Brooks Automation delays filing of Form 10-K, sees material weakness in controls
In a regulatory filing earlier, 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 filing stated: "Management is reviewing the timing of revenue recognition with respect to product shipped from one of the company's contract manufacturers within the company's Semiconductor Solutions Group segment that represents approximately $1.0M in revenue. As a result, management, in consultation with the Audit Committee of the company's Board of Directors, is also reviewing the timing of revenue recognition for similar transactions. The company's review has not yet been finalized, has delayed the completion of the company's financial statements and the company's annual audit, and has impacted the company's ability to timely file the Form 10-K. The company expects to file the Form 10-K as soon as practical within the 15-day extension period. Separate from the review of the timing of revenue recognition and related delay in filing the Form 10-K as described above, the company also expects to report in the Form 10-K management's conclusion that a material weakness in internal controls over financial reporting exists with respect to the accuracy of revenue recorded at a business unit within its Brooks Life Sciences segment. Specifically, the company found certain immaterial errors in regards to the price and quantity of certain billings and concluded 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. These control deficiencies did result in immaterial adjustments to the consolidated financial statements for the year ended September 30, 2019, but management concluded that the material weakness did not result in any misstatements that are material to the company's consolidated financial statements for any reported period. Management has concluded, however, that the internal control issues represent a material weakness that it expects to report in Item 9A of the Form 10-K. These conclusions have been discussed with the company's Audit Committee and the company's independent registered public accounting firm."