PR Newswire | Jul 30, 2020 04:06PM EDT

June 30, 2020, and Announces Quarterly Cash Dividend

07/30 15:05 CDT

Brooks Automation Reports Results of its Third Quarter of Fiscal 2020, Ended June 30, 2020, and Announces Quarterly Cash DividendContinued Revenue Growth and Earnings Expansion on Solid Execution Across Both Segments CHELMSFORD, Mass., July 30, 2020

CHELMSFORD, Mass., July 30, 2020 /PRNewswire/ -- Brooks Automation, Inc. (Nasdaq: BRKS) today reported financial results for the third fiscal quarter, ended June 30, 2020.

Financial Results Summary





Quarter Ended

Dollars in millions, June 30, March 31, June 30, Change vs. except per share data

2020 2020 2019 Prior Qtr Prior Year

Revenue $220 $220 $204 0 %8 %

Semiconductor $127 $125 $116 2 %9 %Solutions

Life Sciences $93 $95 $88 (2) %6 %



Diluted EPS Continuing$0.19 $0.12 $0.01 49 %N/M Operations

Diluted EPS Total $0.19 $0.12 $0.10 50 %85 %



Non-GAAP Diluted EPS $0.32 $0.25 $0.20 26 %60 %Continuing Operations

Management Comments"Despite the current environment's headwinds, we delivered a strong performance in the quarter," commented Steve Schwartz, president and CEO. "Our Life Sciences business witnessed robust demand for its sample management offerings and gene synthesis services. Due to many customer lab closures around the world, our gene sequencing business had a slow start to the quarter but has steadily increased and is now approaching pre-COVID levels. We continue to see a ramp in Semiconductor with increased demand for both automation systems and robots. The real story here is about the relentless team of Brooks employees working through the most difficult of environments without missing a beat!"

Summary of GAAP Results for Continuing Operations

* Revenue for the third fiscal quarter was $220 million, up 8% year over year. Diluted EPS from continuing operations was $0.19 per share compared to $0.01 per share in the third quarter of 2019. * Life Sciences revenue of $93 million grew 6% year over year and was down 2% sequentially. Year-over-year organic growth was 5%, led by consumables, instruments, and storage services. GENEWIZ revenue declined 9% sequentially but remained 1% above the third quarter 2019 revenue. * Semiconductor Solutions revenue was $127 million, an increase of 9% year over year and 2% sequentially. * GAAP operating income was $19 million, compared to $16 million in the third quarter of 2019. GAAP operating margin at 8.7% was 60 basis points higher year over year and 210 basis points higher sequentially. * Net interest expense was $0.8 million for the quarter, a $7.1 million reduction from the third quarter of 2019.

Summary of Non-GAAP Results for Continuing Operations

* Diluted EPS from continuing operations for the third quarter was $0.32, up 26% from the second quarter of 2020 and up 60% over the prior year. * Operating income was $30 million, an increase of 15% sequentially and year over year. Operating margin was 13.5%, up 180 basis points sequentially and 80 basis points year over year. The margin expansion was driven primarily by stronger gross margin. * Gross margin was 43.5%, an increase of 130 basis points sequentially and 110 basis points year over year. Gross margin expansion in both segments, Life Sciences and Semiconductor Solutions, drove the improvement year over year, while the sequential momentum was driven by the Semiconductor business. * Life Sciences operating margin was 7.1%, approximately flat year over year and lower by 150 basis points from the prior quarter. Gross margin performance of 44.6%, up 140 basis points year over year and lower by 120 basis points sequentially, was the primary driver. The Life Sciences Products business reported 40 basis points of improvement sequentially but was more than offset by the lower margins of the Life Sciences Services business. * Semiconductor Solutions operating margin was 18.4%, an increase of 100 basis points from the prior year and up 510 basis points from the second quarter of 2020. Gross margin of 42.7%, up 100 basis points year over year and 320 basis points sequentially, was the primary driver of operating margin expansion. * Adjusted EBITDA was $40 million, up 12% from the third quarter of 2019 and 16% sequentially.

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 was $26 million for the quarter and on a year-to-date basis, and cash flow from operations, excluding the $92 million tax payment made in the second quarter on the gain on the sale of the Semiconductor cryogenics business, was $78 million, an increase of $19 million from the same period the prior year. * The Company ended the third quarter with a total balance of cash, cash equivalents, restricted cash, and marketable securities of $263 million. With total debt of $51 million, net cash was $212 million.

