News Releases
Brooks Automation Announces Restructuring Plan to Streamline Operating Structure
Company Expects to Achieve $15 Million in Annualized Cost Savings

CHELMSFORD, Mass.March 07, 2016 -- Brooks Automation, Inc. (Nasdaq:BRKS), a leading worldwide provider of automated and cryogenic solutions for multiple markets including semiconductor manufacturing and life sciences, announced a restructuring today intended to streamline its business operations, advance its market responsiveness, and achieve approximately $15 million of annualized cost savings.

As part of the restructuring, Brooks announced that it will be reorganizing its business to consolidate its semiconductor product and services offerings under the leadership of David Jarzynka, Senior Vice President, a 12-year veteran of Brooks, who is currently the General Manager of the automation business.  The consolidation will result in a leaner management structure, increased alignment of sales and services decisions, continued responsive decisions for our customers, and lower structural cost.   

“We began our transformation five years ago to leverage our deep capabilities in automation and cryogenics by applying them to the Life Sciences market for automated sample management,” said Steve Schwartz, Brooks’ Chief Executive Officer.  “As we have now expanded Life Sciences to provide our customers with complete solutions for both on-site infrastructure and for end-to-end provisioning of their samples off-site with Brooks, this restructuring will allow us to naturally streamline our operations around the two primary markets we serve:  Semiconductor and Life Sciences.”  

Schwartz continued, “To be clear, the restructuring announced today is not related to anything we are seeing in the macro-economic environment. We continue to feel optimistic about the overall Semiconductor and Life Sciences markets and our leading positions within each. This is the next step in our strategic intent to strengthen both segments and to reduce cost.”

Leadership Transition

The Company also announced that Mark Morelli, President and Chief Operating Officer, will be leaving Brooks as of March 31, 2016.

“Brooks has benefitted tremendously under Mark’s leadership since he joined us at the beginning of 2012,” Schwartz commented.  “Mark has implemented the disciplines to shape the Semiconductor business with a stronger portfolio with higher growth capability, increased customer satisfaction, and improved profit margins, while growing the Life Sciences business and successfully transitioning it to the leadership of Dusty Tenney.   As the company has reached maturity and critical mass in both markets, we will build upon the management disciplines that Mark has put in place to take our business into this next phase.   Our employees, the entire management team and board of directors all thank Mark for his leadership and guidance.”

Cost Reductions and Charges

As referenced above, the Company is restructuring to streamline business operations as part of a company-wide initiative to improve profitability and competitiveness.  The plan provides for the elimination of management structure and will lead to simplification and efficiency in its business.  The Company estimates the actions driving the savings to be in the range of $15 million annually, primarily from the reduction of resources, and to be substantially completed by the end of the third fiscal quarter.       

The restructuring initiatives are expected to drive approximately $7 million of restructuring charges within this fiscal year, a majority of which is expected to be recognized inside the current fiscal quarter ending March 31, 2016.  

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 and, through product development initiatives and strategic business acquisitions, has expanded offerings to meet the needs of customers in the life sciences industry, analytical & research markets and clean energy solutions. Brooks is headquartered in Chelmsford, MA, with direct operations in North AmericaEurope 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 the anticipated restructuring charges, related cash expenditures and the timing to recognize these charges, cost savings, and other statements regarding our strategies, market and products positions, performance, and results. Factors that could cause results to differ from our expectations include the following: estimates and assumptions underlying the Company’s restructuring plan, estimated charges that may not be realized; failure to maintain cost reductions or otherwise control our expenses; and the impact of non-cash charges on our financial results. In addition, actual results are subject to other risks that relate more broadly to Brooks’ overall business, 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: 
Lynne Yassemedis
Brooks Automation
978.262.2400
lynne.yassemedis@brooks.com

John Mills
Senior Managing Director
ICR, LLC
646.277.1254
john.mills@icrinc.com

 

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