Brooks Automation Reports Fiscal Third Quarter 2016 Financial Results

CHELMSFORD, Mass., July 28, 2016 (GLOBE NEWSWIRE) -- Brooks Automation, Inc. (Nasdaq:BRKS), a leading worldwide provider of automation and cryogenic solutions for multiple markets including semiconductor manufacturing and life sciences, today reported financial results for the third fiscal quarter of 2016, ended June 30, 2016.

Fiscal Third Quarter of 2016 Financial and Operational Highlights:

  • Revenue was $147.5 million;
  • GAAP Net Income was $8.6 million with diluted EPS of $0.12;
  • Non-GAAP Net Income was $11.1 million with diluted EPS of $0.16;
  • Cash flow from operations was $15.7 million; and
  • Total of Cash, Cash Equivalents, and Marketable Securities, as of June 30, 2016, was $72.2 million.

Summary of GAAP and Non-GAAP Earnings (Losses)

   Quarter Ended
   June 30, March 31, June 30,
Dollars in thousands, except per share data  2016 2016 2015
GAAP net income (loss)  $8,564  $(83,939) $7,681 
GAAP diluted earnings (loss) per share  $0.12  $(1.22) $0.11 
        
Non-GAAP net income  $11,128  $4,920  $10,277 
Non-GAAP diluted earnings per share  $0.16  $0.07  $0.15 

A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures follows the consolidated balance sheets, statements of operations and statements of cash flows included in this release.

Management Comments
“Our strong third quarter performance highlights the strength of our portfolio and the improved earnings power of our revised organization structure.  Sequential growth in automation, contamination control, BioStore systems, and BioStorage services has supported improved gross margins and cash flow,” commented Steve Schwartz, CEO of Brooks Automation. “Our Life Sciences business has continued to execute well, with growth coming from both large sample storage systems and BioStorage Technologies services.  Both semiconductor and life sciences segments are on track to yield further growth and improve profits.”

GAAP Summary
Revenue increased 9% sequentially to $147.5 million in the third quarter of fiscal 2016, driven by a 10% increase in Life Sciences and a 9% increase in Brooks Semiconductor Solutions Group (formerly Brooks Product Solutions and Brooks Global Services). Gross margin was 36.7%, up 2.1 percentage points from the second fiscal quarter of 2016.  Operating expense of $45.7 million was 14% or $7.5 million less than the previous quarter primarily driven by lower restructuring charges.  In the third quarter, the Company incurred $1.0 million of restructuring charges compared to $7.3 million in the second quarter. The Company had a $0.2 million benefit from the reversal of accrued incentive based compensation for employees separated from the Company, compared to a $1.7 million similar benefit in the second quarter. GAAP net income was $8.6 million and diluted earnings per share was $0.12.

Beginning in the third quarter, the Company consolidated the operating results of Brooks Product Solutions (BPS) and Brooks Global Solutions (BGS) into one segment, referred to as Brooks Semiconductor Solutions Group, or BSSG, to better align with its new organizational structure and to reflect how strategic directions and resources are determined. The Brooks Life Sciences Systems (BLSS) segment remains unchanged.

Amortization of intangibles, special charges, and one-time items are appropriately included in the GAAP summary of earnings.  The impact on earnings of these items is set out in the unaudited table included with this release.

Results of Q3 Fiscal 2016 (Non-GAAP Discussion)
Non-GAAP net income was $11.1 million in the third quarter, resulting in non-GAAP earnings per share of $0.16. This compares to non-GAAP net income of $4.9 million and non-GAAP earnings per share of $0.07 in the second quarter, and non-GAAP net income of $10.3 million and non-GAAP earnings per share of $0.15 in the third quarter of fiscal 2015.

