BRKS » Topics » Overview

These excerpts taken from the BRKS 10-K filed Nov 26, 2008.
Overview
 
We are a leading provider of automation, vacuum and instrumentation solutions and are a highly valued business partner to original equipment manufacturers (OEM) and equipment users throughout the world. We serve markets where equipment productivity and availability is a critical factor for our customers’ success. Our largest served market is the semiconductor manufacturing industry. We also provide unique solutions to customers in data storage, advanced display, analytical instruments and solar markets. We develop and deliver differentiated solutions that range from proprietary products to highly respected manufacturing services.
 
On March 30, 2007, we completed the sale of our software division, Brooks Software, to Applied Materials, Inc. (“Applied”) for cash consideration and the assumption of certain liabilities related to Brooks Software. Brooks Software provided real-time applications for greater efficiency and productivity in collaborative, complex manufacturing environments. We transferred to Applied substantially all of our assets primarily related to Brooks Software, including the stock of several subsidiaries engaged only in the business of Brooks Software, and Applied assumed certain liabilities related to Brooks Software. We sold our software division in order to focus on our core semiconductor-related hardware businesses. We recognized a gain on disposal of the software division. Effective October 1, 2006, our consolidated financial statements and notes have been reclassified to reflect this business as a discontinued operation in accordance with SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.”
 
In the fourth quarter of fiscal 2007, we made changes to our internal reporting structure and began reporting results in three segments: Automation Systems, Critical Components and Global Customer Operations. In the second quarter of fiscal 2008 these segment disclosures were refined to reflect the results of a comprehensive review of operations conducted subsequent to the appointment of a new CEO and CFO. These refinements resulted in minor changes to the previously disclosed split of revenues and gross margins among segments and between products and services. Our Automation Systems segment provides a range of wafer handling products and systems that support both atmospheric and vacuum process technology used by our customers. Our Critical Components Operations segment includes cryogenic vacuum pumping, thermal management and vacuum measurement products used to create, measure and control critical process vacuum applications. Our Global Customer Operations segment consists of our after market activities including an extensive range of service support to our customers to address their on-site needs, spare parts and repair services, and support of legacy product lines. Certain reclassifications have been made in the 2007 and 2006 consolidated financial statements to conform to the 2008 presentation.
 
The demand for semiconductors and semiconductor manufacturing equipment is cyclical, resulting in periodic expansions and contractions. Demand for our products has been impacted by these cyclical industry conditions. During fiscal 2006 and throughout most of fiscal 2007, we benefited from an industry expansion. During the fourth quarter of fiscal 2007, we began to observe a contraction in the demand for semiconductor manufacturing equipment. The length and severity of these downturns can be difficult to predict.
 
Overview


 



We are a leading provider of automation, vacuum and
instrumentation solutions and are a highly valued business
partner to original equipment manufacturers (OEM) and equipment
users throughout the world. We serve markets where equipment
productivity and availability is a critical factor for our
customers’ success. Our largest served market is the
semiconductor manufacturing industry. We also provide unique
solutions to customers in data storage, advanced display,
analytical instruments and solar markets. We develop and deliver
differentiated solutions that range from proprietary products to
highly respected manufacturing services.


 



On March 30, 2007, we completed the sale of our software
division, Brooks Software, to Applied Materials, Inc.
(“Applied”) for cash consideration and the assumption
of certain liabilities related to Brooks Software. Brooks
Software provided real-time applications for greater efficiency
and productivity in collaborative, complex manufacturing
environments. We transferred to Applied substantially all of our
assets primarily related to Brooks Software, including the stock
of several subsidiaries engaged only in the business of Brooks
Software, and Applied assumed certain liabilities related to
Brooks Software. We sold our software division in order to focus
on our core semiconductor-related hardware businesses. We
recognized a gain on disposal of the software division.
Effective October 1, 2006, our consolidated financial
statements and notes have been reclassified to reflect this
business as a discontinued operation in accordance with
SFAS No. 144, “Accounting for the Impairment or
Disposal of Long-Lived Assets.”


