CHELMSFORD, Mass., April 27, 2017 (GLOBE NEWSWIRE) -- Brooks Automation, Inc. (Nasdaq:BRKS), a leading worldwide provider of
automation and cryogenic solutions for multiple markets, including semiconductor manufacturing and life sciences, today reported
financial results for the second quarter of 2017, ended March 31, 2017.
Fiscal Second Quarter of 2017 Financial and Operational Highlights:
- Revenue was $169.3 million, 25% higher compared to Q2 2016 and 6% higher than Q1 2017;
- GAAP net income was $14.0 million with diluted EPS of $0.20;
- Non-GAAP net income was $19.8 million with diluted EPS of $0.28; and
- Cash flow from operations was $24.6 million.
Summary of GAAP and Non-GAAP Earnings
| |
Quarter Ended |
| |
March 31, |
|
December
31, |
|
March 31, |
| Dollars in thousands, except per share data |
2017 |
|
2016 |
|
2016 |
| GAAP net income (loss) |
$ |
14,005 |
|
|
$ |
13,871 |
|
|
$ |
(83,939 |
) |
| GAAP diluted earnings (loss) per share |
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
(1.22 |
) |
| |
|
|
|
|
|
| Non-GAAP net income |
$ |
19,839 |
|
|
$ |
17,301 |
|
|
$ |
4,920 |
|
| Non-GAAP diluted earnings per share |
$ |
0.28 |
|
|
$ |
0.25 |
|
|
$ |
0.07 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures follows the consolidated statements of
operations, balance sheets, and statements of cash flows included in this release.
Management Comments
“In the second quarter, Brooks achieved several new performance milestones,” commented Steve Schwartz, CEO of Brooks
Automation. "Revenue grew 25% year over year, 6% sequentially, driven by continued strength in both segments. Life Sciences
revenue grew 31% year over year and is more than 20% of total revenue despite strong Semiconductor growth, up 24% over the 2016
second quarter. Our strong top line contributed to the highest gross margins we have seen in more than ten years, $25 million of
operating cash flow, and non-GAAP diluted earnings per share of $0.28 per share. Our continuing performance improvement is
reflected in our results, and we thank our employees for their hard work and dedication to our customers."
GAAP Summary
Revenue for the second quarter of fiscal 2017 increased 6% to $169.3 million compared to the first quarter of fiscal 2017. The
growth was driven by a 6% increase in the Brooks Semiconductor Solutions Group segment and a 4% increase in the Brooks Life Science
Systems segment. Gross margin was 38.1%, up 250 basis points from the first quarter of fiscal 2017. Operating expenses of
$49.7 million increased 14% from the previous quarter. Primary drivers of increased operating expense were higher accruals in
this second fiscal quarter for performance-based compensation reflecting an improved performance outlook, and increased consulting
expense. In the second quarter, the Company incurred $0.9 million of restructuring charges compared to $1.0 million in the
first quarter. GAAP net income in the second fiscal quarter was $14.0 million and diluted earnings per share was $0.20, which was
even with the first fiscal quarter.
The amortization of intangible assets, restructuring charges, impact of purchase price accounting adjustments and special
charges are appropriately included in the GAAP summary of earnings discussed above. The impact on earnings of such non-GAAP
adjustments is referenced in the unaudited table included within this press release.
In the following analysis of the non-GAAP results, Brooks adjusted the GAAP results for the impact of amortization of
intangible assets, restructuring charges, and purchase price accounting adjustments to provide investors better perspective on the
results of operations, which the Company believes is more comparable to the similar analysis provided by its peers. Brooks
also excludes special charges or gains, such as impairment losses, gains or losses from the sale of assets, as well as other gains
and charges that are not representative of the normal operations of the business. Brooks currently includes a valuation allowance
reserve against U.S. deferred tax assets in its GAAP results. In assessing the appropriate tax rate for the non-GAAP results,
the Company evaluated the adjustments discussed above and concluded it was appropriate to maintain the valuation allowance reserve
in deriving the non-GAAP tax rate.
Results of Fiscal Second Quarter of 2017 (Non-GAAP Discussion)
Non-GAAP net income was $19.8 million in the second quarter, resulting in non-GAAP earnings per share of $0.28. This compares to
non-GAAP net income of $17.3 million and non-GAAP earnings per share of $0.25 in the first quarter of fiscal 2017, and non-GAAP net
income of $4.9 million and non-GAAP earnings per share of $0.07 in the second quarter of fiscal 2016.
As noted above, revenue for the second fiscal quarter of 2017 was $169.3 million, up 6% compared to the first fiscal quarter of
2017. The semiconductor segment revenue increased 6% sequentially to $134.7 million. While all key semiconductor product
lines grew, cryogenic pump products led with 20% expansion from the first quarter. The life science segment revenue grew 4%
sequentially to $34.7 million. This segment reported a seasonal drop in genomic services of approximately $4 million dollars,
where we observe customers consume remaining budgets in the December month. Excluding the genomic services, the remaining
balance of the life science segment grew 20% sequentially. The primary growth driver was consumables and instruments, which
expanded 45% sequentially and store systems which expanded 23%.
