PR Newswire | May 10, 2021 04:06PM EDT

31, 2021, and Announces Quarterly Cash Dividend

05/10 15:06 CDT

Brooks Automation Reports Results of Second Quarter of Fiscal 2021, Ended March 31, 2021, and Announces Quarterly Cash DividendRecord Revenue and Continued Margin Expansion in Both Life Sciences and Semiconductor Solutions CHELMSFORD, Mass., May 10, 2021

CHELMSFORD, Mass., May 10, 2021 /PRNewswire/ -- Brooks Automation, Inc. (Nasdaq: BRKS) today reported financial results for the second fiscal quarter of 2021, ended March 31, 2021.





Financial Results Summary

Quarter Ended

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

2021 2020 2020 Prior Qtr Prior Year

Revenue $287 $250 $220 15 %30 %

Semiconductor $157 $131 $125 20 %26 %Solutions

Life Sciences $130 $118 $95 10 %36 %



Diluted EPS Continuing$0.32 $0.36 $0.12 (12) %158 %Operations

Diluted EPS Total $0.32 $0.35 $0.12 (9) %158 %



Non-GAAP Diluted EPS $0.61 $0.47 $0.25 30 %145 %Continuing Operations



Adjusted EBITDA $71 $58 $35 23 %105 %





Today the Company also announced plans to separate into two independent, publicly traded companies by establishing a standalone life sciences company, comprised of the Life Sciences business and a standalone automation company, comprised of the Semiconductor Solutions business. The separation is expected to be completed by end of the calendar year 2021 and does not affect the presentation of the financial statements included within this release. Please see the Company's separate press release for further information.

Management Comments"Record level revenue in the second quarter is yet another proof point of the strength and continued momentum of our Life Sciences and Semiconductor Solutions businesses," commented Steve Schwartz, President and CEO. "While today's separation announcement reflects years of strategic investment and innovation, we believe that the Life Sciences and Semiconductor Solutions businesses are now of size and scale to operate and benefit from their own standalone structures. Looking ahead, we see strong demand in both businesses supporting continued acceleration as we enter the second half of our fiscal year."

Summary of GAAP ResultsSecond Quarter, Fiscal 2021

* Revenue for the second quarter was $287 million, up 30% year over year, supported by growth in both Life Sciences and Semiconductor Solutions. Diluted EPS from continuing operations was $0.32 per share compared to $0.12 per share in the second quarter of 2020. * Life Sciences revenue of $130 million grew 36% year over year. Year-over-year organic growth was also 36%. Life Sciences Products grew 69% year over year, and Life Sciences Services grew 20%. Excluding the effect of the recent exit of the RUCDR alliance, Life Science Services grew 28%. * Semiconductor Solutions revenue was $157 million, an increase of 26% year over year. * Operating income was $31 million, compared to $15 million in the second quarter of 2020. Operating margin was 10.6%, up 400 basis points year over year and was driven by gross margin of 44.4%, up 340 basis points year over year. The gross profit result in the second quarter of 2021 includes a charge of approximately $5 million related to liabilities for import tariffs. Operating expenses in the quarter include approximately $12 million in unallocated corporate expenses related to strategic M&A initiatives, including the preparation to separate the two businesses.

In the following analysis of the non-GAAP results, Brooks adjusted the GAAP results 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 and/or representative of the normal operations of the business. In this context, the Company has removed the effect of the charge in the second quarter of 2021 related to liabilities for import tariffs related to imports in prior fiscal years. The cost of import tariffs which pertain to the current fiscal year imports remain in the results discussed below. A description of all adjustments and reconciliation of non-GAAP measures to the most nearly comparable GAAP measures follow the consolidated balance sheets, statements of operations and statements of cash flows included in this release.

