Adept Reports Financial Results for Its Fourth Quarter and Fiscal Year 2007.Fourth Quarter Restructuring Expected to Lower Expense Base and Accelerate Company's Transition to High-Value, Growing Markets LIVERMORE, Calif. -- Adept Technology, Inc. (Nasdaq:ADEP ADEP Association d'Entraide des Polios et Handicapés ADEP Accelerated Degree Evening Program ADEP Accelerator-Driven Energy Production ADEP Avionics Document for Execution & Planning ADEP Automatic Depth Control ), a leading provider of intelligent vision-guided robotics and global robotics services, today reported financial results for its fiscal fourth quarter and year ended June 30, 2007. Fourth Quarter Results Fourth quarter 2007 revenues were $12.3 million, down 18% from revenues of $14.9 million for the fourth quarter of 2006 and down 2% compared to revenues of $12.6 million in the third quarter of 2007. Gross margin for the fourth quarter of fiscal 2007 was 44.9%, compared with 47.4% in the fourth quarter of 2006 and 45.7% in the third quarter of 2007. Gross margin in the fourth quarter of fiscal 2007 includes $329,000 of writedowns for obsolete and consigned inventory. Excluding these writedowns, gross margin was 47.6% in the quarter, a margin percentage management believes helpful for investors to understanding normal gross margin for the quarter. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the fourth quarter of fiscal 2007 was $(6.0) million, compared with operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $740,000 in the fourth quarter of fiscal 2006. Fiscal 2007 fourth quarter operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. include $1.0 million in restructuring expense and $3.2 million in non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) for impairment of goodwill and amortization of intangibles, compared with amortization of intangibles of $48,000 in the fourth quarter of fiscal 2006. Fourth quarter 2007 net loss was $(5.7) million, or $(0.73) per basic share, compared with net income of $984,000, or $0.14 per basic share, for the fourth quarter of 2006. Cash, cash equivalents and short-term investments as of June 30, 2007 were $10.9 million, down $88,000 from the end of the previous quarter and compared with $14.1 million as of June 30, 2006. Full Year Results Revenues for the full year ended June 30, 2007 were $48.7 million, down 15.5% from revenues of $57.6 million for fiscal 2006 due to a continued soft capital investment climate in the global disk drive and U.S. industrial markets. Gross margin for the full fiscal year 2007 was 43.3%, compared with gross margin of 47.3% in the previous year. Operating loss for fiscal 2007 was $(12.4) million, compared with operating income of $566,000 in fiscal 2006. Fiscal 2007 operating expenses include the $4.2 million in restructuring, goodwill impairment and amortization expenses listed above, as well as $1.9 million in non-cash settlement expense, compared with amortization of intangibles of $195,000 and a reversal of restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $22,000 in fiscal 2006. Net loss for the full fiscal year 2007 was $(11.5) million, or $(1.50) per basic and diluted share, compared with net income of $538,000, or $0.08 per basic and diluted share for the prior year. In the fourth quarter the Company restructured its operations, which included a 15% reduction in personnel and a reduction in operating expenses of approximately 13%. The ongoing quarterly savings in operating expenses from the restructuring is expected to be between $750,000 and $950,000, beginning in the first quarter with the full effects being realized in the second quarter of fiscal 2008. Commented Rob Bucher, chief executive officer of Adept Technology, "2007 was a difficult year for Adept, as we lost a significant portion of our revenue from the continued down cycle in the disk drive market and experienced a sharp decrease in demand from industrial automation markets in the U.S., as traditional manufacturers continued to outsource production to low cost geographies. In response to, and in anticipation of, these market changes we have intensified our vertical market focus by introducing our innovative Quattro[TM] robot, a high-speed packaging robot targeted at the expanding opportunity for high-value automation in the packaged goods Noun 1. packaged goods - groceries that are packaged for sale foodstuff, grocery - (usually plural) consumer goods sold by a grocer plural, plural form - the form of a word that is used to denote more than one markets of Europe and the U.S., and by investing in the high growth medical automation markets." "Restructuring the organization is expected to significantly lower our quarterly break-even and has provided us with the opportunity to realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. our resources and focus them on more profitable opportunities in Europe and in our target verticals of life sciences and consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and , as well as disk drive, as it recovers,' said John Dulchinos, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Adept Technology. "These markets support higher sales prices and larger unit volumes, providing Adept with better leverage from our sales and marketing activities." Fiscal 2007 Highlights During fiscal 2007, Adept: * Achieved record revenues in Europe, supported both by continued strong demand from traditional automation markets in Germany and from new customers in the food and consumer goods industries in France; * Achieved record orders of AdeptViper[TM] six-axis robots, which are targeted at high-speed precision assembly applications in the food, medical and other emerging automation markets; * Launched Adept Quattro, the industry's fastest robot for high-speed packaging operations, targeted at the food, consumer goods, cosmetics and pharmaceutical industries; * Made progress against its strategy to lower the cost of sales by signing new distribution partners - now totaling 15 - as part of a plan to sell more product through indirect channels; and * Achieved first design win for Adept controls and software in the surgical-assist robot market. Fiscal 2008 Outlook The Company expects to achieve improvement in operating results through fiscal 2008, beginning in the second quarter. The Company further expects to generate positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses beginning in