Adjusted gross margin, which excludes amortization, purchase accounting impacts and special charges, was 39.0% in the second
quarter, up 270 basis points from the prior quarter. The semiconductor segment non-GAAP adjusted gross margin was 38.7% in
the second quarter compared to 36.4% in the prior period reflecting improved absorption of overhead, particularly in cryogenic pump
products, and improved services cost of repair. The life science segment non-GAAP adjusted gross margin was 40.1% in the
second quarter compared to 35.7% in the prior period, primarily due to a lower mix of genomic service revenue within the BioStorage
service offerings. In summary, the total non-GAAP adjusted gross profit increased by $8.0 million compared to the prior sequential
quarter, driven by $9.4 million of increased revenue and improved margins across both segments.
Bookings for the semiconductor segment in the second quarter totaled $171.6 million, compared to $122.8 million in the first
quarter. The life science segment booked a total of $48.1 million of new contract value in the quarter, compared to $64.2
million in the first quarter.
Non-GAAP operating expense of $44.6 million increased 13%, or $5.1 million sequentially. The growth was $0.5 million in Research
and Development expense, and $4.6 million in SG&A. The SG&A expansion was driven primarily by increased accruals for higher
performance based compensation and increased consulting expense.
Adjusted EBITDA was $30.8 million, which improved 20% from the first fiscal quarter. The semiconductor segment reported non-GAAP
segment operating profit of $20.8 million, or 15.4% of revenue. The life science segment reported $2.0 million of operating profit,
or 5.7% of revenue.
Cash flow from operations was $24.6 million in the second quarter. The Company's cash, cash equivalents, and marketable
securities was $110.1 million as of March 31, 2017, an increase of $21.1 million from the end of the first fiscal quarter.
Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on June 23,
2017 to stockholders of record on June 2, 2017. Future dividend declarations, as well as the record and payment dates for such
dividends, are subject to the final determination of the Company's Board of Directors.
Guidance for Third Fiscal Quarter 2017
The Company announced revenue and earnings guidance for the third quarter of fiscal 2017. Revenue is expected to be in the range
of $175 million to $180 million and non-GAAP diluted earnings per share is expected to be in the range of $0.29 to $0.33. GAAP
diluted earnings per share for the third quarter is expected to be in the range of $0.21 to $0.25, reflecting the impact of
amortization, purchase price accounting and anticipated restructuring charges.
Conference Call
Brooks management will webcast its second quarter earnings conference call today at 4:30 p.m. Eastern Time. During the call,
Company management will respond to questions concerning, but not limited to, the Company's financial performance, business
conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.
The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be
hosted at the Investor Relations section of Brooks' website at www.brooks.com, and will be archived online on this website for convenient on-demand replay. In
addition, you may call 800-679-0308 for domestic callers and +1 303-223-2684 for international callers.
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation and cryogenic solutions for multiple markets, including semiconductor
manufacturing and life sciences. Brooks' technologies, engineering competencies and global service capabilities provide customers
speed to market and ensure high uptime and rapid response, which equate to superior value in their mission-critical controlled
environments. Since 1978, Brooks has been a leading partner to the global semiconductor manufacturing market as a provider of
precision automation and cryogenic vacuum solutions. Since 2011, Brooks has applied its automation and cryogenics expertise
to meet the sample storage needs of customers in the life sciences industry. Brooks' life sciences offerings include a broad
range of products and services for on-site infrastructure for sample management in temperatures of ‑20°C to -150°C, as well as
comprehensive outsource service solutions across the complete life cycle of biological samples including collection,
transportation, processing, storage, protection, retrieval and disposal. Brooks is headquartered in Chelmsford, MA, with
operations in North America, Europe and Asia. For more information, visit www.brooks.com.
“Safe Harbor Statement” under Section 21E of the Securities Exchange Act of 1934
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 and business results to differ materially from our expectations. They are based on the facts known to management
at the time they are made. These forward-looking statements include, but are not limited to statements about our revenue and
earnings expectations, our ability to increase our profitability, our ability to improve or retain our market position, and our
ability to deliver financial success in the future. Factors that could cause results to differ from our expectations include the
following: the volatility of the industries the Company serves, particularly the semiconductor industry; our possible
inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required
quantities and of required quality; the inability of customers to make payments to us when due; the timing and effectiveness of
cost reduction and cost control measures; price competition; disputes concerning intellectual property; uncertainties in global
political and economic conditions, and other factors and other risks, including those that we have described in our filings with
the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, current reports on Form 8-K
and our quarterly reports on Form 10-Q. As a result we can provide 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. Brooks undertakes no obligation to update the information contained in this press release.
