Brooks Automation Reports Results of Fiscal Second Quarter of 2018, Ended March 31, 2018
Brooks Automation Reports Results of Fiscal Second Quarter of 2018, Ended March 31, 2018
CHELMSFORD, Mass., May 1, 2018 /PRNewswire/ -- 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 2018, ended March 31, 2018.
Fiscal Second Quarter of 2018 Financial and Operational Highlights:
-- Revenue was $207 million, 9% higher compared to 2018 Q1 and 22% higher
compared to 2017 Q2;
-- Life Sciences segment revenue was $49 million, 2% higher compared to
2018 Q1 and 40% higher compared to 2017 Q2;
-- Semiconductor Solutions Group segment revenue was $159 million, 12%
higher compared to 2018 Q1 and 18% higher compared to 2017 Q2;
-- GAAP Net Income was $67 million with diluted EPS of $0.95;
-- Non-GAAP Net Income was $28 million with diluted EPS of $0.40; and
-- Cash flow from operations was $20 million.
Summary of GAAP and Non-GAAP Earnings
Quarter Ended
-------------
March 31, December 31, March 31,
Dollars
in
thousands,
except
per
share
data 2018 2017 2017
---- ---- ----
GAAP net
income $67,020 $16,486 $14,005
GAAP
diluted
earnings
per
share $0.95 $0.23 $0.20
Non-GAAP
net
income $28,267 $22,503 $19,839
Non-GAAP
diluted
earnings
per
share $0.40 $0.32 $0.28
A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures follows the consolidated balance sheets, statements of operations and statements of cash flows included in this release.
Management Comments
"Our second quarter 2018 results continue to highlight the strength of our business model and the leadership positions we hold in our two operating segments," commented Steve Schwartz, CEO of Brooks Automation. "The Semiconductor Solutions Group delivered outstanding year-over-year revenue growth on the strength of our vacuum automation portfolio. Life Sciences grew 40% year-over-year, recorded its eleventh consecutive quarter of sequential revenue growth, produced record operating profits, and is tracking to achieve its targeted 10% operating margin by our fourth fiscal quarter. In April, we closed on two acquisitions that broaden our base for growth and continued momentum."
GAAP Summary
Revenue for the second quarter of fiscal 2018 increased 9% to $207 million compared to the first quarter of fiscal 2018. The growth was driven by a 12% increase in the Brooks Semiconductor Solutions Group segment and a 2% increase in the Brooks Life Sciences segment. Gross profit margin was 40.6%, up 90 basis points from the first quarter of fiscal 2018. Operating expenses of $60 million increased 11%, or $6 million, from the previous quarter due to higher variable compensation and professional services, including M&A expenses. The company reported a $44 million benefit in income tax expense, driven by a $46 million reversal of the valuation allowance reserve against U.S. deferred income tax assets. In accounting for the valuation allowance release in the quarter, the Company considered the first quarter estimated impact of $5 million related to the toll charge under US Tax Reform, which was previously noted to be offset with fully reserved tax attributes. GAAP net income in the quarter was $67 million and diluted earnings per share was $0.95.
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. In this context, the Company has also removed the effect of reversing the valuation allowance reserve on the U.S. deferred income tax assets.
Results of Q2 Fiscal 2018 (Non-GAAP Discussion)
Non-GAAP net income was $28 million in the second quarter, resulting in non-GAAP earnings per share of $0.40. On a non-GAAP basis, both income measures were 26% higher than in the first quarter of 2018 and 42% higher compared to the second fiscal quarter of 2017.
As noted above, revenue for the second fiscal quarter of 2018 was $207 million, up 9% compared to the first quarter of 2018 and 22% higher than the second quarter of 2017. The Semiconductor Solutions segment revenue of $159 million was 12%, or $17 million, higher compared sequentially to the first fiscal quarter. The Life Sciences segment revenue was $49 million, 2% higher sequentially and 40% higher compared to the second quarter of 2017. On an organic basis, the Life Sciences segment revenue increased 16% year over year.
