PR Newswire | Aug 5, 2021 04:07PM EDT

30, 2021, and Announces Quarterly Cash Dividend

08/05 15:05 CDT

Brooks Automation Reports Results of Third Quarter of Fiscal 2021, Ended June 30, 2021, and Announces Quarterly Cash DividendRobust Demand and Strong Execution Drive Continued Growth in Revenue and Profitability CHELMSFORD, Mass., Aug. 5, 2021

CHELMSFORD, Mass., Aug. 5, 2021 /PRNewswire/ -- Brooks Automation, Inc. (Nasdaq: BRKS) today reported financial results for the fiscal quarter ended June 30, 2021.





Financial Results Summary



Quarter Ended

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

2021 2021 2020 Prior Qtr Prior Year

Revenue $ 315 $ 287 $ 220 10 %43 %

Semiconductor Solutions $ 186 $ 157 $ 127 19 %47 %

Life Sciences $ 129 $ 130 $ 93 0 %38 %



Diluted EPS Continuing Operations $ 0.53 $ 0.32 $ 0.19 64 %184 %

Diluted EPS Total $ 0.53 $ 0.32 $ 0.19 65 %184 %



Non-GAAP Diluted EPS Continuing Operations$ 0.72 $ 0.61 $ 0.32 17 %127 %



Adjusted EBITDA $ 78 $ 71 $ 40 10 %94 %



Management Comments

"We are proud of the results of our third fiscal quarter with strong execution by both businesses," commented Steve Schwartz, President and CEO. "Life Sciences sustained its high growth performance and Semiconductor Solutions acceleration was exceptionally strong. We expect our fourth fiscal quarter of 2021 to continue the upward trajectory. We remain on track for the planned separation into two standalone companies, which is expected to occur by the end of the calendar year."

Summary of GAAP Results

Third Quarter, Fiscal 2021

* Revenue for the third quarter was $315 million, up 43% year over year driven by growth in both Life Sciences and Semiconductor Solutions. * Diluted EPS from continuing operations was $0.53 per share compared to $0.19 per share in the third quarter of 2020. * Life Sciences revenue of $129 million grew 38% year over year. Year-over-year organic growth was 42%. Life Sciences Products grew 60% year over year, and Life Sciences Services grew 28%. Excluding the effect of the recent exit of the RUCDR alliance, Life Science Services grew 43%. * Semiconductor Solutions revenue was $186 million, an increase of 47% year over year. Year-over-year organic growth was 43%. * Operating income was $50 million, compared to $19 million in the third quarter of 2020. Operating margin was 15.9%, up 730 basis points year over year and was driven by gross margin of 45.8%, up 370 basis points year over year. Operating expenses in the quarter include approximately $6 million in unallocated corporate expenses related to strategic M&A initiatives, including the preparation to separate the two businesses.

A 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 Operations

Third Quarter, Fiscal 2021

* Diluted EPS for the third quarter was $0.72, up 127% year over year. * Operating income was $68 million, an increase of 127% year over year, and operating margin was 21.5%, up 790 basis points year over year. Gross margin of 46.9% was up 340 basis points year over year. * Life Sciences operating margin was 17.8%, up from 7.1% in the prior year. Gross margin was 50.0%, up 540 basis points year over year driven by performance improvement of 250 basis points, as well as, 280 basis points of favorable mix as a result of exiting the RUCDR alliance agreement. * Semiconductor Solutions operating margin was 24.1%, an increase of 560 basis points from the prior year. Gross margin was 44.7%, up 200 basis points year over year, driven by margin expansion in Automation. * Adjusted EBITDA was $78 million, up 94% from the third quarter of 2020 and 10% sequentially.

Cash and Liquidity

* Cash flow from operations was $45 million for the quarter, an increase of $19 million year over year. * On April 29, 2021, the Company acquired Precise Automation, Inc. for approximately $70 million in cash subject to working capital and other adjustments. * The Company ended the third fiscal quarter of 2021 with a total balance of cash, cash equivalents, restricted cash, and marketable securities of $286 million, with total debt of $50 million, and net cash of $236 million.

