Fiscal Fourth Quarter of 2017 Financial and Operational Highlights:
Fiscal Year 2017 Financial and Operational Highlights:
Summary of GAAP and Non-GAAP Earnings | |||||||||
Quarter Ended | |||||||||
September 30, | June 30, | September 30, | |||||||
Dollars in thousands, except per share data | 2017 | 2017 | 2016 | ||||||
GAAP net income | $ | 17,386 | $ | 17,350 | $ | 10,547 | |||
GAAP diluted earnings per share | $ | 0.25 | $ | 0.25 | $ | 0.15 | |||
Non-GAAP net income | $ | 24,522 | $ | 25,353 | $ | 15,324 | |||
Non-GAAP diluted earnings per share | $ | 0.35 | $ | 0.36 | $ | 0.22 | |||
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
“Our fiscal 2017 has been a year filled with key milestones and the fourth quarter was no exception. We achieved another record for gross margins in our Semiconductor segment and for the Company, while we continued to expand our Life Sciences business,” commented
GAAP Summary of Q4 Fiscal 2017
Revenue for the fourth quarter of fiscal 2017 was
The amortization of intangible assets, restructuring charges, impact of purchase price accounting adjustments, charges related to M&A 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, purchase price accounting adjustments and charges related to M&A 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 assessed to not be 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.
Discussion of Non-GAAP Results
Non-GAAP net income was
As noted above, revenue for the fourth fiscal quarter of 2017 was
Adjusted gross margin was 41.3% in the fourth quarter, up 130 basis points from the prior quarter. The Semiconductor Solutions segment adjusted gross margin was 42.3% in the fourth quarter compared to 40.5% in the prior quarter reflecting improved production costs and revenue mix. The Life Sciences segment adjusted gross margin was 38.2% in the fourth quarter compared to 38.0% in the prior quarter, supported by improved margins in the core systems business. In summary, the total adjusted gross profit increased by
Bookings for the Semiconductor Solutions segment in the fourth quarter totaled
Fourth quarter non-GAAP operating expenses were
Adjusted EBITDA was
Fiscal Year 2017 Results (non-GAAP discussion)
For fiscal 2017, total revenue increased 24% to
Subsequent Events
On
Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of
Guidance for First Quarter of Fiscal 2018
The Company announced revenue and earnings guidance for the first quarter of fiscal 2018. Revenue is expected to be in the range of
Conference Call
Brooks management will webcast its fourth quarter earnings conference call today at
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 800-954-0648 (US &
About
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
“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
BROOKS AUTOMATION, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data) |
|||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | |||||||||||||||
Products | $ | 136,940 | $ | 119,545 | $ | 533,624 | $ | 421,783 | |||||||
Services | 44,940 | 38,008 | 159,261 | 138,540 | |||||||||||
Total revenue | 181,880 | 157,553 | 692,885 | 560,323 | |||||||||||
Cost of revenue | |||||||||||||||
Products | 80,452 | 75,158 | 323,812 | 267,974 | |||||||||||
Services | 27,063 | 25,830 | 101,669 | 94,268 | |||||||||||
Total cost of revenue | 107,515 | 100,988 | 425,481 | 362,242 | |||||||||||
Gross profit | 74,365 | 56,565 | 267,404 | 198,081 | |||||||||||
Operating expenses | |||||||||||||||
Research and development | 12,856 | 12,335 | 47,004 | 51,543 | |||||||||||
Selling, general and administrative | 43,565 | 31,594 | 153,061 | 130,261 | |||||||||||