CONTACTS:
Lynne Yassemedis
Brooks Automation
978.262.2400
lynne.yassemedis@brooks.com
John Mills
Partner
ICR, LLC
646.277.1254
john.mills@icrinc.com)
| |
| BROOKS AUTOMATION, INC. |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (unaudited) |
| (In thousands, except per share data) |
| |
|
|
|
| |
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| Revenue |
|
|
|
|
|
|
|
| Products |
$ |
132,613 |
|
|
$ |
101,462 |
|
|
$ |
254,727 |
|
|
$ |
190,642 |
|
| Services |
36,720 |
|
|
33,819 |
|
|
74,561 |
|
|
64,594 |
|
| Total revenue |
169,333 |
|
|
135,281 |
|
|
329,288 |
|
|
255,236 |
|
| Cost of revenue |
|
|
|
|
|
|
|
| Products |
82,023 |
|
|
65,226 |
|
|
157,701 |
|
|
123,258 |
|
| Services |
22,786 |
|
|
23,255 |
|
|
50,120 |
|
|
44,624 |
|
| Total cost of revenue |
104,809 |
|
|
88,481 |
|
|
207,821 |
|
|
167,882 |
|
| Gross profit |
64,524 |
|
|
46,800 |
|
|
121,467 |
|
|
87,354 |
|
| Operating expenses |
|
|
|
|
|
|
|
| Research and development |
11,345 |
|
|
13,111 |
|
|
22,190 |
|
|
26,389 |
|
| Selling, general and administrative |
37,518 |
|
|
32,692 |
|
|
69,479 |
|
|
66,813 |
|
| Restructuring and other charges |
860 |
|
|
7,336 |
|
|
1,835 |
|
|
8,811 |
|
| Total operating expenses |
49,723 |
|
|
53,139 |
|
|
93,504 |
|
|
102,013 |
|
| Operating income (loss) |
14,801 |
|
|
(6,339 |
) |
|
27,963 |
|
|
(14,659 |
) |
| Interest income |
227 |
|
|
50 |
|
|
294 |
|
|
255 |
|
| Interest expense |
(97 |
) |
|
(16 |
) |
|
(193 |
) |
|
(19 |
) |
| Gain on settlement of equity method investment |
— |
|
|
— |
|
|
1,847 |
|
|
— |
|
| Other loss, net |
(283 |
) |
|
(124 |
) |
|
(534 |
) |
|
(183 |
) |
| Income (loss) before income taxes and equity in earnings of equity method
investments |
14,648 |
|
|
(6,429 |
) |
|
29,377 |
|
|
(14,606 |
) |
| Income tax provision |
3,420 |
|
|
78,220 |
|
|
6,220 |
|
|
74,850 |
|
| Income (loss) before equity in earnings of equity method investments |
11,228 |
|
|
(84,649 |
) |
|
23,157 |
|
|
(89,456 |
) |
| Equity in earnings of equity method investments |
2,777 |
|
|
710 |
|
|
4,719 |
|
|
869 |
|
| Net income (loss) |
$ |
14,005 |
|
|
$ |
(83,939 |
) |
|
$ |
27,876 |
|
|
$ |
(88,587 |
) |
| Basic net income (loss) per share |
$ |
0.20 |
|
|
$ |
(1.22 |
) |
|
$ |
0.40 |
|
|
$ |
(1.30 |
) |
| Diluted net income (loss) per share |
$ |
0.20 |
|
|
$ |
(1.22 |
) |
|
$ |
0.40 |
|
|
$ |
(1.30 |
) |
| Dividend declared per share |
$ |
0.10 |
|
|
$ |
0.10 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
| |
|
|
|
|
|
|
|
| Weighted average shares outstanding used in computing net income (loss) per
share: |
|
|
|
|
|
|
|
| Basic |
69,600 |
|
|
68,556 |
|
|
69,388 |
|
|
68,342 |
|
| Diluted |
70,149 |
|
|
68,556 |
|
|
70,073 |
|
|
68,342 |
|
| |
|
|
|
|
|
|
|
| BROOKS AUTOMATION, INC. |
| CONSOLIDATED BALANCE SHEETS |
| (unaudited) |
| (In thousands, except share and per share data) |
| |
|
|
|
| |
March 31,
2017 |
|
September 30,
2016 |
| Assets |
|
|
|
| Current assets |
|
|
|
| Cash and cash equivalents |
$ |
103,939 |
|
|
$ |
85,086 |
|
| Marketable securities |
1,495 |
|
|
39 |
|
| Accounts receivable, net |
115,171 |
|
|
106,372 |
|
| Inventories |
99,104 |
|
|
92,572 |
|
| Prepaid expenses and other current assets |
17,518 |
|
|
15,265 |
|
| Total current assets |
337,227 |
|
|
299,334 |
|
| Property, plant and equipment, net |
53,273 |
|
|
54,885 |
|
| Long-term marketable securities |
4,681 |
|
|
6,096 |
|
| Long-term deferred tax assets |
1,495 |
|
|
1,982 |
|
| Goodwill |
210,617 |
|
|
202,138 |
|
| Intangible assets, net |
79,375 |
|
|
81,843 |
|
| Equity method investments |
29,803 |
|
|
27,273 |
|
| Other assets |
5,708 |
|
|
12,354 |
|
| Total assets |
$ |
722,179 |
|
|
$ |
685,905 |
|
| Liabilities and Stockholders' Equity |
|
|
|
| Current liabilities |
|
|
|
| Accounts payable |
$ |
49,832 |
|
|
$ |
41,128 |
|
| Deferred revenue |
29,065 |
|
|
14,966 |
|
| Accrued warranty and retrofit costs |
7,073 |
|
|
6,324 |
|
| Accrued compensation and benefits |
19,547 |
|
|
21,254 |
|
| Accrued restructuring costs |
2,044 |
|
|
5,939 |
|
| Accrued income taxes payable |
8,295 |
|
|
7,554 |
|
| Accrued expenses and other current liabilities |
23,917 |
|
|
22,628 |
|
| Total current liabilities |
139,773 |
|
|
119,793 |
|
| Long-term tax reserves |
2,111 |
|
|
2,681 |
|
| Long-term deferred tax liabilities |
2,783 |
|
|
2,913 |
|
| Long-term pension liabilities |
2,398 |
|
|
2,557 |
|
| Other long-term liabilities |
4,500 |
|
|
4,271 |
|
| Total liabilities |
151,565 |
|
|
132,215 |
