Brooks Automation Reports Results of its Third Quarter of Fiscal 2020, Ended June 30, 2020, and Announces Quarterly Cash Dividend

Rhea-AI Summary

Brooks Automation reported Q3 2020 financial results, achieving $220 million in revenue, an 8% increase year-over-year. The Semiconductor Solutions segment generated $127 million in revenue, up 9%, while Life Sciences saw $93 million, a 6% growth. Diluted EPS from continuing operations rose to $0.19, a significant increase of 49% compared to Q3 2019. Cash flow from operations was $26 million, with a strong cash position of $263 million. The company projects Q4 revenue between $229 million and $241 million with EPS guidance of $0.19 to $0.27.

Positive

• Q3 2020 revenue increased 8% year-over-year to $220 million.
• Diluted EPS from continuing operations rose 49% year-over-year to $0.19.
• Cash flow from operations for the quarter was $26 million.
• $263 million in cash, cash equivalents, and marketable securities at quarter end.
• Q4 revenue guidance projected between $229 million and $241 million.

Negative

• Life Sciences revenue decreased 2% sequentially.
• GENEWIZ revenue declined 9% sequentially.

CHELMSFORD, Mass., July 30, 2020 /PRNewswire/ -- Brooks Automation, Inc. (Nasdaq: BRKS) today reported financial results for the third fiscal quarter, ended June 30, 2020.

Financial Results Summary

		Quarter Ended
Dollars in millions, except per share data		June 30,			March 31,				June 30,			Change vs.
		2020			2020				2019			Prior Qtr		Prior Year
Revenue		$	220		$	220			$	204		0	%	8	%
Semiconductor Solutions		$	127		$	125			$	116		2	%	9	%
Life Sciences		$	93		$	95			$	88		(2)	%	6	%
Diluted EPS Continuing Operations		$	0.19		$	0.12			$	0.01		49	%	N/M
Diluted EPS Total		$	0.19		$	0.12			$	0.10		50	%	85	%
Non-GAAP Diluted EPS Continuing Operations		$	0.32		$	0.25			$	0.20		26	%	60	%

Management Comments
"Despite the current environment's headwinds, we delivered a strong performance in the quarter," commented Steve Schwartz, president and CEO. "Our Life Sciences business witnessed robust demand for its sample management offerings and gene synthesis services.  Due to many customer lab closures around the world, our gene sequencing business had a slow start to the quarter but has steadily increased and is now approaching pre-COVID levels.  We continue to see a ramp in Semiconductor with increased demand for both automation systems and robots.  The real story here is about the relentless team of Brooks employees working through the most difficult of environments without missing a beat!"

Summary of GAAP Results for Continuing Operations

• Revenue for the third fiscal quarter was $220 million, up 8% year over year.  Diluted EPS from continuing operations was $0.19 per share compared to $0.01 per share in the third quarter of 2019. 
• Life Sciences revenue of $93 million grew 6% year over year and was down 2% sequentially.  Year-over-year organic growth was 5%, led by consumables, instruments, and storage services.  GENEWIZ revenue declined 9% sequentially but remained 1% above the third quarter 2019 revenue. 
• Semiconductor Solutions revenue was $127 million, an increase of 9% year over year and 2% sequentially. 
• GAAP operating income was $19 million, compared to $16 million in the third quarter of 2019.  GAAP operating margin at 8.7% was 60 basis points higher year over year and 210 basis points higher sequentially.
• Net interest expense was $0.8 million for the quarter, a $7.1 million reduction from the third quarter of 2019.

Summary of Non-GAAP Results for Continuing Operations

• Diluted EPS from continuing operations for the third quarter was $0.32, up 26% from the second quarter of 2020 and up 60% over the prior year.  
• Operating income was $30 million, an increase of 15% sequentially and year over year.  Operating margin was 13.5%, up 180 basis points sequentially and 80 basis points year over year.  The margin expansion was driven primarily by stronger gross margin.
• Gross margin was 43.5%, an increase of 130 basis points sequentially and 110 basis points year over year.  Gross margin expansion in both segments, Life Sciences and Semiconductor Solutions, drove the improvement year over year, while the sequential momentum was driven by the Semiconductor business.
• Life Sciences operating margin was 7.1%, approximately flat year over year and lower by 150 basis points from the prior quarter.  Gross margin performance of 44.6%, up 140 basis points year over year and lower by 120 basis points sequentially, was the primary driver.  The Life Sciences Products business reported 40 basis points of improvement sequentially but was more than offset by the lower margins of the Life Sciences Services business.
• Semiconductor Solutions operating margin was 18.4%, an increase of 100 basis points from the prior year and up 510 basis points from the second quarter of 2020.  Gross margin of 42.7%, up 100 basis points year over year and 320 basis points sequentially, was the primary driver of operating margin expansion.  
• Adjusted EBITDA was $40 million, up 12% from the third quarter of 2019 and 16% sequentially.