As noted above, revenue for the third fiscal quarter of 2016 was $147.5 million, up 9% compared to the second fiscal quarter of 2016. The Brooks Semiconductor Solutions Group revenue increased 9% to $118.4 million, primarily driven by sales of Contamination Control Solutions of $15.8 million, up $9.6 million from the second quarter.  Brooks Life Science Systems revenue grew 10% sequentially to $29.1 million, driven by 11% or $1.6 million sequential growth in the legacy business and 9% or $1.0 million growth in the recently acquired BioStorage services business, which reached $12.4 million of revenue in the quarter.

Adjusted gross margin, which excludes amortization, purchase accounting impacts and special charges, was 37.5% in the third quarter, up 2.2 percentage points from the prior quarter. The Semiconductor Solutions adjusted gross margin was 36.9% in the third quarter compared to 34.5% in the prior period, with improvements coming from both product and services lines.  The Life Sciences adjusted gross margin was 40.0% in the third quarter compared to 38.5% in the prior period, with the legacy Life Sciences business delivering improved margins from large store systems. Gross margins for BioStorage Technologies were 43.9%, up 0.4 percentage points. In summary, the total adjusted gross profit increased by $7.6 million compared to the prior quarter, driven by revenue increases and gross margin improvements across both segments.

Bookings for the Semiconductor Solutions business in the third quarter totaled $115.2 million, compared to $108.6 million in the second quarter.  The Life Sciences business booked a total of $40.6 million of new contract value in the quarter.

Non-GAAP operating expense of $41.8 million decreased $0.7 million sequentially, driven primarily by the restructuring actions initiated in the second quarter. The operating expense includes a benefit from the reversal of incentive based compensation accruals for employees departing in this quarter of $0.2 million, compared to $1.6 million in the second fiscal quarter.

Cash flow from operations was $15.7 million in the quarter and adjusted EBITDA was $19.0 million.  The Company's cash, cash equivalents, and marketable securities increased $3.9 million to $72.2 million as of June 30, 2016, which reflects the operating cash flow, dividend payment and capital expenditures during the quarter.

Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has approved a dividend of $0.10 per share payable on September 23, 2016 to stockholders of record on September 2, 2016. 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 Fiscal Quarter 2016
The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2016. Revenue is expected to be in the range of $146 million to $151 million and non-GAAP diluted EPS is expected to be in the range of $0.14 to $0.17. (GAAP diluted EPS is projected to be $0.06 to $0.09, reflecting the impact of amortization, purchase price accounting, and anticipated restructuring charges.)

Conference Call
Brooks management will webcast its third quarter earnings conference call today at 5:30 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.com, and will be archived online on this website for convenient on-demand replay. In addition, you may call 800-381-7839 (US & Canada only) or 212-231-2900 to listen to the live webcast.

About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation and cryogenic solutions for multiple markets including semiconductor manufacturing and life sciences. Brooks’ technologies, engineering competencies and global service capabilities provide customers speed to market and ensure high uptime and rapid response, which equate to superior value in their mission-critical controlled environments. Since 1978, Brooks has been a leading partner to the global semiconductor manufacturing market and, by applying expertise in automation and cryogenics, has expanded its offerings to meet the sample storage needs of customers in the life sciences industry. Brooks recently completed a strategic acquisition of BioStorage Technologies, Inc., complementing Brooks’ life sciences offerings with comprehensive outsource services.  Brooks now offers, in addition to a broad range of products and services for on-site infrastructure for sample management in temperatures of -20°C to -150°C, outsource service solutions across the complete life cycle of biological samples including collection, transportation, processing, storage, protection, retrieval and disposal.  Brooks is headquartered in Chelmsford, MA, with direct operations in North America, Europe and Asia. For more information, visit www.brooks.com.

“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 statements regarding our revenue and operating margin expectations, our ability to develop further our business in new and adjacent markets, and our ability to achieve financial success in the future. Factors that could cause results to differ from our expectations include the following: 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; continuing uncertainties in global political and economic conditions, and other factors and other risks 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.

