Azenta, Inc. · NASDAQ:AZTA
Azenta — Brooks Automation — Q3 2009 Earnings Presentation
15 slides from Azenta's earnings presentation, Aug 6, 2009
Slide 1: 3rd Quarter Fiscal 2009 Financial Results Conference Call
3rd Quarter Fiscal 2009 Financial Results Conference Call Thursday, August 6, 2009 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: Beyond the Trough
Beyond the Trough $millions Q2 Q3 Change Revenues $ 37.3 $ 43.9 $ 6.6 Gross Profit (Loss) ( 3.7) 4.0 7.7 Research & Development 7.7 7.5 0.2 SG&A, continuing 21.6 18.8 2.8 Equity investigation 3.6 0.8 2.8 Operating Loss before Special Charges ($ 36.5) ($ 23.1) $ 13.4
Slide 4: Semiconductor OEMs lead the way
Semiconductor OEMs lead the way Late quarter pick-up in service and spares revenues $millions Q3 FY08 Q2 FY09 Q3 FY09 9 Semiconductor OEM's $ 53.6 $ 8.5 $ 13.2 Other customers 70.4 28.8 30.7 Total $ 124.0 $37.3 $ 43.9 Semiconductor 72% 65% 70% Industrial 10% 19% 14% Other markets 18% 16% 16%
Slide 5: Q3 reflects initial market rebound and continuing benefits of restructuring program
Q3 reflects initial market rebound and continuing benefits of restructuring program 2nd Quarter Fiscal 2009 $ 37.3 ($ 36.5) Product revenue growth 5.6 5.0 Service revenue growth 1.0 0.7 Lower intangible asset amortization 3.5 Additional Instrumentation R&D investment (0.3) Lower operating expense sp
Slide 6: Continued Improvement in Adjusted EBITDA
Continued Improvement in Adjusted EBITDA Revenues 73.4 37.3 43.9 Adjusted EBITDA -20.3 -26.7 -17.2 Q1 Q2 Q3
Slide 7: Limited Special charges impact on GAAP Net Income
Limited Special charges impact on GAAP Net Income $ millions Q2 Q3 Comments on Sequential Trends Operating loss before Special Charges ($ 36.5) ($ 23.1) Special charges ( 116.4) ( 2.7) Restructuring related expenses in Q3 Interest income, net 0.6 0.5 Other expense ( 0.1) 0.1 Foreign currency fluctua
Slide 8: Cash utilization greatly reduced
Cash utilization greatly reduced Adjusted EBITDA ($ 17.2) Restructuring cash flow ( 5.4) Net Interest income 0.5 Change in assets and other 6.1 Cash flow from Continuing Operations ( 16.0) Capital Expenditures ( 1.8) Currency and other 2.0 Net Change in Cash and Marketable Investments ($ 15.8) A rec
Slide 9: Critical Balance Sheet accounts
Critical Balance Sheet accounts $ millions March 2009 June 2009 Comments on Sequential Trends Cash and Marketable Securities 130.2 114.4 Accounts receivable, net 25.6 28.1 DSO improves by 4 days Inventories, net 98.5 91.4 Gross inventory reduction of $8.1 million Accounts payable ( 16.1) ( 15.7) DPO
Slide 10: Critical Solutions Segment
Critical Solutions Segment $ millions Q2 Q3 Comments on Sequential Trends Revenues $17.2 $16.8 Continued difficulties in industrial markets Gross Profit before amortization & special charges 0.9 1.3 Full quarter impacts of 2nd quarter restructuring activities GAAP Gross Profit ( 0.1) 0.9 Still carry
Slide 11: Systems Solutions Segment
Systems Solutions Segment $ millions Q2 Q3 Comments on Sequential Trends Revenues $8.2 $14.2 72% growth led by Extended Factory products Gross Loss before amortization & special charges ( 3.6) 1.1 Volume drop through and benefits of 2nd quarter restructuring activities GAAP Gross Profit (Loss) ( 5.9
Slide 12: Global Customer Operations
Global Customer Operations $ millions Q2 Q3 Comments on Sequential Trends Revenues $11.8 $12.8 9% growth - back end loaded Gross Profit before amortization & special charges 1.4 2.1 Strong variable contribution and benefits of restructuring actions GAAP Gross Profit (Loss) (1.3) 2.0 Reduced intangib
Slide 13: Narrowing breakeven gap
Narrowing breakeven gap Q4 FY07 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 Revenues 166.5 147.8 147.6 124 106.9 73.4 37.3 44.3 Breakeven 159.2 146.2 150.7 143.3 125.5 131.6 99.5 93 Adj EBITDA Breakeven 132.8 120.9 124 120.5 102.9 110.1 80 78 Q U A R T E R L Y $ M I L L I O N S
Slide 14: Looking Forward
Looking Forward Internal plans for at least 25% revenue growth for the September quarter Profits drop through at least at model levels Inventories continue to reduce through the recovery Cash utilization closing in on breakeven
Slide 15: Q3 Fiscal 2009 Financial Results Conference Call
Q3 Fiscal 2009 Financial Results Conference Call Thursday, August 6, 2009 4:30 p.m. ET