Brooks Automation Reports Results for the Fiscal Third Quarter of 2017, Ended June 30, 2017


CHELMSFORD, Mass., Aug. 02, 2017 (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 quarter of 2017, ended June 30, 2017.

Fiscal Third Quarter of 2017 Financial and Operational Highlights:

  • Revenue was $181.7 million, 23% higher compared to Q3 2016 and 7% higher than Q2 2017;
  • Life Sciences Systems segment revenue grew 26% compared to Q3 2016, to $36.8 million;
  • GAAP Net Income was $17.4 million with diluted EPS of $0.25;
  • Non-GAAP Net Income was $25.4 million with diluted EPS of $0.36; and
  • Cash flow from operations was $18.1 million, accumulating year to date to $61.4 million.

Summary of GAAP and Non-GAAP Earnings

         
 Quarter Ended
 June 30,  March 31,  June 30, 
Dollars in thousands, except per share data2017 2017 2016
GAAP net income$ 17,350 $ 14,005 $ 8,564
GAAP diluted earnings per share$ 0.25 $ 0.20 $ 0.12
         
Non-GAAP net income$ 25,353 $ 19,839 $ 11,128
Non-GAAP diluted earnings per share$ 0.36 $ 0.28 $ 0.16

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
“The third quarter can be summarized as high growth, record gross margins, and strong cash flow,” commented Steve Schwartz, CEO of Brooks Automation.  “Performance in both segments reflects a portfolio built for the market and excellence in operational execution. Semiconductor customers turn to us as the automation source for the industry.  Life Science customers recognize Brooks as the single comprehensive solution for all of their sample management needs.  Our success has brought additional opportunities and we are winning consistently in each space.”

“The Life Science business momentum continues and we are very pleased with the recent acquisition of Pacific Bio-Material Management, Inc.,” continued Steve Schwartz. “The integration of more than 250 biotech, pharma, clinical and research customers into our Brooks storage services platform provides a broader base for continued growth.”

GAAP Summary
Revenue for the third quarter of fiscal 2017 increased 7% sequentially to $181.7 million compared to the second quarter of fiscal 2017. The growth was driven by an 8% increase in Brooks Semiconductor Solutions Group segment and a 6% increase in Brooks Life Science Systems segment. Gross margin was 39.4%, up 130 basis points from the second quarter of fiscal 2017.  Operating expenses of $52.8 million increased 6%, or $3.1 million, from the previous quarter driven primarily by M&A and consulting expenses. In the third quarter, the Company incurred $0.8 million of restructuring charges compared to $0.9 million in the second quarter. GAAP net income in the quarter was $17.4 million and diluted earnings per share was $0.25, which increased $0.05 from the second quarter.

The amortization of intangible assets, restructuring charges, impact of purchase price accounting adjustments, charges related to M&A and special charges are appropriately included in the GAAP summary of earnings discussed above. The impact on earnings of such non-GAAP adjustments is referenced in the unaudited table included within this press release.

In the following analysis of the non-GAAP results, Brooks adjusted the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A to provide investors better perspective on the results of operations, which the Company believes is more comparable to the similar analysis provided by its peers. Brooks also excludes special charges or gains, such as impairment losses, gains or losses from the sale of assets, as well as other gains and charges that are assessed to not be representative of the normal operations of the business. Brooks currently includes a valuation allowance reserve against U.S. deferred tax assets in its GAAP results. In assessing the appropriate tax rate for the non-GAAP results, the Company evaluated the adjustments discussed above and concluded it was appropriate to maintain the valuation allowance reserve in deriving the non-GAAP tax rate.

Results of Q3 Fiscal 2017 (Non-GAAP Discussion)
Non-GAAP net income was $25.4 million in the third quarter resulting in non-GAAP diluted earnings per share of $0.36 in the third quarter.   The non-GAAP diluted earnings per share is 27% higher than the second quarter of fiscal 2017 and 125% higher than the third quarter of fiscal 2016.