Adjusted gross margin, which excludes amortization, purchase accounting impacts, and special charges, was 41.1% in the second quarter and improved 30 basis points from the prior quarter. The Life Sciences segment drove the improvement with non-GAAP adjusted gross margin of 39.8% in the second quarter, 340 basis points higher than the first quarter. The sequential improvement in the Life Sciences segment was driven by improved margins in core infrastructure products and a more favorable mix of storage services revenue this quarter. As explained in the prior quarter, genomics services, which are performed by a subcontractor and carry lower margins, have a seasonal peak in December and are lower in the March quarter, providing the improved mix. The Semiconductor Solutions segment non-GAAP adjusted gross margin was 41.5% in the second quarter, which was 80 basis points lower than last quarter's results, reflecting a weaker mix of product revenue which carried higher production costs. In summary, the total non-GAAP adjusted gross profit of $85 million increased $8 million compared to the prior quarter, driven by revenue expansion in both segments and significant margin expansion in Life Sciences.
Bookings for the Semiconductor Solutions segment in the second quarter totaled $184 million, compared to $166 million in the first quarter. The Life Sciences segment booked a total of $54 million of new contract value in the second quarter, compared to $59 million in the first quarter.
Non-GAAP operating expense of $53 million increased $4 million compared to the prior quarter, driven by higher variable compensation accruals and professional services.
Adjusted income from operations in the second quarter was $32 million, increasing 14% compared to the first quarter and 51% compared to the second fiscal quarter of 2017. The second quarter operating margin was 15.5%, expanding 70 basis points sequentially and 290 basis points year-over-year. The second quarter segment operating margins were 19.8% in Semiconductor Solutions and 6.4% in Life Sciences, both increasing sequentially and year-over-year.
Non-Operating expenses, including net interest expense and foreign exchange impacts, improved 43% in the second quarter compared to the first quarter of 2018. Net interest expense of $1.8 million for the quarter, was 9% lower than the first quarter. Foreign exchange losses of $0.5 million in the second quarter were $1.5 million less compared to the first quarter. Separately, joint venture earnings provided $1.4 million of income net of tax in the second quarter, which was $0.8 million lower than in the first quarter.
Cash flow from operations was $20 million in the second quarter bringing the total of cash, cash equivalents, and marketable securities to $245 million as of March 31, 2018 compared to $232 million at the end of the first quarter. Following the close of the quarter, the Company closed on two separate acquisitions, which used $16 million of cash, net of cash received, to date.
Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on June 22, 2018 to stockholders of record on June 1, 2018. 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 Fiscal Third Quarter 2018
The Company announced revenue and earnings guidance for the third quarter of fiscal 2018. Revenue is expected to be in the range of $215 million to $225 million and non-GAAP diluted earnings per share is expected to be in the range of $0.40 to $0.46. GAAP diluted earnings per share for the third quarter is expected to be in the range of $0.28 to $0.34, reflecting the anticipated impact of amortization, purchase price accounting, and restructuring.
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 800-908-8792 (US & Canada only) or 303-223-0118 to listen to the live webcast.
