Brooks Automation (NASDAQ:BRKS) Reports Weak Q1 Results

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Brooks Automation, Inc (NASDAQ:BRKS) spoke of positive signs on the horizon in its earnings release, but results were not exactly impressive. Revenue fell 18% sequentially and adjusted EPS contracted from the previous quarter and year over year, leaving much to be desired for shareholders.

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The Contribution from the BioStorage Technologies acquisition helped lift revenue in the quarter but a spike in expenses dimmed the bottom-line numbers. BioStorage contributed revenue of $6.5 million and operating profit of $0.2 million to the results. It is worth noting that the figures cited only reflect one month of operation with BioStorage as part of Brooks. The company closed the $125.5 million acquisition of BioStorage on November 30, 2015, and the just reported for the quarter ended on December 31, 2015.

At a glance

Revenue of $120 million shrunk 18% from the previous quarter, a development that  management seemed to blame on problems in the semiconductor capital equipment market. The quarter’s top-line results would have been much lower had BioStorage not helped offset weakness in semiconductor segment.

As for the bottom line, Brooks posted adjusted EPS of $0.02, which compared with $0.17 in the previous quarter and $0.05 last year. The weak EPS in the latest quarter seems to have been due both to decline in revenue and a spike in expenses. Brooks reported that adjusted operating expenses rose $2.7 million from the prior quarter to $42.2 million in the latest quarter.

Other metrics

Brooks further reported that the company exited the quarter with total order bookings of $140.8 million without accounting for the orders coming through the recently acquired BioStorage. Total bookings at the end of the previous quarter were $113.5 million, which indicates a decent organic increase in bookings sequentially.

Outlook and dividends

Brooks is looking for revenue in the band of $133 to $137 million in the current quarter. Adjusted EPS is expected to come in the range of $0.03 to $0.05.

The board of Brooks has approved a quarterly cash dividend of $0.10 per share, which will be distributed to shareholders on March 24. Shareholders of record as of March 4 will be eligible for the dividend payout.

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