|
| Commitments and contingencies |
|
|
|
| Stockholders' Equity |
|
|
|
| Preferred stock, $0.01 par value, 1,000,000 shares authorized, no
shares issued or outstanding |
— |
|
|
— |
|
| Common stock, $0.01 par value, 125,000,000 shares authorized,
83,105,485 shares issued and 69,643,616 shares outstanding at March 31, 2017; 82,220,270 shares issued and 68,758,401 shares
outstanding at September 30, 2016 |
831 |
|
|
821 |
|
| Additional paid-in capital |
1,863,449 |
|
|
1,855,703 |
|
| Accumulated other comprehensive income |
10,402 |
|
|
15,166 |
|
| Treasury stock at cost - 13,461,869 shares |
(200,956 |
) |
|
(200,956 |
) |
| Accumulated deficit |
(1,103,112 |
) |
|
(1,117,044 |
) |
| Total stockholders' equity |
570,614 |
|
|
553,690 |
|
| Total liabilities and stockholders' equity |
$ |
722,179 |
|
|
$ |
685,905 |
|
| |
|
|
|
|
|
|
|
| BROOKS AUTOMATION, INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (unaudited) |
| (In thousands) |
| |
|
| |
Six Months Ended
March 31, |
| |
2017 |
|
2016 |
| Cash flows from operating activities |
|
|
|
| Net income (loss) |
$ |
27,876 |
|
|
$ |
(88,587 |
) |
| Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
| Depreciation and amortization |
13,730 |
|
|
13,849 |
|
| Gain on settlement of equity method investment |
(1,847 |
) |
|
— |
|
| Stock-based compensation |
6,884 |
|
|
6,568 |
|
| Amortization of premium on marketable securities and deferred
financing costs |
28 |
|
|
315 |
|
| Undistributed earnings of equity method investments |
(4,719 |
) |
|
(869 |
) |
| Deferred income tax provision |
334 |
|
|
73,454 |
|
| Gain on disposal of long-lived assets |
(117 |
) |
|
— |
|
| Changes in operating assets and liabilities, net of
acquisitions: |
|
|
|
| Accounts receivable |
(9,672 |
) |
|
(664 |
) |
| Inventories |
(7,341 |
) |
|
(374 |
) |
| Prepaid expenses and other current assets |
(2,256 |
) |
|
(2,046 |
) |
| Accounts payable |
10,072 |
|
|
(7,073 |
) |
| Deferred revenue |
14,425 |
|
|
15,538 |
|
| Accrued warranty and retrofit costs |
792 |
|
|
(333 |
) |
| Accrued compensation and tax withholdings |
(1,799 |
) |
|
(7,297 |
) |
| Accrued restructuring costs |
(3,799 |
) |
|
5,323 |
|
| Accrued expenses and other current liabilities |
707 |
|
|
(7,433 |
) |
| Net cash provided by operating activities |
43,298 |
|
|
371 |
|
| Cash flows from investing activities |
|
|
|
| Purchases of property, plant and equipment |
(5,153 |
) |
|
(6,090 |
) |
| Purchases of marketable securities |
— |
|
|
(12,900 |
) |
| Sales and maturities of marketable securities |
— |
|
|
139,388 |
|
| Acquisitions, net of cash acquired |
(5,346 |
) |
|
(125,498 |
) |
| Disbursement for a loan receivable |
— |
|
|
(741 |
) |
| Purchases of other investments |
(170 |
) |
|
(250 |
) |
| Net cash used in investing activities |
(10,669 |
) |
|
(6,091 |
) |
| Cash flows from financing activities |
|
|
|
| Proceeds from issuance of common stock |
960 |
|
|
948 |
|
| Payment of deferred financing costs |
(27 |
) |
|
— |
|
| Common stock dividends paid |
(13,945 |
) |
|
(13,738 |
) |
| Net cash used in financing activities |
(13,012 |
) |
|
(12,790 |
) |
| Effects of exchange rate changes on cash and cash equivalents |
(764 |
) |
|
(50 |
) |
| Net increase (decrease) in cash and cash equivalents |
18,853 |
|
|
(18,560 |
) |
| Cash and cash equivalents, beginning of period |
85,086 |
|
|
80,722 |
|
| Cash and cash equivalents, end of period |
$ |
103,939 |
|
|
$ |
62,162 |
|
| |
|
|
|
| Supplemental disclosure of non-cash investing activities: |
|
|
|
| Purchases of property, plant and equipment included in accounts
payable |
$ |
543 |
|
|
$ |
835 |
|
| Fair value of non-cash consideration for the acquisition of Cool Lab,
LLC |
10,348 |
|
|
— |
|
| |
|
|
|
|
|
Notes on Non-GAAP Financial Measures:
The information in this press release is for: internal managerial purposes; when publicly providing guidance on future results; and
as a means to evaluate period-to-period comparisons. These financial measures are used in addition to and in conjunction with
results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management
believes these financial measures provide an additional way of viewing aspects of our operations, that, when viewed with our GAAP
results and the accompanying reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of
our business. Management strongly encourages investors to review our financial statements and publicly-filed reports in their
entirety and not rely on any single measure.