As noted above, revenue for the third quarter of fiscal 2017 was $181.7 million, up 7% compared to the second quarter of 2017.  The Semiconductor Solutions segment revenue increased 8% to $145.0 million, driven by strength in cryogenic pumps, automation robots and systems, and services.  Contamination Control Solutions revenue, as previously projected, was lower in the third quarter compared to the second quarter.  Life Sciences segment revenue grew 6% sequentially to $36.8 million, driven by growth in both systems and BioStorage services revenue.

Adjusted gross margin, which excludes amortization and purchase accounting impacts, was 40.0% in the third quarter, up 100 basis points from the prior quarter.  The Semiconductor Solutions segment adjusted gross margin was 40.5% in the third quarter compared to 38.7% in the prior quarter reflecting improved margins in both Automation and Contamination Control Solutions.  The Life Sciences segment adjusted gross margin was 38.0% in the third quarter compared to 40.1% in the second quarter, with margin softness in both BioStorage services and the systems business.  Within BioStorage services, the storage margins held flat compared to the second quarter, but a higher mix of genomic services provided an unfavorable impact.  In summary, the total adjusted gross profit increased by $6.7 million compared to the prior quarter, driven by $12 million higher revenue across both segments and improved gross margins in the Semiconductor Solutions segment.

Bookings for the Semiconductor Solutions segment in the third quarter totaled $131.1 million, compared to $171.6 million in the second quarter.  Backlog for the segment finished at $111 million, $14 million below the second quarter ending backlog, significantly driven by lower Contamination Control Solutions backlog.  The Life Sciences segment booked a total of $42.2 million of new contract value in the third quarter, compared to $48.1 million in the second quarter.  Year to date, Life Sciences new contract value has totaled $154 million compared to $114 million in the same period of 2016.

Non-GAAP operating expenses of $45.0 million in the third quarter of fiscal 2017 increased 1%, or $0.4 million, sequentially over the prior quarter, reflecting a 5% increase in R&D expenses and a 1% decrease in SG&A expense.

Adjusted EBITDA was $36.7 million in the third quarter, which improved by 19% from the second quarter.  The Semiconductor Solutions segment reported non-GAAP segment operating profit of $26.8 million, which was 18.5% of revenue. The Life Sciences segment reported non-GAAP operating profit of $1.6 million, 4.4% of revenue.

Cash flow from operations was $18.1 million in the third quarter.  The Company's cash, cash equivalents, and marketable securities totaled $119.7 million at the end of the quarter, compared to $110.1 million at end of the second quarter.  On July 5, 2017, the Company acquired Pacific-Bio Material Management, Inc., a provider of storage and cold-chain logistics services for biological sample materials, for $34.3 million, net of cash acquired and subject to customary working capital adjustments. 

Quarterly Cash Dividend
The Company announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on September 29, 2017 to stockholders of record on September 8, 2017. 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 2017
The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2017. Revenue is expected to be in the range of $172 million to $178 million and non-GAAP diluted earnings per share is expected to be in the range of $0.27 to $0.31. GAAP diluted earnings per share for the fourth quarter is expected to be in the range of $0.17 to $0.21, 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 4:30 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 888-225-2734 (US & Canada only) or 303-223-2691 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 as a provider of precision automation and cryogenic vacuum solutions.  Since 2011, Brooks has applied its automation and cryogenics expertise to meet the sample storage needs of customers in the life sciences industry.  Brooks' life sciences offerings include a broad range of products and services for on-site infrastructure for sample management in temperatures of ‑20°C to -150°C, as well as comprehensive 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 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, but are not limited to statements about our revenue and earnings expectations, our ability to increase our profitability, our ability to improve or retain our market position, and our ability to deliver financial success in the future. Factors that could cause results to differ from our expectations include the following:  the 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; uncertainties in global political and economic conditions, and other factors and other risks, including those 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 STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
            
