Brooks Automation Reports its Fourth Quarter and Year-End Results of Fiscal 2020, Ended September 30, 2020, and Announces Quarterly Cash Dividend

Brooks Automation Reports its Fourth Quarter and Year-End Results of Fiscal 2020, Ended September 30, 2020, and Announces Quarterly Cash Dividend

Significant Earnings Growth Driven by Operating Margin Expansion and Double-Digit Revenue Growth in Both Life Sciences and Semiconductor Solutions

CHELMSFORD, Mass., Nov. 10, 2020 /PRNewswire/ — Brooks Automation, Inc. (Nasdaq: BRKS) today reported financial results for the fourth fiscal quarter and fiscal year, ended September 30, 2020.

Financial Results Summary

Quarter Ended

Year Ended

Dollars in millions, except per share data

September 30, 

September 30, 

September 30, 

September 30, 

2020

2019

Change

2020

2019

Change

Revenue

$

246

$

199

24

%

$

897

$

781

15

%

Semiconductor Solutions

$

138

$

105

31

%

$

509

$

447

14

%

Life Sciences

$

108

$

94

15

%

$

389

$

334

16

%

Diluted EPS Continuing Operations

$

0.39

$

0.07

447

%

$

0.88

$

0.13

567

%

Diluted EPS Total

$

0.39

$

5.68

NM

$

0.88

$

6.04

NM

Non-GAAP Diluted EPS Continuing Operations

$

0.47

$

0.23

100

%

$

1.26

$

0.76

65

%

Adjusted EBITDA

$

54

$

31

75

%

$

161

$

128

26

%

Management Comments
“We delivered a robust quarter and completed a milestone year for the company,” commented Steve Schwartz, President and CEO. “The Semiconductor Solutions and Life Sciences businesses each continued their momentum during the quarter, once again achieving operating margin expansion and delivering double-digit growth for the year. The growth is proof of our ability to lead and service two markets that have remained robust in spite of the pandemic. Our global team’s dedication and our business model’s strength keeps us positioned to address the ever-changing challenges of these unprecedented times as we move into fiscal 2021.” 

Summary of GAAP Results

Fourth Quarter, Fiscal 2020

  • Revenue for the fourth fiscal quarter was $246 million, up 24% year over year. Diluted EPS from continuing operations was $0.39 per share compared to $0.07 per share in the fourth quarter of 2019.
  • Life Sciences revenue of $108 million grew 15% year over year and 16% sequentially. Year-over-year organic growth was 17%. Life Science Products grew 20% year over year, and Life Science Services grew 12%. Organic revenue growth in Q4, from what was previously defined as Sample Management, was 14% year-over-year.
  • Semiconductor Solutions revenue was $138 million, an increase of 31% year over year and 9% sequentially. The growth was primarily driven by 50% year-over-year growth in Automation, while Contamination Control Solutions and Services each contributed single-digit growth.  

Full Year, Fiscal 2020

  • Revenue for fiscal 2020 was $897 million, an increase of 15% compared to fiscal 2019, supported by double-digit growth in both Life Sciences and Semiconductor.
  • Life Sciences revenue of $389 million was 16% higher than fiscal 2019. Life Sciences Products grew 9% and Life Sciences Services grew 20%, year over year. In total, the Life Sciences business organic growth was 10%, including 7% organic growth from Sample Management.
  • Semiconductor Solutions revenue was $509 million, up 14% over the prior year. Growth was led by Contamination Control Solutions at 33%, while Automation products and Services increased 8% and 1%, respectively.
  • Pre-tax income from continuing operations of $75 million was up $66 million from the prior year. The improvement was significantly driven by operating income of $78 million, which was up $32 million, or 70%, year over year. Net interest expense was $2 million for the year, a reduction of $19 million from 2019. In addition, the prior fiscal year included a $14 million loss on the extinguishment of debt.
  • The GAAP effective tax rate was 13.3% for the year.
  • Diluted EPS from continuing operations was $0.88 compared to $0.13 in 2019. Total diluted EPS for this fiscal year was $0.88 compared to $6.04 in 2019. Discontinued operations in fiscal 2019 provided $5.91 per diluted share primarily from the $409 million gain on the sale of the Semiconductor Cryogenics business.