Quarterly Cash DividendThe Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on September 25, 2020 to stockholders of record on September 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 Fourth Quarter Fiscal 2020The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2020. Revenue is expected to be in the range of $229 million to $241 million and non-GAAP diluted earnings per share is expected to be in the range of $0.32 to $0.40. GAAP diluted earnings per share for the fourth fiscal quarter is expected to be in the range of $0.19 to $0.27.

Conference Call and WebcastBrooks management will webcast its third 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 800-754-1366 (US & Canada only) or +1-212-231-2930 for international callers to listen to the live webcast.

Regulation G - Use of Non-GAAP financial MeasuresThe 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 1934Some 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 AutomationBrooks (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 NamaroffDirector, Investor RelationsBrooks Automation978.262.2635mark.namaroff@brooks.com

Sherry DinsmoreBrooks Automation978.262.2400sherry.dinsmore@brooks.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,

2020 2019 2020 2019

Revenue

Products $142,323$128,397$413,329$381,827

Services 78,027 75,483 237,748 199,810

Total revenue 220,350 203,880 651,077 581,637

Cost of revenue

Products 81,989 77,203 245,930 229,580

Services 45,573 43,167 137,092 115,951

Total cost of revenue 127,562 120,370 383,022 345,531

Gross profit 92,788 83,510 268,055 236,106

Operating expenses

Research and development 14,004 14,235 43,727 41,485

Selling, general and 59,714 52,596 178,866 158,509 administrative

Restructuring charges (29) 256 1,125 685

Total operating expenses 73,689 67,087 223,718 200,679

Operating income 19,099 16,423 44,337 35,427

Interest income 29 108 865 847

Interest expense (810) (8,041) (2,265) (21,348)

Loss on extinguishment of debt - - - (9,051)

Other income (expenses), net 498 (309) (1,318) (1,116)

Income before income taxes 18,816 8,181 41,619 4,759

Income tax benefit 5,120 7,260 5,557 400

Income from continuing 13,696 921 36,062 4,359 operations

Income (loss) from discontinued - 6,333 (182) 20,731 operations, net of tax

Net income $13,696 $7,254 $35,880 $25,090

Basic net income per share:

Income from continuing $0.19 $0.01 $0.48 $0.06 operations

Income (loss) from discontinued - 0.09 (0.00) 0.29 operations, net of tax

Basic net income per share $0.19 $0.10 $0.49 $0.35

Diluted net income per share:

Income from continuing $0.19 $0.01 $0.49 $0.06 operations

Income (loss) from discontinued - 0.09 (0.00) 0.29 operations, net of tax

Diluted net income per share $0.19 $0.10 $0.49 $0.35



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

Basic 73,759 72,188 73,473 71,903

Diluted 73,860 72,470 73,766 72,313



BROOKS AUTOMATION, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share and per share data)



June 30, September 30,

2020 2019



Assets

Current assets

Cash and cash equivalents $256,633 $301,642

Marketable securities 136 34,124

Accounts receivable, net 183,167 165,602

Inventories 117,686 99,445

Prepaid expenses and other current assets 44,389 46,332

Total current assets 602,011 647,145

Property, plant and equipment, net 111,416 100,669

Long-term marketable securities 2,939 2,845

Long-term deferred tax assets 3,489 5,064

Goodwill 500,062 488,602

Intangible assets, net 226,623 251,168

Other assets 57,377 20,506

Total assets $1,503,917$1,515,999

Liabilities and Stockholders' Equity

Current liabilities

Current portion of long-term debt $828 $829

Accounts payable 70,344 58,919

Deferred revenue 31,162 29,435

Accrued warranty and retrofit costs 7,881 7,175

Accrued compensation and benefits 33,847 31,375

Accrued restructuring costs 437 1,040

Accrued income taxes payable 16,253 99,263

Accrued expenses and other current liabilities 45,053 44,234

Total current liabilities 205,805 272,270

Long-term debt 49,563 50,315

Long-term tax reserves 19,609 18,274

Long-term deferred tax liabilities 10,613 20,636

Long-term pension liabilities 5,724 5,338

Long-term operating lease liabilities 29,280 -

Other long-term liabilities 8,470 10,212

Total liabilities 329,064 377,045

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, 87,222,115 shares issued and 73,760,246 shares outstanding at June 30, 2020, 872 857 85,759,700 shares issued and 72,297,831 shares outstanding at September 30, 2019