the second quarter of fiscal 2008 and to be cash flow positive for the fiscal year as a whole. These improvements are based on expected revenue improvement as a result of increasing demand for Adept's Quattro robots, combined with sustained gross margins and expected decreases in operating expenses resulting from the Company's recent restructuring. Additionally, the Company expects to record additional restructuring charges of approximately $300,000 in the first quarter of fiscal 2008. It further expects expense reductions will be achieved beginning in the first quarter with the full impact of the savings to be achieved in the second quarter of fiscal 2008. Conference Call and Simultaneous Webcast Robert Bucher, Chief Executive Officer, John Dulchinos, President and Lisa Cummins, Vice President, Finance and Chief Financial Officer, will host an investor conference call today, September 13, 2007, at 5:00 P.M. Eastern Time to review the Company's financial and operating performance for the fiscal 2007 fourth quarter and year. The call will be open to all interested investors through a live audio Web broadcast via the Internet at www.streetevents.com or may be accessed through the investor relations Investor relations The process by which the corporation communicates with its investors. section of our website at www.adept.com. For those who are not available to listen to the live broadcast, the call will be archived at www.adept.com, www.streetevents.com and www.fulldisclosure.com. A telephonic playback of the conference call will also be available for five days. Listeners should call 719-457-0820 or 888-203-1112 and use CODE No. "3419070". About Adept Technology, Inc. Adept is a global, leading provider of intelligent robotics systems and services that enable customers to achieve precision, speed, quality and productivity in their assembly, handling, packaging, testing and other automated processes. With a comprehensive portfolio of high-performance motion controllers, application development software, vision-guidance technology and high-reliability robot mechanisms, Adept provides specialized, cost-effective robotics systems and services to high-growth markets including Packaged Goods, Life Sciences, Disk Drive/Electronics and Semiconductor; as well as to traditional industrial markets including machine tool automation and automotive components. More information is available at www.adept.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains certain forward-looking statements including statements regarding the Company's restructuring activities, decreasing operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. , financial performance including revenue and income, and market opportunities that involve a number of risks and uncertainties. The Company's actual results could differ materially from those expressed in any of the above forward-looking statements for a variety of reasons, including but not limited to: the actual results of our restructuring activities, and potential impact of current restructuring efforts; factors affecting our operating results including factors difficult to forecast; future economic, competitive and market conditions including those in Europe and Asia and those related to the Company's strategic markets; risks of acceptance of the Company's new or current products in the marketplace; the financial and operating risks Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. and regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. associated with international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , sales and foreign suppliers; the cyclicality of capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. of the Company's customers and lack of long-term customer contracts; customers' ability to pay invoices in a timely manner; the risk that some customers may become insolvent; dependence on the continued growth of the intelligent automation market; the highly competitive nature of and rapid technological change and competition within the intelligent automation industry; the lengthy sales cycles for the Company's products; the Company's limited cash resources and significant fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). which are not easily reduced; the Company's outsourced manufacturing dependence and risks associated with sole or single sources of supply and lengthy procurement lead times The interval in months between the initiation of procurement action and receipt into the supply system of the production model (excludes prototypes) purchased as the result of such actions. It is composed of two elements, production lead time and administrative lead time. ; risks associated with the seasonality of the Company's products; risks associated with product defects; potential delays associated with the development and introduction of new products or software releases; the Company's ability to sell its products through systems integrators and original equipment manufacturers who may also promote competing products; risks associated with variations in our gross margins based on factors not always in Adept's control; the need to hire and retain qualified managerial personnel and to complete acquisitions to expand operations; risks of unfair termination claims by employees; risks associated with variations in gross margins; risks related to the Company's potential inability to strengthen its internal controls over financial reporting; potential securities class action litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. if Adept's stock price remains volatile or operating results suffer; and costs of being a public company as a result of legislation requiring greater general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. to be incurred and higher insurance costs. For a discussion of risk factors relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Adept's business, see Adept's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended June 30, 2007 which will be filed later today and quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2007 including the discussion in Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations and Factors Affecting Future Operating Results contained therein. All trade names are trademarks or registered trademarks of their respective holders. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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