Quarterly Cash Dividend

The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on September 24, 2021 to stockholders of record on September 3, 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 Fourth Quarter Fiscal 2021

The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2021. Revenue is expected to be in the range of $328 million to $348 million and non-GAAP diluted earnings per share is expected to be in the range of $0.71 to $0.81. GAAP diluted earnings per share for the fourth fiscal quarter is expected to be in the range of $0.50 to $0.60.

Conference Call and Webcast

Brooks 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 800-941-1366 (US & Canada only) or +1-212-231-2926 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 analyses 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, our ability to deliver financial success in the future, and the timing of our planned separation into two independent public companies. 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) operates two, global, market-leading businesses, Life Sciences and Semiconductor Solutions, each with its own distinct area of focus and expertise. 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' Semiconductor Solutions business provides industry-leading precision vacuum robotics, integrated automation systems and contamination control solutions to the world's leading semiconductor chip makers and equipment manufacturers as well as collaborative robotics and automation capabilities for multi-market applications.

On May 10, 2021, Brooks announced its 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 transaction is expected to be completed by the end of calendar year 2021.

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 Nine Months Ended

June 30, June 30,

2021 2020 2021 2020

Revenue

Products $215,843$142,323$565,829$413,329

Services 99,506 78,027 285,610 237,748

Total revenue 315,349 220,350 851,439 651,077

Cost of revenue

Products 120,387 81,989 317,472 245,930

Services 50,562 45,573 149,165 137,092

Total cost of revenue 170,949 127,562 466,637 383,022

Gross profit 144,400 92,788 384,802 268,055

Operating expenses

Research and development 18,284 14,004 51,310 43,727

Selling, general and administrative 75,883 59,714 221,646 178,866

Restructuring charges - (29) 179 1,125

Total operating expenses 94,167 73,689 273,135 223,718

Operating income 50,233 19,099 111,667 44,337

Interest income 409 29 503 865

Interest expense (477) (810) (1,485) (2,265)

Other income (expenses), net (1,625) 498 (147) (1,318)

Income before income taxes 48,540 18,816 110,538 41,619

Income tax provision 9,370 5,120 20,428 5,557

Income from continuing operations 39,170 13,696 90,110 36,062

Loss from discontinued operations, net of tax (4) - (1,168) (182)

Net income $39,166 $13,696 $88,942 $35,880

Basic net income per share:

Income from continuing operations $0.53 $0.19 $1.21 $0.49

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

Basic net income per share $0.53 $0.19 $1.20 $0.49

Diluted net income per share:

Income from continuing operations $0.53 $0.19 $1.21 $0.49

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

Diluted net income per share $0.53 $0.19 $1.20 $0.49



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

Basic 74,296 73,759 74,195 73,473

Diluted 74,495 73,860 74,420 73,766



BROOKS AUTOMATION, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share and per share data)





June 30, September 30,

2021 2020



Assets

Current assets

Cash and cash equivalents $269,862 $ 295,649

Marketable securities 101 67

Accounts receivable, net 234,079 188,291

Inventories 154,720 114,834

Prepaid expenses and other current assets 58,455 50,612

Total current assets 717,217 649,453

Property, plant and equipment, net 146,522 117,665

Long-term marketable securities 3,637 3,101

Long-term deferred tax assets 4,447 4,979

Goodwill 551,326 501,536

Intangible assets, net 254,937 218,325

Other assets 85,169 64,066

Total assets $1,763,255$ 1,559,125

Liabilities and Stockholders' Equity

Current liabilities

Current portion of long-term debt $- $ 827

Accounts payable 98,192 61,758

Deferred revenue 35,421 31,357

Accrued warranty and retrofit costs 8,132 8,201

Accrued compensation and benefits 43,803 43,267

Accrued restructuring costs 29 181

Accrued income taxes payable 22,232 10,094

Accrued expenses and other current liabilities 103,251 55,433

Total current liabilities 311,060 211,118

Long-term debt 49,651 49,588

Long-term tax reserves 18,410 19,168

Long-term deferred tax liabilities 16,295 17,798

Long-term pension liabilities 6,536 6,406

Long-term operating lease liabilities 45,034 31,855

Other long-term liabilities 8,440 9,578

Total liabilities 455,426 345,511

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, 87,758,598 shares issued and 74,296,729 shares outstanding at June 30, 2021, 87,293,710 shares issued and 878 873 73,831,841 shares outstanding at September 30, 2020