Summary of Non-GAAP Results for Continuing Operations

Fourth Quarter, Fiscal 2020

  • Diluted EPS from continuing operations for the fourth quarter was $0.47, up 100% over the prior year and up 48% sequentially.
  • Operating income was $45 million, an increase of 112% year over year and 51% sequentially. Operating margin was 18.2%, up 760 basis points year over year and 470 basis points sequentially. The margin expansion was driven by gross margin improvements coupled with operating expense control.
  • Gross margin was 46.6%, an increase of 490 basis points year over year and 310 basis points sequentially. Gross margin expansion was driven by improvements in both Life Sciences and Semiconductor Solutions, both sequentially and year over year.
  • The total Life Sciences operating margin was 16.2%, an increase of 900 basis points year over year and 910 basis points from the prior quarter. Gross margin performance of 50.5%, which was up 790 basis points year over year and up 580 basis points sequentially, was the primary driver of improved operating margin. The Life Sciences Products business gross margin remained stable with a 50 basis point decline sequentially, and an increase of 390 basis points year over year, driven by sustained improvements achieved earlier in the fiscal year. The Life Sciences Services sequential improvement consisted of 590 basis points that was driven by improved performance, and another 350 basis points from the favorable mix effect of unwinding the Alliance support agreement with RUCDR. In the Alliance arrangement, RUCDR performed the substantive services while Brooks Life Sciences provided contract management and other support services which came at low gross margins. In this fourth fiscal quarter, we dissolved the business arrangement and going forward we will have only a nominal amount of revenue in final support of some ongoing contracts. The reported margins for Life Science Services are up 1,020 basis points year over year.
  • Semiconductor Solutions operating margin was 20.2%, an increase of 720 basis points from the prior year and up 170 basis points from the third quarter of 2020. Gross margin of 43.6%, up 260 basis points year over year and 90 basis points sequentially, was the primary driver of the operating margin expansion.
  • Adjusted EBITDA was $54 million, up 75% from the fourth quarter of 2019 and 34% sequentially.

Full Year, Fiscal 2020

  • Non-GAAP diluted EPS from continuing operations was $1.26, a 65% increase compared to $0.76 in 2019. The increase reflects the 15% revenue growth described in the GAAP summary, 200 basis points improvement in non-GAAP operating margin, and a reduction in net interest expense of $19 million.
  • The non-GAAP effective tax rate for the year was 21.9%.
  • Operating income was $122 million, a 36% increase from 2019, supported by non-GAAP gross margins of 43.6%, which improved 170 basis points. The increase in gross margin was driven by 410 basis points improvement in the Life Sciences gross margin.

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 for the fourth quarter was $52 million. On a full year basis, excluding the $92 million tax payment made in the second quarter for the gain on the sale of the Semiconductor cryogenics business, cash flow from operations increased 24% to $129 million. This compares to cash from operations in 2019 of $104 million excluding the transaction fees associated with the sale of the Semiconductor cryogenics business.
  • The Company ended the fourth quarter with a total balance of cash, cash equivalents, restricted cash, and marketable securities of $306 million. With total debt of $51 million, net cash at September 30, 2020 was $255 million.

Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on December 17, 2020 to stockholders of record on December 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 First Quarter Fiscal 2021
The Company announced revenue and earnings guidance for the first quarter of fiscal 2021.  Revenue is expected to be in the range of $237 million to $251 million and non-GAAP diluted earnings per share is expected to be in the range of $0.37 to $0.47.  GAAP diluted earnings per share for the first fiscal quarter is expected to be in the range of $0.27 to $0.37.