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.

Cash and Liquidity

• Cash flow from operations was $26 million for the quarter and on a year-to-date basis, and cash flow from operations, excluding the $92 million tax payment made in the second quarter on the gain on the sale of the Semiconductor cryogenics business, was $78 million, an increase of $19 million from the same period the prior year. 
• The Company ended the third quarter with a total balance of cash, cash equivalents, restricted cash, and marketable securities of $263 million.  With total debt of $51 million, net cash was $212 million.

Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on September 25, 2020 to stockholders of record on September 4, 2020.  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 Fourth Quarter Fiscal 2020
The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2020.  Revenue is expected to be in the range of $229 million to $241 million and non-GAAP diluted earnings per share is expected to be in the range of $0.32 to $0.40.  GAAP diluted earnings per share for the fourth fiscal quarter is expected to be in the range of $0.19 to $0.27.

Conference Call and Webcast
Brooks management will webcast its third 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.investorroom.com, and will be archived online on this website for convenient on-demand replay.  In addition, you may call 800-754-1366 (US & Canada only) or +1-212-231-2930 for international callers to listen to the live webcast.

Regulation G – Use of Non-GAAP financial Measures
The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analysis provided by its peers.  These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures.  A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets, statements of operations and statements of cash flows.

"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 impact of the COVID-19 global pandemic on the markets we serve, including our supply chain, and on the global economy generally, 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.

About Brooks Automation
Brooks (Nasdaq: BRKS) is a leading provider of life science sample-based solutions and semiconductor manufacturing solutions worldwide.  The Company's Life Sciences business provides a full suite of reliable cold-chain sample management solutions and genomic services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally.  Brooks Life Sciences' GENEWIZ division is a leading provider of DNA gene sequencing and gene synthesis services.  With over 40 years as a partner to the semiconductor manufacturing industry, Brooks is a provider of industry-leading precision vacuum robotics, integrated automation systems and contamination control solutions to the world's leading semiconductor chip makers and equipment manufacturers.  Brooks is headquartered in Chelmsford, MA, with operations in North America, Europe and Asia.  For more information, visit www.brooks.com.

INVESTOR CONTACTS:
Mark Namaroff
Director, Investor Relations
Brooks Automation
978.262.2635
mark.namaroff@brooks.com

Sherry Dinsmore
Brooks Automation
978.262.2400
sherry.dinsmore@brooks.com

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
	Three Months Ended							Nine Months Ended
	June 30,							June 30,
	2020			2019				2020			2019
Revenue
Products	$	142,323		$	128,397			$	413,329		$	381,827
Services		78,027			75,483				237,748			199,810
Total revenue		220,350			203,880				651,077			581,637
Cost of revenue
Products		81,989			77,203				245,930			229,580
Services		45,573			43,167				137,092			115,951
Total cost of revenue		127,562			120,370				383,022			345,531
Gross profit		92,788			83,510				268,055			236,106
Operating expenses
Research and development		14,004			14,235				43,727			41,485
Selling, general and administrative		59,714			52,596				178,866			158,509
Restructuring charges		(29)			256				1,125			685
Total operating expenses		73,689			67,087				223,718			200,679
Operating income		19,099			16,423				44,337			35,427
Interest income		29			108				865			847
Interest expense		(810)			(8,041)				(2,265)			(21,348)
Loss on extinguishment of debt		—			—				—			(9,051)
Other income (expenses), net		498			(309)				(1,318)			(1,116)
Income before income taxes		18,816			8,181				41,619			4,759
Income tax benefit		5,120			7,260				5,557			400
Income  from continuing operations		13,696			921				36,062			4,359
Income (loss) from discontinued operations, net of tax		—			6,333				(182)			20,731
Net income	$	13,696		$	7,254			$	35,880		$	25,090
Basic net income per share:
Income from continuing operations	$	0.19		$	0.01			$	0.48		$	0.06
Income (loss) from discontinued operations, net of tax		-			0.09				(0.00)			0.29
Basic net income per share	$	0.19		$	0.10			$	0.49		$	0.35
Diluted net income per share:
Income from continuing operations	$	0.19		$	0.01			$	0.49		$	0.06
Income (loss) from discontinued operations, net of tax		-			0.09				(0.00)			0.29
Diluted net income per share	$	0.19		$	0.10			$	0.49		$	0.35
Weighted average shares outstanding used in computing net income per share:
Basic		73,759			72,188				73,473			71,903
Diluted		73,860			72,470				73,766			72,313