The press release includes financial measures which exclude the effects of special charges such as restructuring
charges and acquisition related charges. Management believes these measures are useful to investors because it eliminates
accounting charges that do not reflect Brooks' day-to-day operations. Tables reconciling GAAP to the non-GAAP measures are
presented below.
| |
|
|
|
|
Quarter
Ended |
|
|
|
|
| |
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
| Dollars in thousands, except per share data |
$ |
|
per diluted
share |
|
$ |
|
per diluted
share |
|
$ |
|
per diluted
share |
| GAAP net income (loss) |
$ |
14,005 |
|
|
$ |
0.20 |
|
|
$ |
13,871 |
|
|
$ |
0.20 |
|
|
$ |
(83,939 |
) |
|
$ |
(1.22 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
| Purchase accounting impact on inventory and contracts acquired |
382 |
|
|
0.01 |
|
|
70 |
|
|
— |
|
|
250 |
|
|
— |
|
| Amortization of intangible assets |
4,355 |
|
|
0.06 |
|
|
4,058 |
|
|
0.06 |
|
|
3,809 |
|
|
0.06 |
|
| Restructuring charges |
860 |
|
|
0.01 |
|
|
975 |
|
|
0.01 |
|
|
7,336 |
|
|
0.11 |
|
| Merger costs |
936 |
|
|
0.01 |
|
|
249 |
|
|
— |
|
|
215 |
|
|
0.00 |
|
| Establishment of valuation allowance against deferred tax assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
79,340 |
|
|
1.15 |
|
| Fair value adjustment of equity investment |
— |
|
|
— |
|
|
(1,847 |
) |
|
(0.03 |
) |
|
— |
|
|
— |
|
| BioCision stub period adjustment |
— |
|
|
— |
|
|
203 |
|
|
— |
|
|
— |
|
|
— |
|
| Tax effect of adjustments |
(699 |
) |
|
(0.01 |
) |
|
(278 |
) |
|
— |
|
|
(2,091 |
) |
|
(0.03 |
) |
| Non-GAAP adjusted net income |
19,839 |
|
|
0.28 |
|
|
17,301 |
|
|
0.25 |
|
|
4,920 |
|
|
0.07 |
|
| Stock based compensation, pre-tax |
4,386 |
|
|
— |
|
|
2,498 |
|
|
— |
|
|
1,855 |
|
|
— |
|
| Tax rate |
17 |
% |
|
— |
|
|
15 |
% |
|
— |
|
|
16 |
% |
|
— |
|
| Stock-based compensation, net of tax |
3,641 |
|
|
0.05 |
|
|
2,123 |
|
|
0.03 |
|
|
1,556 |
|
|
0.02 |
|
| Non-GAAP adjusted net income - excluding stock-based
compensation |
$ |
23,480 |
|
|
$ |
0.33 |
|
|
$ |
19,424 |
|
|
$ |
0.28 |
|
|
$ |
6,476 |
|
|
$ |
0.09 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Shares used in computing non-GAAP diluted net income per share |
— |
|
|
70,149 |
|
|
— |
|
|
69,870 |
|
|
— |
|
|
69,101 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Six Months Ended |
| |
March 31,
2017 |
|
March 31,
2016 |
| Dollars in thousands, except per share data |
$ |
|
Per Diluted
Share |
|
$ |
|
Per Diluted
Share |
| GAAP net income (loss) |
$ |
27,876 |
|
|
$ |
0.40 |
|
|
$ |
(88,587 |
) |
|
$ |
(1.30 |
) |
| Adjustments: |
|
|
|
|
|
|
|
| Purchase accounting impact on inventory and contracts acquired |
452 |
|
|
0.01 |
|
|
375 |
|
|
0.01 |
|
| Amortization of intangible assets |
8,413 |
|
|
0.12 |
|
|
7,316 |
|
|
0.11 |
|
| Restructuring charges |
1,835 |
|
|
0.03 |
|
|
8,811 |
|
|
0.13 |
|
| Merger costs |
1,185 |
|
|
0.02 |
|
|
3,211 |
|
|
0.05 |
|
| Less: Fair value adjustment of equity investment |
(1,847 |
) |
|
(0.03 |
) |
|
— |
|
|
— |
|
| Add: True-up of BioCision stub period adjustment |
203 |
|
|
— |
|
|
— |
|
|
— |
|
| Establishment of valuation allowance against deferred tax assets |
— |
|
|
— |
|
|
79,340 |
|
|
$ |
1.14 |
|
| Tax effect of adjustments |
(976 |
) |
|
(0.01 |
) |
|
(4,300 |
) |
|
(0.06 |
) |
| Non-GAAP adjusted net income |
37,141 |
|
|
0.53 |
|
|
6,166 |
|
|
0.09 |
|
| Stock-based compensation, pre-tax |
6,884 |
|
|
— |
|
|
6,568 |
|
|
— |
|
| Tax rate |
16 |
% |
|
— |