CONTACTS:
Lynne Yassemedis                                                       
Brooks Automation
978.262.2400
lynne.yassemedis@brooks.com

John Mills
Partner
ICR, LLC
646.277.1254
john.mills@icrinc.com


BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
 
 June 30,
 2016
 September 30,
 2015
Assets   
Current assets   
Cash and cash equivalents$66,116  $80,722 
Marketable securities18  70,021 
Accounts receivable, net101,091  86,448 
Inventories98,157  100,619 
Deferred tax assets3,958  17,609 
Assets held for sale2,806  2,900 
Prepaid expenses and other current assets21,078  15,158 
Total current assets293,224  373,477 
Property, plant and equipment, net54,763  41,855 
Long-term marketable securities6,068  63,287 
Long-term deferred tax assets1,125  70,476 
Goodwill202,386  121,408 
Intangible assets, net85,646  55,446 
Equity method investments26,530  24,308 
Other assets12,579  9,397 
Total assets$682,321  $759,654 
Liabilities and Stockholders' equity   
Current liabilities   
Accounts payable$41,502  $44,890 
Deferred revenue25,522  17,886 
Accrued warranty and retrofit costs5,955  6,089 
Accrued compensation and benefits18,031  20,401 
Accrued restructuring costs5,789  2,073 
Accrued income taxes payable7,168  6,111 
Deferred tax liabilities331  1,251 
Accrued expenses and other current liabilities17,751  15,550 
Total current liabilities122,049  114,251 
Long-term tax reserves2,714  3,644 
Long-term deferred tax liabilities6,962  3,196 
Long-term pension liabilities3,212  3,118 
Other long-term liabilities4,329  3,400 
Total liabilities139,266  127,609 
Commitments and contingencies   
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, 82,097,858 shares issued and 68,635,989 shares outstanding at June 30, 2016; 81,093,052 shares issued and 67,631,183 shares outstanding at September 30, 2015821  811 
Additional paid-in capital1,851,292  1,846,357 
Accumulated other comprehensive income12,598  5,898 
Treasury stock at cost- 13,461,869 shares(200,956) (200,956)
Accumulated deficit(1,120,700) (1,020,065)
Total stockholders' equity543,055  632,045 
Total liabilities and stockholders' equity$682,321  $759,654 
 


BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
 
 Three Months Ended
June 30,
 Nine Months Ended
June 30,
 2016 2015 2016 2015
Revenue       
Product$111,596  $120,816  $302,238  $336,941 
Services35,938  24,078  100,532  70,002 
Total revenue147,534  144,894  402,770  406,943 
Cost of revenue (a)       
Product69,557  77,128  192,816  221,877 
Services23,814  16,579  68,437  48,766 
Total cost of revenue93,371  93,707  261,253  270,643 
Gross profit54,163  51,187  141,517  136,300 
Operating expenses       
Research and development12,819  12,834  39,208  39,001 
Selling, general and administrative31,854  27,825  98,667  86,845 
Restructuring and other charges996  358  9,807  3,711 
Total operating expenses45,669  41,017  147,682  129,557 
Operating income (loss)8,494  10,170  (6,165) 6,743 
Interest income55  199  310  678 
Interest expense(37) (100) (56) (300)
Other (loss) income, net(107) 460  (289) 2,640 
Income (loss) before income taxes and equity in earnings (losses) of equity method investments8,405  10,729  (6,200) 9,761 
Income tax provision220  3,340  75,070  1,790 
Income (loss) income before equity in earnings (losses) of equity method investments8,185  7,389  (81,270) 7,971 
Equity in earnings (losses) of equity method investments379  292  1,248  (313)
Net income (loss)8,564  7,681  (80,022) 7,658 
Basic net income (loss) per share$0.12  $0.11  $(1.17) $0.11 
Diluted net income (loss) per share$0.12  $0.11  $(1.17) $0.11 
Dividend declared per share$0.10  $0.10  $0.30  $0.30 
        
Weighted average shares outstanding used in computing net (loss) income per share:       
Basic68,628  67,454  68,437  67,321 
Diluted69,166  68,571  68,437  68,520 
        
(a) Periods ended June 30, 2016 on a year-to-date basis and June 30, 2015 on a quarter-to-date and year-to-date basis reflect a reclassification correction between the cost of service revenue and the cost of product revenue. Please refer to the Form 10-Q for the quarter ended June 30, 2016.
 


BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
 
 Nine months ended June 30,
 2016 2015
Cash flows from operating activities   
Net (loss) income$(80,022) $7,658 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:   
Depreciation and amortization21,320  18,929 
Stock-based compensation8,206  9,510 
Amortization of premium on marketable securities and deferred financing costs368  917 
Undistributed (earnings) losses of equity method investments(1,248) 313 
Deferred income tax provision (benefit)71,875  (2,262)
Gain on disposal of long-lived assets  (4)
Changes in operating assets and liabilities, net of acquisitions:   
Accounts receivable2,862  (19,070)
Inventories2,110  (1,519)
Prepaid expenses and other current assets(3,909) (4,881)
Accounts payable(4,689) 11,600 
Deferred revenue7,171  (2,339)
Accrued warranty and retrofit costs(87) (320)
Accrued compensation and benefits(6,558) (1,907)
Accrued restructuring costs3,720  (660)
Accrued expenses and other current liabilities(5,010) 5,506 
Net cash provided by operating activities16,109  21,471 
Cash flows from investing activities   
Purchases of property, plant and equipment(9,414) (5,945)
Purchases of marketable securities(12,901) (58,991)
Sales and maturities of marketable securities139,388  74,515 
Disbursement for a loan receivable(1,491)  
Acquisitions, net of cash acquired(125,498) (17,257)
Proceeds from sales of property, plant and equipment  6 
Purchases of other investments(500) (5,000)
Net cash used in investing activities(10,416) (12,672)
Cash flows from financing activities   
Proceeds from issuance of common stock948  867 
Principal repayments of capital lease obligations  (368)
Payment of deferred financing costs(508)  
Common stock dividends paid(20,613) (20,229)
Net cash used in financing activities(20,173) (19,730)
Effects of exchange rate changes on cash and cash equivalents(126) (3,513)
Net decrease in cash and cash equivalents(14,606) (14,444)
Cash and cash equivalents, beginning of period80,722  94,114 
Cash and cash equivalents, end of period$66,116  $79,670 
 

Notes on Non-GAAP Financial Measures:
The information in this press release is for: internal managerial purposes; when publicly providing guidance on future results; and as a means to evaluate period-to-period comparisons. 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 believes these financial measures provide an additional way of viewing aspects of our operations, that, when viewed with our GAAP results and the accompanying reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of our business. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.

The press release includes financial measures which exclude the effects of special charges such as restructuring charges and acquisition related charges. Management believes these measures are useful to investors because it eliminates accounting charges that do not reflect Brooks' day-to-day operations. Tables reconciling GAAP to the non-GAAP measures are presented below.

     Quarter Ended    
 June 30, 2016 March 31, 2016 June 30, 2015
Dollars in thousands, except per share data$ Per Diluted Share $ Per Diluted Share $ Per Diluted Share
GAAP net (loss) income$8,564  $0.12  $(83,939) $(1.22) $7,681  $0.11 
Adjustments:           
Purchase accounting impact on inventory and contracts acquired125    250       
Amortization of intangible assets3,837  0.06  3,809  0.06  3,216  0.05 
Restructuring charges996  0.01  7,336  0.11  358  0.01 
Gain on sale of a building(55)          
Liquidation costs due to dissolution of joint venture        69   
Merger costs84    215    44   
Change in valuation allowance against deferred tax assets    79,340  1.15     
Tax effect of adjustments(2,423) (0.04) (2,091) (0.03) (1,091) (0.02)
Non-GAAP adjusted net income11,128  0.16  4,920  0.07  10,277  0.15 
Stock-based compensation, pre-tax1,637    1,855    2,402   
Tax rate20%   16%   30%  
Stock-based compensation, net of tax (a)1,318  0.02  1,556  0.02  1,677  0.03 
Non-GAAP adjusted net income - excluding stock-based compensation$12,446  $0.18  $6,476  $0.09  $11,954  $0.17 
            
Shares used in computing non-GAAP diluted net (loss) income per share  69,166    69,101    68,571 
            
(a)  The tax rate represents the effective tax rate on non-GAAP taxable ordinary income. We expanded our disclosure to correct and clarify the after tax impact of stock-based compensation on Non-GAAP adjusted net income and diluted EPS. For additional information on the impact of this correction on prior periods, please refer to the conference call presentation included in Investor Relations section of the Brooks website at www.brooks.com.


