UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Act of 1934
(Amendment No. 3)
BROOKS AUTOMATION, INC. (BRKS)
(Name of Issuer)
Common Stock
(Title of Class of Securities)
114340102
(CUSIP Number)
David Nierenberg
The D3 Family Funds
19605 NE 8th Street
Camas, WA 98607
360-604-8600
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 29, 2005
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D and is filing this
schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box: |_|
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
The D3 Family Fund, L.P. (David Nierenberg is president of the General
Partner, which is Nierenberg Investment Management Company.)
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |X|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
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7 SOLE VOTING POWER
1,769,532 Common shares (2.4%)
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 1,769,532
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,728,802 shares (5.0%)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.0%
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14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
The D3 Family Retirement Fund, L.P. (David Nierenberg is president of the
General Partner, which is Nierenberg Investment Management Company.)
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |X|
(b) |_|
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3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
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7 SOLE VOTING POWER
579,500 common shares (0.8%)
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 579,500
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,728,802 shares (5.0%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
3
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
The D3 Children's Fund, L.P. (David Nierenberg is president of the General
Partner, which is Nierenberg Investment Management Company.)
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
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7 SOLE VOTING POWER
158,860 common shares (0.2%)
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 158,860
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,728,802 shares (5.0%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
4
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
The D3 Offshore Fund, L.P. (David Nierenberg is president of the General
Partner, which is Nierenberg Investment Management Company.)
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |X|
(b) |_|
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3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Bahamas
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7 SOLE VOTING POWER
865,660 common shares (1.2%)
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 865,660
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,728,802 shares (5.0%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
5
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
The D3 Family Bulldog Fund, L.P. (David Nierenberg is president of the
General Partner, which is Nierenberg Investment Management Company.)
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
355,250 common shares (0.5%)
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 355,250
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,728,802 shares (5.0%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
6
Item 1. Security and Issuer.
Common stock in BROOKS AUTOMATION, INC. (BRKS) 15 Elizabeth Drive,
Chelmsford, MA 01824-4111.
Item 2. Identity and Background.
The D3 Family Funds are Washington State limited partnerships, whose
principal business is investing in the equities of public micro-cap
issuers. The D3 Family Funds consist of: D3 Family Fund, L.P, D3
Family Retirement Fund, L.P, D3 Children's Fund, L.P, D3 Offshore
Fund, L.P., D3 Family Bulldog Fund, L.P. Located at 19605 N.E. 8th
St., Camas, Washington 98607. No convictions or administrative
proceedings as described in 2 (d) and (e).
Item 3. Source and Amount of Funds or Other Consideration
Source of funds is money invested in the partnership by their
partners.
Item 4. Purpose of Transaction
On December 29, we bought 580,000 more shares of BRKS, raising our
aggregate ownership back to 5%. We believe that this purchase makes
us BRKS' second largest shareholder.
Both factors mentioned in our prior 13D filing, dated December 9,
2005, plus a third factor, created this buying opportunity. First,
some former Helix shareholders have been selling their BRKS shares
either because they had achieved their investment objectives or
because they only hold stocks which pay dividends. We believe, for
example, that Helix' largest shareholder, which obtained nearly 8
million BRKS shares in exchange for its Helix shares, now has
disposed of the majority of their BRKS shares. Second, some BRKS
shareholders sold their shares out of frustration with the erratic
recent performance of BRKS' software division. Third, and due in
part to the two abovementioned factors, some BRKS shareholders have
been selling their shares to realize income tax losses, since BRKS'
share price (as of this instant) fell 26% this year and 46% over the
last two years, (despite the substantial operating and strategic
progress made by the company.)
Fortunately for those of us who want to be shareholders of BRKS--as
it gains market share in its core business of robotic tool
automation systems and service, as it penetrates more Tier One OEM
accounts, and as it continues reducing the costs of the combined
companies and generating free cash--we believe that the short term
selling pressure on the stock price is now over. We believe this for
the following reasons:
1. 2005 tax loss selling ends December 30.
7
2. We believe that most selling by former shareholders of Helix
is over.
