NEW YORK, Dec. 4, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Brooks Automation, Inc. ("Brooks Automation" or the "Company") (NASDAQ: BRKS).
On December 2, 2019, Brooks Automation disclosed that the Company "is unable to file its Annual Report on Form 10-K for its fiscal year ended September 30, 2019 . . . within the prescribed time period without unreasonable effort or expense." The Company cited an ongoing review of its revenue recognition practices related to the timing of revenue recognition with respect to product shipped from one of the Company's contract manufacturers within its Semiconductor Solutions Group. Additionally, the Company stated that management, in consultation with the Audit Committee, is also reviewing the timing of revenue recognition for similar transactions.
Also, on December 2, 2019, aside from the review of the timing of revenue recognition, the Company disclosed that it expects to report a material weakness in the financial reporting of its Brooks Life Sciences segment related to the price and quantity of certain billings. In this regard, Brooks Automation disclosed that "the Company did not maintain effective controls to verify the accuracy of the price and quantity data for customer transactions entered into the business unit's billing system, and to verify that the invoices generated from the billing system were based on the appropriate amounts." However, the Company represented that the material weakness "did not result in any misstatements that are material to the Company's consolidated financial statements for any reported period."
Following these disclosures, Brooks Automation's stock price fell $3.16 per share, or more than 7%, to close at $41.61 per share on December 2, 2019. The stock price continued to decline the next trading day.
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SOURCE Kaplan Fox & Kilsheimer LLP