Conference Call and Webcast
Brooks management will webcast its fourth 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 800-897-4057 (US & Canada only) or +1-212-231-2914 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

Year Ended

September 30, 

September 30,

2020

2019

2020

2019

Revenue

Products

$

160,547

$

122,202

$

573,876

$

504,029

Services

85,649

77,009

323,397

276,819

Total revenue

246,196

199,211

897,273

780,848

Cost of revenue

Products

91,400

72,658

337,442

302,237

Services

42,827

46,399

179,807

162,351

Total cost of revenue

134,227

119,057

517,249

464,588

Gross profit

111,969

80,154

380,024

316,260

Operating expenses

Research and development

15,336

14,882

59,063

56,368

Selling, general and administrative

62,271

53,451

241,137

211,960

Restructuring charges

241

1,209

1,366

1,894

Total operating expenses

77,848

69,542

301,566

270,222

Operating income

34,121

10,612

78,458

46,038

Interest income

(16)

602

849

1,449

Interest expense

(679)

(903)

(2,944)

(22,250)

Loss on extinguishment of debt

(5,288)

(14,339)

Other expenses, net

(73)

(339)

(1,391)

(1,455)

Income before income taxes

33,353

4,684

74,972

9,443

Income tax benefit

4,380

(511)

9,937

(111)

Income  from continuing operations

$

28,973

$

5,195

$

65,035

$

9,554

Income (loss) from discontinued operations, net of tax

407,130

(182)

427,862

Net income

$

28,973

$

412,325

$

64,853

$

437,416

Basic net income per share:

Income from continuing operations

$

0.39

$

0.07

$

0.88

$

0.13

Income (loss) from discontinued operations, net of tax

5.63

(0.00)

5.95

Basic net income per share

$

0.39

$

5.71

$

0.88

$

6.08

Diluted net income per share:

Income from continuing operations

$

0.39

$

0.07

$

0.88

$

0.13

Income (loss) from discontinued operations, net of tax

5.61

(0.00)

5.91

Diluted net income per share

$

0.39

$

5.68

$

0.88

$

6.04

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

Basic

73,808

72,273

73,557

71,992

Diluted

74,004

72,558

73,850

72,386

BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)

September 30, 

September 30,

2020

2019

Assets

Current assets

Cash and cash equivalents

$

295,649

$

301,642

Marketable securities

67

34,124

Accounts receivable, net

188,291

165,602

Inventories

114,834

99,445

Prepaid expenses and other current assets

50,612

46,332

Total current assets

649,453

647,145

Property, plant and equipment, net

117,665

100,669

Long-term marketable securities

3,101

2,845

Long-term deferred tax assets

4,979

5,064

Goodwill

501,536

488,602

Intangible assets, net

218,325

251,168

Other assets

64,066

20,506

Total assets

$

1,559,125

$

1,515,999

Liabilities and Stockholders’ Equity

Current liabilities

Current portion of long-term debt

$

827

$

829

Accounts payable

61,758

58,919

Deferred revenue

31,357

29,435

Accrued warranty and retrofit costs

8,201

7,175

Accrued compensation and benefits

43,267

31,375

Accrued restructuring costs

181

1,040

Accrued income taxes payable

10,094

99,263

Accrued expenses and other current liabilities

55,433

44,234

Total current liabilities

211,118

272,270

Long-term debt

49,588

50,315

Long-term tax reserves

19,168

18,274

Long-term deferred tax liabilities

17,798

20,636

Long-term pension liabilities

6,406

5,338

Long-term operating lease liabilities

31,855

Other long-term liabilities

9,578

10,212

Total liabilities

345,511

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, 87,293,710 shares issued and 73,831,841 shares outstanding at September 30, 2020, 85,759,700 shares issued and 72,297,831 shares outstanding at September 30, 2019

873

857

Additional paid-in capital

1,942,850

1,921,954

Accumulated other comprehensive income

21,919

3,511

Treasury stock at cost – 13,461,869 shares

(200,956)

(200,956)

Accumulated deficit

(551,072)

(586,412)

Total stockholders’ equity

1,213,614

1,138,954

Total liabilities and stockholders’ equity

$

1,559,125

$

1,515,999

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)

