Brooks Automation To Split Into Two Companies; Q2 Profit Rises

Shares of Brooks Automation, Inc. (BRKS) are gaining over 10% on Monday extended session after the life sciences and semiconductor company announced plans to split into two companies as well as reported its second-quarter results.

Brooks Automation announced plans to split into two standalone companies with one focusing on life sciences and the other on semiconductor manufacturing industries.

Current Brooks CEO Steve Schwartz will lead the standalone life sciences company, while current Brooks CFO Lindon Robertson will serve as CFO.

Dave Jarzynka, current President of the Semiconductor Solutions Group business, will be named CEO of the new Brooks Automation, while current Brooks Corporate Controller and Principal Accounting Officer Dave Pietrantoni will be named CFO.

"Record level revenue in the second quarter is yet another proof point of the strength and continued momentum of our Life Sciences and Semiconductor Solutions businesses," said CEO Steve Schwartz. "While today's separation announcement reflects years of strategic investment and innovation, we believe that the Life Sciences and Semiconductor Solutions businesses are now of size and scale to operate and benefit from their own standalone structures. Looking ahead, we see strong demand in both businesses supporting continued acceleration as we enter the second half of our fiscal year."

Net income for the second quarter rose to $23.7 million or $0.32 per share from $9.1 million or $0.12 per share last year. Adjusted earnings for the quarter were $0.61 per share, up from $0.25 per share last year.

Second-quarter revenues rose 30 percent to $286.6 million from $220.2 million last year.

Analysts polled by Thomson Reuters expected earnings of $0.50 per share on revenues of $272.0 million for the quarter.

Semiconductor Solutions revenues rose 26% to $157 million, while Live Sciences grew 36% to $130 million.

Looking forward to the third quarter, Brooks expects revenues $300 million to $320 million and adjusted earnings of $0.65 to $0.75 per share.

BRKS closed Monday's trading at $89.44, down $9.73 or 9.81%, on the Nasdaq. The stock, however, gained $9.50 or 10.62%, in the after-hours trade.

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