|
|
26 |
% |
|
— |
|
| Stock-based compensation, net of tax |
5,783 |
|
|
$ |
0.08 |
|
|
4,855 |
|
|
$ |
0.07 |
|
| Non-GAAP adjusted net income - excluding stock-based compensation |
$ |
42,924 |
|
|
$ |
0.61 |
|
|
$ |
11,021 |
|
|
$ |
0.16 |
|
| |
|
|
|
|
|
|
|
| Shares used in computing non-GAAP diluted net income per share |
— |
|
|
70,073 |
|
|
— |
|
|
69,313 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Quarter Ended |
| |
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
| Dollars in thousands |
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
| GAAP gross profit/gross margin percentage |
$ |
64,524 |
|
|
38.1 |
% |
|
$ |
56,943 |
|
|
35.6 |
% |
|
$ |
46,800 |
|
|
34.6 |
% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
| Amortization of intangible assets |
1,061 |
|
|
0.6 |
% |
|
993 |
|
|
0.6 |
% |
|
718 |
|
|
0.5 |
% |
| Purchase accounting impact on inventory and contracts acquired |
382 |
|
|
0.2 |
% |
|
70 |
|
|
— |
% |
|
250 |
|
|
0.2 |
% |
| Non-GAAP adjusted gross profit/gross margin percentage |
65,967 |
|
|
39.0 |
% |
|
58,006 |
|
|
36.3 |
% |
|
47,768 |
|
|
35.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Six Months Ended |
| |
March 31,
2017 |
|
March 31,
2016 |
| Dollars in thousands |
$ |
|
% |
|
$ |
|
% |
| GAAP Gross profit/gross margin percentage |
$ |
121,467 |
|
|
36.9 |
% |
|
$ |
87,354 |
|
|
34.2 |
% |
| Adjustments: |
|
|
|
|
|
|
|
| Amortization of intangible assets |
2,054 |
|
|
0.6 |
% |
|
2,014 |
|
|
0.8 |
% |
| Purchase accounting impact on inventory and contracts acquired |
452 |
|
|
0.1 |
% |
|
375 |
|
|
0.1 |
% |
| Non-GAAP adjusted gross profit/gross margin percentage |
$ |
123,973 |
|
|
37.6 |
% |
|
$ |
89,743 |
|
|
35.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Quarter Ended |
|
Six Months Ended |
| |
March 31, |
|
December
31, |
|
March 31, |
|
March 31, |
|
March 31, |
| Dollars in thousands |
2017 |
|
2016 |
|
2016 |
|
2017 |
|
2016 |
| GAAP net income (loss) |
$ |
14,005 |
|
|
$ |
13,871 |
|
|
$ |
(83,939 |
) |
|
$ |
27,876 |
|
|
$ |
(88,587 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
|
| Less: Interest income |
(227 |
) |
|
(68 |
) |
|
(50 |
) |
|
(294 |
) |
|
(255 |
) |
| Add: Interest expense |
97 |
|
|
96 |
|
|
16 |
|
|
193 |
|
|
19 |
|
| Add: Income tax provision |
3,420 |
|
|
2,800 |
|
|
78,220 |
|
|
6,220 |
|
|
74,850 |
|
| Add: Depreciation |
2,623 |
|
|
2,695 |
|
|
3,596 |
|
|
5,318 |
|
|
6,534 |
|
| Add: Amortization of completed technology |
1,061 |
|
|
993 |
|
|
718 |
|
|
2,054 |
|
|
2,014 |
|
| Add: Amortization of customer relationships and acquired intangible
assets |
3,294 |
|
|
3,064 |
|
|
3,091 |
|
|
6,358 |
|
|
5,302 |
|
| Earnings (losses) before interest, taxes, depreciation and amortization |
$ |
24,273 |
|
|
$ |
23,451 |
|
|
$ |
1,652 |
|
|
$ |
47,725 |
|
|
$ |
(123 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Quarter Ended |
|
Six Months Ended |
| |
March 31, |
|
December
31, |
|
March 31, |
|
March 31, |
|
March 31, |
| Dollars in thousands |
2017 |
|
2016 |
|
2016 |
|
2017 |
|
2016 |
| Earnings (losses) before interest, taxes, depreciation and amortization |
$ |
24,273 |
|
|
$ |
23,451 |
|
|
$ |
1,652 |
|
|
$ |
47,725 |
|
|
$ |
(123 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
|
| Less: Fair value adjustment of equity method investment |
— |
|
|
(1,847 |
) |
|
— |
|
|
(1,847 |
) |
|
— |
|
| Add: Stock-based compensation |
4,386 |
|
|
2,498 |
|
|
1,855 |
|
|
6,884 |
|
|
6,568 |
|
| Add: Restructuring charges |
860 |
|
|
975 |
