BRKS

Brooks Automation, Inc. (BRKS)

$10.27
*  
0.03
0.29%
Get BRKS Alerts
*Delayed - data as of Jul. 24, 2014  -  Find a broker to begin trading BRKS now
Exchange: NASDAQ
Industry: Technology
Community Rating:
 
 
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
CHARTS
Basic Chart Interactive Chart
COMPANY NEWS
Company Headlines Press Releases Market Stream
STOCK ANALYSIS
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
FUNDAMENTALS
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
HOLDINGS
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save stocks for next time

Brooks Automation, Inc. (BRKS)

UBS Global Healthcare Conference

May 20, 2013 04:00 PM ET

Executives

Stephen Schwartz - President and CEO

Martin Headley - EVP and CFO

Analysts

Melanie San - UBS (ph)

Presentation

Melanie San - UBS

Alright good afternoon everyone. Thank you for making it out to our last session of the day. And it’s Melanie San, happy to be your host for this session. Our next presenter will be Stephen Schwartz President and CEO and Martin Headley EVP and CFO of Brooke Automation. Thank you.

Stephen Schwartz

Thank you Malone good afternoon. We really appreciate your time today. Today I would like to introduce in a little bit more detail the trust that Brooks has in Life Sciences System space. I will begin by talking generally about the company and the business, and talk very specifically then about the market opportunity and our approach to the Life Sciences market and Martin will follow up with a review of the financial performance and also give some idea about the outlook for the company.

First I refer you to the Safe Harbor statements which are posted on our website www.brooks.com. What I would like to discuss today is how we are in the Life Sciences, the approach that we have, the challenges that we have and really why we think we are particularly well suited to serve growing and rather underserved business opportunity today.

On the first slide I show a breakdown of calendar year revenue mix for the company, approximately $500 million of revenue of which about 70% relates to the semiconductor front-end and adjacent technology markets. We serve those with Brooks product solutions which is made up of mostly automation solutions including robotics and wafer handling mechanisms, but also cryogenic pumps and vacuum and instrumentation, that controls the environment in which we manipulate the semiconductor wafers.

We run a Brooks Global Services business which comprises approximately $80 million out of $500 million revenue and a new market segment for us, Brooks Life Sciences Systems which in calendar year 2012 was a $53 million business unit, one that we believe provide significant growth and challenge and opportunity for the company.

The served market makeup that we have represents approximately $1.8 billion of served market today, about $1.5 billion or $1.6 billion of market opportunity comes from the core businesses of the company which includes semiconductor and adjacent market automation and cryogenic and vacuum technologies and then very interesting, a very fast growing market segment of Life Sciences Systems, where we actually manage the automated cold storage, automated tracking and movement of samples in a cold environment.

The market size today we believe is around $130 million available market, growing at approximately 20% per year. We have about 40% market share today, but very strong market position in the systems and the opportunities that are coming forward as we move toward the rapid growth biological sample storage in cryogenic temperatures.

On the semiconductor side briefly, the core drivers are driven by mobility applications and communications. We have very high level of engineering spend to capture designing wins to serve this industry as the line widths drop, as the challenges associated with contamination and economics are increasingly important.

We spend about $36 million per year to continue to get designing wins for equipment makers who serve the semiconductor industry. We are in a period now of rapid re-growth if you will of this business but the investments that we have made in engineering serve us well from a design win standpoint and we continue to gain market share in the most critical segments of the available market space.

In terms of the new product capabilities we added company to the portfolio by acquisition Crossing Automation, we acquired in October 2012. It was trailing 12 months revenue of approximately $50 million. It was accretive already in the March quarter and we anticipate that as we go beyond 2014 that the ROIC performance of this business will be greater than 15%.

There is a very significant amount of business driven by vacuum coating in MEMS CapEx which is related to mobile computing and the rapid growth of smartphone applications. We have products positioned now to serve what is called the advanced wafer level packaging or back-end applications, which basically an expansion of the front-end of the wafer remains whole farther into the back-end, it expands the size of our market using the current technologies we have as a company that we anticipate rapid growth during the next three years as it transitions to a significant amount of wafer level packaging.

And finally at some point in time there will be a transition from a 300 millimeter diameter wafer to a 450 millimeter diameter wafer. We continue to have designing wins, and position ourselves to be one of the few and certainly fewer suppliers of automation and vacuum technologies in the 450 millimeter wafer space.

We have launched products. We have shipped them now to 10 customers. We continue to grow our market position well in advance of the market, but we do anticipate in the coming years 450 will play a major role in the continued growth of the company and so we have made the necessary investments to make sure that we will be market leader when the industry makes its transition to 450 millimeter wafer diameters.

What we came here to talk about very specifically however is the growth driver related to the Life Sciences business. Currently the state of sample storage if you will is done by manual systems by and large. So most of the samples for chemical compounds for biological samples are stored in manual freezers or in liquid nitrogen cooled stainless steel doors, and there is a dramatic growth in the size of this industry.

Read the rest of this transcript for free on seekingalpha.com