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
[email protected]

John Mills
Partner
ICR, LLC
646.277.1254
[email protected]

 

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
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


840



833

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
contracts acquired







1,160



0.02



382



0.01

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
contracts acquired









1,160



0.02



452



0.01

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-
based compensation








$

59,625


$

0.84


$

42,924


$

0.61




















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
technology



982


0.5

%



904


0.5

%



1,061


0.6

%

Purchase accounting impact on
inventory and contracts acquired




0.0

%



1,160


0.6

%



382


0.2

%

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
inventory and contracts acquired









1,160


0.3

%



452


0.1

%

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
and acquired intangible assets



4,629



4,589



3,294



9,218



6,358

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
amortization


$

34,091


$

29,890


$

24,273


$

63,983


$

47,725

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
expenses


$

47,236


$

41,175


$

37,518


$

88,412


$

69,479

Adjustments:
















Less: Amortization of customer relationships
and acquired intangible assets



(4,629)



(4,589)



(3,294)



(9,218)



(6,358)

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
investments


$

1,422


$

2,180


$

2,777


$

3,602


$

4,719

Adjustments:
















Add: BioCision stub period adjustment











203

Non-GAAP adjusted equity in earnings of equity
method investments


$

1,422


$

2,180


$

2,777


$

3,602


$

4,922

 

 






















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
technology



570



533



626



412



371



435

Purchase accounting impact on
inventory and contracts acquired







125





1,160



257

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
contracts acquired





125



1,160



327

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
inventory and contracts acquired



%




0.1

%


%


2.4

%


0.7

%

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
contracts acquired


%


%


1.2

%


0.5

%

Non-GAAP adjusted gross margin


41.9

%


37.6

%


38.2

%


37.9

%

 

 































Brooks Semiconductor Solutions Group


Brooks Life Sciences


Total Segments



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


$

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
on inventory and contracts
acquired







125





1,160



257





1,160



382

Non-GAAP adjusted operating profit


$

31,406


$

26,895


$

20,754


$

3,095


$

1,391


$

1,982


$

34,501


$

28,286


$

22,736

 

 































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
technology



982



904



1,061









982



904



1,061

Amortization of customer
relationships and acquired
intangible assets









4,629



4,589



3,294



4,629



4,589



3,294

Restructuring charges









49





860



49





860

Purchase accounting impact
on inventory and contracts
acquired





1,160



382











1,160



382

Merger costs









2,666



613



936



2,666



613



936

Non-GAAP adjusted operating profit (loss)


$

34,501


$

28,286


$

22,736


$

(2,356)


$

(180)


$

(3,042)


$

32,145


$

28,106


$

21,334

 






















Brooks Semiconductor Solutions Group


Brooks Life Sciences


Total Segments



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
technology



1,103



1,253



783



801



1,886



2,054

Purchase accounting impact on
inventory and contracts acquired





125



1,160



327



1,160



452

Non-GAAP adjusted operating profit


$

58,301


$

38,752


$

4,486


$

2,530


$

62,787


$

41,282

 






















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
technology



1,886



2,054







1,886



2,054

Amortization of customer
relationships and acquired intangible
assets







9,218



6,358



9,218



6,358

Restructuring charges







49



1,835



49



1,835

Purchase accounting impact on
inventory and contracts acquired



1,160



452







1,160



452

Merger costs







3,279



1,185



3,279



1,185

Non-GAAP adjusted operating profit (loss)


$

62,787


$

41,282


$

(2,536)


$

(1,435)


$

60,251


$

39,847

 

 

 

SOURCE Brooks Automation, Inc.