Azenta, Inc. · NASDAQ:AZTA
Azenta — Brooks Automation — Q2 FY2010 Earnings Presentation
14 slides from Azenta's earnings presentation, May 6, 2010
Slide 1: 2nd Quarter Fiscal 2010 Financial Results Conference Call
2nd Quarter Fiscal 2010 Financial Results Conference Call Thursday, May 6, 2010 4:30 p.m. ET
Slide 2: Safe Harbor Statement & Non-GAAP Financial Measures
Safe Harbor Statement & Non-GAAP Financial Measures "Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995; certain matters in this presentation, including forecasts of future demand and future Company performance, are forward-looking statements that are subject to r
Slide 3: Strong Earnings Performance
Strong Earnings Performance $ millions or $ per share Net Income DEPS GAAP Net Income attributable to Brooks $ 21.0 $ 0.33 Gain on sale of intellectual property rights, after tax ( 7.5) ( 0.12) One-time income tax benefit ( 3.9) ( 0.06) Restructuring charges 0.5 0.01 Adjusted Net Income $ 10.1 $ 0.1
Slide 4: Continued Ramp - Sequential Revenue Growth of 40%
Continued Ramp - Sequential Revenue Growth of 40% $ millions Q1 FY10 Q2 FY10 Change Revenues $ 106.2 $ 148.4 $ 42.2 Gross Profit 26.2 38.9 12.7 Research & Development expense 7.5 7.7 (0.2) SG&A expense 19.0 20.8 (1.8) Operating Profit (Loss) before Special Charges $( 0.3) $ 10.4 $ 10.7
Slide 5: End Market Trends
End Market Trends Q2 FY09 Q1 FY10 Q2 FY10 Semiconductor 63% 85% 85% Industrial 19% 9% 9% Other markets 18% 6% 6% Semiconductor OEMs continue to drive the ramp 2 OEM's represented greater than 10% of revenues in the quarter
Slide 6: Revenue and Earnings Waterfall
Revenue and Earnings Waterfall 1st Quarter Fiscal 2010 $ 106.2 $( 0.3) Critical Solutions business growth 16.8 6.7 Systems Solutions business growth 25.5 5.4 GCO (Service) business growth ( 0.1) 0.4 Higher unemployment insurance costs ( 0.4) Stock compensation ( 0.5) Other ( 0.9) 2nd Quarter Fiscal
Slide 7: Adjusted EBITDA Improves to 11.7% of Revenues
Adjusted EBITDA Improves to 11.7% of Revenues Revenues 37.3 43.9 64.1 106.2 148.4 Adjusted EBITDA (26.7) (17.2) (8.7) 5.6 17.3 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 $ millions
Slide 8: Cash Growth with Effective Control of Working Capital
Cash Growth with Effective Control of Working Capital Growth Adjusted EBITDA* $ 17.3 Restructuring cash flow ( 1.4) Net Interest income 0.2 Working capital support of ramp (8.3) Cash flow from Continuing Operations 7.8 Capital Expenditures ( 0.7) Proceeds from sale of intellectual property rights 7.
Slide 9: Critical Balance Sheet Accounts
Critical Balance Sheet Accounts $ millions December 2009 March 2009 Comments on Sequential Trends Cash and Marketable Securities 111.4 125.8 Accounts receivable, net 53.2 67.6 DSO improves by 4 days Inventories, net 89.8 103.5 Turns improve from 3.6 to 4.2 Accounts payable ( 46.2) ( 66.7) DPO moved
Slide 10: Critical Solutions Segment
Critical Solutions Segment $ millions Q1FY10 Q2FY10 Comments on Sequential Trends Revenues $ 43.2 $ 60.0 39% sequential revenue growth Gross Profit 15.8 22.6 Margins improve to 37.6% Operating Expenses 13.9 14.9 Higher corporate and shared service cost allocations Segment Operating Income $ 1.9 $ 7.
Slide 11: Systems Solutions Segment
Systems Solutions Segment $ millions Q1FY10 Q2FY10 Comments on Sequential Trends Revenues $ 47.1 $ 72.6 54% growth with mix favoring Extended Factory Gross Profit 7.6 13.1 Margins improve to 18% Operating Expenses 7.3 9.0 Higher corporate and shared service cost allocations Segment Operating Income
Slide 12: Global Customer Operations
Global Customer Operations $ millions Q1FY10 Q2FY10 Comments on Sequential Trends Revenues $ 15.9 $ 15.7 Repair growth offsets end of substantial labor-only service contract Gross Profit 2.9 3.3 Favorable mix and improved repair margins Operating Expenses 4.8 3.8 Reduced corporate and shared service
Slide 13: Looking Forward
Looking Forward March quarter Book to Bill > 1 Balance of Year - Continuing growth in revenues and profits. June quarter - Revenues in excess of $150 million and Diluted EPS of between $0.18 and $0.20. Continued balance sheet management drives ROIC over 20%.
Slide 14: 2nd Quarter Fiscal 2010 Financial Results Conference Call
2nd Quarter Fiscal 2010 Financial Results Conference Call Thursday, May 6, 2010 4:30 p.m. ET