 Three Months Ended Nine Months Ended
 June 30,  June 30, 
 2017  2016  2017  2016 
Revenue           
Products$ 141,957  $ 111,596  $ 396,684  $ 302,238 
Services  39,760    35,938    114,321    100,532 
  Total revenue  181,717    147,534    511,005    402,770 
Cost of revenue           
Products  85,658    69,557    243,360    192,816 
Services  24,487    23,814    74,606    68,437 
  Total cost of revenue  110,145    93,371    317,966    261,253 
Gross profit  71,572    54,163    193,039    141,517 
Operating expenses           
Research and development  11,958    12,819    34,148    39,208 
Selling, general and administrative  40,016    31,854    109,496    98,667 
Restructuring charges  828    996    2,663    9,807 
  Total operating expenses  52,802    45,669    146,307    147,682 
Operating income (loss)  18,770    8,494    46,732    (6,165)
Interest income  137    55    432    310 
Interest expense  (93)   (37)   (286)   (56)
Gain on settlement of equity method investment  —    —    1,847    — 
Other loss, net  (314)   (107)   (848)   (289)
Income (loss) before income taxes and equity in earnings of equity method investments  18,500    8,405    47,877    (6,200)
Income tax provision  3,680    220    9,900    75,070 
Income (loss) before equity in earnings of equity method investments  14,820    8,185    37,977    (81,270)
Equity in earnings of equity method investments  2,530    379    7,249    1,248 
Net income (loss)$ 17,350  $ 8,564  $ 45,226  $ (80,022)
Basic net income (loss) per share$ 0.25  $ 0.12  $ 0.65  $ (1.17)
Diluted net income (loss) per share  0.25    0.12    0.64    (1.17)
Dividend declared per share  0.10    0.10    0.30    0.30 
            
Weighted average shares outstanding used in computing net income (loss) per share:           
Basic  69,711    68,628    69,496    68,437 
Diluted  70,405    69,166    70,198    68,437 
            

BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)

      
 June 30,  September 30,
  2017   2016 
Assets     
Current assets     
Cash and cash equivalents$ 117,081  $ 85,086 
Marketable securities  12    39 
Accounts receivable, net  120,752    106,372 
Inventories  105,304    92,572 
Prepaid expenses and other current assets  22,215    15,265 
Total current assets  365,364    299,334 
Property, plant and equipment, net  52,949    54,885 
Long-term marketable securities  2,565    6,096 
Long-term deferred tax assets  1,460    1,982 
Goodwill  210,609    202,138 
Intangible assets, net  75,458    81,843 
Equity method investments  32,628    27,273 
Other assets  5,738    12,354 
Total assets$ 746,771  $ 685,905 
Liabilities and Stockholders' Equity     
Current liabilities     
Accounts payable$ 49,991  $ 41,128 
Deferred revenue  33,062    14,966 
Accrued warranty and retrofit costs  7,646    6,324 
Accrued compensation and benefits  21,718    21,254 
Accrued restructuring costs  1,690    5,939 
Accrued income taxes payable  10,466    7,554 
Accrued expenses and other current liabilities  20,686    22,628 
Total current liabilities  145,259    119,793 
Long-term tax reserves  1,782    2,681 
Long-term deferred tax liabilities  2,950    2,913 
Long-term pension liabilities  2,469    2,557 
Other long-term liabilities  4,539    4,271 
Total liabilities  156,999    132,215 
Commitments and contingencies     
Stockholders' Equity     
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding     
Common stock, $0.01 par value- 125,000,000 shares authorized, 83,216,169 shares issued and 69,754,300 shares outstanding at June 30, 2017, 82,220,270 shares issued and 68,758,401 shares outstanding at  September 30, 2016  832    821 
Additional paid-in capital  1,867,645    1,855,703 
Accumulated other comprehensive income  15,000    15,166 
Treasury stock at cost - 13,461,869 shares  (200,956)   (200,956)
Accumulated deficit  (1,092,749)   (1,117,044)
Total stockholders' equity  589,772    553,690 
Total liabilities and stockholders' equity$ 746,771  $ 685,905 
        


BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
      
      
 Nine Months Ended
 June 30, 
 2017  2016 
Cash flows from operating activities     
Net income (loss)$ 45,226  $ (80,022)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:     
Depreciation and amortization  20,649    21,320 
Gain on settlement of equity method investment  (1,847)   — 
Stock-based compensation  11,081    8,206 
Amortization of premium on marketable securities and deferred financing costs  24    368 
Undistributed earnings of equity method investments  (7,249)   (1,248)
Deferred income tax provision  498    71,875 
Gain on disposal of long-lived assets  (106)   — 
Changes in operating assets and liabilities, net of acquisitions:     
Accounts receivable  (14,644)   2,862 
Inventories  (12,851)   2,110 
Prepaid expenses and other current assets  (6,076)   (3,909)
Accounts payable  9,470    (4,689)
Deferred revenue  17,875    7,171 
Accrued warranty and retrofit costs  1,299    (87)
Accrued compensation and tax withholdings  279    (6,558)
Accrued restructuring costs  (4,201)   3,720 
Accrued expenses and other current liabilities  1,954    (5,010)
   Net cash provided by operating activities  61,381    16,109 
Cash flows from investing activities     
Purchases of property, plant and equipment  (6,827)   (9,414)
Purchases of technology intangibles  (240)   — 
Purchases of marketable securities  —    (12,901)
Sales and maturities of marketable securities  3,590    139,388 
Acquisitions, net of cash acquired  (5,346)   (125,498)
Disbursement for a loan receivable  —    (1,491)
Purchases of other investments  (170)   (500)
   Net cash used in investing activities  (8,993)   (10,416)
Cash flows from financing activities     
Proceeds from issuance of common stock  960    948 
Payment of deferred financing costs  (27)   (508)
Common stock dividends paid  (20,932)   (20,613)
   Net cash used in financing activities  (19,999)   (20,173)
Effects of exchange rate changes on cash and cash equivalents  (394)   (126)
Net increase (decrease) in cash and cash equivalents  31,995    (14,606)
Cash and cash equivalents, beginning of period  85,086    80,722 
Cash and cash equivalents, end of period$ 117,081  $ 66,116 
      
Supplemental disclosure of non-cash investing activities:     
Purchases of property, plant and equipment included in accounts payable$ 1,009  $ 1,245 
Fair value of non-cash consideration for the acquisition of Cool Lab, LLC  10,348    — 
        

Notes on Non-GAAP Financial Measures:

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 adjusted the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, as well as other gains and charges that are not representative of the normal operations of the business. Brooks currently includes a valuation allowance reserve against U.S. deferred tax assets in its GAAP results. In assessing the appropriate tax rate for non-GAAP results, the Company evaluated the adjustments discussed above and concluded it was appropriate to maintain the valuation allowance reserve in establishing the non-GAAP tax rate. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.

                  
 Quarter Ended
 June 30, 2017 March 31, 2017 June 30, 2016
   per diluted   per diluted   per diluted
Dollars in thousands, except per share data$ share $ share $ share
GAAP net income$ 17,350  $ 0.25  $ 14,005  $ 0.20  $ 8,564  $ 0.12 
Adjustments:                 
Purchase accounting impact on inventory and contracts acquired  71    0.00    382    0.01    125    — 
Amortization of intangible assets  4,330    0.06    4,355    0.06    3,837    0.06 
Restructuring charges  828    0.01    860    0.01    996    0.01 
Gain on sale of a building  —    —    —    —    (55)   — 
Merger costs  3,654    0.05    936    0.01    84    — 
Tax effect of adjustments  (880)   (0.01)   (699)   (0.01)   (2,423)   (0.04)
Non-GAAP adjusted net income  25,353    0.36    19,839    0.28    11,128    0.16 
  Stock based compensation, pre-tax  4,197       4,386       1,637    
  Tax rate  15 %     17 %     20 %  
Stock-based compensation, net of tax  3,559    0.05    3,641    0.05    1,318    0.02 
Non-GAAP adjusted net income - excluding stock-based compensation$ 28,912  $ 0.41  $ 23,480  $ 0.33  $ 12,446  $ 0.18 
                  
