Brooks Automation Reports Results of Fiscal Third Quarter of 2018, Ended June 30, 2018

CHELMSFORD, Mass., Aug. 6, 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 third quarter of 2018, ended June 30, 2018.

Highlights of Fiscal Third Quarter of 2018

  • Revenue was $223 million, 8% higher compared to 2018 Q2 and 23% higher compared to 2017 Q3;
  • GAAP Net Income was $23 million with diluted EPS of $0.32;
  • Non-GAAP Net Income was $32 million;
  • Non-GAAP diluted EPS of $0.46 was 14% higher compared to 2018 Q2.

Summary of GAAP and Non-GAAP Earnings











Quarter Ended


June 30, 


March 31, 


June 30, 

Dollars in thousands, except per share data

2018


2018


2017

GAAP net income attributable to Brooks Automation, Inc.

$

22,717


$

67,020


$

17,350

GAAP diluted earnings per share

$

0.32


$

0.95


$

0.25










Non-GAAP net income attributable to Brooks Automation, Inc.

$

32,358


$

28,267


$

25,353

Non-GAAP diluted earnings per share

$

0.46


$

0.40


$

0.36











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
"The results in the third quarter of our 2018 fiscal year continue to highlight the capability of two strong business segments well-positioned in two strong markets," commented Steve Schwartz, CEO of Brooks Automation.  "Revenue growth of 23% year over year was driven by both segments with 20% growth in our Semiconductor business unit, and 35% growth in Life Sciences.  The acquisitions in this quarter of Tec-Sem, which added to our Semiconductor reticle stocker offerings, and BioSpeciMan, which added reach and customer relationships in Canada to our Life Science's biostorage offerings, will further enhance our growth capability going forward."

GAAP Summary
Revenue for the third quarter of fiscal 2018 increased 8% to $223 million compared to the second quarter of fiscal 2018. Gross profits increased 6% from the second quarter of fiscal 2018, providing gross margins of 39.9%, 70 bps below the second quarter.  Operating expense of $62 million increased 3%, or $2 million, primarily driven by the two acquisitions that closed in April 2018.  Income tax expense totaled $3 million.  GAAP net income in the quarter was $23 million and diluted earnings per share was $0.32.

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.

Results of Q3 Fiscal 2018 (Non-GAAP Discussion)
Third quarter non-GAAP net income was $32 million, resulting in non-GAAP earnings per share of $0.46. This compares to non-GAAP net income of $28 million and non-GAAP earnings per share of $0.40 in the second quarter of fiscal 2018, and non-GAAP net income of $25 million and non-GAAP earnings per share of $0.36 in the third quarter of fiscal 2017.  Compared sequentially to the second quarter, the Company reported 80 basis points expansion at the non-GAAP operating profit margin line and the non-GAAP net income margin line in the third quarter.  The primary driver of the margin expansion was 8% revenue growth with only 3% growth of non-GAAP operating expense.

As noted above, revenue for the third fiscal quarter of 2018 was $223 million, up 8% compared to the second fiscal quarter of 2018. The Semiconductor Solutions segment revenue was higher in the third quarter compared to the second quarter by $15 million, or 9%, at $174 million.  The Life Sciences segment revenue grew $1 million, or 2%, sequentially to $50 million.  The Life Sciences segment revenue increased 35% year-over-year in total and 13% on an organic basis.    

Adjusted gross margin, which excludes amortization and purchase accounting impacts, was 40.9% in the third quarter, slightly below the prior quarter by 20 basis points.  The Semiconductor Solutions segment non-GAAP adjusted gross margin was 41.7% in the third quarter, which was 20 basis points higher than last quarter's results reflecting improved margins in vacuum automation.  The Life Sciences segment non-GAAP adjusted gross margin was 38.1% in the third quarter, 170 basis points lower than the second quarter, primarily driven by higher costs in store systems.  In summary, the total Brooks non-GAAP adjusted gross profit increased by 7% or $6 million compared to the second quarter, driven primarily by the revenue growth and improved gross margins in Semiconductor Solutions. 