 

BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
	June 30,			September 30,
	2020			2019
Assets
Current assets
Cash and cash equivalents	$	256,633		$	301,642
Marketable securities		136			34,124
Accounts receivable, net		183,167			165,602
Inventories		117,686			99,445
Prepaid expenses and other current assets		44,389			46,332
Total current assets		602,011			647,145
Property, plant and equipment, net		111,416			100,669
Long-term marketable securities		2,939			2,845
Long-term deferred tax assets		3,489			5,064
Goodwill		500,062			488,602
Intangible assets, net		226,623			251,168
Other assets		57,377			20,506
Total assets	$	1,503,917		$	1,515,999
Liabilities and Stockholders' Equity
Current liabilities
Current portion of long-term debt	$	828		$	829
Accounts payable		70,344			58,919
Deferred revenue		31,162			29,435
Accrued warranty and retrofit costs		7,881			7,175
Accrued compensation and benefits		33,847			31,375
Accrued restructuring costs		437			1,040
Accrued income taxes payable		16,253			99,263
Accrued expenses and other current liabilities		45,053			44,234
Total current liabilities		205,805			272,270
Long-term debt		49,563			50,315
Long-term tax reserves		19,609			18,274
Long-term deferred tax liabilities		10,613			20,636
Long-term pension liabilities		5,724			5,338
Long-term operating lease liabilities		29,280			—
Other long-term liabilities		8,470			10,212
Total liabilities		329,064			377,045
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, 87,222,115 shares issued and 73,760,246 shares outstanding at June 30, 2020, 85,759,700 shares issued and 72,297,831 shares outstanding at September 30, 2019		872			857
Additional paid-in capital		1,936,619			1,921,954
Accumulated other comprehensive income		10,977			3,511
Treasury stock at cost - 13,461,869 shares		(200,956)			(200,956)
Accumulated deficit		(572,659)			(586,412)
Total stockholders' equity		1,174,853			1,138,954
Total liabilities and stockholders' equity	$	1,503,917		$	1,515,999

 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
	Nine Months Ended
	June 30,
	2020			2019
Cash flows from operating activities
Net income	$	35,880		$	25,090
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		49,760			40,429
Impairment of property, plant and equipment		301			—
Stock-based compensation		12,348			15,172
Amortization of premium on marketable securities and deferred financing costs		177			766
Earnings of equity method investments		—			(4,876)
Deferred income taxes		(9,319)			(9,207)
Loss on extinguishment of debt		—			9,051
Other gains on disposals of assets		163			156
Loss on sale of divestiture, net of tax		319			—
Taxes paid stemming from divestiture		(91,500)			—
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(15,719)			(6,456)
Inventories		(17,695)			(6,431)
Prepaid expenses and current assets		12,554			2,109
Accounts payable		11,032			(6,761)
Deferred revenue		214			4,959
Accrued warranty and retrofit costs		580			1,022
Accrued compensation and tax withholdings		1,928			(9,404)
Accrued restructuring costs		(609)			(361)
Proceeds from recovery on insurance claim		—			1,082
Accrued expenses and current liabilities		(4,347)			1,901
Net cash (used in) provided by operating activities		(13,933)			58,241
Cash flows from investing activities
Purchases of property, plant and equipment		(29,685)			(15,548)
Purchases of marketable securities		(10,843)			(1,290)
Sales of marketable securities		2,492			48,904
Maturities of marketable securities		42,226			2,557
Acquisitions, net of cash acquired		(15,743)			(442,704)
Purchase of other investment		(1,000)			—
Net cash used in investing activities		(12,553)			(408,081)
Cash flows from financing activities
Proceeds from term loans, net of discount		—			686,386
Proceeds from issuance of common stock		2,332			1,548
Payments of financing costs		—			(687)
Principal payments on debt		(828)			(354,940)
Payments of capital leases		(957)			(849)
Common stock dividends paid		(22,127)			(21,658)
Net cash (used in) provided by financing activities		(21,580)			309,800
Effects of exchange rate changes on cash and cash equivalents		3,095			(816)
Net decrease in cash and cash equivalents		(44,971)			(40,856)
Cash and cash equivalents and restricted cash, beginning of period		305,171			197,708
Cash and cash equivalents and restricted cash, end of period	$	260,200		$	156,852
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents	$	256,633		$	156,802
Restricted cash included in prepaid expenses and other current assets		3,567			50
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$	260,200		$	156,852