Shares used in computing non-GAAP diluted net income per share     70,405       70,149       69,166 
                        


            
 Nine Months Ended
 June 30, 2017 June 30, 2016
   Per Diluted   Per Diluted
Dollars in thousands, except per share data$ Share $ Share
GAAP net income (loss)$ 45,226  $ 0.64  $(80,022) $ (1.17)
Adjustments:           
Purchase accounting impact on inventory and contracts acquired  523    0.01    499    0.01 
Amortization of intangible assets  12,743    0.18    11,153    0.16 
Restructuring charges  2,663    0.04    9,807    0.14 
Gain on sale of a building  —       (55)   (0.00)
Merger costs  4,839    0.07    3,295    0.05 
Less: Fair value adjustment of equity investment  (1,847)   (0.03)   —    — 
Add: True-up of BioCision stub period adjustment  203       —    — 
Establishment of valuation allowance against deferred tax assets        79,340    1.16 
Tax effect of adjustments  (1,856)   (0.03)   (6,723)   (0.10)
Non-GAAP adjusted net income  62,494    0.89    17,294    0.25 
Stock-based compensation, pre-tax  11,081       8,206    
Tax rate  16 %     24 %  
Stock-based compensation, net of tax  9,330  $ 0.13    6,237    0.09 
Non-GAAP adjusted net income - excluding stock-based compensation$ 71,824  $ 1.02  $ 23,531  $ 0.34 
            
Shares used in computing non-GAAP diluted net income per share    70,198       68,437 
                


                  
 Quarter Ended 
 June 30, 2017 March 31, 2017 June 30, 2016
Dollars in thousands$  $  $ 
GAAP gross profit/gross margin percentage$ 71,572 39.4 $ 64,524 38.1 $ 54,163 36.7
Adjustments:                 
Amortization of completed technology  1,051 0.6   1,061 0.6   1,083 0.7
Purchase accounting impact on inventory and contracts acquired  71 0.0   382 0.2   125 0.1
Non-GAAP adjusted gross profit/gross margin percentage$ 72,694 40.0 $ 65,967 39.0 $ 55,371 37.5
                  


            
 Nine Months Ended
 June 30, 2017 June 30, 2016
Dollars in thousands$   $ 
GAAP gross profit/gross margin percentage$ 193,039 37.8 $ 141,517 35.1
Adjustments:           
Amortization of completed technology  3,105 0.6   3,097 0.8
Purchase accounting impact on inventory and contracts acquired  523 0.1   499 0.1
Non-GAAP adjusted gross profit/gross margin percentage$ 196,667 38.5 $ 145,113 36.0
            


               
 Quarter Ended Nine Months Ended
 June 30,  March 31,  June 30,  June 30,  June 30, 
Dollars in thousands2017  2017  2016  2017  2016 
GAAP net income (loss)$ 17,350  $ 14,005  $ 8,564  $ 45,226  $ (80,022)
Adjustments:              
Less: Interest income  (137)   (227)   (55)   (432)   (310)
Add: Interest expense  93    97    37    286    56 
Add: Income tax provision  3,680    3,420    220    9,900    75,070 
Add: Depreciation  2,589    2,623    3,633    7,907    10,167 
Add: Amortization of completed technology  1,051    1,061    1,083    3,105    3,097 
Add: Amortization of customer relationships and acquired intangible assets  3,279    3,294    2,754    9,638    8,056 
Earnings before interest, taxes, depreciation and amortization$ 27,905  $ 24,273  $ 16,236  $ 75,630  $ 16,114 
                    


               
 Quarter Ended Nine Months Ended
 June 30,  March 31,  June 30,  June 30,  June 30, 
Dollars in thousands2017 2017 2016  2017  2016 
Earnings before interest, taxes, depreciation and amortization$ 27,905 $ 24,273 $ 16,236  $ 75,630  $ 16,112 
Adjustments:              
Less: Fair value adjustment of equity method investment  —        (1,847)   
Add: Stock-based compensation  4,197   4,386   1,637    11,081    8,206 
Add: Restructuring charges  828   860   996    2,663    9,807 
Add: BioCision stub period adjustment  —        203    
Add: Purchase accounting impact on inventory and contracts acquired  71   382   125    523    499 
Less: Gain on sale of a building      (55)      (55)
Add: Merger costs  3,654   936   84    4,839    3,295 
Adjusted earnings before interest, taxes, depreciation and amortization$ 36,655 $ 30,837 $ 19,023  $ 93,092  $ 37,864 
                  