Year Ended

September 30, 

2020

2019

Cash flows from operating activities

Net income

$

64,853

$

437,416

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

Depreciation and amortization

65,496

54,454

Impairment of property, plant and equipment

285

Stock-based compensation

16,317

20,113

Amortization of premium on marketable securities and deferred financing costs

233

1,121

Earnings of equity method investments

(6,188)

Deferred income taxes

(5,407)

(15,161)

Loss on extinguishment of debt

14,339

Other gains on disposals of assets

226

209

Loss (gain) on sale of divestiture, net of tax

319

(408,575)

Contingent transaction fees paid stemming from divestiture

(13,388)

Taxes paid stemming from divestiture

(91,500)

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

(18,755)

(11,445)

Inventories

(13,144)

(2,933)

Prepaid expenses and current assets

25,642

(16,009)

Accounts payable

792

4,695

Deferred revenue

(139)

4,213

Accrued warranty and retrofit costs

760

1,109

Accrued compensation and tax withholdings

11,097

(6,453)

Accrued restructuring costs

(865)

399

Proceeds from recovery on insurance claim

1,082

Accrued expenses and current liabilities

(18,059)

31,615

Net cash provided by operating activities

37,866

90,898

Cash flows from investing activities

Purchases of property, plant and equipment

(39,924)

(23,861)

Purchases of marketable securities

(10,894)

(35,225)

Sales of marketable securities

2,492

48,903

Maturities of marketable securities

42,328

2,557

Proceeds from divestiture

661,642

Acquisitions, net of cash acquired

(15,744)

(442,704)

Purchase of other investment

(1,000)

Net cash (used in) provided by investing activities

(22,742)

211,312

Cash flows from financing activities

Proceeds from term loans, net of discount

686,386

Proceeds from issuance of common stock

4,595

3,422

Payments of financing costs

(687)

Principal payments on debt

(828)

(850,190)

Payments of finance leases

(1,277)

(1,197)

Common stock dividends paid

(29,513)

(28,895)

Net cash used in financing activities

(27,023)

(191,161)

Effects of exchange rate changes on cash and cash equivalents

9,254

(3,586)

Net (decrease) increase in cash and cash equivalents

(2,645)

107,463

Cash, cash equivalents and restricted cash, beginning of period

305,171

197,708

Cash and cash equivalents and restricted cash, end of period

$

302,526

$

305,171

Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets

Cash and cash equivalents

$

295,649

$

301,642

Short-term restricted cash included in prepaid expenses and other current assets

3,567

3,529

Long-term restricted cash included in other assets

3,310

Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows

$

302,526

$

305,171

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

September 30, 2020

June 30, 2020

September 30, 2019

per diluted

per diluted

per diluted

Dollars in thousands, except per share data 

$

share

$

share

$

share

Net income from continuing operations

$

28,973

$

0.39

$

13,696

$

0.19

$

5,195

$

0.07

Adjustments:

Amortization of intangible assets

10,442

0.14

10,390

0.14

8,931

0.12

Restructuring charges

241

0.00

(29)

(0.00)

1,209

0.02

Loss on extinguishment of debt

5,288

0.07

Merger costs

19

0.00

10

0.00

134

0.00

Restructuring related charges

301

0.00

285

0.00

Tax adjustments (1)

(800)

(0.01)

1,502

0.02

Tax effect of adjustments 

(4,369)

(0.06)

(2,561)

(0.03)

(4,165)

(0.06)

Non-GAAP adjusted net income from continuing operations

$

34,506

$

0.47

$

23,309

$

0.32

$

16,877

$

0.23

   Stock based compensation, pre-tax

3,969

0.05

3,725

0.05

4,941

0.07

   Tax rate

15

%

15

%

15

%

Stock-based compensation, net of tax

3,374

0.05

3,166

0.04

4,200

0.06

Non-GAAP adjusted net income excluding stock-based compensation – continuing operations

