Company Executes Restructuring, Lowering Operating Expenses by An Additional $1M Per Quarter; Quattro Orders and Sales Remain Strong, Increasing 29% Sequentially
PLEASANTON, Calif., May 6, 2009 (GlobeNewswire via COMTEX News Network) -- Adept Technology, Inc. (Nasdaq:ADEP), a leading provider of intelligent vision-guided robotic solutions, today announced financial results for its 2009 fiscal third quarter ended March 28, 2009.
Fiscal 2009 Third Quarter Results
Revenues for the third quarter of fiscal 2009 decreased 52% to $7.7 million, compared to $16.1 million for the same period last year, and decreased 30% from $11.0 million in the second quarter. The decrease in revenue was driven by a decrease in orders across all industries and services business in January and February 2009 reflecting the global economic downturn affecting the Company's customers. The Company reported a GAAP net loss of $3.5 million, or $0.42 per share, which compares to net income of $983,000, or $0.12 per fully diluted share in the third quarter of fiscal 2008 and a net loss of $4.6 million, or $0.57 per share in the second quarter of fiscal 2009. Adjusted EBITDA loss was $2.6 million in the third quarter of fiscal 2009, compared with adjusted EBITDA of $1.6 million in the third quarter of fiscal 2008 and an adjusted EBITDA loss of $3.2 million in the second quarter of fiscal 2009. A discussion of this non-GAAP measure and reconciliation of this measure to the applicable GAAP measure is included below.
Gross margin was 38.2% of revenue in the third fiscal quarter of 2009, compared with 46.3% of revenue in the third quarter of 2008 and 42.2% in the second quarter of 2009. Adept's gross margins were negatively impacted by lower volumes which caused under-absorption of fixed manufacturing expenses, although the Quattro product margin remained steady throughout the quarter. Operating expenses for the third quarter of fiscal 2009 were $6.4 million, compared to operating expenses of $6.6 million in the same quarter of fiscal 2008 and $8.8 million in the second quarter of 2009.
During the quarter, Adept implemented new expense reductions expected to result in quarterly savings of approximately $1 million starting in the fourth quarter of fiscal 2009, which began on March 29, 2009, with the full effect realized in the first quarter of fiscal 2010, which begins on July 1, 2009. Included in the savings were additional voluntary executive salary reductions lowering the base salary of our CEO by 15% and of other executive management by 10%, which together with salary reductions effected in January 2009, reflects a total reduction of 35% and 20%, respectively, in addition to other employee salary reductions.
Adept's cash and short-term investment balance at March 28, 2009 was $8.7 million, as compared to $11.0 million reported as of December 27, 2008.
"We experienced a significant slowdown in January and February of this year as a result of the worldwide recession," said John Dulchinos, Adept's president and chief executive officer. "We saw numerous customers idle production lines and delay capital investments in the first two months of the year, which had a significant impact on our revenue. We are encouraged by an increase in activity since then, including a 29% increase in Quattro orders during the quarter, indicating that our business may be stabilizing. Looking forward we continue to focus on managing our resources and returning to cash flow positive operations. We took steps during the quarter to reduce our operating expenses by $1 million per quarter, which should be fully reflected in our first fiscal quarter of 2010. We have now secured a $5 million line of credit and our balance sheet remains strong. With our realigned cost structure we are confident that we have sufficient cash to weather this downturn. With our new product offerings and solid design wins in our key markets of packaging and solar, we are also confident we are well positioned to return to growth and profitability once the economy begins to recover."
* Obtained a line of credit for up to $5 million in borrowings from
Silicon Valley Bank.
* Adept implemented further cost cutting measures during the quarter
resulting in an additional quarterly savings of approximately $1
million. Included in the savings were additional voluntary executive
salary reductions lowering CEO salary by an additional 15% and
executive management by an additional 10% of base, which together
with salary reductions from January 2009, bring the total to 35%
and 20% respectively.
* Adept Quattro robot orders were up 29% quarter over quarter showing
recently growing momentum in packaging.
* Adept demonstrated its Quattro robot and its ACE PackXpert software
at premier food industry and industrial manufacturing shows in
France in March 2009.
* During the quarter, Adept demonstrated its new inline solar cell
handling and inspection system, Eclipse(tm), at the Photovoltaic
Technology Show 2009 Europe and at the Photovoltaic Power
Generation Expo 2009 in Tokyo.
* Adept signed two new distribution partners during the quarter,
which are focused on the Japanese robotics market, the largest in
Quarterly Conference Call
John Dulchinos, president and chief executive officer, and Lisa Cummins, vice president and chief financial officer, will host an investor conference call today, May 6, 2009, at 5:00 P.M Eastern Time to review the Company's financial and operating performance for the fiscal 2009 third quarter. As the Company is no longer providing a revenue, net income, adjusted EBITDA or cash outlook for fiscal 2009, the Company intends not to provide specific forward-looking statements regarding fiscal 2009 financial results. However, the Company may make other forward-looking statements during the call, and intends to continue its practice of not updating the forward-looking statements provided in this release and the earnings conference call until its next quarter end results announcement. These statements will be forward-looking, and actual results may differ materially. The Company intends to continue its practice of not updating forward-looking statements until its next quarter end results announcement. The call can be accessed by dialing (800) 762-8779. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. In addition, the conference call will be available over the Internet at www.adept.com in the Investor Relations section of the site. For those who are not available to listen to the live broadcast, the call will be archived at www.adept.com and a telephonic playback of the conference call will also be available for seven days following the call. Replay listeners should call (800) 406-7325 and enter the passcode 4066204#.
Adept Technology, Inc. designs, manufactures and markets robotic systems, motion control and machine vision technology for global markets including automotive, consumer electronics, consumer goods, disk drive, food, industrial tooling, medical devices, solar and pharmaceutical. Adept robots, controllers, and software are used for small parts assembly, material handling and packaging. Adept intelligent automation product lines include industrial robots, configurable linear modules, machine controllers for robot mechanisms and other flexible automation equipment, machine vision, and systems and applications software. Founded in 1983, Adept Technology is the largest U.S.-based manufacturer of industrial robots. More information is available at www.adept.com.
All trade names are either trademarks or registered trademarks of their respective holders.
To view the complete press release with disclosures and financial statements, please visit the Adept website at: http://ir.adept.com/releasedetail.cfm?ReleaseID=382208
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Adept Technology, Inc.
Adept Technology, Inc.
Lisa Cummins, Chief Financial Officer
MKR Group, Inc.
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Adept Technology Reports Fiscal 2009 Third Quarter Results