               
 Quarter Ended Nine Months Ended
 June 30,  March 31,  June 30,  June 30,  June 30, 
Dollars in thousands2017  2017  2016  2017  2016 
GAAP selling, general and administrative expenses$ 40,016  $ 37,518  $ 31,854  $ 109,496  $ 98,667 
Adjustments:              
Less: Amortization of customer relationships and acquired intangible assets  (3,279)   (3,294)   (2,754)   (9,638)   (8,056)
Less: Merger costs  (3,654)   (936)   (84)   (4,839)   (3,295)
Non-GAAP adjusted selling, general and administrative expenses$ 33,083  $ 33,288  $ 29,016  $ 95,019  $ 87,316 
Research and development expenses$ 11,958  $ 11,345  $ 12,819  $ 34,148  $ 39,208 
Non-GAAP adjusted operating expenses$ 45,041  $ 44,633  $ 41,835  $ 129,167  $ 126,524 
                    


               
 Quarter Ended Nine Months Ended
 June 30,  March 31,  June 30,  June 30,  June 30, 
Dollars in thousands2017 2017 2016 2017 2016
GAAP equity in earnings of equity method investments$ 2,530 $ 2,777 $ 379 $ 7,249 $ 1,248
Adjustments:              
Add: BioCision stub period adjustment        203  
Non-GAAP adjusted equity in earnings of equity method investments$ 2,530 $ 2,777 $ 379 $ 7,452 $ 1,248
               


                  
 Brooks Semiconductor Solutions Group Brooks Life Science Systems
 Quarter Ended Quarter Ended
 June 30,  March 31,  June 30,  June 30,  March 31,  June 30, 
Dollars in thousands2017 2017 2016 2017 2017 2016
GAAP gross profit$ 58,083 $ 51,325 $ 42,904 $ 13,489 $ 13,199 $ 11,259
Adjustments:                 
Amortization of completed technology  626   626   711   425   435   372
Purchase accounting impact on inventory and contracts acquired  —   125   125   71   257   —
Non-GAAP adjusted gross profit$ 58,709 $ 52,076 $ 43,740 $ 13,985 $ 13,891 $ 11,631
                  


            
 Brooks Semiconductor Solutions Group Brooks Life Science Systems
 Nine Months Ended  Nine Months Ended
 June 30,  June 30,  June 30,  June 30, 
Dollars in thousands2017 2016 2017 2016
GAAP gross profit$ 154,877 $ 114,506 $ 38,162 $ 27,011
Adjustments:           
Amortization of completed technology  1,879   2,005   1,226   1,093
Purchase accounting impact on inventory and contracts acquired  125   500   398  
Non-GAAP adjusted gross profit$ 156,881 $ 117,011 $ 39,786 $ 28,104
            


                  
 Brooks Semiconductor Solutions Group Brooks Life Science Systems
 Quarter Ended Quarter Ended
 June 30,  March 31,  June 30,  June 30,  March 31,  June 30, 
Dollars in thousands2017 2017 2016 2017 2017 2016
GAAP gross margin 40.1  38.1  36.2  36.7  38.1  38.7
Adjustments:                 
Amortization of completed technology 0.4  0.5  0.6  1.2  1.3  1.3
Purchase accounting impact on inventory and contracts acquired —  0.1  0.1  0.2  0.7 
Non-GAAP adjusted gross margin 40.5  38.7  36.9  38.0  40.1  40.0
                  