Summary of Non-GAAP Results for Continuing OperationsSecond Quarter, Fiscal 2021

* Diluted EPS for the second quarter was $0.61, up 145% year over year. * Operating income was $58 million, an increase of 124% year over year, and operating margin was 20.2%, up 850 basis points year over year. Gross margin of 47.1% was up 490 basis points year over year. Year-over-year gross margin expansion in both Life Sciences and Semiconductor Solutions drove this improvement. * Life Sciences operating margin was 19.0%, up from 8.5% in the prior year. The year-over-year improvement was driven by gross margin of 50.5%, up 460 basis points year over year. An additional 590 basis points improvement came from operating leverage, as revenue grew 36% year over year while operating expense only grew 15% year over year. The 460 basis point year-over-year improvement in Life Sciences gross margin was driven by performance improvement of 280 basis points and 180 basis points of favorable mix as a result of exiting the RUCDR alliance agreement. * Semiconductor Solutions operating margin was 21.2%, an increase of 780 basis points from the prior year. Gross margin was 44.4%, up 490 basis points year over year, driven by growth and favorable mix in vacuum robots and systems. * Adjusted EBITDA was $71 million, up 105% from the second quarter of 2020 and 23% sequentially.

Cash and Liquidity

* Cash flow from operations was $34 million for the quarter, an increase of $9 million year over year, when excluding from the second quarter of fiscal year 2020 period, the $92 million of taxes paid by the Company related to its sale of the semiconductor cryogenics business in fiscal year 2019. * The Company ended the second fiscal quarter of 2021 with a total balance of cash, cash equivalents, restricted cash, and marketable securities of $334 million. With total debt of $50 million, net cash was $284 million. Subsequent to the quarter end, on April 29, 2021, the Company acquired Precise Automation, Inc. for $70 million in cash, subject to working capital and other adjustments.

Quarterly Cash DividendThe Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on June 25, 2021 to stockholders of record on June 4, 2021. 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 Third Quarter Fiscal 2021The Company announced revenue and earnings guidance for the third quarter of fiscal 2021. Revenue is expected to be in the range of $300 million to $320 million and non-GAAP diluted earnings per share is expected to be in the range of $0.65 to $0.75. GAAP diluted earnings per share for the third fiscal quarter is expected to be in the range of $0.46 to $0.56.

Conference Call and WebcastBrooks management will webcast its second 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 800-913-8744 (US & Canada only) or +1-212-271-4615 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 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.

BROOKS INVESTOR CONTACTS:

Sara SilvermanDirector of Investor RelationsBrooks Automation978.262.2635sara.silverman@brooks.com

Sherry DinsmoreBrooks Automation978.262.4301sherry.dinsmore@brooks.com

BROOKS AUTOMATION, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data)



Three Months Ended Six Months Ended

March 31, March 31,

2021 2020 2021 2020

Revenue

Products $190,369$139,144$349,985$271,006

Services 96,217 81,083 186,104 159,721

Total revenue 286,586 220,227 536,089 430,727

Cost of revenue

Products 105,581 83,970 197,084 163,941

Services 53,731 45,976 98,603 91,519

Total cost of revenue 159,312 129,946 295,687 255,460

Gross profit 127,274 90,281 240,402 175,267

Operating expenses

Research and development 16,943 15,322 33,026 29,723

Selling, general and 79,734 59,809 145,763 119,152administrative

Restructuring charges 92 578 179 1,154

Total operating expenses 96,769 75,709 178,968 150,029

Operating income 30,505 14,572 61,434 25,238

Interest income 18 137 94 836

Interest expense (452) (718) (1,008) (1,455)

Other income (expenses), net 149 (1,399) 1,478 (1,816)

Income before income taxes 30,220 12,592 61,998 22,803

Income tax provision 6,288 3,400 11,058 437

Income from continuing 23,932 9,192 50,940 22,366 operations

Loss from discontinued (184) (65) (1,164) (182) operations, net of tax

Net income $23,748 $9,127 $49,776 $22,184

Basic net income per share:

Income from continuing $0.32 $0.12 $0.69 $0.30 operations

Loss from discontinued (0.00) (0.00) (0.02) (0.00) operations, net of tax

Basic net income per share $0.32 $0.12 $0.67 $0.30

Diluted net income per share:

Income from continuing $0.32 $0.12 $0.68 $0.30 operations

Loss from discontinued (0.00) (0.00) (0.02) (0.00) operations, net of tax

Diluted net income per share $0.32 $0.12 $0.67 $0.30



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

Basic 74,265 73,708 74,142 73,331

Diluted 74,414 73,789 74,367 73,752



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



March 31, September 30,

2021 2020



Assets

Current assets

Cash and cash equivalents $320,105 $295,649

Marketable securities 101 67

Accounts receivable, net 225,389 188,291

Inventories 127,987 114,834

Prepaid expenses and other current assets 50,908 50,612

Total current assets 724,490 649,453

Property, plant and equipment, net 132,420 117,665

Long-term marketable securities 3,485 3,101

Long-term deferred tax assets 9,864 4,979

Goodwill 513,093 501,536

Intangible assets, net 209,899 218,325

Other assets 70,845 64,066

Total assets $1,664,096$1,559,125

Liabilities and Stockholders' Equity

Current liabilities

Current portion of long-term debt $414 $827

Accounts payable 77,741 61,758

Deferred revenue 36,793 31,357

Accrued warranty and retrofit costs 8,044 8,201

Accrued compensation and benefits 38,504 43,267

Accrued restructuring costs 58 181

Accrued income taxes payable 23,889 10,094

Accrued expenses and other current liabilities 80,203 55,433

Total current liabilities 265,646 211,118

Long-term debt 49,653 49,588

Long-term tax reserves 19,707 19,168

Long-term deferred tax liabilities 15,442 17,798

Long-term pension liabilities 6,353 6,406

Long-term operating lease liabilities 32,749 31,855

Other long-term liabilities 8,520 9,578

Total liabilities 398,070 345,511

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, 87,755,666 shares issued and 74,293,797 shares outstanding at March 31, 2021, 878 873 87,293,710 shares issued and 73,831,841 shares outstanding at September 30, 2021

Additional paid-in capital 1,959,619 1,942,850

Accumulated other comprehensive income 22,637 21,919

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

Accumulated deficit (516,152) (551,072)

Total stockholders' equity 1,266,026 1,213,614

Total liabilities and stockholders' equity $1,664,096$1,559,125

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



Six Months Ended

March 31,

2021 2020

Cash flows from operating activities

Net income $49,776 $22,184

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

Depreciation and amortization 31,543 33,079

Stock-based compensation 14,191 8,624

Amortization of premium on marketable securities and 113 94 deferred financing costs

Deferred income taxes (10,161) (9,477)

Other gains on disposals of assets 51 125

Adjustment to the gain on divestiture, net of tax 948 319

Taxes paid stemming from divestiture - (91,500)

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable (35,033) (12,670)

Inventories (11,301) (9,094)

Prepaid expenses and current assets 3,157 5,374

Accounts payable 14,136 5,807

Deferred revenue 4,659 (1,478)

Accrued warranty and retrofit costs (261) 735

Accrued compensation and tax withholdings (5,371) (522)

Accrued restructuring costs (124) (112)

Accrued expenses and current liabilities 21,619 8,455

Net cash provided by (used in) operating activities 77,942 (40,057)

Cash flows from investing activities

Purchases of property, plant and equipment (25,531) (21,170)

Purchases of marketable securities (75) (10,843)

Sales of marketable securities 25 2,492

Maturities of marketable securities - 42,226

Adjustment to proceeds from divestiture (1,802) -

Acquisitions, net of cash acquired (15,061) (15,743)

Issuance of a note receivable - (1,000)

Net cash used in investing activities (42,444) (4,038)

Cash flows from financing activities

Proceeds from term loans, net of discount - -

Proceeds from issuance of common stock 2,583 2,330

Payments of financing costs - -

Principal payments on debt (414) (414)

Payments of finance leases (638) (639)

Common stock dividends paid (14,856) (14,747)

Net cash used in financing activities (13,325) (13,470)

Effects of exchange rate changes on cash and cash 6,051 (1,803) equivalents

Net increase (decrease) in cash, cash equivalents and 28,224 (59,368)restricted cash

Cash, cash equivalents and restricted cash, beginning 302,526 305,171 of period

Cash and cash equivalents and restricted cash, end of $330,750 $245,803 period



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

Cash and cash equivalents $320,105 $242,274

Short-term restricted cash included in prepaid 3,570 3,529 expenses and other current assets

