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Brooks Automation Records Strong Q2 Sign Up to receive Daily News Alerts in your E-mail Inbox
Posted on Thursday, May 10, 2007 4:45:00 PM |
Brooks Automation, Inc. announced a 31% year-over-year increase in revenue in the second quarter, ended March 31, 2007, reflecting the effects of its 2006 acquisition of Synetics Solutions from Yaskawa Electric Corp. In addition, the company completed the sale of its software division to Applied Materials on March 30.
Revenue for the provider of automation systems to semiconductor and other complex manufacturers was $194.9 million, up from $148.8 million a year earlier. Net income on a GAAP (generally accepted accounting principles) basis was $107.8 million, or $1.43 per share, compared with year-earlier GAAP income of $4.4 million, or $0.06 per share. By comparison, GAAP net income in the 2007 first quarter was $22.1 million, or $0.30 per share.
Brooks' second-quarter bottom line benefited greatly from the sale of its software division, which garnered $125 million in an all-cash deal announced last November. At the time, CEO Edward C. Grady said, "For Brooks Automation, this transaction will further strengthen our balance sheet and allow us to focus more on our core semiconductor-related hardware businesses."
The company booked a record $213.9 million worth of business in the second quarter, up 29% from year-earlier bookings and 31% from the first quarter of 2007. The bookings included $10 million in orders that were "hung up" in the prior quarter, Grady noted on a conference call with analysts yesterday. He said that market demand is strongest for Brooks' vacuum automation systems, led by its Marathon2 platform. The company snared seven new design-in wins in the quarter; three of which were for its vacuum cryopump products at Asian fabrication plants for ion implant. Brooks' top 10 customers accounted for 54% of revenue, he added.
Citing recent Dataquest market share figures, Grady noted that Brooks is the leader in the semiconductor fab automation market, holding a 27% share in 2006, up from 23% in 2005. He also said that original equipment manufacturers (OEMs) are increasingly outsourcing the design of full systems, which is where Brooks comes in.
"Our customers value our ability to integrate their automation and vacuum requirements," he told analysts. As the semiconductor industry has shifted to 300-millimeter wafer geometries, the complexity and volume of tools needed in each fabrication plant have increased. Company executives estimated that Brooks is growing roughly 3% to 5% faster than the overall semiconductor capital equipment market.
Even as Brooks offers outsourcing services to customers that want to turn over the design of their manufacturing systems, the company is pursuing its own sourcing strategy — for parts and subassemblies on legacy products, customer support, and service — with companies overseas to lower its costs and support its customers more effectively, it said, especially in Asia markets, including Japan, Taiwan, Korea, and soon China.
The company's guidance for the third quarter is that revenue will range from $190 million to $200 million, and GAAP EPS will be in the range of $0.23 to $0.27. Brooks anticipates that it will deliver "respectable results" for the year-ending September quarter, but said the outlook for the full second half of 2007 is unclear at this time.
Meanwhile, the board is conducting a search for a CEO to replace Grady, who will step down in September, having already extended his tenure beyond a five-year contract that expired last year. Bob Woodbury, CFO, said Grady will likely continue his affiliation with the company in the role of a board member.
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