The Company's non-GAAP tax rate in the quarter was 10%, approximately flat to the second quarter tax rate.  The non-GAAP tax provision in the third quarter was $3 million, which increased $0.2 million compared to the second quarter. 

Cash flow from operations was $19 million in the third quarter.  The company made payments of $18 million for acquisitions and paid $7 million in dividends.  The total of cash, cash equivalents, and marketable securities reported was $232 million as of June 30, 2018. 

Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on September 28, 2018 to stockholders of record on September 7, 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 Fourth Quarter 2018
The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2018.  Revenue is expected to be in the range of $203 million to $213 million and non-GAAP diluted earnings per share is expected to be in the range of $0.35 to $0.43.  GAAP diluted earnings per share for the fourth quarter is expected to be in the range of $0.21 to $0.28, reflecting the impact of amortization, purchase price accounting, and anticipated restructuring charges.

Conference Call
Brooks management will webcast its third quarter earnings conference call today at 5:00 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 877-256-3282 (US & Canada only) or +1-212-271-4657 (international) 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 ‑20°C to -190°C temperatures, 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


Nine Months Ended


June 30, 


June 30, 


2018


2017


2018


2017

Revenue












Products

$

174,113


$

141,957


$

476,788


$

396,684

Services


49,367



39,760



143,280



114,321

Total revenue


223,480



181,717



620,068



511,005

Cost of revenue












Products


104,443



85,658



282,977



243,360

Services


29,816



24,487



88,426



74,606

Total cost of revenue


134,259



110,145



371,403



317,966

Gross profit


89,221



71,572



248,665



193,039

Operating expenses












Research and development


14,177



11,958



40,501



34,148

Selling, general and administrative


48,283



40,016



136,695



109,496

Restructuring charges


82



828



131



2,663

Total operating expenses


62,542



52,802



177,327



146,307

Operating income


26,679



18,770



71,338



46,732

Interest income


689



137



1,193



432

Interest expense


(2,465)



(93)



(6,842)



(286)

Gain on settlement of equity method investment








1,847

Other expense, net


(316)



(314)



(2,228)



(848)

Income before income taxes and earnings of equity method investments


24,587



18,500



63,461



47,877

Income tax (benefit) provision


3,310



3,680



(37,720)



9,900

Income before equity in earnings of equity method investments


21,277



14,820



101,181



37,977

Equity in earnings of equity method investments


1,329



2,530



4,931



7,249

Net income

$

22,606


$

17,350


$

106,112


$

45,226

Net loss attributable to noncontrolling interest


111





111



Net income attributable to Brooks Automation, Inc.


22,717



17,350



106,223



45,226

Basic net income per share

$

0.32


$

0.25


$

1.51


$

0.65

Diluted net income per share


0.32



0.25



1.50



0.64

Dividend declared per share


0.10



0.10



0.30



0.30













Weighted average shares outstanding used in computing net income per share:












Basic


70,596



69,711



70,425



69,496

Diluted


70,978



70,405



70,933



70,198

 

 

BROOKS AUTOMATION, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share and per share data)








June 30, 


September 30,


2018


2017

Assets






Current assets






Cash and cash equivalents

$

179,376


$

101,622

Marketable securities


42,096



28

Accounts receivable, net


156,678



120,828

Inventories


132,298



106,395

Prepaid expenses and other current assets


31,432



23,138

Total current assets


541,880



352,011

Property, plant and equipment, net


61,537



58,462

Long-term marketable securities


10,511



2,642

Long-term deferred tax assets


46,312



1,692

Goodwill


282,205



233,638

Intangible assets, net


106,195



83,520

Equity method investment


37,074



28,593

Other assets


5,716



6,070

Total assets

$

1,091,430


$

766,628

Liabilities and Stockholders' Equity






Current liabilities






Current portion of long term debt

$

2,000


$

Accounts payable


67,589



49,100

Deferred revenue


24,612



24,292

Accrued warranty and retrofit costs


8,759



8,054

Accrued compensation and benefits


25,727



27,065

Accrued restructuring costs


214



1,708

Accrued income taxes payable


7,953



11,417

Accrued expenses and other current liabilities


28,044



25,142

Total current liabilities


164,898



146,778

Long-term debt


194,470



Long-term tax reserves


1,430



1,687

Long-term deferred tax liabilities


6,545



3,748

Long-term pension liabilities


5,268



1,979

Other long-term liabilities


5,723



4,792

Total liabilities


378,334



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, 84,096,224 shares
issued and 70,634,355 shares outstanding at June 30, 2018, 83,294,848 shares issued and
69,832,979 shares outstanding at  September 30, 2017