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. 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
		June 30, 2020						March 31, 2020						June 30, 2019
					per diluted						per diluted						per diluted
Dollars in thousands, except per share data		$			share			$			share			$			share
Net income from continuing operations		$	13,696		$	0.19		$	9,192		$	0.12		$	921		$	0.01
Adjustments:
Amortization of intangible assets			10,390			0.14			10,355			0.14			9,050			0.12
Restructuring charges			(29)			(0.00)			578			0.01			256			0.00
Loss on extinguishment of debt			—			—			—			—			—			—
Merger costs			10			0.00			279			0.00			156			0.00
Restructuring related charges			301			0.00			—			—			—			—
Tax Reform  (1)			—			—			—			—			4,281			0.06
Tax adjustments (1)			1,502			0.02			1,046			0.01			974			0.01
Tax effect of adjustments			(2,561)			(0.03)			(2,997)			(0.04)			(1,345)			(0.02)
Non-GAAP adjusted net income from continuing operations		$	23,309		$	0.32		$	18,453		$	0.25		$	14,293		$	0.20
Stock based compensation, pre-tax			3,725			0.05			4,214			0.06			5,277			0.07
Tax rate			15	%		—			15	%		—			15	%		—
Stock-based compensation, net of tax			3,166			0.04			3,582			0.05			4,485			0.06
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations		$	26,475		$	0.36		$	22,035		$	0.30		$	18,778		$	0.26
Shares used in computing non-GAAP diluted net income per share			—			73,860			—			73,789			—			72,470
								Nine Months Ended
								June 30, 2020						June 30, 2019
											per diluted						per diluted
Dollars in thousands, except per share data								$			share			$			share
Net income from continuing operations								$	36,062		$	0.49		$	4,359		$	0.06
Adjustments:															—
Purchase accounting impact on inventory and contracts acquired									—			—			184			0.00
Amortization of intangible assets									31,331			0.42			26,230			0.36
Restructuring related charges									301						—
Restructuring charges									1,125			0.02			685			0.01
Loss on extinguishment of debt									—			—			9,051			0.13
Merger costs									484			0.01			6,546			0.09
Tax Reform - rate change applied to deferred tax liabilities (2)									—			—			1,796			0.02
Tax adjustments (1)									(2,789)			(0.04)			(1,275)			(0.02)
Tax effect of adjustments									(8,113)			(0.11)			(9,122)			(0.13)
Non-GAAP adjusted net income from continuing operations								$	58,401		$	0.79		$	38,454		$	0.53
Stock-based compensation, pre-tax									12,348			0.17			14,574			0.20
Tax rate									15	%		—			15	%		—
Stock-based compensation, net of tax									10,496		$	0.14			12,388			0.17
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations								$	68,897		$	0.93		$	50,842		$	0.70
Shares used in computing non-GAAP diluted net income per share									—			73,766			—			72,313

(1)	The Company elected to apply the tax benefit related to the stock compensation windfall realized in the quarters ended December 31, 2019 and 2018 to the non-GAAP full year tax rate.  The Company elected to exclude a deferred tax benefit realized in the three month period ended December 31, 2019 related to the extension of the 15 percent tax rate incentive in China.
(2)	Adjustments are related to U.S. Federal Tax Reform Transition Tax.

 