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:
Sherry Dinsmore
Brooks Automation
978.262.2400
sherry.dinsmore@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 Six Months Ended
March 31, March 31,
--------- ---------
2018 2017 2018 2017
---- ---- ---- ----
Revenue
Products $160,491 $132,613 $302,675 $254,727
Services 46,769 36,720 93,913 74,561
------ ------ ------ ------
Total revenue 207,260 169,333 396,588 329,288
------- ------- ------- -------
Cost of revenue
Products 94,358 82,023 178,534 157,701
Services 28,673 22,786 58,610 50,120
------ ------ ------ ------
Total cost of revenue 123,031 104,809 237,144 207,821
------- ------- ------- -------
Gross profit 84,229 64,524 159,444 121,467
------ ------ ------- -------
Operating expenses
Research and development 13,125 11,345 26,324 22,190
Selling, general and administrative 47,236 37,518 88,412 69,479
Restructuring charges 49 860 49 1,835
--- --- --- -----
Total operating expenses 60,410 49,723 114,785 93,504
------ ------ ------- ------
Operating income 23,819 14,801 44,659 27,963
Interest income 356 227 504 294
Interest expense (2,196) (97) (4,377) (193)
Gain on settlement of equity method investment - - - 1,847
Other expense, net (261) (283) (1,912) (534)
---- ---- ------ ----
Income before income taxes and earnings of equity method investments 21,718 14,648 38,874 29,377
Income tax (benefit) provision (43,880) 3,420 (41,030) 6,220
------- ----- ------- -----
Income before equity in earnings of equity method investments 65,598 11,228 79,904 23,157
Equity in earnings of equity method investments 1,422 2,777 3,602 4,719
----- ----- ----- -----
Net income $67,020 $14,005 $83,506 $27,876
======= ======= ======= =======
Basic net income per share $0.95 $0.20 $1.19 $0.40
Diluted net income per share 0.95 0.20 1.18 0.40
Dividend declared per share 0.10 0.10 0.20 0.20
Weighted average shares outstanding used in computing net income per share:
Basic 70,220 69,600 70,340 69,388
Diluted 70,613 70,149 70,908 70,073
BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
March 31, September 30,
2018 2017
---- ----
Assets
Current assets
Cash and cash equivalents $194,016 $101,622
Marketable securities 40,655 28
Accounts receivable, net 141,501 120,828
Inventories 126,594 106,395
Prepaid expenses and other current assets 26,803 23,138
------ ------
Total current assets 529,569 352,011
Property, plant and equipment, net 60,700 58,462
Long-term marketable securities 10,508 2,642
Long-term deferred tax assets 47,572 1,692
Goodwill 275,228 233,638
Intangible assets, net 102,182 83,520
Equity method investment 35,134 28,593
Other assets 5,648 6,070
----- -----
Total assets $1,066,541 $766,628
========== ========
Liabilities and Stockholders' Equity
Current liabilities
Current portion of long term debt $2,000 $ -
Accounts payable 65,110 49,100
Deferred revenue 22,067 24,292
Accrued warranty and retrofit costs 8,289 8,054
Accrued compensation and benefits 23,105 27,065
Accrued restructuring costs 416 1,708
Accrued income taxes payable 8,713 11,417
Accrued expenses and other current liabilities 28,716 25,142
------ ------
Total current liabilities 158,416 146,778
Long-term debt 194,870 -
Long-term tax reserves 1,428 1,687
Long-term deferred tax liabilities 6,308 3,748
Long-term pension liabilities 2,081 1,979
Other long-term liabilities 5,605 4,792
----- -----
Total liabilities 368,708 158,984
------- -------
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, 84,001,725 shares 840 833
issued and 70,539,856 shares outstanding at March 31, 2018, 83,294,848 shares issued
and 69,832,979 shares outstanding at September 30, 2017
Additional paid-in capital 1,886,435 1,874,918
Accumulated other comprehensive income 24,497 15,213
Treasury stock at cost - 13,461,869 shares (200,956) (200,956)
Accumulated deficit (1,012,983) (1,082,364)
---------- ----------
Total stockholders' equity 697,833 607,644