Restructuring charges | 563 | 2,232 | 3,226 | 12,039 | |||||||||||
Total operating expenses | 56,984 | 46,161 | 203,291 | 193,843 | |||||||||||
Operating income | 17,381 | 10,404 | 64,113 | 4,238 | |||||||||||
Interest income | 32 | 142 | 464 | 452 | |||||||||||
Interest expense | (122 | ) | (101 | ) | (408 | ) | (157 | ) | |||||||
Gain on settlement of equity method investment | — | — | 1,847 | — | |||||||||||
Other income (expense), net | 203 | (290 | ) | (645 | ) | (579 | ) | ||||||||
Income before income taxes and equity in earnings of equity method investments | 17,494 | 10,155 | 65,371 | 3,954 | |||||||||||
Income tax provision | 2,240 | 740 | 12,140 | 75,810 | |||||||||||
Income (loss) before equity in earnings of equity method investments | 15,254 | 9,415 | 53,231 | (71,856 | ) | ||||||||||
Equity in earnings of equity method investments | 2,132 | 1,132 | 9,381 | 2,380 | |||||||||||
Net income (loss) | $ | 17,386 | $ | 10,547 | $ | 62,612 | $ | (69,476 | ) | ||||||
Basic net income (loss) per share | $ | 0.25 | $ | 0.15 | $ | 0.90 | $ | (1.01 | ) | ||||||
Diluted net income (loss) per share | 0.25 | 0.15 | 0.89 | (1.01 | ) | ||||||||||
Dividend declared per share | 0.10 | 0.10 | 0.40 | 0.40 | |||||||||||
Weighted average shares outstanding used in computing net income (loss) per share: | |||||||||||||||
Basic | 69,808 | 68,718 | 69,575 | 68,507 | |||||||||||
Diluted | 70,681 | 69,540 | 70,485 | 68,507 | |||||||||||
BROOKS AUTOMATION, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share and per share data) |
|||||||
September 30, | September 30, | ||||||
2017 | 2016 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 101,622 | $ | 85,086 | |||
Marketable securities | 28 | 39 | |||||
Accounts receivable, net | 120,828 | 106,372 | |||||
Inventories | 106,395 | 92,572 | |||||
Prepaid expenses and other current assets | 23,138 | 15,265 | |||||
Total current assets | 352,011 | 299,334 | |||||
Property, plant and equipment, net | 58,462 | 54,885 | |||||
Long-term marketable securities | 2,642 | 6,096 | |||||
Long-term deferred tax assets | 1,692 | 1,982 | |||||
Goodwill | 233,638 | 202,138 | |||||
Intangible assets, net | 83,520 | 81,843 | |||||
Equity method investments | 28,593 | 27,273 | |||||
Other assets | 6,070 | 12,354 | |||||
Total assets | $ | 766,628 | $ | 685,905 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 49,100 | $ | 41,128 | |||
Deferred revenue | 24,292 | 14,966 | |||||
Accrued warranty and retrofit costs | 8,054 | 6,324 | |||||
Accrued compensation and benefits | 27,065 | 21,254 | |||||
Accrued restructuring costs | 1,708 | 5,939 | |||||
Accrued income taxes payable | 11,417 | 7,554 | |||||
Accrued expenses and other current liabilities | 25,142 | 22,628 | |||||
Total current liabilities | 146,778 | 119,793 | |||||
Long-term tax reserves | 1,687 | 2,681 | |||||
Long-term deferred tax liabilities | 3,748 | 2,913 | |||||
Long-term pension liabilities | 1,979 | 2,557 | |||||
Other long-term liabilities | 4,792 | 4,271 | |||||
Total liabilities | 158,984 | 132,215 | |||||
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, 83,294,848 shares issued and 69,832,979 shares outstanding at September 30, 2017, 82,220,270 shares issued and 68,758,401 shares outstanding at September 30, 2016 | 833 | 821 | |||||
Additional paid-in capital | 1,874,918 | 1,855,703 | |||||
Accumulated other comprehensive income | 15,213 | 15,166 | |||||
Treasury stock at cost - 13,461,869 shares | (200,956 | ) | (200,956 | ) | |||
Accumulated deficit | (1,082,364 | ) | (1,117,044 | ) | |||
Total stockholders' equity | 607,644 | 553,690 | |||||