841



833

Additional paid-in capital


1,891,304



1,874,918

Accumulated other comprehensive income


18,373



15,213

Treasury stock at cost - 13,461,869 shares


(200,956)



(200,956)

Accumulated deficit


(997,342)



(1,082,364)

Total Brooks Automation, Inc. stockholders' equity


712,220



607,644

Noncontrolling interest in subsidiary


876



Total stockholders' equity


713,096



607,644

Total liabilities and stockholders' equity

$

1,091,430


$

766,628

 

 

BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)








Nine Months Ended


June 30, 


2018


2017

Cash flows from operating activities






Net income

$

106,112


$

45,226

Adjustments to reconcile net income to net cash provided by operating activities:






Depreciation and amortization


27,621



20,649

Gain on settlement of equity method investment




(1,847)

Stock-based compensation


14,999



11,081

Amortization of premium on marketable securities and deferred financing costs


565



24

Earnings of equity method investments


(4,931)



(7,249)

Loss recovery on insurance claim


(1,103)



Deferred income tax benefit


(48,274)



498

Other gains on disposals of assets




(106)

Changes in operating assets and liabilities, net of acquisitions:






Accounts receivable


(32,887)



(14,644)

Inventories


(21,647)



(12,851)

Prepaid expenses and other current assets


(4,395)



(6,076)

Accounts payable


16,656



9,470

Deferred revenue


487



17,875

Accrued warranty and retrofit costs


(192)



1,299

Accrued compensation and tax withholdings


(1,252)



279

Accrued restructuring costs


(1,523)



(4,201)

Accrued expenses and other current liabilities


(7,478)



1,954

Net cash provided by operating activities


42,758



61,381

Cash flows from investing activities






Purchases of property, plant and equipment


(9,320)



(6,827)

Purchases of marketable securities


(58,312)



(240)

Sales and maturities of marketable securities


8,450



3,590

Acquisitions, net of cash acquired


(82,977)



(5,346)

Purchases of other investments




(170)

Proceeds from sales of property, plant and equipment


200



Net cash used in investing activities


(141,959)



(8,993)

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


(1,000)



Common stock dividends paid


(21,202)



(20,932)

Net cash provided by (used in) financing activities


176,429



(19,999)

Effects of exchange rate changes on cash and cash equivalents


526



(394)

Net increase in cash and cash equivalents


77,754



31,995

Cash and cash equivalents, beginning of period


101,622



85,086

Cash and cash equivalents, end of period

$

179,376


$

117,081

 

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



June 30, 2018


March 31, 2018


June 30, 2017





per diluted




per diluted




per diluted

Dollars in thousands, except per share data    


$


share


$


share


$


share

Net income attributible to Brooks Automation, Inc.


$

22,717


$

0.32


$

67,020


$

0.95


$

17,350


$

0.25

Adjustments:



















Purchase accounting impact on inventory and
contracts acquired



736



0.01







71



Amortization of intangible assets



6,584



0.09



5,611



0.08



4,330



0.06

Restructuring charges



82



0.00



49



0.00



828



0.01

Merger costs



2,460



0.03



2,666



0.04



3,654



0.05

Adjustment of valuation allowance against
deferred tax assets



690



0.01



(46,158)



(0.65)





Tax effect of adjustments



(800)



(0.01)



(922)



(0.01)



(880)



(0.01)

Net loss attributible to noncontrolling interest



(111)



(0.00)









Non-GAAP adjusted net income attributible to
Brooks Automation, Inc.