------- -------
Total liabilities and stockholders' equity $1,066,541 $766,628
========== ========
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
Six Months Ended
March 31,
---------
2018 2017
---- ----
Cash flows from operating activities
Net income $83,506 $27,876
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 17,634 13,730
Gain on settlement of equity method investment - (1,847)
Stock-based compensation 10,129 6,884
Amortization of premium on marketable securities and deferred financing costs 217 28
Earnings of equity method investments (3,602) (4,719)
Loss recovery on insurance claim (1,103) -
Deferred income tax benefit (49,156) 334
Other gains on disposals of assets - (117)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable (16,949) (9,672)
Inventories (16,233) (7,341)
Prepaid expenses and other current assets (17,248) (2,256)
Accounts payable 14,899 10,072
Deferred revenue (2,783) 14,425
Accrued warranty and retrofit costs (16) 792
Accrued compensation and tax withholdings (4,151) (1,799)
Accrued restructuring costs (1,336) (3,799)
Accrued expenses and other current liabilities 9,619 707
----- ---
Net cash provided by operating activities 23,427 43,298
------ ------
Cash flows from investing activities
Purchases of property, plant and equipment (5,675) (5,153)
Purchases of marketable securities (49,560) -
Sales and maturities of marketable securities 100 -
Acquisitions, net of cash acquired (64,988) (5,346)
Purchases of other investments - (170)
Proceeds from sales of property, plant and equipment 200 -
--- ---
Net cash used in investing activities (119,923) (10,669)
-------- -------
Cash flows from financing activities
Proceeds from issuance of common stock 1,395 960
Proceeds from term loan 197,554 -
Payment of deferred financing costs (318) (27)
Repayment of term loan (500) -
Common stock dividends paid (14,125) (13,945)
------- -------
Net cash provided by (used in) financing activities 184,006 (13,012)
------- -------
Effects of exchange rate changes on cash and cash equivalents 4,884 (764)
----- ----
Net increase in cash and cash equivalents 92,394 18,853
Cash and cash equivalents, beginning of period 101,622 85,086
------- ------
Cash and cash equivalents, end of period $194,016 $103,939
======== ========
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. In this context, the Company has also removed the effect of reversing the valuation allowance reserve on the U.S. deferred income tax assets. 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
-------------
March 31, 2018 December 31, 2017 March 31, 2017
-------------- ----------------- --------------
per diluted per diluted per diluted
Dollars in thousands, except per share data $ share $ share $ share
--- ----- --- ----- --- -----
GAAP net income $67,020 $0.95 $16,486 $0.23 $14,005 $0.20
Adjustments:
------------
Purchase accounting impact on inventory and - - 1,160 0.02 382 0.01
contracts acquired
Amortization of intangible assets 5,611 0.08 5,493 0.08 4,355 0.06
Restructuring charges 49 0.00 - - 860 0.01
Merger costs 2,666 0.04 613 0.01 936 0.01
Reversal of valuation allowance against deferred tax assets (46,158) (0.65) - - - -
Tax effect of adjustments (922) (0.01) (578) (0.01) (699) (0.01)
Tax Reform - rate change applied to deferred tax liabilities - - (671) (0.01) - -
--- --- ---- ----- --- ---
Non-GAAP adjusted net income 28,266 0.40 22,503 0.32 19,839 0.28
Stock based compensation, pre-tax 5,320 - 4,809 - 4,386 -
Tax rate 10% - 15% - 17% -
Stock-based compensation, net of tax 4,778 0.07 4,068 0.06 3,641 0.05
----- ---- ----- ---- ----- ----
Non-GAAP adjusted net income - excluding stock-based compensation $33,044 $0.47 $26,571 $0.37 $23,480 $0.33
======= ===== ======= ===== ======= =====
Shares used in computing non-GAAP diluted net income per share - 70,613 - 70,864 - 70,149
Six Months Ended