Long-term restricted cash included in other assets 7,075 -

Total cash, cash equivalents and restricted cash shown$330,750 $245,803 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 adjusts 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. For the three and six months ended March 31, 2021, management has excluded a charge related to liabilities for import tariffs related to imports in prior fiscal years. The cost of import tariffs which pertain to the current fiscal year imports were not removed from non-GAAP results. 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

March 31, 2021 December 31, 2020 March 31, 2020

Dollars in thousands, per diluted per diluted per dilutedexcept per $ $ $ share share share share data

Net income from $23,932 $0.32 $27,007 $0.36 $9,192 $0.12 continuing operations

Adjustments:

Amortization of intangible 9,920 0.13 9,745 0.13 10,355 0.14 assets

Restructuring 92 0.00 87 0.00 578 0.01 charges

Tariff 5,497 - - - - - adjustment

Merger and acquisition 11,843 0.16 2,991 0.04 279 0.00 costs

Tax adjustments ^ 639 0.01 (1,999) (0.03) 1,046 0.01 (1)

Tax effect of (6,283) (0.08) (2,880) (0.04) (2,997) (0.04) adjustments

Non-GAAP adjusted net income from $45,640 $0.61 $34,951 $0.47 $18,453 $0.25 continuing operations

Stock based 6,710 0.09 6,710 0.09 4,214 0.06 compensation, pre-tax

Tax rate 15 % - 15 % - 15 % -

Stock-based compensation, 5,704 0.08 5,704 0.08 3,582 0.05 net of tax

Non-GAAP adjusted net income excluding $51,344 $0.69 $40,655 $0.55 $22,035 $0.30 stock-based compensation - continuing operations



Shares used in computing non-GAAP - 74,414 - 74,283 - 73,789 diluted net income per share



Six Months Ended

March 31, 2021 March 31, 2020

Dollars in thousands, per diluted per dilutedexcept per share data $ $ share share

Net income from continuing $50,940 $0.68 $22,366 $0.30 operations

Adjustments:

Amortization of intangible 19,665 0.26 20,940 0.28 assets

Restructuring charges 179 0.00 1,154 0.02

Tariff adjustment 5,497 0.07 - -

Merger and acquisition 14,834 0.20 473 0.01 costs

Tax adjustments ^(1) (1,359) (0.02) (4,167) (0.06)

Tax effect of adjustments (9,165) (0.12) (5,676) (0.08)

Non-GAAP adjusted net income from continuing $80,591 $1.08 $35,090 $0.48 operations

Stock-based compensation, 14,191 0.19 8,624 0.12 pre-tax

Tax rate 15 % - 15 % -

Stock-based compensation, 12,062 $0.16 7,330 0.10 net of tax

Non-GAAP adjusted net income excluding $92,653 $1.25 $42,420 $0.58 stock-based compensation - continuing operations



Shares used in computing non-GAAP diluted net income - 74,367 - 73,752 per share

Tax adjustments primarily related to stock compensation windfall benefit. The Company elected to apply the tax benefit related to the stock compensation windfall realized in the quarters ended March 31, 2021 and(1) 2020 to the non-GAAP full year tax rate. The Company elected to exclude a deferred tax benefit realized in the three month period ended March 31, 2020 related to the extension of the 15 percent tax rate incentive in China.



Quarter Ended Six Months Ended

March 31, December 31, March 31, March 31, March 31,

Dollars in thousands2021 2020 2020 2021 2020

GAAP net income $23,748 $26,028 $9,127 $49,776 $22,184

Adjustments:

Less: Loss from discontinued 184 979 65 1,164 182 operations

Less: Interest (18) (76) (137) (94) (836) income

Add: Interest 452 556 718 1,008 1,455 expense

Add: Income tax 6,288 4,770 3,400 11,058 437 benefit

Add: Depreciation 5,877 6,001 6,247 11,878 12,139

Add: Amortization of 2,319 2,389 2,740 4,708 5,415 completed technology

Add: Amortization of customer relationships and 7,601 7,356 7,615 14,957 15,525 acquired intangible assets

Earnings before interest, taxes, $46,451 $48,003 $29,775 $94,455 $56,501 depreciation and amortization



Quarter Ended Six Months Ended

March 31, December 31, March 31, March 31, March 31,

Dollars in thousands2021 2020 2020 2021 2020

Earnings before interest, taxes, $46,451 $48,003 $29,775 $94,455 $56,501 depreciation and amortization