32,358



0.46



28,266



0.40



25,353



0.36

   Stock based compensation, pre-tax



4,870





5,320





4,197



   Tax rate



10

%




10

%




15

%


Stock-based compensation, net of tax



4,402



0.06



4,778



0.07



3,559



0.05

Non-GAAP adjusted net income attributible to
Brooks Automation, Inc.- excluding stock-based
compensation


$

36,760


$

0.52


$

33,044


$

0.47


$

28,912


$

0.41




















Shares used in computing non-GAAP diluted
net income attributible to Brooks Automation,
Inc. per share





70,978





70,613





70,405

 









Nine Months Ended









June 30, 2018


June 30, 2017











per diluted




per diluted

Dollars in thousands, except per share data    








$


share


$


share

Net income attributible to Brooks Automation, Inc.








$

106,223


$

1.50


$

45,226


$

0.64

Adjustments:



















Purchase accounting impact on inventory and
contracts acquired









1,896



0.03



523



0.01

Amortization of intangible assets









17,688



0.25



12,743



0.18

Restructuring charges









131



0.00



2,663



0.04

Merger costs









5,739



0.08



4,839



0.07

Less: Fair value adjustment of equity investment













(1,847)



(0.03)

Add: True-up of BioCision stub period adjustment













203



Adjustment of valuation allowance against
deferred tax assets









(45,468)



(0.64)





Tax effect of adjustments









(2,301)



(0.03)



(1,856)



(0.03)

Tax Reform - rate change applied to deferred tax
liabilities









(671)



(0.01)





Net loss attributible to noncontrolling interest









(111)



(0.00)





Non-GAAP adjusted net income attributible to
Brooks Automation, Inc.









83,126



1.17



62,494



0.89

Stock-based compensation, pre-tax









14,999





11,081



Tax rate









11

%




16

%


Stock-based compensation, net of tax









13,289


$

0.19



9,330



0.13

Non-GAAP adjusted net income attributible to
Brooks Automation, Inc.- excluding stock-based
compensation








$

96,415


$

1.36


$

71,824


$

1.02




















Shares used in computing non-GAAP diluted net
income attributible to Brooks Automation, Inc. per share











70,933





70,198

 



Quarter Ended




June 30, 2018


March 31, 2018


June 30, 2017

Dollars in thousands


$


%


$


%


$


%

GAAP gross profit/gross margin percentage


$

89,221


39.9

%


$

84,229


40.6

%


$

71,572


39.4

%

Adjustments:



















Amortization of completed technology



1,504


0.7

%



982


0.5

%



1,051


0.6

%

Purchase accounting impact on
inventory and contracts acquired



736


0.3

%




0.0

%



71


0.0

%

Non-GAAP adjusted gross
profit/gross margin percentage


$

91,461


40.9

%


$

85,211


41.1

%


$

72,694


40.0

%

 









Nine Months Ended









June 30, 2018


June 30, 2017

Dollars in thousands








$


%



$


%

GAAP gross profit/gross margin percentage








$

248,665


40.1

%


$

193,039


37.8

%

Adjustments:



















Amortization of completed
technology









3,390


0.5

%



3,105


0.6

%

Purchase accounting impact on
inventory and contracts acquired









1,896


0.3

%



523


0.1

%

Non-GAAP adjusted gross
profit/gross margin percentage








$

253,951


41.0

%


$

196,667


38.5

%

 



Quarter Ended


Nine Months Ended



June 30, 


March 31, 


June 30, 


June 30, 


June 30, 

Dollars in thousands


2018


2018


2017


2018


2017

GAAP net income attributable to Brooks Automation, Inc.


$

22,717


$

67,020


$

17,350


$

106,223


$

45,226

Adjustments:
















Less: Interest income



(689)



(356)



(137)



(1,193)



(432)

Add: Interest expense



2,465



2,196



93



6,842



286

Add: Income tax provision



3,310



(43,880)



3,680



(37,720)



9,900

Add: Depreciation



3,403



3,500



2,589



9,933



7,907

Add: Amortization of completed technology



1,504



982



1,051



3,390



3,105

Add: Amortization of customer relationships
and acquired intangible assets



5,080



4,629



3,279



14,298



9,638

Earnings before interest, taxes, depreciation and
amortization


$

37,790


$

34,091


$

27,905


$

101,773


$

75,630

 