Additional paid-in capital 1,936,619 1,921,954

Accumulated other comprehensive income 10,977 3,511

Treasury stock at cost - 13,461,869 shares (200,956) (200,956)

Accumulated deficit (572,659) (586,412)

Total stockholders' equity 1,174,853 1,138,954

Total liabilities and stockholders' equity $1,503,917$1,515,999

BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)



Nine Months Ended

June 30,

2020 2019

Cash flows from operating activities

Net income $35,880 $25,090

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

Depreciation and amortization 49,760 40,429

Impairment of property, plant and equipment 301 -

Stock-based compensation 12,348 15,172

Amortization of premium on marketable securities and 177 766 deferred financing costs

Earnings of equity method investments - (4,876)

Deferred income taxes (9,319) (9,207)

Loss on extinguishment of debt - 9,051

Other gains on disposals of assets 163 156

Loss on sale of divestiture, net of tax 319 -

Taxes paid stemming from divestiture (91,500) -

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable (15,719) (6,456)

Inventories (17,695) (6,431)

Prepaid expenses and current assets 12,554 2,109

Accounts payable 11,032 (6,761)

Deferred revenue 214 4,959

Accrued warranty and retrofit costs 580 1,022

Accrued compensation and tax withholdings 1,928 (9,404)

Accrued restructuring costs (609) (361)

Proceeds from recovery on insurance claim - 1,082

Accrued expenses and current liabilities (4,347) 1,901

Net cash (used in) provided by operating activities (13,933) 58,241

Cash flows from investing activities

Purchases of property, plant and equipment (29,685) (15,548)

Purchases of marketable securities (10,843) (1,290)

Sales of marketable securities 2,492 48,904

Maturities of marketable securities 42,226 2,557

Acquisitions, net of cash acquired (15,743) (442,704)

Purchase of other investment (1,000) -

Net cash used in investing activities (12,553) (408,081)

Cash flows from financing activities

Proceeds from term loans, net of discount - 686,386

Proceeds from issuance of common stock 2,332 1,548

Payments of financing costs - (687)

Principal payments on debt (828) (354,940)

Payments of capital leases (957) (849)

Common stock dividends paid (22,127) (21,658)

Net cash (used in) provided by financing activities (21,580) 309,800

Effects of exchange rate changes on cash and cash 3,095 (816) equivalents

Net decrease in cash and cash equivalents (44,971) (40,856)

Cash and cash equivalents and restricted cash, 305,171 197,708 beginning of period

Cash and cash equivalents and restricted cash, end of$260,200 $156,852 period



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

Cash and cash equivalents $256,633 $156,802

Restricted cash included in prepaid expenses and 3,567 50 other current assets

Total cash, cash equivalents and restricted cash $260,200 $156,852 shown in the consolidated statements of cash flows

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

June 30, 2020 March 31, 2020 June 30, 2019

per diluted per diluted per diluted

Dollars in thousands, $ share $ share $ share except per share data

Net income from $13,696 $0.19 $9,192 $0.12 $921 $0.01 continuing operations

Adjustments:

Amortization of intangible 10,390 0.14 10,355 0.14 9,050 0.12 assets

Restructuring (29) (0.00) 578 0.01 256 0.00 charges

Loss on extinguishment - - - - - - of debt

Merger costs 10 0.00 279 0.00 156 0.00

Restructuring related 301 0.00 - - - - charges

Tax Reform ^ - - - - 4,281 0.06 (1)

Tax adjustments ^ 1,502 0.02 1,046 0.01 974 0.01 (1)

Tax effect of (2,561) (0.03) (2,997) (0.04) (1,345) (0.02) adjustments

Non-GAAP adjusted net income from $23,309 $0.32 $18,453 $0.25 $14,293 $0.20 continuing operations

Stock based compensation, 3,725 0.05 4,214 0.06 5,277 0.07 pre-tax

Tax rate 15 % - 15 % - 15 % -

Stock-based compensation, 3,166 0.04 3,582 0.05 4,485 0.06 net of tax

Non-GAAP adjusted net income excluding $26,475 $0.36 $22,035 $0.30 $18,778 $0.26 stock-based compensation - continuing operations



Shares used in computing non-GAAP - 73,860 - 73,789 - 72,470 diluted net income per share