|
|
7,336 |
|
|
1,835 |
|
|
8,811 |
|
| Add: BioCision stub period adjustment |
— |
|
|
203 |
|
|
— |
|
|
203 |
|
|
— |
|
| Add: Purchase accounting impact on inventory and contracts
acquired |
382 |
|
|
70 |
|
|
250 |
|
|
452 |
|
|
375 |
|
| Add: Merger costs |
936 |
|
|
249 |
|
|
215 |
|
|
1,185 |
|
|
3,211 |
|
| Adjusted earnings before interest, taxes, depreciation and amortization |
$ |
30,837 |
|
|
$ |
25,599 |
|
|
$ |
11,308 |
|
|
$ |
56,437 |
|
|
$ |
18,842 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Quarter Ended |
|
Six Months Ended |
| |
March 31, |
|
December
31, |
|
March 31, |
|
March 31, |
|
March 31, |
| Dollars in thousands |
2017 |
|
2016 |
|
2016 |
|
2017 |
|
2016 |
| GAAP selling, general and administrative expenses |
$ |
37,518 |
|
|
$ |
31,962 |
|
|
$ |
32,692 |
|
|
$ |
69,479 |
|
|
$ |
66,813 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
| Less: Amortization of customer relationships and acquired intangible
assets |
(3,294 |
) |
|
(3,064 |
) |
|
(3,091 |
) |
|
(6,358 |
) |
|
(5,302 |
) |
| Less: Merger costs |
(936 |
) |
|
(249 |
) |
|
(215 |
) |
|
(1,185 |
) |
|
(3,211 |
) |
| Non-GAAP adjusted selling, general and administrative expenses |
$ |
33,288 |
|
|
$ |
28,649 |
|
|
$ |
29,386 |
|
|
$ |
61,936 |
|
|
$ |
58,300 |
|
| Research and development expenses |
$ |
11,345 |
|
|
$ |
10,845 |
|
|
$ |
13,111 |
|
|
$ |
22,190 |
|
|
$ |
26,389 |
|
| Non-GAAP adjusted operating expenses |
$ |
44,633 |
|
|
$ |
39,494 |
|
|
$ |
42,497 |
|
|
$ |
84,126 |
|
|
$ |
84,689 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Quarter Ended |
|
Six Months Ended |
| |
March 31, |
|
December
31, |
|
March 31, |
|
March 31, |
|
March 31, |
| Dollars in thousands |
2017 |
|
2016 |
|
2016 |
|
2017 |
|
2016 |
| GAAP equity in earnings of equity method investments |
$ |
2,777 |
|
|
$ |
1,942 |
|
|
$ |
710 |
|
|
$ |
4,719 |
|
|
$ |
869 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
| Add: BioCision stub period adjustment |
— |
|
|
203 |
|
|
— |
|
|
203 |
|
|
— |
|
| Non-GAAP adjusted equity in earnings of equity method investments |
$ |
2,777 |
|
|
$ |
2,145 |
|
|
$ |
710 |
|
|
$ |
4,922 |
|
|
$ |
869 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Brooks Semiconductor
Solutions Group |
|
Brooks Life Science
Systems |
| |
Quarter Ended |
|
Quarter Ended |
| Dollars in thousands |
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
|
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
| GAAP gross profit |
$ |
51,325 |
|
|
$ |
45,468 |
|
|
$ |
36,943 |
|
|
$ |
13,199 |
|
|
$ |
11,475 |
|
|
$ |
9,857 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
| Amortization of intangible assets |
626 |
|
|
627 |
|
|
390 |
|
|
435 |
|
|
366 |
|
|
328 |
|
| Purchase accounting impact on inventory and contracts acquired |
125 |
|
|
— |
|
|
250 |
|
|
257 |
|
|
70 |
|
|
— |
|
| Non-GAAP adjusted gross profit |
$ |
52,076 |
|
|
$ |
46,095 |
|
|
$ |
37,583 |
|
|
$ |
13,891 |
|
|
$ |
11,911 |
|
|
$ |
10,185 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Brooks Semiconductor
Solutions Group |
|
Brooks Life Science
Systems |
| |
Six Months Ended |
|
Six Months Ended |
| Dollars in thousands |
March 31, 2017 |
|
March 31, 2016 |
|
March 31, 2017 |
|
March 31, 2016 |
| GAAP gross profit |
$ |
96,794 |
|
|
$ |
71,602 |
|
|
$ |
24,673 |
|
|
$ |
15,752 |
|
| Adjustments: |
|
|
|
|
|
|
|
| Amortization of intangible assets |
1,253 |
|
|
1,294 |
|
|
801 |
|
|
721 |
|
| Purchase accounting impact on inventory and contracts acquired |
125 |
|
|