----------------
March 31, 2018 March 31, 2017
-------------- --------------
per diluted per diluted
Dollars in thousands, except per share data $ share $ share
--- ----- --- -----
GAAP net income $83,506 $1.18 $27,876 $0.40
Adjustments:
------------
Purchase accounting impact on inventory and 1,160 0.02 452 0.01
contracts acquired
Amortization of intangible assets 11,104 0.16 8,413 0.12
Impairment of other assets - -
Restructuring charges 49 0.00 1,835 0.03
Merger costs 3,279 0.05 1,185 0.02
Less: Fair value adjustment of equity investment - - (1,847) (0.03)
Add: True-up of BioCision stub period adjustment - - 203 -
Reversal of valuation allowance against deferred tax assets (46,158) (0.65) - -
Tax effect of adjustments (1,501) (0.02) (976) (0.01)
Tax Reform - rate change applied to deferred tax liabilities (671) (0.01) - -
---- ----- --- ---
Non-GAAP adjusted net income 50,768 0.72 37,141 0.53
Stock-based compensation, pre-tax 10,129 - 6,884 -
Tax rate 13% - 16% -
Stock-based compensation, net of tax 8,857 $0.12 5,783 0.08
----- ----- ----- ----
Non-GAAP adjusted net income - excluding stock- $59,625 $0.84 $42,924 $0.61
based compensation
Shares used in computing non-GAAP diluted net income per share - 70,908 - 70,073
Quarter Ended
-------------
March 31, 2018 December 31, 2017 March 31, 2017
-------------- ----------------- --------------
Dollars in thousands $ % $ % $ %
--- --- --- --- --- ---
GAAP gross profit/gross margin percentage $84,229 40.6% $75,215 39.7% $64,524 38.1%
Adjustments:
------------
Amortization of completed 982 0.5% 904 0.5% 1,061 0.6%
technology
Purchase accounting impact on - 0.0% 1,160 0.6% 382 0.2%
inventory and contracts acquired
Non-GAAP adjusted gross profit/gross margin percentage $85,211 41.1% $77,279 40.8% $65,967 39.0%
======= ==== ======= ==== ======= ====
Six Months Ended
----------------
March 31, 2018 March 31, 2017
-------------- --------------
Dollars in thousands $ % $ %
--- --- --- ---
GAAP gross profit/gross margin percentage $159,444 40.2% $121,467 36.9%
Adjustments:
------------
Amortization of completed technology 1,886 0.5% 2,054 0.6%
Purchase accounting impact on 1,160 0.3% 452 0.1%
inventory and contracts acquired
Non-GAAP adjusted gross profit/gross margin percentage $162,490 41.0% $123,973 37.6%
======== ==== ======== ====
Quarter Ended Six Months Ended
------------- ----------------
March 31, December 31, March 31, March 31, March 31,
Dollars in thousands 2018 2017 2017 2018 2017
---- ---- ---- ---- ----
GAAP net income $67,020 $16,486 $14,005 $83,506 $27,876
Adjustments:
------------
Less: Interest income (356) (149) (227) (504) (294)
Add: Interest expense 2,196 2,181 97 4,377 193
Add: Income tax provision (43,880) 2,850 3,420 (41,030) 6,220
Add: Depreciation 3,500 3,029 2,623 6,530 5,318
Add: Amortization of completed technology 982 904 1,061 1,886 2,054
Add: Amortization of customer relationships 4,629 4,589 3,294 9,218 6,358
and acquired intangible assets
Earnings before interest, taxes, depreciation and amortization $34,091 $29,890 $24,273 $63,983 $47,725
======= ======= ======= ======= =======
Quarter Ended Six Months Ended
------------- ----------------
March 31, December 31, March 31, March 31, March 31,
Dollars in thousands 2018 2017 2017 2018 2017
---- ---- ---- ---- ----
Earnings before interest, taxes, depreciation and $34,091 $29,890 $24,273 $63,983 $47,725
amortization
Adjustments:
------------
Less: Fair value adjustment of equity method investment - - - - (1,847)
Add: Stock-based compensation 5,320 4,809 4,386 10,129 6,884
Add: Restructuring charges 49 - 860 49 1,835
Add: BioCision stub period adjustment - - - - 203
Add: Purchase accounting impact on inventory and contracts acquired - 1,160 382 1,160 452
Add: Merger costs 2,666 613 936 3,279 1,185
----- --- --- ----- -----
Adjusted earnings before interest, taxes, depreciation and amortization $42,126 $36,472 $30,837 $78,600 $56,437