Additional paid-in capital 1,965,705 1,942,850

Accumulated other comprehensive income 26,619 21,919

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

Accumulated deficit (484,417) (551,072)

Total stockholders' equity 1,307,829 1,213,614

Total liabilities and stockholders' equity $1,763,255$ 1,559,125

BROOKS AUTOMATION, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)





Nine Months Ended

June 30,

2021 2020

Cash flows from operating activities

Net income $88,942 $35,880

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

Depreciation and amortization 48,684 49,760

Impairment of property, plant and equipment - 301

Stock-based compensation 20,277 12,348

Amortization of premium on marketable securities and 169 177 deferred financing costs

Deferred income taxes (10,293) (9,319)

Other gains on disposals of assets 225 163

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 (40,286) (15,719)

Inventories (32,532) (17,695)

Prepaid expenses and current assets 4,000 12,554

Accounts payable 23,327 11,032

Deferred revenue (1,564) 214

Accrued warranty and retrofit costs (286) 580

Accrued compensation and tax withholdings (338) 1,928

Accrued restructuring costs (153) (609)

Accrued expenses and current liabilities 21,625 (4,347)

Net cash provided by (used in) operating activities 122,745 (13,933)

Cash flows from investing activities

Purchases of property, plant and equipment (34,606) (29,685)

Purchases of marketable securities (100) (10,843)

Sales of marketable securities 25 2,492

Maturities of marketable securities 25 42,226

Adjustment to proceeds from divestiture (1,802) -

Acquisitions, net of cash acquired (92,375) (15,743)

Disbursement for a loan receivable - -

Issuance of a note receivable - (1,000)

Proceeds from sales of property, plant and equipment - -

Net cash used in investing activities (128,833) (12,553)

Cash flows from financing activities

Proceeds from term loans, net of discount - -

Proceeds from issuance of common stock 2,583 2,332

Payments of financing costs - -

Principal payments on debt (828) (828)

Payments of finance leases (915) (957)

Common stock dividends paid (22,288) (22,127)

Net cash used in financing activities (21,448) (21,580)

Effects of exchange rate changes on cash and cash 7,582 3,095 equivalents

Net decrease in cash, cash equivalents and restricted (19,954) (44,971)cash

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

Cash and cash equivalents and restricted cash, end of$282,572 $260,200 period



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

Cash and cash equivalents $269,862 $256,633

Short-term restricted cash included in prepaid 3,570 3,567 expenses and other current assets

Long-term restricted cash included in other assets 9,140 -

Total cash, cash equivalents and restricted cash $282,572 $260,200 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 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 nine months ended June 30, 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

June 30, 2021 March 31, 2021 June 30, 2020

per diluted per diluted per diluted

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

Net income from $39,170 $0.53 $23,932 $0.32 $13,696 $0.19 continuing operations

Adjustments:

Purchase accounting impact on 140 0.00 - - - - inventory and contracts acquired

Amortization of intangible 11,085 0.15 9,920 0.13 10,390 0.14 assets

Restructuring - - 92 0.00 (29) (0.00) charges

Tariff - - 5,497 0.07 - - adjustment

Merger and acquisition 6,269 0.08 11,843 0.16 10 0.00 costs

Restructuring related - - - - 301 0.00 charges

Other (83) (0.00) - - - - adjustments

Tax adjustments ^ 682 0.01 639 0.01 1,502 0.02 (1)