 



In the fourth quarter of fiscal 2007, we made changes to our
internal reporting structure and began reporting results in
three segments: Automation Systems, Critical Components and
Global Customer Operations. In the second quarter of fiscal 2008
these segment disclosures were refined to reflect the results of
a comprehensive review of operations conducted subsequent to the
appointment of a new CEO and CFO. These refinements resulted in
minor changes to the previously disclosed split of revenues and
gross margins among segments and between products and services.
Our Automation Systems segment provides a range of wafer
handling products and systems that support both atmospheric and
vacuum process technology used by our customers. Our Critical
Components Operations segment includes cryogenic vacuum pumping,
thermal management and vacuum measurement products used to
create, measure and control critical process vacuum
applications. Our Global Customer Operations segment consists of
our after market activities including an extensive range of
service support to our customers to address their
on-site
needs, spare parts and repair services, and support of legacy
product lines. Certain reclassifications have been made in the
2007 and 2006 consolidated financial statements to conform to
the 2008 presentation.


 



The demand for semiconductors and semiconductor manufacturing
equipment is cyclical, resulting in periodic expansions and
contractions. Demand for our products has been impacted by these
cyclical industry conditions. During fiscal 2006 and throughout
most of fiscal 2007, we benefited from an industry expansion.
During the fourth quarter of fiscal 2007, we began to observe a
contraction in the demand for semiconductor manufacturing
equipment. The length and severity of these downturns can be
difficult to predict.


 




This excerpt taken from the BRKS 10-K filed Nov 29, 2007.
Overview
 
We are a leading supplier of technology products and solutions primarily serving the worldwide semiconductor market. We principally supply hardware and services to both original equipment manufacturers, or OEMs, who make semiconductor device manufacturing equipment, and chip manufacturers. We are a technology and market leader with offerings ranging from individual hardware modules to fully integrated systems as well as services to install and support our products worldwide.
 
In the fourth quarter of fiscal 2007, we made changes to our internal reporting structure and will now be reporting results in three segments: Automation Systems Group, Critical Components Group and Global Customer Support Group. Our Automation Systems Group segment provides a range of wafer handling products and systems that support both atmospheric and vacuum process technology used by our customers. Our Critical Components Group segment includes cryogenic vacuum pumping, thermal management and vacuum measurement products used to create, measure and control critical process vacuum applications. Our Global Customer Support Group segment provides an extensive range of support to our customers to address their on-site needs, consultation, or spare parts logistics, all of which enable the customer to maximize wafer fab utilization, process tool uptime and productivity. Certain reclassifications have been made in the 2006 and 2005 consolidated financial statements to conform to the 2007 presentation.
 
In fiscal 2007, our total revenues increased 22.4% to $743.3 million from the prior year. This increase is primarily due to the additional revenues related to our acquisition of Synetics Solutions Inc., along with higher industry demand for semiconductor capital equipment in fiscal 2007. Our revenue by segment for fiscal 2007 and 2006 is as follows (in thousands):
 
                                 
    For the Year Ended September 30,  
    2007     2006  
 
Automation Systems Group
  $ 462,740       62.3 %   $ 352,062       58.0 %
Critical Components Group
    156,083       21.0 %     137,573       22.6 %
Global Customer Support Group
    124,435       16.7 %     117,859       19.4 %
                                 
    $ 743,258       100.0 %   $ 607,494       100.0 %
                                 
 
Our automation systems group segment revenues increased 31.4% from the prior year to $462.7 million. This increase is primarily attributable to the additional revenues related to our Synetics acquisition along with higher demand for semiconductor capital equipment during fiscal year 2007. Our critical components group segment revenues increased 13.4% from the prior year to $156.1 million. This increase is primarily attributable to higher demand for our cryogenic technology products. Our global customer support group segment increased 5.5% from the prior year to $124.4 million primarily due to a higher level of repair revenues. We expect fiscal 2008 revenues to decrease from 2007 due to a softening of demand for semiconductor capital equipment.
 
Gross margins decreased to 29.5% for fiscal 2007 from 30.7% in the prior year. The decrease is primarily attributable to the lower gross margins on the additional Synetics revenues. We expect our gross margins to remain relatively stable in the near term, as the Company has several cost reduction initiatives underway to improve gross margins, along with higher margins from new product introductions, offset by lower manufacturing cost absorption on lower revenues.


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We recorded income from continuing operations of $54.3 million or $0.73 per diluted share in fiscal 2007 compared to $22.3 million or $0.31 per diluted share in fiscal 2006. This improvement is largely the result of higher revenue and gross margin dollars, and lower interest expense. We generated $72.9 million of cash from operations in fiscal year 2007, compared to a cash flow from operations of $65.2 million in fiscal 2006. At September 30, 2007, we had cash, cash equivalents and marketable securities aggregating to $274.6 million.
 
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