 Nine Months Ended
 June 30, 2016 June 30, 2015
Dollars in thousands, except per share data$ Per Diluted Share $ Per Diluted Share
GAAP net loss$(80,022) $(1.17) $7,658  $0.11 
Adjustments:       
Purchase accounting impact on inventory and contracts acquired499  0.01  1,511  0.02 
Amortization of intangible assets11,153  0.16  9,646  0.14 
Impairment of equity method investments    681  0.01 
Restructuring charges9,807  0.14  3,711  0.05 
Gain on sale of a building(55)      
Liquidation costs due to dissolution of joint venture    69   
Merger costs3,295  0.05  432  0.01 
Change in valuation allowance against deferred tax assets79,340  1.16     
Tax effect of  adjustments(6,723) (0.10) (4,559) (0.07)
Non-GAAP adjusted net income17,294  0.25  19,149  0.28 
Stock-based compensation, pre-tax8,206    9,510   
Tax rate24%   30%  
Stock-based compensation, net of tax (a)6,237  $0.09  6,657  $0.10 
Non-GAAP adjusted net income - excluding stock-based compensation$23,531  $0.34  $25,806  $0.38 
        
Shares used in computing non-GAAP diluted net loss per share  68,437    68,520 
        
(a)  The tax rate represents the effective tax rate on non-GAAP taxable ordinary income.  We expanded our disclosure to correct and clarify the after tax impact of stock-based compensation on Non-GAAP adjusted net income and diluted EPS. For additional information on the impact of this correction on prior periods, please refer to the conference call presentation included in Investor Relations section of the Brooks website at www.brooks.com.


 Quarter Ended
 June 30, 2016 March 31, 2016 June 30, 2015
Dollars in thousands$ % $ % $ %
GAAP gross profit/gross margin percentage$54,163  36.7% $46,800  34.6% $51,187  35.3%
Adjustments:           
Amortization of intangible assets1,083  0.7% 718  0.5% 1,299  0.9%
Purchase accounting impact on inventory and contracts acquired125  0.1% 250  0.2%    
Non-GAAP adjusted gross profit/gross margin percentage$55,371  37.5% $47,768  35.3% $52,486  36.2%


 Nine Months Ended
 June 30, 2016 June 30, 2015
Dollars in thousands$ % $ %
GAAP gross profit/gross margin percentage$141,517  35.1% $136,300  33.5%
Adjustments:       
Amortization of intangible assets3,097  0.8% 3,903  1.0%
Purchase accounting impact on inventory and contracts acquired499  0.1% 1,511  0.4%
Non-GAAP adjusted gross profit/gross margin percentage$145,113  36.0% $141,714  34.8%


 Quarter Ended Nine Months Ended
 June 30, March 31, June 30, June 30, June 30,
Dollars in thousands2016 2016 2015 2016 2015
GAAP net (loss) income$8,564  $(83,939) $7,681  $(80,022) $7,658 
Adjustments:         
Less: Interest income(55) (50) (199) (310) (678)
Add: Interest expense37  16  100  56  300 
Add: Income tax provision (benefit)220  78,220  3,340  75,070  1,790 
Add: Depreciation3,633  3,596  2,979  10,167  9,281 
Add: Amortization of completed technology1,083  718  1,299  3,097  3,903 
Add: Amortization of customer relationships and acquired intangible assets2,754  3,091  1,917  8,056  5,743 
Earnings (losses) before interest, taxes, depreciation and amortization$16,236  $1,652  $17,117  $16,114  $27,997 