					Quarter Ended									Nine Months Ended
					June 30,			March 31,			June 30,			June 30,			June 30,
Dollars in thousands					2020			2020			2019			2020			2019
GAAP net income					$	13,696		$	9,127		$	7,254		$	35,880		$	25,090
Adjustments:
Less: Loss (income) from discontinued operations						—			65			(6,333)			182			(20,731)
Less: Interest income						(29)			(137)			(108)			(865)			(847)
Add: Interest expense						810			718			8,041			2,265			21,348
Add: Income tax benefit						5,120			3,400			7,260			5,557			400
Add: Depreciation						6,290			6,247			5,037			18,429			14,196
Add: Amortization of completed technology						2,779			2,740			2,863			8,194			7,661
Add: Amortization of customer relationships and acquired intangible assets						7,611			7,615			6,187			23,137			18,569
Add: Loss on extinguishment of debt						—			—			—			—			9,051
Earnings before interest, taxes, depreciation and amortization					$	36,277		$	29,775		$	30,201		$	92,779		$	74,737
					Quarter Ended									Nine Months Ended
					June 30,			March 31,			June 30,			June 30,			June 30,
Dollars in thousands					2020			2020			2019			2020			2019
Earnings before interest, taxes, depreciation and amortization					$	36,277		$	29,775		$	30,201		$	92,779		$	74,737
Adjustments:
Add: Stock-based compensation						3,725			4,214			5,277			12,348			14,574
Add: Restructuring charges						(29)			578			256			1,125			685
Add: Restructuring related charges						301			—						301
Add: Purchase accounting impact on inventory and contracts acquired						—			—			—			—			184
Add: Merger costs						10			279			156			484			6,546
Adjusted earnings before interest, taxes, depreciation and amortization					$	40,284		$	34,846		$	35,890		$	107,037		$	96,726
		Quarter Ended
Dollars in thousands		June 30, 2020						March 31, 2020						June 30, 2019
GAAP gross profit/margin percentage		$	92,788		42.1	%		$	90,281		41.0	%		$	83,510		41.0	%
Adjustments:
Amortization of completed technology			2,779		1.3				2,740		1.2				2,863		1.4
Restructuring related charges			301		0.1				—		0.0				—		0.0
Non-GAAP adjusted gross profit/gross margin percentage		$	95,868		43.5	%		$	93,021		42.2	%		$	86,373		42.4	%
								Nine Months Ended
Dollars in thousands								June 30, 2020						June 30, 2019
GAAP gross profit/margin percentage								$	268,055		41.2	%		$	236,106		40.6	%
Adjustments:
Amortization of completed technology									8,194		1.3				7,661		1.3
Purchase accounting impact on inventory and contracts acquired									—		—				184		0.0
Restructuring related charges									301		0.0				—		—
Non-GAAP adjusted gross profit/gross margin percentage								$	276,550		42.5	%		$	243,951		41.9	%

 

		Brooks Semiconductor Solutions Group
		Quarter Ended
Dollars in thousands		June 30, 2020						March 31, 2020						June 30, 2019
GAAP gross profit/margin percentage		$	53,524		42.1	%		$	48,637		38.9	%		$	47,493		40.9	%
Adjustments:
Amortization of completed technology			717		0.6				722		0.6				879		0.8
Non-GAAP adjusted gross profit/margin percentage		$	54,241		42.7	%		$	49,359		39.5	%		$	48,372		41.7	%
		Brooks Life Sciences
		Quarter Ended
Dollars in thousands		June 30, 2020						March 31, 2020						June 30, 2019
GAAP gross profit/margin percentage		$	39,264		42.1	%		$	41,663		43.7	%		$	36,017		41.0	%
Adjustments:
Amortization of completed technology			2,063		2.2				2,017		2.1				1,984		2.3
Restructuring related charges			301		0.3				—		—				—		—
Non-GAAP adjusted gross profit/margin percentage		$	41,628		44.6	%		$	43,680		45.8	%		$	38,001		43.3	%
								Brooks Semiconductor Solutions Group
								Nine Months Ended
Dollars in thousands								June 30, 2020						June 30, 2019
GAAP gross profit/margin percentage								$	148,443		40.0	%		$	139,393		40.8	%
Adjustments:
Amortization of completed technology									2,172		0.6				2,732		0.8
Purchase accounting impact on inventory and contracts acquired									—		—				184		0.1
Non-GAAP adjusted gross profit/margin percentage								$	150,615		40.6	%		$	142,309		41.7	%
								Brooks Life Sciences
								Nine Months Ended
Dollars in thousands								June 30, 2020						June 30, 2019
GAAP gross profit/margin percentage								$	119,612		42.7	%		$	96,713		40.3	%
Adjustments:
Amortization of completed technology									6,022		2.1				4,928		2.1
Restructuring related charges									301		0.1				—		—
Non-GAAP adjusted gross profit/margin percentage								$	125,935		44.9	%		$	101,641		42.3	%

 