            
 Brooks Semiconductor Solutions Group Brooks Life Science Systems 
 Nine Months Ended  Nine Months Ended  
Dollars in thousandsJune 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 
GAAP gross margin 38.1  35.1  36.4  35.3
Adjustments:           
Amortization of completed technology 0.5  0.6  1.2  1.4
Purchase accounting impact on inventory and contracts acquired  0.2  0.4 
Non-GAAP adjusted gross margin 38.6  35.9  38.0  36.8
            


                           
 Brooks Semiconductor Solutions Group Brooks Life Science Systems Total Segments
 Quarter Ended Quarter Ended Quarter Ended
 June 30,  March 31,  June 30,  June 30,  March 31,  June 30,  June 30,  March 31, June 30, 
Dollars in thousands2017 2017 2016 2017 2017 2016 2017 2017 2016
GAAP operating profit (loss)$ 26,188 $ 20,003 $ 13,119 $ 1,134 $ 1,290 $ (736) $ 27,322 $ 21,293 $ 12,383
Adjustments:                          
Amortization of completed technology  626   626   711   425   435   372    1,051   1,061   1,083
Purchase accounting impact on inventory and contracts acquired  —   125   125   71   257   —    71   382   125
Non-GAAP adjusted operating profit (loss)$ 26,814 $ 20,754 $ 13,955 $ 1,630 $ 1,982 $ (364) $ 28,444 $ 22,736 $ 13,591
                            


                           
 Total Segments Corporate Total
 Quarter Ended Quarter Ended Quarter Ended
 June 30,  March 31, June 30,  June 30,  March 31, June 30,  June 30,  March 31, June 30, 
Dollars in thousands2017 2017 2016 2017 2017 2016 2017 2017 2016
GAAP operating profit (loss)$ 27,322 $ 21,293 $ 12,383 $ (8,552) $ (6,492) $ (3,889) $ 18,770 $ 14,801 $ 8,494
Adjustments:                          
Amortization of completed technology  1,051   1,061   1,083   —    —    —    1,051   1,061   1,083
Amortization of customer relationships and acquired intangible assets  —   —   —   3,279    3,294    2,754    3,279   3,294   2,754
Restructuring charges  —   —   —   828    860    996    828   860   996
Purchase accounting impact on inventory and contracts acquired  71   382   125   —    —    —    71   382   125
Merger costs  —   —   —   3,654    936    84    3,654   936   84
Non-GAAP adjusted operating profit (loss)$ 28,444 $ 22,736 $ 13,591 $ (791) $ (1,402) $ (55) $ 27,653 $ 21,334 $ 13,536
                              


                  
 Brooks Semiconductor Solutions Group Brooks Life Science Systems Total Segments
 Nine Months Ended Nine Months Ended Nine Months Ended
Dollars in thousandsJune 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016
GAAP operating profit (loss)$ 63,562 $ 22,717 $ 2,535 $ (7,555) $ 66,097 $ 15,162
Adjustments:                 
Amortization of completed technology  1,879   2,005   1,226   1,093    3,105   3,097
Purchase accounting impact on inventory and contracts acquired  125   500   398   —    523   500
Non-GAAP adjusted operating profit (loss)$ 65,566 $ 25,222 $ 4,159 $ (6,462) $ 69,725 $ 18,759
                   


                  
 Total Segments Corporate Total
 Nine Months Ended Nine Months Ended Nine Months Ended
Dollars in thousandsJune 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016
GAAP operating profit (loss)$ 66,097 $ 15,162 $ (19,365) $ (21,327) $ 46,732 $ (6,165)
Adjustments:                 
Amortization of completed technology  3,105   3,097   —    —    3,105   3,097 
Amortization of customer relationships and acquired intangible assets  —   —   9,638    8,056    9,638   8,056 
Restructuring charges  —   —   2,663    9,807    2,663   9,807 
Purchase accounting impact on inventory and contracts acquired  523   500   —    —    523   500 
Merger costs  —   —   4,839    3,295    4,839   3,295 
Non-GAAP adjusted operating profit (loss)$ 69,725 $ 18,759 $ (2,225) $ (169) $ 67,500 $ 18,590