Adjustments:

Add: Stock-based 7,481 6,710 4,214 14,191 8,624 compensation

Add: Restructuring 92 87 578 179 1,154 charges

Add: Merger and 11,843 2,991 279 14,834 473 acquisition costs

Add: Tariff 5,497 - - 5,497 - adjustment

Adjusted earnings before interest, $71,364 $57,791 $34,846 $129,156 $66,752 taxes, depreciation and amortization



Quarter Ended

Dollars in thousands March 31, 2021 December 31, 2020March 31, 2020

GAAP gross profit/ $127,27444.4%$113,12845.3%$90,28141.0%margin percentage

Adjustments:

Amortization of 2,319 0.8 2,389 1.0 2,740 1.2 completed technology

Tariff adjustment 5,497 1.9

Non-GAAP adjusted gross profit/gross $135,09047.1%$115,51746.3%$93,02142.2%margin percentage





Six Months Ended

Dollars in thousands March 31, 2021 March 31, 2020

GAAP gross profit/margin percentage $240,40244.8%$175,26740.7%

Adjustments:

Amortization of completed technology 4,708 0.9 5,415 1.3

Tariff adjustment 5,497 1.0

Non-GAAP adjusted gross profit/gross $250,60746.7%$180,68241.9%margin percentage



Brooks Semiconductor Solutions Group

Quarter Ended

Dollars in thousands March 31, 2021 December 31, 2020 March 31, 2020

GAAP gross profit/ $69,41344.2%$ 55,78942.5% $48,63738.9%margin percentage

Adjustments:

Amortization of 298 0.2 384 0.3 722 0.6 completed technology

Non-GAAP adjusted gross profit/margin $69,71144.4%$ 56,17342.8% $49,35939.5%percentage



Brooks Life Sciences Products Brooks Life Sciences Services

Quarter Ended Quarter Ended

Dollars in March 31, 2021 December 31, 2020 March 31, 2020 March 31, 2021 December 31, 2020 March 31, 2020 thousands

GAAP gross profit/ $24,05145.9%$ 20,53145.1% $13,38043.2%$33,81343.8%$ 36,81050.7% $28,28344.0%margin percentage

Adjustments:

Amortization of completed 280 0.5 273 0.6 292 0.9 1,741 2.3 1,732 2.4 1,725 2.7 technology

Tariff - - 5,497 7.1 - - - - adjustment

Non-GAAP adjusted gross profit$24,33146.5%$ 20,80445.7% $13,67244.1%$41,05153.2%$ 38,54253.1% $30,00846.7%/margin percentage





Brooks Life Sciences Total

Quarter Ended

Dollars in thousands March 31, 2021 December 31, 2020 March 31, 2020

GAAP gross profit/ $57,86444.7%$ 57,34148.5% $41,66343.7%margin percentage

Adjustments:

Amortization of 2,021 1.6 2,005 1.7 2,017 2.1 completed technology

Tariff adjustment 5,497 4.2 - - - -

Non-GAAP adjusted gross profit/margin $65,38250.5%$ 59,34650.2% $43,68045.8%percentage



Brooks Semiconductor Solutions Group

Six Months Ended

Dollars in thousands March 31, 2021 March 31, 2020

GAAP gross profit/margin percentage $125,20243.4 %$94,93639.0 %

Adjustments:

Amortization of completed technology 682 0.2 1,455 0.6

Non-GAAP adjusted gross profit/margin $125,88443.6 %$96,39139.5 %percentage



Brooks Life Sciences Products Brooks Life Sciences Services

Six Months Ended Six Months Ended

Dollars in March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 thousands

GAAP gross profit/ $44,58245.6%$25,75842.4%$70,62347.1%$54,59043.2%margin percentage

Adjustments:

Amortization of completed 553 0.6 585 1.0 3,473 2.3 3,375 2.7 technology

Tariff - - - - 5,497 3.7 - - adjustment

Non-GAAP adjusted gross profit$45,13546.1%$26,34343.4%$79,59353.1%$57,96545.9%/margin percentage