Total liabilities and stockholders' equity | $ | 766,628 | $ | 685,905 |
BROOKS AUTOMATION, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) |
|||||||
Year Ended | |||||||
September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities | |||||||
Net income (loss) | $ | 62,612 | $ | (69,476 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 28,149 | 28,046 | |||||
Gain on settlement of equity method investment | (1,847 | ) | — | ||||
Impairment of other assets | — | 807 | |||||
Stock-based compensation | 17,278 | 11,737 | |||||
Amortization of premium on marketable securities and deferred financing costs | 252 | 339 | |||||
Earnings of equity method investments | (9,381 | ) | (2,380 | ) | |||
Deferred income tax provision | 517 | 70,273 | |||||
Pension settlement | (259 | ) | — | ||||
Other gains on disposal of assets | (406 | ) | (41 | ) | |||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (11,178 | ) | (1,796 | ) | |||
Inventories | (12,792 | ) | 8,565 | ||||
Prepaid expenses and other current assets | (5,829 | ) | (428 | ) | |||
Accounts payable | 7,846 | (5,143 | ) | ||||
Deferred revenue | 8,049 | (3,290 | ) | ||||
Accrued warranty and retrofit costs | 1,602 | 290 | |||||
Accrued compensation and tax withholdings | 5,565 | (3,234 | ) | ||||
Accrued restructuring costs | (4,241 | ) | 3,860 | ||||
Accrued pension costs | (32 | ) | (811 | ) | |||
Accrued expenses and other current liabilities | 10,319 | 2,229 | |||||
Net cash provided by operating activities | 96,224 | 39,547 | |||||
Cash flows from investing activities | |||||||
Purchases of property, plant and equipment | (12,677 | ) | (12,848 | ) | |||
Purchases of technology intangibles | (240 | ) | — | ||||
Purchases of marketable securities | — | (12,901 | ) | ||||
Sales and maturities of marketable securities | 3,590 | 139,388 | |||||
Acquisitions, net of cash acquired | (44,791 | ) | (125,248 | ) | |||
Disbursement for a loan receivable | — | (1,821 | ) | ||||
Purchases of other investments | (170 | ) | (250 | ) | |||
Proceeds from sales of property, plant and equipment | 100 | 2,806 | |||||
Net cash used in investing activities | (54,188 | ) | (10,874 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from issuance of common stock | 2,040 | 1,888 | |||||
Payment of deferred financing costs | (28 | ) | (708 | ) | |||
Proceeds from line of credit | — | 366 | |||||
Common stock dividends paid | (27,932 | ) | (27,503 | ) | |||
Net cash used in financing activities | (25,920 | ) | (25,957 | ) | |||
Effects of exchange rate changes on cash and cash equivalents | 420 | 1,648 | |||||
Net increase in cash and cash equivalents | 16,536 | 4,364 | |||||
Cash and cash equivalents, beginning of period | 85,086 | 80,722 | |||||
Cash and cash equivalents, end of period | $ | 101,622 | $ | 85,086 |
Notes on Non-GAAP Financial Measures:
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 adjusted the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A 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. Management also excludes special charges and gains, such as impairment losses, gains and 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 non-GAAP results, the Company evaluated the adjustments discussed above and concluded it was appropriate to maintain the valuation allowance reserve in establishing the non-GAAP tax rate. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.
Quarter Ended | ||||||||||||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | ||||||||||||||||||||||
per diluted | per diluted | per diluted | ||||||||||||||||||||||
