarter was $135,000, on
revenues of $23.3 million, compared to a net loss of $6.6 million, on
revenues of $24.1 million in the fiscal 1998 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 for the fiscal 1999 second
quarter increased by 12 percent to $21.5 million, as compared to the
fiscal 1999 first quarter. Revenues for the 1999 second quarter
increased by 18 percent to $23.3 million from the 1999 first quarter
revenues of $19.8 million.
Robert J. Therrien, President and Chief Executive Officer, said: ''We
are very pleased with our return to profitability as well as our
overall performance this quarter with regards to sequential revenue
growth, new customers, product wins and continued cost controls. With
the semiconductor industry recovery starting to take place, we are
confident about our long-term ability to increase profitability
for our shareholders.
Major accomplishments included:
-- Sequential quarterly revenue gain of 18 percent
-- Return to profitability
-- New orders up twelve percent compared to the first quarter 1999
-- Acquisition of Hanyon Technology bringing additional strength
in Korea and Taiwan
-- Addition of new customers including: KLA-Tencor, Novellus
(Copper Plating), ST Microelectronics, LG Semicon, Wacker,
Electrorava
-- Increase in revenue of 200mm modules business by 154 percent
over the first quarter 1999
-- Agreement signed to form a joint venture with Samsung
Electronics
Pre-tax income for the quarter was $218,000 compared with a pre-tax
loss of $9.1 million in the second quarter of fiscal 1998. The
improvement in the pre-tax results was directly attributable to gross
margin improvements in addition to reductions in operating expenses.
The overall gross profit margin percentage in the fiscal 1999 second
quarter increased to 44.5 percent from 32.1 percent in the comparable
period a year ago, excluding an inventory write-off of $4 million in
second quarter of 1998. The gross margin improvement was due to lower
materials cost/favorable mix within the hardware area, and increased
percentage of software revenues.
In addition, there were substantial decreases both in absolute as well
as percentage terms, in both selling, general and administrative (SG &
A) expenses and research and development expenses during the second
quarter of 1999 compared to the same quarter in 1998. Research and
Development dropped from 25.8 percent of revenues to 20.2 percent and
SG & A from 30.8 percent to 26.6 percent. Mr. Therrien commented: ''The Company continues its focus on cost controls in all areas of its
business while delivering the highest quality products and services to
its customers.
''We are also extremely pleased to announce that our acquisition of
Hanyon Technology was completed this past week for approximately $7
million in cash. Hanyon is an established provider of factory
automation software and systems integration services for the
semiconductor and flat panel display industry in both Korea and
Taiwan. Hanyon provides Brooks with complementary automation software
applications that integrate with the FASTech product set as well as
additional skilled engineers to support our joint business in Korea
and Taiwan.
''In addition, Brooks' factory automation software sales continued at
a strong pace with sales to six sites, including two new MES
FACTORYworks customers: LG Semicon and Apack, and two new STATIONworks
customers: ST Microelectronics and Wacker. Two of the sites were
backend assembly sites increasing our penetration of this new market
segment. In addition, Samsung rolled out its FACTORYworks MES solution
to its 11th manufacturing site during the quarter.''
Cash remained strong at $69 million at the end of the fiscal 1999
second quarter versus $68 million at the end of the fiscal year 1998.
Capital expenditures were slightly over $1 million during the current
quarter.
On a year over year basis the trend towards a more diversified revenue
stream continued. International sales represented 34 percent of total
revenue versus 30 percent for the same quarter last year. ''We feel
strongly that it is important to both support our existing customers
with new products and quality service as well as to add new
customers,'' Mr. Therrien commented.
''We have just won our first major order in the atmospheric robot
market with Novellus, in the SABRE XT Copper Plating system. This
order was booked after the quarter closed,'' Mr. Therrien continued.
''Also, during the quarter we booked our first major order with
KLA-Tencor.'' In addition, consistent with our strategy to balance the
OEM and end-user business mix, end-users now represents 27 percent
of our total sales for the fiscal 1999 second quarter, versus 22
percent for the same time period last year.
On April 8, 1999, Brooks announced an agreement to form a joint
venture with Samsung Electronics, the world's largest memory device
(DRAM) and flat panel display manufacturer. The business purposes of
the joint venture are to locally engineer, manufacture and configure
vacuum wafer handling platforms for 200mm and 300mm wafer size, 300mm
Front-Opening Unified POD (FOUP) load port modules, and also to
design, manufacture and configure atmospheric loading systems for flat
panel displays.
Brooks Automation Inc. is a leading supplier of factory 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 and
Hanyon Technology into the Company, 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)
March 31, September 30,
1999 1998
(unaudited)
Cash and cash equivalents $ 69,277 $68,161
Accounts receivable, net 23,123 20,701
Inventories 16,839 19,589
Other current assets 9,075 9,641
Total current assets 118,314 118,092
Fixed assets, net 17,488 18,606
Other assets 4,370 4,254
Total assets $140,172 $140,952
Current liabilities $17,572 $18,171
Long-term liabilities 759 1,018
Total liabilities 18,331 19,189
Stockholders' equity 121,841 121,763
Total liabilities and
stockholders' equity $140,172 $140,952
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,
1999 1998* 1999 1998*
Revenues $23,276 $24,075 $43,085 $53,723
Cost of revenues 12,909 20,340 23,977 38,349
Gross profit 10,367 3,735 19,108 15,374
Operating expenses: '
Research and development 4,705 6,200 8,797 12,944
Selling, general and
administrative 6,193 7,426 11,920 14,501
10,898 13,626 20,717 27,445
Income (loss) from
operations (531) (9,891) (1,609) (12,071)
Interest (income)
expense, net (749) (818) (1,473) (1,508)
Income (loss) before
income taxes 218 (9,073) (136) (10,563)
Income tax provision
(benefit) 83 (2,651) 305 (1,287)
Net income (loss) 135 (6,422) (441) (9,276)
Dividends on preferred
stock -0 (130) -0 (261)
Net income (loss)
attributable to common $135 $(6,552) $(441) $(9,537)
Stockholders
Basic earnings (loss)
per share $0.01 $(0.64) $(0.04) $(0.93)
Diluted earnings (loss)
per share $0.01 $(0.64) $(0.04) $(0.93)
Basic weighted average
common shares
outstanding 11,045 10,275 11,028 10.235
Diluted weighted average
common and common
equivalent shares
Outstanding 11,793 10,275 11,028 10,235
* 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 more information, contact: Ellen Richstone or Michael Pippins of Brooks Automation, Inc.,
978-262-2566; or Van Negris or Philip J. Denning of Kehoe, White, Van Negris & Company, Inc.,
212-396-0606, for Brooks Automation.
SOURCE: Brooks Automation, Inc. |