======= ======= ======= ======= =======
Quarter Ended Six Months Ended
------------- ----------------
March 31, December 31, March 31, March 31, March 31,
Dollars in thousands 2018 2017 2017 2018 2017
---- ---- ---- ---- ----
GAAP selling, general and administrative $47,236 $41,175 $37,518 $88,412 $69,479
expenses
Adjustments:
------------
Less: Amortization of customer relationships (4,629) (4,589) (3,294) (9,218) (6,358)
and acquired intangible assets
Less: Merger costs (2,666) (613) (936) (3,279) (1,185)
------ ---- ---- ------ ------
Non-GAAP adjusted selling, general and administrative expenses $39,941 $35,973 $33,288 $75,915 $61,936
======= ======= ======= ======= =======
Research and development expenses $13,125 $13,200 $11,345 $26,324 $22,190
------- ------- ------- ------- -------
Non-GAAP adjusted operating expenses $53,066 $49,173 $44,633 $102,239 $84,126
======= ======= ======= ======== =======
Quarter Ended Six Months Ended
------------- ----------------
March 31, December 31, March 31, March 31, March 31,
Dollars in thousands 2018 2017 2017 2018 2017
---- ---- ---- ---- ----
GAAP equity in earnings of equity method $1,422 $2,180 $2,777 $3,602 $4,719
investments
Adjustments:
------------
Add: BioCision stub period adjustment - - - - 203
--- --- --- --- ---
Non-GAAP adjusted equity in earnings of equity $1,422 $2,180 $2,777 $3,602 $4,922
method investments
Brooks Semiconductor Solutions Group Brooks Life Sciences
------------------------------------ --------------------
Quarter Ended Quarter Ended
------------- -------------
March 31, December 31, March 31, March 31, December 31, March 31,
Dollars in thousands 2018 2017 2017 2018 2017 2017
---- ---- ---- ---- ---- ----
GAAP gross profit $65,299 $59,453 $51,325 $18,930 $15,762 $13,199
Adjustments:
------------
Amortization of completed 570 533 626 412 371 435
technology
Purchase accounting impact on - - 125 - 1,160 257
inventory and contracts acquired
Non-GAAP adjusted gross profit $65,869 $59,986 $52,076 $19,342 $17,293 $13,891
======= ======= ======= ======= ======= =======
Brooks Semiconductor Solutions Group Brooks Life Sciences
------------------------------------ --------------------
Six Months Ended Six Months Ended
---------------- ----------------
March 31, March 31, March 31, March 31,
Dollars in thousands 2018 2017 2018 2017
---- ---- ---- ----
GAAP gross profit $124,752 $96,794 $34,692 $24,673
Adjustments:
------------
Amortization of completed technology 1,103 1,253 783 801
Purchase accounting impact on inventory and - 125 1,160 327
contracts acquired
Non-GAAP adjusted gross profit $125,855 $98,172 $36,635 $25,801
======== ======= ======= =======
Brooks Semiconductor Solutions Group Brooks Life Sciences
------------------------------------ --------------------
Quarter Ended Quarter Ended
------------- -------------
March 31, December 31, March 31, March 31, December 31, March 31,
Dollars in thousands 2018 2017 2017 2018 2017 2017
---- ---- ---- ---- ---- ----
GAAP gross margin 41.1% 41.9% 38.1% 39.0% 33.2% 38.1%
Adjustments:
------------
Amortization of completed technology 0.4% 0.4% 0.5% 0.8% 0.8% 1.3%
Purchase accounting impact on - % - 0.1% - % 2.4% 0.7%
inventory and contracts acquired
Non-GAAP adjusted gross margin 41.5% 42.3% 38.7% 39.8% 36.5% 40.1%
==== ==== ==== ==== ==== ====
Brooks Semiconductor Solutions Group Brooks Life Sciences
------------------------------------ --------------------
Six Months Ended Six Months Ended
March 31, March 31, March 31, March 31,
Dollars in thousands 2018 2017 2018 2017
---- ---- ---- ----
GAAP gross margin 41.5% 37.0% 36.1% 36.3%
Adjustments:
------------
Amortization of completed technology 0.4% 0.5% 0.8% 1.2%
Purchase accounting impact on inventory and - % - % 1.2% 0.5%
contracts acquired
Non-GAAP adjusted gross margin 41.9% 37.6% 38.2% 37.9%
==== ==== ==== ====