Dollars in thousands, except per share data | $ | share | $ | share | $ | share | ||||||||||||||||||
GAAP net income | $ | 17,386 | $ | 0.25 | $ | 17,350 | $ | 0.25 | $ | 10,547 | $ | 0.15 | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Purchase accounting impact on inventory and contracts acquired | — | — | 71 | 0.00 | 125 | — | ||||||||||||||||||
Amortization of intangible assets | 4,403 | 0.06 | 4,330 | 0.06 | 3,826 | 0.06 | ||||||||||||||||||
Impairment of other assets | — | — | — | — | 807 | 0.01 | ||||||||||||||||||
Restructuring charges | 563 | 0.01 | 828 | 0.01 | 2,232 | 0.03 | ||||||||||||||||||
Merger costs | 3,470 | 0.05 | 3,654 | 0.05 | 81 | — | ||||||||||||||||||
Tax effect of adjustments | (1,300 | ) | (0.02 | ) | (880 | ) | (0.01 | ) | (2,293 | ) | (0.03 | ) | ||||||||||||
Non-GAAP adjusted net income | 24,522 | 0.35 | 25,353 | 0.36 | 15,324 | 0.22 | ||||||||||||||||||
Stock based compensation, pre-tax | 6,197 | — | 4,197 | — | 3,532 | — | ||||||||||||||||||
Tax rate | 13 | % | — | 15 | % | — | 16 | % | — | |||||||||||||||
Stock-based compensation, net of tax | 5,416 | 0.08 | 3,559 | 0.05 | 2,967 | 0.04 | ||||||||||||||||||
Non-GAAP adjusted net income - excluding stock-based compensation | $ | 29,938 | $ | 0.42 | $ | 28,912 | $ | 0.41 | $ | 18,291 | $ | 0.26 | ||||||||||||
Shares used in computing non-GAAP diluted net income per share | — | 70,681 | — | 70,405 | — | 69,540 |
Year Ended | ||||||||||||||||||||||
September 30, 2017 | September 30, 2016 | |||||||||||||||||||||
per diluted | per diluted | |||||||||||||||||||||
Dollars in thousands, except per share data | $ | share | $ | share | ||||||||||||||||||
GAAP net income (loss) | $ | 62,612 | $ | 0.89 | $ | (69,476 | ) | $ | (1.01 | ) | ||||||||||||
Adjustments: | ||||||||||||||||||||||
Purchase accounting impact on inventory and contracts acquired | 523 | 0.01 | 624 | 0.01 | ||||||||||||||||||
Amortization of intangible assets | 17,146 | 0.24 | 14,979 | 0.22 | ||||||||||||||||||
Impairment of other assets | 807 | 0.01 | ||||||||||||||||||||
Restructuring charges | 3,226 | 0.05 | 12,039 | 0.17 | ||||||||||||||||||
Gain on sale of a building | — | (56 | ) | — | ||||||||||||||||||
Merger costs | 8,309 | 0.12 | 3,384 | 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 | (3,157 | ) | (0.04 | ) | (9,016 | ) | (0.13 | ) | ||||||||||||||
Non-GAAP adjusted net income | 87,015 | 1.23 | 32,625 | 0.47 | ||||||||||||||||||
Stock-based compensation, pre-tax | 17,278 | — | 11,737 | — | ||||||||||||||||||
Tax rate | 15 | % | — | 47 | % | — | ||||||||||||||||
Stock-based compensation, net of tax | 14,686 | $ | 0.21 | 6,232 | 0.09 | |||||||||||||||||
Non-GAAP adjusted net income - excluding stock-based compensation | $ | 101,701 | $ | 1.44 | $ | 38,857 | $ | 0.56 | ||||||||||||||
Shares used in computing non-GAAP diluted net income per share | — | 70,485 | — | 69,367 |
Quarter Ended | ||||||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | ||||||||||||||||
Dollars in thousands | $ | % | $ | % | $ | % | ||||||||||||
GAAP gross profit/gross margin percentage | $ | 74,365 | 40.9 | % | $ | 71,572 | 39.4 | % | $ | 56,565 | 35.9 | % | ||||||
Adjustments: | ||||||||||||||||||
Amortization of completed technology | 810 | 0.4 | % | 1,051 | 0.6 | % | 1,083 | 0.7 | % | |||||||||
Purchase accounting impact on inventory and contracts acquired | — | 0.0 | % | 71 | 0.0 | % | 125 | 0.1 | % | |||||||||
Non-GAAP adjusted gross profit/gross margin percentage | $ | 75,175 | 41.3 | % | $ | 72,694 | 40.0 | % | $ | 57,773 | 36.7 | % |
Year Ended | ||||||||||||||||||
September 30, 2017 | September 30, 2016 | |||||||||||||||||
