Riding High: Brooks Automation

(RTTNews) - Cryogenics, which refers to the study and use of materials at extremely low temperatures, is a hot topic of interest to a number of industries like pharmaceutical, chemical, automotive, electronics and aerospace, to name a few.

The Company we are profiling today is a provider of automation and cryogenic solutions for multiple applications and markets, primarily serving the semiconductor capital equipment market and sample management market for life sciences - Brooks Automation Inc. (BRKS).

The semiconductor capital equipment segment, which accounts for 80% of the Company's total revenue, offers wafer handling robotics and systems, semiconductor contamination control solutions, cryogenic pumps and compressors, and service support.

The life science systems segment, which accounts for 20% of the total revenue, provides life science and bioscience customers with complete sample management solutions to advance scientific research and support drug development.

Brooks has made a series of acquisitions related to its two segments over the years. The most-recent acquisition was in November 2016 when Brooks acquired Cool Lab LLC, a subsidiary of BioCision LLC, for about $14 million. Cool Lab provides a range of offerings that assist in managing the temperature stability of therapeutics, biological samples, and related biomaterials in ultra-cold and cryogenic environments.

Brooks has a track record of growth and improving profitability to boast about, and the financial data vouch for the same. (The Company's fiscal year ends on Sep.30th).

Given the fact that the Company has a business model with a strong recurring revenue mix, and that 50% of its revenue is from high growth segments, Brooks appears well positioned for continued profitable growth.

In the first quarter ended December 31, 2016, the Company's non-GAAP net income was $17.31 million or $0.25 per share on total revenue of $160 million. This compares with a non-GAAP net income of $1.24 million or $0.02 per share and total revenue of $120 million in the year-ago quarter.

The Company ended the first quarter of fiscal 2017 with cash of $89.0 million.

For the second quarter, Brooks expects revenue to be in the range of $165 million to $170 million and non-GAAP earnings per share to be in the range of $0.24 to $0.27.

Dividend

The Company initiated a quarterly cash dividend of $0.08 per share in 2011, and it was increased to $0.10 per share in September 2014.

Looking ahead, the Company seeks to:

-- Extend leadership in core Semiconductor and adjacent markets -- Advance the rapid growth of Life Sciences division -- Drive margin expansion and -- Utilize balanced and disciplined capital deployment.

Shares of Brooks Automation touched a 52 week high of $22.56 on Friday before closing the day's trading at $22.40.

Will the growth in Brooks' semiconductor segment and Life Sciences segment continue to contribute to its increasing stability and profitability?