Tax effect of (3,790) (0.05) (6,283) (0.08) (2,561) (0.03) adjustments

Non-GAAP adjusted net income from $53,473 $0.72 $45,640 $0.61 $23,309 $0.32 continuing operations

Stock based 6,086 0.08 6,710 0.09 3,725 0.05 compensation, pre-tax

Tax rate 15 % - 15 % - 15 % -

Stock-based compensation, 5,173 0.07 5,704 0.08 3,166 0.04 net of tax

Non-GAAP adjusted net income excluding $58,646 $0.79 $51,344 $0.69 $26,475 $0.36 stock-based compensation - continuing operations



Shares used in computing non-GAAP - 74,495 - 74,414 - 73,860 diluted net income per share



Nine Months Ended

June 30, 2021 June 30, 2020

per diluted per diluted

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

Net income from $90,110 $1.21 $36,062 $0.49 continuing operations

Adjustments:

Purchase accounting impact on inventory and 140 0.00 - - contracts acquired

Amortization of 30,750 0.41 31,331 0.42 intangible assets

Restructuring related - - 301 charges

Restructuring charges 179 0.00 1,125 0.02

Tariff adjustment 5,497 0.07 - -

Merger and acquisition 21,104 0.28 484 0.01 costs

Other adjustments (83) (0.00)

Tax adjustments ^(1) (725) (0.01) (2,789) (0.04)

Tax effect of adjustments (12,906) (0.17) (8,113) (0.11)

Non-GAAP adjusted net income from continuing $134,066 $1.80 $58,401 $0.79 operations

Stock-based compensation, 20,277 0.27 12,348 0.17 pre-tax

Tax rate 15 % - 15 % -

Stock-based compensation, 17,235 $0.23 10,496 0.14 net of tax

Non-GAAP adjusted net income excluding $151,301 $2.03 $68,897 $0.93 stock-based compensation - continuing operations



Shares used in computing non-GAAP diluted net - 74,420 - 73,766 income 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 Nine Months Ended

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

Dollars in thousands 2021 2021 2020 2021 2020

GAAP net income $39,166 $23,748 $13,696 $88,942 $35,880

Adjustments:

Less: Loss from 4 184 - 1,168 182 discontinued operations

Less: Interest income (409) (18) (29) (503) (865)

Add: Interest expense 477 452 810 1,485 2,265

Add: Income tax benefit 9,370 6,288 5,120 20,428 5,557

Add: Depreciation 6,055 5,877 6,290 17,933 18,429

Add: Amortization of 3,352 2,319 2,779 8,060 8,194 completed technology

Add: Amortization of customer relationships 7,733 7,601 7,611 22,690 23,137 and acquired intangible assets

Earnings before interest, taxes, $65,748 $46,451 $36,277 $160,203$92,779 depreciation and amortization



Quarter Ended Nine Months Ended

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

Dollars in thousands 2021 2021 2020 2021 2020

Earnings before interest, taxes, $65,748 $46,451 $36,277 $160,203$92,779 depreciation and amortization

Adjustments:

Add: Stock-based 6,086 7,481 3,725 20,277 12,348 compensation

Add: Restructuring - 92 (29) 179 1,125 charges

Add: Restructuring - - 301 - 301 related charges

Add: Purchase accounting impact on 140 - - 140 - inventory and contracts acquired

Add: Merger and 6,269 11,843 10 21,104 484 acquisition costs

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

Less: Other (83) - - (83) - adjustments

Adjusted earnings before interest, $78,160 $71,364 $40,284 $207,317$107,037taxes, depreciation and amortization



Quarter Ended

Dollars in thousandsJune 30, 2021 March 31, 2021 June 30, 2020

GAAP gross profit/ $144,40045.8 %$127,27444.4%$92,78842.1%margin percentage

Adjustments:

Amortization of 3,352 1.1 2,319 0.8 2,779 1.3 completed technology

Restructuring - - - 0.0 301 0.1 related charges

Purchase accounting impact on inventory 140 0.0 - - - 0.0 and contracts acquired

Other adjustment (83) (0.0) 5,497 1.9 - 0.0

Non-GAAP adjusted gross profit/gross $147,80946.9 %$135,09047.1%$95,86843.5%margin percentage