Dollars in thousands | $ | % | $ | % | ||||||||||||||
GAAP gross profit/gross margin percentage | $ | 267,404 | 38.6 | % | $ | 198,081 | 35.4 | % | ||||||||||
Adjustments: | ||||||||||||||||||
Amortization of completed technology | 3,915 | 0.6 | % | 4,180 | 0.7 | % | ||||||||||||
Purchase accounting impact on inventory and contracts acquired | 523 | 0.1 | % | 624 | 0.1 | % | ||||||||||||
Non-GAAP adjusted gross profit/gross margin percentage | $ | 271,842 | 39.2 | % | $ | 202,885 | 36.2 | % |
Quarter Ended | Year Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
Dollars in thousands | 2017 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||
GAAP net income (loss) | $ | 17,386 | $ | 17,350 | $ | 10,547 | $ | 62,612 | $ | (69,476 | ) | |||||||||
Adjustments: | ||||||||||||||||||||
Less: Interest income | (32 | ) | (137 | ) | (142 | ) | (464 | ) | (452 | ) | ||||||||||
Add: Interest expense | 122 | 93 | 101 | 408 | 157 | |||||||||||||||
Add: Income tax provision | 2,240 | 3,680 | 740 | 12,140 | 75,810 | |||||||||||||||
Add: Depreciation | 3,096 | 2,589 | 2,900 | 11,003 | 13,067 | |||||||||||||||
Add: Amortization of completed technology | 810 | 1,051 | 1,083 | 3,915 | 4,180 | |||||||||||||||
Add: Amortization of customer relationships and acquired intangible assets | 3,593 | 3,279 | 2,743 | 13,231 | 10,799 | |||||||||||||||
Earnings before interest, taxes, depreciation and amortization | $ | 27,215 | $ | 27,905 | $ | 17,972 | $ | 102,845 | $ | 34,085 |
Quarter Ended | Year Ended | ||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||
Dollars in thousands | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Earnings before interest, taxes, depreciation and amortization | $ | 27,215 | $ | 27,905 | $ | 17,972 | $ | 102,845 | $ | 34,085 | |||||||
Adjustments: | |||||||||||||||||
Add: Impairment of other assets | — | — | 807 | — | 807 | ||||||||||||
Less: Fair value adjustment of equity method investment | — | — | — | (1,847 | ) | — | |||||||||||
Add: Stock-based compensation | 6,197 | 4,197 | 3,532 | 17,278 | 11,737 | ||||||||||||
Add: Restructuring charges | 563 | 828 | 2,232 | 3,226 | 12,039 | ||||||||||||
Add: BioCision stub period adjustment | — | — | — | 203 | — | ||||||||||||
Add: Purchase accounting impact on inventory and contracts acquired | — | 71 | 125 | 523 | 624 | ||||||||||||
Less: Gain on sale of a building | — | — | — | — | (56 | ) | |||||||||||
Add: Merger costs | 3,470 | 3,654 | 81 | 8,309 | 3,384 | ||||||||||||
Adjusted earnings before interest, taxes, depreciation and amortization | $ | 37,445 | $ | 36,655 | $ | 24,749 | $ | 130,537 | $ | 62,620 |
Quarter Ended | Year Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
Dollars in thousands | 2017 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||
GAAP selling, general and administrative expenses | $ | 43,565 | $ | 40,016 | $ | 31,594 | $ | 153,061 | $ | 130,261 | ||||||||||
Adjustments: | ||||||||||||||||||||
Less: Amortization of customer relationships and acquired intangible assets | (3,593 | ) | (3,279 | ) | (2,743 | ) | (13,231 | ) | (10,799 | ) | ||||||||||
Less: Impairment of other assets | — | — | (807 | ) | — | (807 | ) | |||||||||||||
Less: Merger costs | (3,470 | ) | (3,654 | ) | (81 | ) | (8,309 | ) | (3,384 | ) | ||||||||||
Non-GAAP adjusted selling, general and administrative expenses | $ | 36,502 | $ | 33,083 | $ | 27,963 | $ | 131,521 | $ | 115,271 | ||||||||||
Research and development expenses | $ | 12,856 | $ | 11,958 | $ | 12,335 | $ | 47,004 | $ | 51,543 | ||||||||||
Non-GAAP adjusted operating expenses | $ | 49,358 | $ | 45,041 | $ | 40,298 | $ | 178,525 | $ | 166,814 |