$

37,880

$

0.51

$

26,475

$

0.36

$

21,077

$

0.29

Shares used in computing non-GAAP diluted net income per share

74,004

73,860

72,558

Year Ended

September 30, 2020

September 30, 2019

per diluted

per diluted

Dollars in thousands, except per share data 

$

share

$

share

Net income from continuing operations

$

65,035

$

0.88

$

9,554

$

0.13

Adjustments:

Purchase accounting impact on inventory and contracts acquired

184

0.00

Amortization of intangible assets

41,773

0.57

35,161

0.49

Restructuring related charges

301

0.00

285

Restructuring charges

1,366

0.02

1,894

0.03

Loss on extinguishment of debt

14,339

0.20

Merger costs

501

0.01

6,679

0.09

Tax Reform – rate change applied to deferred tax liabilities (2)

1,796

0.02

Tax adjustments (1)

(3,510)

(0.05)

(233)

(0.00)

Tax effect of adjustments

(12,561)

(0.17)

(14,328)

(0.20)

Non-GAAP adjusted net income from continuing operations

$

92,905

$

1.26

$

55,331

$

0.76

Stock-based compensation, pre-tax

16,317

0.22

19,516

0.27

Tax rate

15

%

15

%

Stock-based compensation, net of tax

13,869

$

0.19

16,589

0.23

Non-GAAP adjusted net income excluding stock-based compensation – continuing operations

$

106,774

$

1.45

$

71,920

$

0.99

Shares used in computing non-GAAP diluted net income per share

73,850

72,386

(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

Year Ended

September 30, 

June 30,

September 30, 

September 30, 

September 30, 

Dollars in thousands

2020

2020

2019

2020

2019

GAAP net income

$

28,973

$

13,696

$

412,325

$

64,853

$

437,416

Adjustments:

Less: Loss (income) from discontinued operations

(407,130)

182

(427,862)

Less: Interest income

16

(29)

(602)

(849)

(1,449)

Add: Interest expense

679

810

902

2,944

22,250

Add: Income tax benefit

4,380

5,120

(511)

9,937

(111)

Add: Depreciation

5,295

6,290

5,094

23,723

19,289

Add: Amortization of completed technology

2,813

2,779

2,764

11,007

10,424

Add: Amortization of customer relationships and acquired intangible assets

7,629

7,611

6,167

30,766

24,737

Add: Loss on extinguishment of debt

5,287

14,339

Earnings before interest, taxes, depreciation and amortization

$

49,785

$

36,277

$

24,296

$

142,563

$

99,033

Quarter Ended

Year Ended

September 30, 

June 30,

September 30, 

September 30, 

September 30, 

Dollars in thousands

2020

2020

2019

2020

2019

Earnings before interest, taxes, depreciation and amortization

$

49,785

$

36,277

$

24,296

$

142,563

$

99,033

Adjustments:

Add: Stock-based compensation

3,969

3,725

4,941

16,317

19,516

Add: Restructuring charges

240

(29)

1,209

1,366

1,894

Add: Restructuring related charges

301

285

301

285

Add: Purchase accounting impact on inventory and contracts acquired

184

Add: Merger costs

19

10

134

502

6,679

Adjusted earnings before interest, taxes, depreciation and amortization

$

54,013

$

40,284

$

30,865

$

161,049

$

127,591

Quarter Ended

Dollars in thousands

September 30, 2020

June 30, 2020

September 30, 2019

GAAP gross profit/margin percentage

$

111,969

45.5

%

$

92,788

42.1

%

$

80,154

40.2

%

Adjustments:

Amortization of completed technology

2,813

1.1

2,779

1.3

2,764

1.4

Restructuring related charges

301

0.1

285

0.1

Non-GAAP adjusted gross profit/gross margin percentage

$

114,782

46.6

%

$

95,868

43.5

%

$

83,203

41.8

%

1

Year Ended

Dollars in thousands

September 30, 2020

September 30, 2019

GAAP gross profit/margin percentage

$

380,024

42.4

%

$

316,260

40.5

%

Adjustments:

Amortization of completed technology

11,007

1.2

10,424

1.3

Purchase accounting impact on inventory and contracts acquired

184

Restructuring related charges

301

0.0

285

0

Non-GAAP adjusted gross profit/gross margin percentage

$

391,332

43.6

%

$

327,153

41.9

%

Brooks Semiconductor Solutions Group

Quarter Ended

Dollars in thousands

Sep 30, 2020

Jun 30, 2020

Sep 30, 2019

GAAP gross profit/margin percentage

$

59,435

43.1

%

$

53,524

42.1

%

$

42,262

40.2

%

Adjustments:

Amortization of completed technology

736

0.5

717

0.6

868

0.8

Non-GAAP adjusted gross profit/margin percentage

$

60,171

43.6

%

$

54,241

42.7

%

$

43,130

41.1

%

Brooks Life Sciences Products

Brooks Life Sciences Services

Quarter Ended

Quarter Ended

Dollars in thousands

Sep 30, 2020

Jun 30, 2020

Sep 30, 2019

Sep 30, 2020

Jun 30, 2020

Sep 30, 2019

GAAP gross profit/margin percentage

$

16,701

43.2

%

$

13,258

43.6

%

$

12,575

39.2

%

$

35,832

51.5

%

$

26,006

41.4

%

$

25,316

40.8

%

Adjustments:

Amortization of completed technology

293

0.8

287

0.9

304

0.9

1,784

2.6

1,776

2.8

1,592

2.6

Restructuring related charges

301

0.5

285

0.5

Non-GAAP adjusted gross profit/margin percentage

$

16,994

44.0

%

$

13,545

44.5

%

$

12,879

40.1

%

$

37,616

54.0

%

$

28,083

44.7

%

$

27,193

43.8

%

Brooks Life Sciences Total

Quarter Ended

Dollars in thousands

Sep 30, 2020

Jun 30, 2020

Sep 30, 2019

GAAP gross profit/margin percentage

$

52,533

48.5

%

$

39,264

42.1

%

$

37,891

40.2

%

Adjustments:

Amortization of completed technology

2,077

1.9

2,063

2.2

1,896

2.0

Purchase accounting impact on inventory and contracts acquired

Restructuring related charges

301

0.3

285

0.3

Non-GAAP adjusted gross profit/margin percentage

$

54,610

50.5

%

$

41,628

44.6

%

$

40,072

42.6

%

Brooks Semiconductor Solutions Group

Year Ended September 30,

Dollars in thousands

2020

2019

GAAP gross profit/margin percentage

$

207,896

40.9

%

$

181,659

40.7

%

Adjustments:

Amortization of completed technology

2,908

0.6

3,600

0.8

Purchase accounting impact on inventory and contracts acquired

184

0.0

Non-GAAP adjusted gross profit/margin percentage

$

210,804

41.4

%

$

185,443

41.5

%

Brooks Life Sciences Products

Brooks Life Sciences Services

Year Ended September 30,

Year Ended September 30,

Dollars in thousands

2020

2019

2020

2019

GAAP gross profit/margin percentage

$

55,718

42.9

%

$

43,577

36.6

%

$

116,428

45.0

%

$

91,027

42.3

%

Adjustments:

Amortization of completed technology

1,165

0.9

1,238

1.0

6,935

2.7

5,586

2.6

Restructuring related charges

301

0.1

285

0.1

Non-GAAP adjusted gross profit/margin percentage

$

56,883

43.8

%

$

44,815

37.7

%

$

123,664

47.8

%

$

96,898

45.0

%

Brooks Life Sciences Total

Year Ended September 30,

Dollars in thousands

2020

2019

GAAP gross profit/margin percentage

$

172,146

44.3

%

$

134,604

40.3

%

Adjustments:

Amortization of completed technology

8,100

2.1

6,824

2.0

Restructuring related charges

301

0.1

285

0.1

Non-GAAP adjusted gross profit/margin percentage

$

180,547

46.5

%

$

141,713

42.4

%

Brooks Semiconductor Solutions Group

Brooks Life Sciences Products

Brooks Life Sciences Services

Brooks Life Sciences Total

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Sept 30,

Jun 30,

Sept 30,

Sept 30,

Jun 30,

Sept 30,

Sept 30,

Jun 30,

Sept 30,

Sept 30,

Jun 30,

Sept 30,

Dollars in thousands

2020

2020

2019

2020

2020

2019

2020

2020

2019

2020

2020

2019

GAAP operating profit

$

27,094

$

22,697

$

12,726

$

4,072

$

2,195

$

828

$

11,353

$

2,032

$

3,758

$

15,425

$

4,227

$

4,586

Adjustments:

Amortization of completed technology

736

717

868

293

287

304

1,784

1,776

1,592

2,077

2,063

1,896

Restructuring related charges

301

285

301

285

Non-GAAP adjusted operating profit

$

27,830

$

23,414

$

13,594

$

4,365

$

2,482

$

1,132

$

13,137

$

4,109

$

5,635

$

17,502

$

6,591

$

6,767

Total Segments

Corporate

Total

Quarter Ended

Quarter Ended

Quarter Ended

Sept 30,

Jun 30,

Sept 30,

Sept 30,

Jun 30,

Sept 30,

Sept 30,

Jun 30,

Sept 30,

Dollars in thousands

2020

2020

2019

2020

2020

2019

2020

2020

2019

GAAP operating profit (loss)

$

42,519

$

26,924

$

17,312

$

(8,398)

$

(7,825)

$

(6,700)

$

34,121

$

19,099

$

10,612

Adjustments:

Amortization of completed technology

2,813

2,780

2,764

2,813

2,780

2,764

Amortization of customer relationships and acquired intangible assets

7,629

7,611

6,167

7,629

7,611

6,167

Restructuring charges

241

(29)

1,209

241

(29)

1,209

Merger costs

19

10

134

19

10

134

Restructuring related charges

301

285

301

285

Non-GAAP adjusted operating profit (loss)

$

45,332

$

30,005

$

20,361

$

(509)

$

(233)

$

810

$

44,823

$

29,772

$

21,171

Brooks Semiconductor Solutions Group

Brooks Life Sciences Products

Brooks Life Sciences Services

Brooks Life SciencesTotal

Year Ended September 30,

Year Ended September 30,

Year Ended September 30,

Year Ended September 30,

Dollars in thousands

2020

2019

2020

2019

2020

2019

2020

2019

GAAP operating profit

$

80,043

$

66,176

$

8,188

$

(3,073)

$

21,596

$

16,595

$

29,784

$

13,522

Adjustments:

Amortization of completed technology

2,908

3,600

1,165

1,238

6,935

5,586

8,100

6,824

Purchase accounting impact on inventory and contracts acquired

184

285

285

Restructuring related charges

301

301

Non-GAAP adjusted operating profit

$

82,951

$

69,960

$

9,353

$

(1,835)

$

28,832

$

22,466

$

38,185

$

20,631

Total Segments

Corporate

Total

Year Ended September 30,

Year Ended September 30,

Year Ended September 30,

Dollars in thousands

2020

2019

2020

2019

2020

2019

GAAP operating profit (loss)

$

109,827

$

79,698

$

(31,369)

$

(33,660)

$

78,458

$

46,038

Adjustments:

Amortization of completed technology

11,008

10,424

11,008

10,424

Amortization of customer relationships and acquired intangible assets

30,766

24,737

30,766

24,737

Restructuring charges

1,366

1,894

1,366

1,894

Purchase accounting impact on inventory and contracts acquired

469

469

Merger costs

501

6,679

501

6,679

Restructuring related charges

301

301

Non-GAAP adjusted operating profit (loss)

$

121,136

$

90,591

$

1,264

$

(350)

$

122,400

$

90,241

(PRNewsfoto/Brooks Automation)

SOURCE Brooks Automation