Nine Months Ended

Dollars in thousands June 30, 2021 June 30, 2020

GAAP gross profit/margin percentage $384,80245.2%$268,05541.2%

Adjustments:

Amortization of completed technology 8,060 0.9 8,194 1.3

Purchase accounting impact on inventory 140 0.0 - - and contracts acquired

Restructuring related charges - - 301 0.0

Other adjustment (83) 0.0

Tariff adjustment 5,497 0.6 - -

Non-GAAP adjusted gross profit/gross $398,41646.8%$276,55042.5%margin percentage



Brooks Semiconductor Solutions Group

Quarter Ended

Dollars in thousands June 30, 2021 March 31, 2021 June 30, 2020

GAAP gross profit/ $81,97344.0%$69,41344.2%$53,52442.1%margin percentage

Adjustments:

Amortization of 1,178 0.6 298 0.2 717 0.6 completed technology

Purchase accounting impact on inventory and 140 0.1 - - - - contracts acquired

Non-GAAP adjusted gross profit/margin $83,29144.7%$69,71144.4%$54,24142.7%percentage



Brooks Life Sciences Products Brooks Life Sciences Services

Quarter Ended Quarter Ended

Dollars in June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 March 31, 2021 June 30, 2020 thousands

GAAP gross profit/margin$22,65546.6%$24,05145.9%$13,25843.6%$39,77249.4 %$33,81343.8%$26,00641.4%percentage

Adjustments:

Amortization of completed 432 0.9 280 0.5 287 0.9 1,742 2.2 1,741 2.3 1,776 2.8 technology

Restructuring related - - - - - - - - - - 301 0.5 charges

Other - - - - - - (83) (0.1) - - - - adjustment

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

Non-GAAP adjusted gross profit/$23,08747.5%$24,33146.5%$13,54544.5%$41,43151.5 %$41,05153.2%$28,08344.7%margin percentage





Brooks Life Sciences Total

Quarter Ended

Dollars in thousands June 30, 2021 March 31, 2021 June 30, 2020

GAAP gross profit/ $62,42848.4%$57,86444.7%$39,26442.1%margin percentage

Adjustments:

Amortization of 2,173 1.7 2,021 1.6 2,063 2.2 completed technology

Restructuring related - - - - 301 0.3 charges

Other adjustment (83) (0) - - - -

Tariff adjustment - - 5,497 4.2 - -

Non-GAAP adjusted gross profit/margin $64,51850.0%$65,38250.5%$41,62844.6%percentage



Brooks Semiconductor Solutions Group

Nine Months Ended

Dollars in thousands June 30, 2021 June 30, 2020

GAAP gross profit/margin percentage $207,17543.6%$148,44340.0%

Adjustments:

Amortization of completed technology 1,860 0.4 2,172 0.6

Purchase accounting impact on inventory 140 0.0 - - and contracts acquired

Non-GAAP adjusted gross profit/margin $209,17544.1%$150,61540.6%percentage



Brooks Life Sciences Products Brooks Life Sciences Services

Nine Months Ended Nine Months Ended

Dollars in thousands June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

GAAP gross profit/margin percentage $67,23845.9% $39,01642.8%$110,395 47.9 %$80,59642.6%

Adjustments:

Amortization of completed technology 985 0.7 872 1.0 5,215 2.3 5,151 2.7

Restructuring related charges - - - - - - 301 0.2

Other adjustment - - - - (83) (0.0) - -

Tariff adjustment - - - - 5,497 2.4 - -

Non-GAAP adjusted gross profit/margin $68,22346.6% $39,88843.8%$121,024 52.6 %$86,04745.5%percentage





Brooks Life Sciences Total

Nine Months Ended

Dollars in thousands June 30, 2021 June 30, 2020

GAAP gross profit/margin percentage $177,633 47.1 % $119,612 42.7 %

Adjustments:

Amortization of completed technology 6,200 1.6 6,023 2.1

Restructuring related charges - - 301 0.1

Other adjustment (83) (0.0) - -

Tariff adjustment 5,497 1.5 - -

Non-GAAP adjusted gross profit/margin percentage $189,247 50.2 % $125,935 44.9 %





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

Quarter Ended Quarter Ended Quarter Ended Quarter Ended

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

Dollars in thousands2021 2021 2020 2021 2021 2020 2021 2021 2020 2021 2021 2020

GAAP operating $43,478 $33,004 $22,697 $8,706 $10,935 $2,195 $12,125 $6,168 $2,032 $20,831 $17,103 $4,227 profit

Adjustments:

Amortization of 1,178 298 717 432 280 287 1,742 1,741 1,776 2,174 2,021 2,063 completed technology

Purchase accounting impact on inventory 140 - - - - - - - - - - - and contracts acquired

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

Other adjustment - - - - - - (83) - - (83) - -

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

Non-GAAP adjusted $44,796 $33,302 $23,414 $9,138 $11,215 $2,482 $13,784 $13,406 $4,109 $22,922 $24,621 $6,591 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 thousands 2021 2021 2020 2021 2021 2020 2021 2021 2020

GAAP operating profit $64,309 $50,107 $26,924 $(14,076)$(19,602)$(7,825)$50,233 $30,505 $19,099 (loss)

Adjustments:

Amortization of 3,352 2,319 2,780 - - - 3,352 2,319 2,780 completed technology

Amortization of customer relationships and - - - 7,733 7,601 7,611 7,733 7,601 7,611 acquired intangible assets

Purchase accounting impact on inventory and 140 - - - - - 140 - - contracts acquired

Restructuring charges - - - - 92 (29) - 92 (29)

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

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

Other adjustment (83) - - (83) - -

Merger and acquisition - - - 6,269 11,843 10 6,269 11,843 10 costs

Non-GAAP adjusted $67,718 $57,923 $30,005 $(74) $(66) $(233) $67,644 $57,857 $29,772 operating profit (loss)



Brooks Semiconductor Solutions GroupBrooks Life Sciences Products Brooks Life Sciences Services Brooks Life SciencesTotal

Nine Months Ended Nine Months Ended Nine Months Ended Nine Months Ended

Dollars in thousandsJune 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30,

2021 2020 2021 2020 2021 2020 2021 2020

GAAP operating $97,636 $52,949 $27,310 $4,116 $30,872 $10,243 $58,182 $14,359 profit

Adjustments:

Amortization of 1,860 2,172 985 872 5,215 5,150 6,200 6,022 completed technology

Purchase accounting impact on inventory 140 - - - - - - - and contracts acquired

Restructuring - - - - - 301 - 301 related charges

Other adjustment - - - - (83) - (83) -

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

Non-GAAP adjusted $99,636 $55,121 $28,295 $4,988 $41,501 $15,694 $69,796 $20,682 operating profit



Total Segments Corporate Total

Nine Months Ended Nine Months Ended Nine Months Ended

Dollars in thousandsJune 30, June 30, June 30, June 30, June 30, June 30,

2021 2020 2021 2020 2021 2020

GAAP operating $155,818$67,308 $(44,151)$(22,971)$111,667$44,337 profit (loss)

Adjustments:

Amortization of 8,060 8,194 - - 8,060 8,194 completed technology

Amortization of customer relationships and - - 22,690 23,137 22,690 23,137 acquired intangible assets

Purchase accounting impact on inventory 140 - - - 140 - and contracts acquired

Restructuring - - 179 1,125 179 1,125 charges

Restructuring - 301 - - - 301 related charges

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

Other adjustment (83) - - - (83) -

Merger and - - 21,104 484 21,104 484 acquisition costs

Non-GAAP adjusted operating profit $169,432$75,803 $(178) $1,775 $169,254$77,578 (loss)

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SOURCE Brooks Automation