375 |
|
|
327 |
|
|
— |
|
| Non-GAAP adjusted gross profit |
$ |
98,172 |
|
|
$ |
73,271 |
|
|
$ |
25,801 |
|
|
$ |
16,473 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Brooks Semiconductor
Solutions Group |
|
Brooks Life Science
Systems |
| |
Quarter Ended |
|
Quarter Ended |
| Dollars in thousands |
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
|
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
| GAAP gross margin |
38.1 |
% |
|
35.9 |
% |
|
33.9 |
% |
|
38.1 |
% |
|
34.4 |
% |
|
37.2 |
% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
| Amortization of intangible assets |
0.5 |
% |
|
0.5 |
% |
|
0.4 |
% |
|
1.3 |
% |
|
1.1 |
% |
|
1.2 |
% |
| Purchase accounting impact on inventory and contracts acquired |
0.1 |
% |
|
— |
% |
|
0.2 |
% |
|
0.7 |
% |
|
0.2 |
% |
|
— |
% |
| Non-GAAP adjusted gross margin |
38.7 |
% |
|
36.4 |
% |
|
34.5 |
% |
|
40.1 |
% |
|
35.7 |
% |
|
38.5 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Brooks Semiconductor
Solutions Group |
|
Brooks Life Science
Systems |
| |
Six Months Ended |
|
Six Months Ended |
| Dollars in thousands |
March 31, 2017 |
|
March 31, 2016 |
|
March 31, 2017 |
|
March 31, 2016 |
| GAAP gross margin |
37.0 |
% |
|
34.4 |
% |
|
36.3 |
% |
|
33.3 |
% |
| Adjustments: |
|
|
|
|
|
|
|
| Amortization of intangible assets |
0.5 |
% |
|
0.6 |
% |
|
1.2 |
% |
|
1.5 |
% |
| Purchase accounting impact on inventory and contracts acquired |
— |
% |
|
0.2 |
% |
|
0.5 |
% |
|
— |
% |
| Non-GAAP adjusted gross margin |
37.6 |
% |
|
35.2 |
% |
|
37.9 |
% |
|
34.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Brooks Semiconductor
Solutions Group |
|
Brooks Life Science
Systems |
|
Total |
| |
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
| Dollars in thousands |
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
|
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
|
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
| GAAP operating profit |
$ |
20,003 |
|
|
$ |
17,371 |
|
|
$ |
6,658 |
|
|
$ |
1,290 |
|
|
$ |
112 |
|
|
$ |
(2,217 |
) |
|
$ |
21,293 |
|
|
$ |
17,483 |
|
|
$ |
4,441 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of intangible assets |
626 |
|
|
627 |
|
|
390 |
|
|
435 |
|
|
366 |
|
|
328 |
|
|
1,061 |
|
|
993 |
|
|
718 |
|
| Purchase accounting impact on inventory and contracts acquired |
125 |
|
|
— |
|
|
250 |
|
|
257 |
|
|
70 |
|
|
— |
|
|
382 |
|
|
70 |
|
|
250 |
|
| Non-GAAP adjusted operating profit |
$ |
20,754 |
|
|
$ |
17,998 |
|
|
$ |
7,298 |
|
|
$ |
1,982 |
|
|
$ |
548 |
|
|
$ |
(1,889 |
) |
|
$ |
22,736 |
|
|
$ |
18,546 |
|
|
$ |
5,409 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Brooks Semiconductor
Solutions Group |
|
Brooks Life Science
Systems |
|
Total |
| |
Six Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| Dollars in thousands |
March 31, 2017 |
|
March 31, 2016 |
|
March 31, 2017 |
|
March 31, 2016 |
|
March 31, 2017 |
|
March 31, 2016 |
| GAAP operating profit |
$ |
37,374 |
|
|
$ |
9,598 |
|
|
$ |
1,402 |
|
|
$ |
(6,819 |
) |
|
$ |
38,776 |
|
|
$ |
2,779 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
| Amortization of intangible assets |
1,253 |
|
|
1,294 |
|
|
801 |
|
|
721 |
|
|
2,054 |
|
|
2,015 |
|
| Purchase accounting impact on inventory and contracts acquired |
125 |
|
|
375 |
|
|
327 |
|
|
— |
|
|
452 |
|
|
375 |
|
| Non-GAAP adjusted operating profit |
$ |
38,752 |
|
|
$ |
11,267 |
|
|
$ |
2,530 |
|
|
$ |
(6,098 |
) |
|
$ |
41,282 |
|
|
$ |
5,169 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
