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

November 18, 2009 | About:
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10qk

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Brooks Automation Inc. (BRKS) filed Annual Report for the period ended 2009-09-30.

Brooks Automation delivers automation solutions to the global semiconductor and related industries. The company's hardware, factory/tool management software, and professional services can manage every wafer, reticle and data movement in the fab, helping semiconductor manufacturers optimize throughput, yield and cost reduction, while reducing their time to market. Brooks products and capabilities are used in virtually every fab in the world. Brooks Automation Inc. has a market cap of $527.4 million; its shares were traded at around $8.19 with and P/S ratio of 2.4.

Highlight of Business Operations:

The aggregate market value of the registrants Common Stock, $0.01 par value, held by nonaffiliates of the registrant as of March 31, 2009, was approximately $289,118,600 based on the closing price per share of $4.61 on that date on the Nasdaq Stock Market. As of March 31, 2009, 64,298,734 shares of the registrants Common Stock, $0.01 par value, were outstanding. As of November 10, 2009, 64,407,278 shares of the registrants Common Stock, $0.01, par value, were outstanding.

Our primary served market is the global semiconductor industry. The demand for semiconductors and semiconductor manufacturing equipment is highly cyclical. We believe it is both reasonable and prudent to expect that the global semiconductor industry will experience market conditions that fluctuate unpredictably and at times, severely. During fiscal 2006 and continuing into fiscal 2007, Brooks benefited from a cyclical upturn in demand for its products and services, which helped drive revenues to record levels. That cyclical expansion turned to a downturn in the fourth quarter of fiscal 2007 that continued through the second quarter of fiscal 2009. The decline was particularly pronounced in the first two quarters of fiscal 2009 with a sharp contraction of capital spending in all of our served markets as well as reduced demand by OEMs as a result of inventory corrections. The decline in market valuations for public companies and increased borrowing rates as a result of the credit crisis resulted in significant impairments to the carrying value of our goodwill, intangible assets and certain fixed assets. We recognized $203.6 million of impairments to our goodwill and certain long-lived assets during our fourth quarter of 2008, and we recognized additional impairment charges to goodwill and certain long-lived assets of $106.9 million during the second quarter of 2009.

Backlog for our products as of September 30, 2009, totaled $69.5 million as compared to $63.8 million at September 30, 2008. Backlog consists of purchase orders for which a customer has scheduled delivery within the next 12 months. Backlog consists of orders principally for hardware and service agreements. Orders included in the backlog may be cancelled or rescheduled by customers without significant penalty. Backlog as of any particular date should not be relied upon as indicative of our revenues for any future period. A substantial percentage of current business generates no backlog because we deliver our products and services in the same period in which the order is received.

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