Nine Months Ended

June 30, 2020 June 30, 2019

per diluted per diluted

Dollars in thousands, except per share $ share $ share data

Net income from continuing operations $36,062 $0.49 $4,359 $0.06

Adjustments: -

Purchase accounting impact on inventory - - 184 0.00 and contracts acquired

Amortization of intangible assets 31,331 0.42 26,230 0.36

Restructuring related charges 301 -

Restructuring charges 1,125 0.02 685 0.01

Loss on extinguishment of debt - - 9,051 0.13

Merger costs 484 0.01 6,546 0.09

Tax Reform - rate change applied to - - 1,796 0.02 deferred tax liabilities^ (2)

Tax adjustments ^(1) (2,789) (0.04) (1,275) (0.02)

Tax effect of adjustments (8,113) (0.11) (9,122) (0.13)

Non-GAAP adjusted net income from $58,401 $0.79 $38,454 $0.53 continuing operations

Stock-based compensation, pre-tax 12,348 0.17 14,574 0.20

Tax rate 15 % - 15 % -

Stock-based compensation, net of tax 10,496 $0.14 12,388 0.17

Non-GAAP adjusted net income excluding stock-based compensation - continuing $68,897 $0.93 $50,842 $0.70 operations



Shares used in computing non-GAAP - 73,766 - 72,313 diluted net income per share



The Company elected to apply the tax benefit related to the stock compensation windfall realized in the quarters ended December 31, 2019 (1)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 Nine Months Ended

June 30, March 31,June 30, June 30, June 30,

Dollars in thousands 2020 2020 2019 2020 2019

GAAP net income $ 13,696$9,127 $ 7,254 $35,880 $ 25,090

Adjustments:

Less: Loss (income) from discontinued - 65 (6,333) 182 (20,731)operations

Less: Interest income (29) (137) (108) (865) (847)

Add: Interest expense 810 718 8,041 2,265 21,348

Add: Income tax benefit 5,120 3,400 7,260 5,557 400

Add: Depreciation 6,290 6,247 5,037 18,429 14,196

Add: Amortization of 2,779 2,740 2,863 8,194 7,661 completed technology

Add: Amortization of customer relationships 7,611 7,615 6,187 23,137 18,569 and acquired intangible assets

Add: Loss on - - - - 9,051 extinguishment of debt

Earnings before interest, taxes, $ 36,277$29,775 $ 30,201 $92,779 $ 74,737 depreciation and amortization





Quarter Ended Nine Months Ended

June 30, March 31,June 30, June 30, June 30,

Dollars in thousands 2020 2020 2019 2020 2019

Earnings before interest, taxes, $ 36,277$29,775 $ 30,201 $92,779 $ 74,737 depreciation and amortization

Adjustments:

Add: Stock-based 3,725 4,214 5,277 12,348 14,574 compensation

Add: Restructuring (29) 578 256 1,125 685 charges

Add: Restructuring 301 - 301 related charges

Add: Purchase accounting impact on - - - - 184 inventory and contracts acquired

Add: Merger costs 10 279 156 484 6,546

Adjusted earnings before interest, taxes,$ 40,284$34,846 $ 35,890 $107,037$ 96,726 depreciation and amortization





Quarter Ended

Dollars in June 30, 2020 March 31, 2020 June 30, 2019 thousands

GAAP gross profit/margin$92,78842.1% $90,281 41.0% $83,510 41.0% percentage

Adjustments:

Amortization of completed 2,779 1.3 2,740 1.2 2,863 1.4 technology

Restructuring related 301 0.1 - 0.0 - 0.0 charges

Non-GAAP adjusted gross profit/$95,86843.5% $93,021 42.2% $86,373 42.4% gross margin percentage







Nine Months Ended

Dollars in thousands June 30, 2020 June 30, 2019

GAAP gross profit/margin percentage $268,05541.2% $236,10640.6%

Adjustments:

Amortization of completed technology 8,194 1.3 7,661 1.3

Purchase accounting impact on - - 184 0.0 inventory and contracts acquired

Restructuring related charges 301 0.0 - -

Non-GAAP adjusted gross profit/gross$276,55042.5% $243,95141.9% margin percentage

Brooks Semiconductor Solutions Group

Quarter Ended

Dollars in thousandsJune 30, 2020 March 31, 2020 June 30, 2019

GAAP gross profit/ $53,52442.1%$48,637 38.9%$47,493 40.9%margin percentage

Adjustments:

Amortization of 717 0.6 722 0.6 879 0.8 completed technology

Non-GAAP adjusted gross profit/margin $54,24142.7%$49,359 39.5%$48,372 41.7%percentage