 Quarter Ended Nine Months Ended
 June 30, March 31, June 30, June 30, June 30
Dollars in thousands2016 2016 2015 2016 2015
Earnings (losses) before interest, taxes, depreciation and amortization$16,236  $1,652  $17,117  $16,112  $27,997 
Adjustments:         
Add: Stock-based compensation1,637  1,855  2,402  8,206  9,510 
Add: Restructuring charges996  7,336  358  9,807  3,711 
Add: Purchase accounting impact on inventory and contracts acquired125  250    499  1,511 
Less: Gain on sale of a building(55)     (55)  
Add: Liquidation of a joint venture    69    69 
Add: Merger costs84  215  44  3,295  432 
Add: Impairment of equity method investments        681 
Adjusted earnings before interest, taxes, depreciation and amortization$19,023  $11,308  $19,990  $37,864  $43,911 


 Quarter Ended Nine Months Ended
 June 30, March 31, June 30, June 30, June 30,
Dollars in thousands2016 2016 2015 2016 2015
GAAP selling, general and administrative expenses$31,854  $32,692  $27,825  $98,667  $86,845 
Adjustments:         
Less: Amortization of customer relationships and acquired intangible assets(2,754) (3,091) (1,917) (8,056) (5,743)
Less: Merger costs(84) (215) (44) (3,295) (432)
Non-GAAP adjusted selling, general and administrative expenses$29,016  $29,386  $25,864  $87,316  $80,670 
Research and development expenses$12,819  $13,111  $12,834  $39,208  $39,001 
Non-GAAP adjusted operating expenses$41,835  $42,497  $38,698  $126,524  $119,671 


 Brooks Semiconductor Solutions Group Brooks Life Science Systems
 Quarter Ended Quarter Ended
Dollars in thousandsJune 30, 2016 March 31, 2016 June 30, 2015 June 30, 2016 March 31, 2016 June 30, 2015
GAAP gross profit$42,904  $36,943  $46,515  $11,259  $9,857  $4,672 
Adjustments:           
Amortization of intangible assets711  390  901  372  328  398 
Purchase accounting impact on inventory and contracts acquired125  250         
Non-GAAP adjusted gross profit$43,740  $37,583  $47,416  $11,631  $10,185  $5,070 


 Brooks Semiconductor Solutions Group Brooks Life Science Systems
 Nine Month Ended Nine Month Ended
Dollars in thousandsJune 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015
GAAP gross profit$114,506  $122,938  $27,011  $13,362 
Adjustments:         
Amortization of intangible assets2,005  2,706  1,093  1,197 
Purchase accounting impact on inventory and contracts acquired500  551    960 
Non-GAAP adjusted gross profit$117,011  $126,195  $28,104  $15,519 


 Brooks Semiconductor Solutions Group Brooks Life Science Systems
 Quarter Ended Quarter Ended
Dollars in thousandsJune 30, 2016 March 31, 2016 June 30, 2015 June 30, 2016 March 31, 2016 June 31, 2015
GAAP gross margin36.2% 33.9% 36.3% 38.7% 37.2% 27.8%
Adjustments:           
Amortization of intangible assets0.6% 0.4% 0.7% 1.3% 1.2% 2.4%
Purchase accounting impact on inventory and contracts acquired0.1% 0.2%        
Non-GAAP adjusted gross margin36.9% 34.5% 37% 40.0% 38.5% 30.2%


 Brooks Semiconductor Solutions Group Brooks Life Science Systems
 Nine Month Ended Nine Month Ended
Dollars in thousandsJune 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015
GAAP gross margin35.1% 34.5% 35.3% 26.2%
Adjustments:           
Amortization of intangible assets0.6% 0.8% 1.4% 2.3%
Purchase accounting impact on inventory and contracts acquired0.2% 0.2%   1.9%
Non-GAAP adjusted gross margin35.9% 35.5% 36.8% 30.4%

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