Quarter Ended


Nine Months Ended



June 30, 


March 31, 


June 30, 


June 30, 


June 30, 

Dollars in thousands


2018


2018


2017


2018


2017

Earnings before interest, taxes, depreciation and
amortization


$

37,790


$

34,091


$

27,905


$

101,773


$

75,630

Adjustments:
















Less: Fair value adjustment of equity method
investment











(1,847)

Add: Stock-based compensation



4,870



5,320



4,197



14,999



11,081

Add: Restructuring charges



82



49



828



131



2,663

Add: BioCision stub period adjustment











203

Add: Purchase accounting impact on inventory
and contracts acquired



736





71



1,896



523

Add: Merger costs



2,460



2,666



3,654



5,739



4,839

Adjusted earnings before interest, taxes,
depreciation and amortization


$

45,938


$

42,126


$

36,655


$

124,538


$

93,092

 



Quarter Ended


Nine Months Ended



June 30, 


March 31, 


June 30, 


June 30, 


June 30, 

Dollars in thousands


2018


2018


2017


2018


2017

GAAP selling, general and administrative
expenses


$

48,283


$

47,236


$

40,016


$

136,695


$

109,496

Adjustments:
















Less: Amortization of customer relationships
and acquired intangible assets



(5,080)



(4,629)



(3,279)



(14,298)



(9,638)

Less: Merger costs



(2,460)



(2,666)



(3,654)



(5,739)



(4,839)

Non-GAAP adjusted selling, general and
administrative expenses


$

40,743


$

39,941


$

33,083


$

116,658


$

95,019

Research and development expenses


$

14,177


$

13,125


$

11,958


$

40,501


$

34,148

Non-GAAP adjusted operating expenses


$

54,920


$

53,066


$

45,041


$

157,159


$

129,167

 



Quarter Ended


Nine Months Ended



June 30, 


March 31, 


June 30, 


June 30, 


June 30, 

Dollars in thousands


2018


2018


2017


2018


2017

GAAP equity in earnings of equity method
investments


$

1,329


$

1,422


$

2,530


$

4,931


$

7,249

Adjustments:
















Add: BioCision stub period adjustment











203

Non-GAAP adjusted equity in earnings of equity
method investments


$

1,329


$

1,422


$

2,530


$

4,931


$

7,452

 




Brooks Semiconductor Solutions Group


Brooks Life Sciences



Quarter Ended


Quarter Ended



June 30, 


March 31, 


June 30, 


June 30, 


March 31, 


June 30, 

Dollars in thousands


2018


2018


2017


2018


2018


2017

GAAP gross profit


$

70,634


$

65,299


$

58,083


$

18,587


$

18,930


$

13,489

Adjustments:



















Amortization of completed
technology



1,147



570



626



357



412



425

Purchase accounting impact on
inventory and contracts acquired



736











71

Non-GAAP adjusted gross profit


$

72,517


$

65,869


$

58,709


$

18,944


$

19,342


$

13,985

 



Brooks Semiconductor Solutions Group


Brooks Life Sciences



Nine Months Ended


Nine Months Ended



June 30, 


June 30, 


June 30, 


June 30, 

Dollars in thousands


2018


2017


2018


2017

GAAP gross profit


$

195,386


$

154,877


$

53,279


$

38,162

Adjustments:













Amortization of completed technology



2,250



1,879



1,140



1,226

Purchase accounting impact on inventory and
contracts acquired



736



125



1,160



398

Non-GAAP adjusted gross profit


$

198,372


$

156,881


$

55,579


$

39,786

 



Brooks Semiconductor Solutions Group


Brooks Life Sciences




Quarter Ended


Quarter Ended




June 30, 


March 31, 


June 30, 


June 30, 


March 31, 


June 30, 


Dollars in thousands


2018


2018


2017


2018


2018


2017


GAAP gross margin



40.6

%


41.1

%


40.1

%


37.4

%


39.0

%


36.7

%

Adjustments:




