3. The performance of BRKS' software division should begin
showing substantial improvement because BRKS has sharpened its
strategic focus and right-sized the division's costs. We also
hope the division will have improved governance and oversight.
4. We are encouraged by Christmas retail sales, which augur well
for the semiconductor industry and for BRKS as one its major
equipment suppliers. According to SpendingPulse, aggregate
retail sales through December 24 rose 8.7% over 2004,
considerably higher than had been forecast and greater than
2004's 6.7% gain, even in the face of higher fuel prices and
the pricking of the housing bubble. Consumer electronics sales
grew even faster, up 11% over 2004, and were the second
fastest growing product category. We believe that consumers
have not yet completed their electronics buying. Substantial
unmet demand remains, for example, for Microsoft's XBOX gaming
machine and for Apple's iPod Nano. And we are in the early
stages of a major replacement cycle of television sets.
Instead of furloughing capacity, as they did at this time last
year, we would expect semiconductor fabs to continue investing
in manufacturing equipment.
Finally, on the subject of BRKS' corporate governance, which we
touched on lightly in our prior 13D, we have had no response from
BRKS' Board of Directors to our November 17 letter. We are
disappointed by 1 1/2 months of silence, both because the tone of
our letter was constructive and because BRKS' board expressly
"encourage[d]" communications from shareholders in their 2005 annual
meeting proxy statement (see page 8 of the proxy). A timely and
detailed response could have substantiated, rather than undercut,
this invitation.
In our November 17 letter we set forth our views on the optimal
size, composition, and leadership of BRKS' Board of Directors.
Because BRKS' fiscal year ended September 30, and because the
company filed its 2005 annual meeting proxy with the SEC immediately
after the holidays, on January 6, 2005, we believe that the proxy
for the 2006 annual meeting may be imminent. We hope that, in the
absence of a substantive response to our letter, the proxy will
demonstrate tangible progress on the governance issues which we and
other large outside shareholders care about.
If we are not satisfied with what we read in the proxy, with respect
to these issues, we reserve the right to contact other BRKS
shareholders using a proxy statement and proxy solicitation firm of
our own. Unfortunately, this would bring the issues which we had
hoped to resolve privately into the public domain. Since we strongly
would prefer for BRKS to remain focused on integrating Helix, fixing
BRKS software, and gaining market share in its core business of tool
automation, we hope that the issues we raised still will be resolved
in a friendly, private manner. But with the clock ticking down the
end of 2005, and in the absence of a response from the company, we
feel obligated to begin preparing for other possibilities.
8
Item 5. Interest in Securities of the Issuer.
(a,b) D3 Family Funds own and have sole voting and dispositive power
over 3,728,802, 5.0% common shares of BRKS.
(c)
Transaction Shares
Fund Date Bought Price
D3 Family Fund, L.P. 10/27/2005 70,000 11.99
D3 Family Fund, L.P. 10/28/2005 17,700 11.64
D3 Family Fund, L.P. 12/29/2005 242,500 12.46
D3 Family Retirement Fund, L.P. 12/29/2005 125,500 12.46
D3 Children's Fund, L.P. 10/28/2005 12,000 11.64
D3 Children's Fund, L.P. 12/29/2005 42,500 12.46
D3 Offshore Fund, L.P. 10/27/2005 42,500 11.99
D3 Offshore Fund, L.P. 12/29/2005 115,500 12.46
D3 Family Bulldog Fund, L.P. 10/27/2005 50,000 11.99
D3 Family Bulldog Fund, L.P. 10/28/2005 25,000 11.64
D3 Family Bulldog Fund, L.P. 12/29/2005 54,000 12.46
(d) N/A
(e) N/A
Item 6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Issuer.
N/A
Item 7. Material to be Filed as Exhibits
N/A
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, each of the
undersigned certifies that the information set forth in the Statement is true,
complete and correct.
December 29, 2005 /s/ DAVID NIERENBERG
----------------- -------------------------------------
David Nierenberg
President
Nierenberg Investment Management
Company, Inc., the General Partner of
The D3 Family Funds
9