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Brooks Automation Inc. Reports Operating Results (10-Q)

May 10, 2012 | About:
10qk

10qk

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Brooks Automation Inc. (BRKS) filed Quarterly Report for the period ended 2012-03-31.

Brooks Automatn has a market cap of $783.9 million; its shares were traded at around $10.67 with a P/E ratio of 11.6 and P/S ratio of 1.1. The dividend yield of Brooks Automatn stocks is 2.7%.

Highlight of Business Operations:

Our Brooks Global Services segment reported revenues of $21.2 million for the three months ended March 31, 2012, a 3% decrease from $21.9 million in the same prior year period. These decreases were attributable to a $1.1 million decrease in the sale of spare parts, which was partially offset by $0.5 million of increased service contract and repair services revenue. This segment reported revenues of $43.3 million for the six months ended March 31, 2012, an increase of 2% from $42.3 million in the same prior year period. These increases were attributable to a $3.0 million increase in revenues from service contracts and repair services, partially offset by $2.1 million of lower spare parts revenues.

Gross margin percentage for our Brooks Global Services segment decreased to 31.0% for the three months ended March 31, 2012 as compared to 36.2% in the same prior year period. This decrease is due to lower sales of higher margin spare parts, which reduced gross margin by 2.0%, higher charges for excess and obsolete inventory which reduced gross margin by 0.9%, with the balance of the decrease primarily attributable to investments in service infrastructure in advance of revenue growth. Gross margin percentage for our Brooks Global Services segment decreased to 31.7% for the six months ended March 31, 2012 as compared to 35.9% in the same prior year period. This decrease is due to lower sales of higher margin spare parts, which reduced gross margin by 2.2%, higher charges for excess and obsolete inventory which reduced gross margin by 1.4%, with the balance of the decrease primarily attributable to investments in service infrastructure in advance of revenue growth.

Research and development, or R&D, expenses for the three months ended March 31, 2012 were $12.5 million, an increase of $3.1 million, compared to $9.4 million in the same prior year period. R&D expenses for the six months ended March 31, 2012 were $24.4 million, an increase of $6.1 million, compared to $18.3 million in the same prior year period. This increase includes $2.1 million and $4.1 million of R&D expenses for Nexus and RTS for the three and six months ended March 31, 2012, which were not included in the same prior year periods, as well as increased expenses to enhance our current product offerings and internally create products and services to grow longer-term revenues for technology markets outside of the semiconductor market.

Income associated with our 50% interest in UCI was $1.4 million and $0.7 million for the six months ended March 31, 2012 and 2011, respectively. This increase was the result of a 23% increase in revenues along with a 7% increase in the value of the Japanese yen, which is the functional currency for this joint venture. The income (loss) associated with our 50% interest in Yaskawa Brooks Automation, Inc., a joint venture with Yaskawa Electric Corporation of Japan was $5,000 and $(10,000) for the six months ended March 31, 2012 and 2011, respectively.

Cash provided by operating activities was $21.7 million for the six months ended March 31, 2012, and was comprised of net income of $12.5 million, and further increased by $16.8 million for non-cash related charges such as $10.6 million of depreciation and amortization and $4.9 million of stock-based compensation. Cash provided by operations was offset by $6.1 million of increases in working capital. The increases in working capital are due in part to increased payments of incentive compensation during the first half of fiscal year 2012 that relate to the prior year, and increases in deferred revenue related mostly to our growing sales from our Brooks Life Science Systems segment. Further, cash provided by operations was partially offset by $1.4 million of undistributed earnings of our joint ventures which is a non-cash income item.

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