Amortization of completed
technology



0.7

%


0.4

%


0.4

%


0.7

%


0.8

%


1.2

%

Purchase accounting impact on
inventory and contracts acquired



0.4

%




%


%


%


0.2

%

Non-GAAP adjusted gross margin



41.7

%


41.5

%


40.5

%


38.1

%


39.8

%


38.0

%

 



Brooks Semiconductor Solutions Group


Brooks Life Sciences



Nine Months Ended


Nine Months Ended



June 30, 


June 30, 


June 30, 


June 30, 

Dollars in thousands


2018


2017


2018


2017

GAAP gross margin


41.2

%


38.1

%


36.6

%


36.4

%

Adjustments:













Amortization of completed technology


0.5

%


0.5

%


0.8

%


1.2

%

Purchase accounting impact on inventory and
contracts acquired


0.1

%


%


0.8

%


0.4

%

Non-GAAP adjusted gross margin


41.8

%


38.6

%


38.2

%


38.0

%

 



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


2018


2018


2017


2018


2018


2017


2018


2018


2017

GAAP operating profit


$

33,674


$

30,836


$

26,188


$

2,034


$

2,683


$

1,134


$

35,708


$

33,519


$

27,322

Adjustments:




























Amortization of completed
technology



1,147



570



626



357



412



425



1,504



982



1,051

Purchase accounting impact on inventory
and contracts acquired



736












71



736





71

Non-GAAP adjusted operating profit


$

35,557


$

31,406


$

26,814


$

2,391


$

3,095


$

1,630


$

37,948


$

34,501


$

28,444

 



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


2018


2018


2017


2018


2018


2017


2018


2018


2017

GAAP operating profit (loss)


$

35,708


$

33,519


$

27,322


$

(9,029)


$

(9,700)


$

(8,552)


$

26,679


$

23,819


$

18,770

Adjustments:




























Amortization of completed
technology



1,504



982



1,051









1,504



982



1,051

Amortization of customer
relationships and acquired
intangible assets









5,080



4,629



3,279



5,080



4,629



3,279

Restructuring charges









82



49



828



82



49



828

Purchase accounting impact
on inventory and contracts
acquired



736





71









736





71

Merger costs









2,460



2,666



3,654



2,460



2,666



3,654

Non-GAAP adjusted
operating profit (loss)


$

37,948


$

34,501


$

28,444


$

(1,407)


$

(2,356)


$

(791)


$

36,541


$

32,145


$

27,653

 



Brooks Semiconductor Solutions Group


Brooks Life Sciences


Total Segments



Nine Months Ended


Nine Months Ended


Nine Months Ended

Dollars in thousands


June 30, 2018


June 30, 2017


June 30, 2018


June 30, 2017


June 30, 2018


June 30, 2017

GAAP operating profit


$

90,872


$

63,562


$

4,577


$

2,535


$

95,449


$

66,097

Adjustments:



















Amortization of completed
technology



2,250



1,879



1,140



1,226



3,390



3,105

Purchase accounting impact on
inventory and contracts acquired



736



125



1,160



398



1,896



523

Non-GAAP adjusted operating profit


$

93,858


$

65,566


$

6,877


$

4,159


$

100,735


$

69,725

 



Total Segments


Corporate


Total



Nine Months Ended


Nine Months Ended


Nine Months Ended

Dollars in thousands


June 30, 2018


June 30, 2017


June 30, 2018


June 30, 2017


June 30, 2018


June 30, 2017

GAAP operating profit (loss)


$

95,449


$

66,097


$

(24,111)


$

(19,365)


$

71,338


$

46,732

Adjustments:



















Amortization of completed
technology



3,390



3,105







3,390



3,105

Amortization of customer
relationships and acquired intangible
assets







14,298



9,638



14,298



9,638

Restructuring charges







131



2,663



131



2,663

Purchase accounting impact on
inventory and contracts acquired



1,896



523







1,896



523

Merger costs







5,739



4,839



5,739



4,839

Non-GAAP adjusted operating profit (loss)


$

100,735


$

69,725


$

(3,943)


$

(2,225)


$

96,792


$

67,500

 

SOURCE Brooks Automation