		Brooks Semiconductor Solutions Group									Brooks Life Sciences									Total Segments
		Quarter Ended									Quarter Ended									Quarter Ended
		June 30,			March 31,			June 30,			June 30,			March 31,			June 30,			June 30,			March 31,			June 30,
Dollars in thousands		2020			2020			2019			2020			2020			2019			2020			2020			2019
GAAP operating profit		$	22,697		$	15,984		$	19,322		$	4,227		$	6,100		$	4,202		$	26,924		$	22,084		$	23,524
Adjustments:
Amortization of completed technology			717			722			879			2,063			2,017			1,984			2,780			2,739			2,863
Restructuring related charges			—			—			—			301			—			—			301			—			—
Non-GAAP adjusted operating profit		$	23,414		$	16,706		$	20,201		$	6,591		$	8,117		$	6,186		$	30,005		$	24,823		$	26,387
		Total Segments									Corporate									Total
		Quarter Ended									Quarter Ended									Quarter Ended
		June 30,			March 31,			June 30,			June 30,			March 31,			June 30,			June 30,			March 31,			June 30,
Dollars in thousands		2020			2020			2019			2020			2020			2019			2020			2020			2019
GAAP operating profit (loss)		$	26,924		$	22,084		$	23,524		$	(7,825)		$	(7,512)		$	(7,101)		$	19,099		$	14,572		$	16,423
Adjustments:
Amortization of completed technology			2,780			2,739			2,863			—			—			—			2,780			2,739			2,863
Amortization of customer relationships and acquired intangible assets			—			—			—			7,611			7,615			6,187			7,611			7,615			6,187
Restructuring charges			—			—			—			(29)			578			256			(29)			578			256
Merger costs			—			—			—			10			279			156			10			279			156
Restructuring related charges			301			—			—			—			—						301			—			—
Non-GAAP adjusted operating profit (loss)		$	30,005		$	24,823		$	26,387		$	(233)		$	960		$	(502)		$	29,772		$	25,783		$	25,885
											Brooks Semiconductor Solutions Group						Brooks Life Sciences						Total Segments
											Nine Months Ended						Nine Months Ended						Nine Months Ended
Dollars in thousands											June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019
GAAP operating profit											$	52,949		$	53,450		$	14,359		$	8,936		$	67,308		$	62,386
Adjustments:
Amortization of completed technology												2,172			2,732			6,022			4,928			8,194			7,661
Purchase accounting impact on inventory and contracts acquired												—			184			—			—			—			184
Restructuring related charges												—			—			301			—			301			—
Non-GAAP adjusted operating profit											$	55,121		$	56,366		$	20,682		$	13,864		$	75,803		$	70,231
											Total Segments						Corporate						Total
											Nine Months Ended						Nine Months Ended						Nine Months Ended
Dollars in thousands											June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019
GAAP operating profit (loss)											$	67,308		$	62,386		$	(22,971)		$	(26,959)		$	44,337		$	35,427
Adjustments:
Amortization of completed technology												8,194			7,661			—			—			8,194			7,661
Amortization of customer relationships and acquired intangible assets												—			—			23,137			18,569			23,137			18,569
Restructuring charges												—			—			1,125			685			1,125			685
Purchase accounting impact on inventory and contracts acquired												—			184			—			—			—			184
Merger costs												—			—			484			6,546			484			6,546
Restructuring related charges												301			—			—			—			301			—
Non-GAAP adjusted operating profit (loss)											$	75,803		$	70,231		$	1,775		$	(1,159)		$	77,578		$	69,072

 

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/brooks-automation-reports-results-of-its-third-quarter-of-fiscal-2020-ended-june-30-2020-and-announces-quarterly-cash-dividend-301103421.html

SOURCE Brooks Automation

FAQ

What were Brooks Automation's Q3 2020 earnings results?

Brooks Automation reported Q3 2020 revenue of $220 million, with diluted EPS from continuing operations of $0.19.

How did Brooks Automation perform in the Semiconductor Solutions segment in Q3 2020?

The Semiconductor Solutions segment generated $127 million in revenue, up 9% year-over-year.

What is Brooks Automation's revenue guidance for Q4 2020?

For Q4 2020, Brooks Automation projects revenue between $229 million and $241 million.

What was the diluted EPS for Brooks Automation in Q3 2020?

The diluted EPS from continuing operations for Q3 2020 was $0.19, a 49% increase compared to Q3 2019.

What are the cash and liquidity figures for Brooks Automation as of Q3 2020?

As of Q3 2020, Brooks Automation had $263 million in cash and marketable securities, with total debt of $51 million.