Brooks Life Sciences Total

Six Months Ended

Dollars in thousands March 31, 2021 March 31, 2020

GAAP gross profit/margin percentage $115,20546.5%$80,34843.0%

Adjustments: -

Amortization of completed technology 4,026 1.6 3,960 2.1

5,497 2.2 - -

Non-GAAP adjusted gross profit/margin $124,72850.4%$84,30845.1%percentage



Brooks Semiconductor Solutions Group Brooks Life Sciences Products Brooks Life Sciences Services Brooks Life Sciences Total

Quarter Ended Quarter Ended Quarter Ended Quarter Ended

March 31, December 31, March 31, March 31, December 31, March 31, March 31, December 31, March 31, March 31, December 31, March 31,

Dollars in thousands 2021 2020 2020 2021 2020 2020 2021 2020 2020 2021 2020 2020

GAAP operating profit $ 33,004 $ 21,154 $ 15,984 $10,935 $7,669 $1,852 $6,168 $ 12,579 $ 4,248 $ 17,103 $ 20,248 $ 6,100

Adjustments:

Amortization of completed 298 384 722 280 273 292 1,741 1,732 1,725 2,021 2,005 2,017 technology

Tariff adjustment - - - - - - 5,497 - - 5,497 - -

Non-GAAP adjusted operating profit$ 33,302 $ 21,538 $ 16,706 $11,215 $7,942 $2,144 $13,406 $ 14,311 $ 5,973 $ 24,621 $ 22,253 $ 8,117



Total Segments Corporate Total

Quarter Ended Quarter Ended Quarter Ended

March 31, December 31, March 31, March 31, December 31, March 31, March 31, December 31, March 31,

Dollars in thousands 2021 2020 2020 2021 2020 2020 2021 2020 2020

GAAP operating profit$50,107 $ 41,402 $22,084 $(19,602)$(10,474) $(7,512) $30,505 $ 30,928 $14,572 (loss)

Adjustments:

Amortization of 2,319 2,389 2,739 - - - 2,319 2,389 2,739 completed technology

Tariff adjustment 5,497 - - - - - 5,497 - -

Amortization of customer relationships and - - - 7,601 7,356 7,615 7,601 7,356 7,615 acquired intangible assets

Restructuring charges - - - 92 87 578 92 87 578

Merger and - - - 11,843 2,991 279 11,843 2,991 279 acquisition costs

Non-GAAP adjusted operating profit $57,923 $ 43,791 $24,823 $(66) $(40) $960 $57,857 $ 43,751 $25,783 (loss)





Brooks Semiconductor Solutions GroupBrooks Life Sciences ProductsBrooks Life Sciences ServicesBrooks Life Sciences Total

Six Months Ended Six Months Ended Six Months Ended Six Months Ended

Dollars in thousands March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,

2021 2020 2021 2020 2021 2020 2021 2020

GAAP operating profit $54,158 $ 30,252 $ 18,604 $ 1,921 $ 18,747 $ 8,211 $37,351 $ 10,132

Adjustments:

Amortization of completed 682 1,455 553 585 3,473 3,375 4,026 3,960 technology

Tariff adjustment - - - - 5,497 - 5,497 -

Non-GAAP adjusted operating profit$54,840 $ 31,707 $ 19,157 $ 2,506 $ 27,717 $ 11,586 $46,874 $ 14,092



Total Segments Corporate Total

Six Months Ended Six Months Ended Six Months Ended

Dollars in thousands March 31, March 31, March 31, March 31, March 31, March 31,

2021 2020 2021 2020 2021 2020

GAAP operating profit $91,509 $40,384 $(30,075)$(15,146)$61,434 $25,238 (loss)

Adjustments:

Amortization of 4,708 5,415 - - 4,708 5,415 completed technology

Tariff adjustment 5,497 - - - 5,497 -

Amortization of customer relationships - - 14,957 15,525 14,957 15,525 and acquired intangible assets

Restructuring charges - - 179 1,154 179 1,154

Merger and acquisition - - 14,834 473 14,834 473 costs

Restructuring related - - - - - - charges

Non-GAAP adjusted operating profit $101,714 $45,799 $(105) $2,006 $101,609 $47,805 (loss)

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SOURCE Brooks Automation