Quarter Ended | Year Ended | ||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
Dollars in thousands | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||
GAAP equity in earnings of equity method investments | $ | 2,132 | $ | 2,530 | $ | 1,132 | $ | 9,381 | $ | 2,380 | |||||
Adjustments: | |||||||||||||||
Add: BioCision stub period adjustment | — | — | — | 203 | — | ||||||||||
Non-GAAP adjusted equity in earnings of equity method investments | $ | 2,132 | $ | 2,530 | $ | 1,132 | $ | 9,584 | $ | 2,380 |
Brooks Semiconductor Solutions Group | Brooks Life Science Systems | |||||||||||||||||
Quarter Ended | Quarter Ended | |||||||||||||||||
September 30, | June 30, | September 30, | September 30, | June 30, | September 30, | |||||||||||||
Dollars in thousands | 2017 | 2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||
GAAP gross profit | $ | 57,775 | $ | 58,083 | $ | 44,513 | $ | 16,590 | $ | 13,489 | $ | 12,052 | ||||||
Adjustments: | ||||||||||||||||||
Amortization of completed technology | 627 | 626 | 711 | 183 | 425 | 372 | ||||||||||||
Purchase accounting impact on inventory and contracts acquired | — | — | 125 | — | 71 | — | ||||||||||||
Non-GAAP adjusted gross profit | $ | 58,402 | $ | 58,709 | $ | 45,349 | $ | 16,773 | $ | 13,985 | $ | 12,424 |
Brooks Semiconductor Solutions Group | Brooks Life Science Systems | |||||||||||
Year Ended | Year Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
Dollars in thousands | 2017 | 2016 | 2017 | 2016 | ||||||||
GAAP gross profit | $ | 212,652 | $ | 159,018 | $ | 54,752 | $ | 39,063 | ||||
Adjustments: | ||||||||||||
Amortization of completed technology | 2,506 | 2,715 | 1,409 | 1,465 | ||||||||
Purchase accounting impact on inventory and contracts acquired | 125 | 624 | 398 | — | ||||||||
Non-GAAP adjusted gross profit | $ | 215,283 | $ | 162,357 | $ | 56,559 | $ | 40,528 |
Brooks Semiconductor Solutions Group | Brooks Life Science Systems | ||||||||||||||||||
Quarter Ended | Quarter Ended | ||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | June 30, | September 30, | ||||||||||||||
Dollars in thousands | 2017 | 2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||
GAAP gross margin | 41.9 | % | 40.1 | % | 35.4 | % | 37.8 | % | 36.7 | % | 38.1 | % | |||||||
Adjustments: | |||||||||||||||||||
Amortization of completed technology | 0.5 | % | 0.4 | % | 0.6 | % | 0.4 | % | 1.2 | % | 1.2 | % | |||||||
Purchase accounting impact on inventory and contracts acquired | — | — | 0.1 | % | - | % | 0.2 | % | - | ||||||||||
Non-GAAP adjusted gross margin | 42.3 | % | 40.5 | % | 36.0 | % | 38.2 | % | 38.0 | % | 39.2 | % |
Brooks Semiconductor Solutions Group | Brooks Life Science Systems | |||||||||||
Year Ended | Year Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
Dollars in thousands | 2017 | 2016 | 2017 | 2016 | ||||||||
GAAP gross margin | 39.1 | % | 35.2 | % | 36.8 | % | 36.1 | % | ||||
Adjustments: | ||||||||||||
Amortization of completed technology | 0.5 | % | 0.6 | % | 0.9 | % | 1.4 | % | ||||
Purchase accounting impact on inventory and contracts acquired | — | % | 0.1 | % | 0.3 | % | — | % | ||||
Non-GAAP adjusted gross margin | 39.6 | % | 35.9 | % | 38.0 | % | 37.5 | % |
Brooks Semiconductor Solutions Group | Brooks Life Science Systems | Total Segments | |||||||||||||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | June 30, | September 30, | September 30, | June 30, | September 30, | |||||||||||||||||||
Dollars in thousands | 2017 | 2017 | 2016 | 2017 | 2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||||