Brooks Semiconductor Solutions Group Brooks Life Sciences Total Segments
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Quarter Ended Quarter Ended Quarter Ended
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March 31, December 31, March 31, March 31, December 31, March 31, March 31, December 31, March 31,
Dollars in thousands 2018 2017 2017 2018 2017 2017 2018 2017 2017
---- ---- ---- ---- ---- ---- ---- ---- ----
GAAP operating profit $30,836 $26,362 $20,003 $2,683 $(140) $1,290 $33,519 $26,222 $21,293
Adjustments:
------------
Amortization of completed technology 570 533 626 412 371 435 982 904 1,061
Purchase accounting impact - - 125 - 1,160 257 - 1,160 382
on inventory and contracts
acquired
Non-GAAP adjusted operating profit $31,406 $26,895 $20,754 $3,095 $1,391 $1,982 $34,501 $28,286 $22,736
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Total Segments Corporate Total
-------------- --------- -----
Quarter Ended Quarter Ended Quarter Ended
------------- ------------- -------------
March 31, December 31, March 31, March 31, December 31, March 31, March 31, December 31, March 31,
Dollars in thousands 2018 2017 2017 2018 2017 2017 2018 2017 2017
---- ---- ---- ---- ---- ---- ---- ---- ----
GAAP operating profit (loss) $33,519 $26,222 $21,293 $(9,700) $(5,382) $(8,132) $23,819 $20,840 $14,801
Adjustments:
------------
Amortization of completed 982 904 1,061 - - - 982 904 1,061
technology
Amortization of customer - - - 4,629 4,589 3,294 4,629 4,589 3,294
relationships and acquired
intangible assets
Restructuring charges - - - 49 - 860 49 - 860
Purchase accounting impact - 1,160 382 - - - - 1,160 382
on inventory and contracts
acquired
Merger costs - - - 2,666 613 936 2,666 613 936
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Non-GAAP adjusted operating profit (loss) $34,501 $28,286 $22,736 $(2,356) $(180) $(3,042) $32,145 $28,106 $21,334
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Brooks Semiconductor Solutions Group Brooks Life Sciences Total Segments
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Six Months Ended Six Months Ended Six Months Ended
---------------- ---------------- ----------------
Dollars in thousands March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
-------------- -------------- -------------- -------------- -------------- --------------
GAAP operating profit $57,198 $37,374 $2,543 $1,402 $59,741 $38,776
Adjustments:
------------
Amortization of completed 1,103 1,253 783 801 1,886 2,054
technology
Purchase accounting impact on - 125 1,160 327 1,160 452
inventory and contracts acquired
Non-GAAP adjusted operating profit $58,301 $38,752 $4,486 $2,530 $62,787 $41,282
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Total Segments Corporate Total
-------------- --------- -----
Six Months Ended Six Months Ended Six Months Ended
---------------- ---------------- ----------------
Dollars in thousands March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
-------------- -------------- -------------- -------------- -------------- --------------
GAAP operating profit (loss) $59,741 $38,776 $(15,082) $(10,813) $44,659 $27,963
Adjustments:
------------
Amortization of completed 1,886 2,054 - - 1,886 2,054
technology
Amortization of customer - - 9,218 6,358 9,218 6,358
relationships and acquired intangible
assets
Restructuring charges - - 49 1,835 49 1,835
Purchase accounting impact on 1,160 452 - - 1,160 452
inventory and contracts acquired
Merger costs - - 3,279 1,185 3,279 1,185
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Non-GAAP adjusted operating profit (loss) $62,787 $41,282 $(2,536) $(1,435) $60,251 $39,847
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View original content:http://www.prnewswire.com/news-releases/brooks-automation-reports-results-of-fiscal-second-quarter-of-2018-ended-march-31-2018-300640445.html
SOURCE Brooks Automation, Inc.