Brooks Life Sciences

Quarter Ended

Dollars in thousandsJune 30, 2020 March 31, 2020 June 30, 2019

GAAP gross profit/ $39,26442.1%$41,663 43.7%$36,017 41.0%margin percentage

Adjustments:

Amortization of 2,063 2.2 2,017 2.1 1,984 2.3 completed technology

Restructuring 301 0.3 - - - - related charges

Non-GAAP adjusted gross profit/margin $41,62844.6%$43,680 45.8%$38,001 43.3%percentage



Brooks Semiconductor Solutions Group

Nine Months Ended

Dollars in thousands June 30, 2020 June 30, 2019

GAAP gross profit/margin percentage $148,44340.0%$139,39340.8%

Adjustments:

Amortization of completed technology 2,172 0.6 2,732 0.8

Purchase accounting impact on - - 184 0.1 inventory and contracts acquired

Non-GAAP adjusted gross profit/margin $150,61540.6%$142,30941.7%percentage



Brooks Life Sciences

Nine Months Ended

Dollars in thousands June 30, 2020 June 30, 2019

GAAP gross profit/margin percentage $119,61242.7%$96,713 40.3%

Adjustments:

Amortization of completed technology 6,022 2.1 4,928 2.1

Restructuring related charges 301 0.1 - -

Non-GAAP adjusted gross profit/margin $125,93544.9%$101,64142.3%percentage

Brooks Semiconductor Solutions GroupBrooks 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 thousands2020 2020 2019 2020 2020 2019 2020 2020 2019

GAAP operating $22,697 $15,984 $19,322 $ 4,227 $ 6,100 $4,202 $26,924 $ 22,084 $ 23,524 profit

Adjustments:

Amortization of 717 722 879 2,063 2,017 1,984 2,780 2,739 2,863 completed technology

Restructuring - - - 301 - - 301 - - related charges

Non-GAAP adjusted $23,414 $16,706 $20,201 $ 6,591 $ 8,117 $6,186 $30,005 $ 24,823 $ 26,387 operating profit





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 thousands2020 2020 2019 2020 2020 2019 2020 2020 2019

GAAP operating $26,924 $22,084 $23,524 $ (7,825) $ (7,512) $(7,101) $19,099 $ 14,572 $ 16,423 profit (loss)

Adjustments:

Amortization of 2,780 2,739 2,863 - - - 2,780 2,739 2,863 completed technology

Amortization of customer relationships and - - - 7,611 7,615 6,187 7,611 7,615 6,187 acquired intangible assets

Restructuring - - - (29) 578 256 (29) 578 256 charges

Merger costs - - - 10 279 156 10 279 156

Restructuring 301 - - - - 301 - - related charges

Non-GAAP adjusted operating profit $30,005 $24,823 $26,387 $ (233) $ 960 $(502) $29,772 $ 25,783 $ 25,885 (loss)





Brooks Semiconductor Solutions GroupBrooks Life Sciences Total Segments

Nine Months Ended Nine Months Ended Nine Months Ended

Dollars in thousands June 30, 2020 June 30, 2019June 30, 2020June 30, 2019June 30, 2020June 30, 2019

GAAP operating profit $ 52,949 $ 53,450 $14,359 $8,936 $ 67,308 $ 62,386

Adjustments:

Amortization of completed technology 2,172 2,732 6,022 4,928 8,194 7,661

Purchase accounting impact on inventory and contracts - 184 - - - 184 acquired

Restructuring related charges - - 301 - 301 -

Non-GAAP adjusted operating profit $ 55,121 $ 56,366 $20,682 $13,864 $ 75,803 $ 70,231





Total Segments Corporate Total

Nine Months Ended Nine Months Ended Nine Months Ended

Dollars in thousands June 30, 2020 June 30, 2019June 30, 2020June 30, 2019June 30, 2020June 30, 2019

GAAP operating profit (loss) $ 67,308 $ 62,386 $(22,971) $(26,959) $ 44,337 $ 35,427

Adjustments:

Amortization of completed technology 8,194 7,661 - - 8,194 7,661

Amortization of customer relationships and acquired - - 23,137 18,569 23,137 18,569 intangible assets

Restructuring charges - - 1,125 685 1,125 685

Purchase accounting impact on inventory and contracts - 184 - - - 184 acquired

Merger costs - - 484 6,546 484 6,546

Restructuring related charges 301 - - - 301 -

Non-GAAP adjusted operating profit (loss) $ 75,803 $ 70,231 $1,775 $(1,159) $ 77,578 $ 69,072

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SOURCE Brooks Automation