GAAP operating profit | $ | 23,154 | $ | 26,188 | $ | 15,208 | $ | 2,160 | $ | 1,134 | $ | 1,104 | $ | 25,314 | $ | 27,322 | $ | 16,312 | |||||||||
Adjustments: | |||||||||||||||||||||||||||
Amortization of completed technology | 627 | 626 | 711 | 183 | 425 | 372 | 810 | 1,051 | 1,083 | ||||||||||||||||||
Purchase accounting impact on inventory and contracts acquired | — | — | 125 | — | 71 | — | — | 71 | 125 | ||||||||||||||||||
Non-GAAP adjusted operating profit | $ | 23,781 | $ | 26,814 | $ | 16,044 | $ | 2,343 | $ | 1,630 | $ | 1,476 | $ | 26,124 | $ | 28,444 | $ | 17,520 |
Total Segments | Corporate | Total | ||||||||||||||||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | June 30, | September 30, | September 30, | June 30, | September 30, | ||||||||||||||||||||||
Dollars in thousands | 2017 | 2017 | 2016 | 2017 | 2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||||||||||
GAAP operating profit (loss) | $ | 25,314 | $ | 27,322 | $ | 16,312 | $ | (7,933 | ) | $ | (8,552 | ) | $ | (5,908 | ) | $ | 17,381 | $ | 18,770 | $ | 10,404 | |||||||||
Adjustments: | ||||||||||||||||||||||||||||||
Amortization of completed technology | 810 | 1,051 | 1,083 | — | — | — | 810 | 1,051 | 1,083 | |||||||||||||||||||||
Amortization of customer relationships and acquired intangible assets | — | — | — | 3,593 | 3,279 | 2,743 | 3,593 | 3,279 | 2,743 | |||||||||||||||||||||
Restructuring charges | — | — | — | 563 | 828 | 2,232 | 563 | 828 | 2,232 | |||||||||||||||||||||
Purchase accounting impact on inventory and contracts acquired | — | 71 | 125 | — | — | — | — | 71 | 125 | |||||||||||||||||||||
Merger costs | — | — | — | 3,470 | 3,654 | 81 | 3,470 | 3,654 | 81 | |||||||||||||||||||||
Non-GAAP adjusted operating profit (loss) | $ | 26,124 | $ | 28,444 | $ | 17,520 | $ | (307 | ) | $ | (791 | ) | $ | (852 | ) | $ | 25,817 | $ | 27,653 | $ | 16,668 |
Brooks Semiconductor Solutions Group | Brooks Life Science Systems | Total Segments | |||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||
Dollars in thousands | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||||
GAAP operating profit (loss) | $ | 86,716 | $ | 37,926 | $ | 4,695 | $ | (6,451 | ) | $ | 91,411 | $ | 31,476 | ||||||
Adjustments: | |||||||||||||||||||
Amortization of completed technology | 2,506 | 2,715 | 1,409 | 1,465 | 3,915 | 4,180 | |||||||||||||
Purchase accounting impact on inventory and contracts acquired | 125 | 624 | 398 | — | 523 | 624 | |||||||||||||
Non-GAAP adjusted operating profit (loss) | $ | 89,347 | $ | 41,265 | $ | 6,502 | $ | (4,986 | ) | $ | 95,849 | $ | 36,280 |
Total Segments | Corporate | Total | ||||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Dollars in thousands | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||||
GAAP operating profit (loss) | $ | 91,411 | $ | 31,476 | $ | (27,298 | ) | $ | (27,238 | ) | $ | 64,113 | $ | 4,238 | ||||||
Adjustments: | ||||||||||||||||||||
Amortization of completed technology | 3,915 | 4,180 | — | — | 3,915 | 4,180 | ||||||||||||||
Amortization of customer relationships and acquired intangible assets | — | — | 13,231 | 10,799 | 13,231 | 10,799 | ||||||||||||||
Restructuring charges | — | — | 3,226 | 12,039 | 3,226 | 12,039 | ||||||||||||||
Purchase accounting impact on inventory and contracts acquired | 523 | 624 | — | — | 523 | 624 | ||||||||||||||
Merger costs | — | — | 8,309 | 3,384 | 8,309 | 3,384 | ||||||||||||||
Non-GAAP adjusted operating profit (loss) | $ | 95,849 | $ | 36,280 | $ | (2,532 | ) | $ | (1,016 | ) | $ | 93,317 | $ | 35,264 |
CONTACTS:
978.262.4301
sherry.dinsmore@brooks.com
Partner
646.277.1254
john.mills@icrinc.com
Brooks Automation, Inc.