Adept Technology Reports First Quarter Fiscal 2002; Results In-Line With Previous Announcement.Business Editors/High-Tech Writers SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Oct. 24, 2001 Adept Technology, Inc. (Nasdaq/NMS:ADTK), a leading manufacturer of flexible automation for the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , fiber optic and semiconductor industries, today reported financial results for its first quarter ended September September: see month. 29, 2001. Net revenues for the quarter ended September 29, 2001 were $13.4 million, a decrease of 51% from net revenues of $27.6 million for the quarter ended September 30, 2000. Adept reported a net loss before a restructuring charge 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. and amortization expense of $8.9 million, or $0.68 per share, for the quarter ended September 29, 2001, versus net income of $0.7 million, or $0.07 per share, before amortization of goodwill and other intangibles, for the quarter ended September 30, 2000. Including the restructuring charge and amortization expense, Adept reported a net loss of $21.4 million, or $1.63 per share, for the first quarter of fiscal 2002. Before amortization expense and restructuring charge, the 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 quarter ended September 29, 2001 was $8.9 million as compared to 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 $0.1 million for the quarter ended September 30, 2000. Gross margin for the quarter ended September 29, 2001 was 34.7% versus 46.5% in the quarter ended September 30, 2000. The comparative 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. , excluding amortization expense and restructuring charge, for the quarter ended September 29, 2001 were $13.6 million compared to $12.7 million for the quarter ended September 30, 2000. Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. R. Carlisle Carlisle, city, England Carlisle, city (1991 pop. 72,006) and district, Cumbria, NW England, near the junction of the Caldew, Eden, and Petteril rivers. The city of Carlisle is an important rail center. , Chairman and Chief Executive Officer of Adept noted, "During the past quarter we have continued to see a deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of our business as our customers have reduced their capital expenditures in an effort to deal with excess manufacturing capacity. This situation has been compounded by the market uncertainty that resulted from the tragic events last month. As previously announced we are aggressively taking action to reduce Adept's cost structure. Our goal is to bring expenses more in line with revenues, while maintaining our commitment to developing and introducing innovative flexible automation solutions. We are also using this opportunity to consolidate operations which will result in improved operating efficiencies." The company's cost reduction measures, announced in July July: see month. , are currently being implemented and include the following: -- Consolidation of manufacturing facilities in San Jose and Livermore, California into Adept's technology center in Pleasanton, California plus the consolidation of some customer support facilities in Europe. These consolidations are expected to be completed by the end of the third quarter of fiscal 2002. -- Write-off of certain leasehold improvements associated with the facilities consolidations. These actions will take place concurrent with the consolidations of the related facilities. -- Write-off of assets impaired as a result of exiting certain non-strategic product lines. -- Workforce reduction of approximately 144 employees or 26 percent from the total headcount at June 30, 2001. Carlisle noted, "We believe that the actions we are taking at this time have not compromised and, in fact, will strengthen our ability to be a financially attractive technology leader in the next expansion cycle. On a positive note, over the last 12 months we have worked very hard to develop and qualify automation components and solutions for both semiconductor and photonics photonics, the science and technology based on and concerned with the controlled flow of photons, or light particles. It is the optical equivalent of electronics, and the two technologies coexist in such innovations as optoelectronic integrated circuits. applications. We are now beginning to see signs suggesting market stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders in the way of increased proposal activity, in both these areas, as these new products are introduced." Business Outlook The following statements are based on current expectations. These statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , and actual results may differ materially. These statements do not reflect the potential impact of any mergers, acquisitions or other business combinations that may be completed after the date of this release. -- The company expects net revenues for the second quarter of fiscal 2002 to be flat to up 10% from first quarter 2002 net revenues of $13.4 million. At this time we have limited visibility for the following quarters. -- The company expects its gross margin percentage to be approximately 33 to 38 percent for the second quarter of fiscal 2002. -- Operating expenses in the second quarter of fiscal 2002 are expected to be approximately $11.0 to $12.0 million vs. first quarter expenses of $13.6 million. The reduced expenses are a result of cost reductions, which are being taken during the first and second quarters of fiscal 2002. -- Without the JDS Uniphase JDS Uniphase Corporation (JDSU) NASDAQ: JDSU is a company that manufactures and designs products for fiber optic communication and test equipment. It is headquartered in Milpitas, California, USA. investment the company expects it would have approximately $3 million of cash on hand at the end of the second quarter of fiscal 2002, and no debt. -- The company does not expect to book any tax benefit during fiscal 2002. -- Depreciation and amortization is expected to be approximately $0.9 million in the second quarter of fiscal 2002. -- The company has adopted of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 142 - "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ." The company is currently performing the required impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. tests of goodwill and indefinite INDEFINITE. That which is undefined; uncertain. INDEFINITE, NUMBER. A number which may be increased or diminished at pleasure. 2. When a corporation is composed of an indefinite number of persons, any number of them consisting of a majority of those lived intangible assets as of January January: see month. 1, 2002 and has not yet determined what the effect of these tests will be on the earnings and financial position of the company. Investor Conference Call Brian Carlisle, Chairman and Chief Executive Officer, Mike Overby, Vice President and Chief Financial Officer, and John Dulchinos, Vice President Sales, will host an investor conference call today, October October: see month. 24, 2001 at 5:00 p.m. Eastern Time to review the company's financials and operations for the first quarter of fiscal 2002. The call will include statements regarding the company's expectations regarding its financial performance in the second quarter of fiscal 2002. 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 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. until its next quarter end results announcement. The call will be open to all interested investors through a live audio Web broadcast via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.streetevents.com or may be accessed through 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 and www.streetevents.com. A telephonic playback Playback could mean:
This press release contains certain forward-looking statements including statements regarding expenses, revenue growth and future operating results, 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, future economic, competitive and market conditions including those in Europe and Asia and those related to the company's strategic markets; 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 including in the semiconductor industry; the company's dependence on the continued growth of the intelligent automation market; the company's highly competitive industry; rapid technological change within the company's industry; the lengthy sales cycles for the company's products; the company's dependence on retention and attraction of key employees; the 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. ; the risks associated with potential acquisitions, including integration risks associated with our acquisition of BYE/Oasis, Pensar-Tucson, NanoMotion and HexaVision, the risks associated with product defects; the potential delays associated with the development and introduction of new products or software releases; or decreased acceptance of the company's new or current products in the marketplace. For a discussion of additional 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 10K for the fiscal year ended June 30, 2001, 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 contained therein. Adept Technology designs, manufactures and markets factory automation components and systems for the fiber optic, telecommunications, semiconductor, automotive, food and durable goods durable goods Goods, such as appliances and automobiles, that have a useful life over a number of periods. Firms that produce durable goods are often subject to wide fluctuations in sales and profits. Also called consumer durables. industries throughout the world. Adept's robots, controllers, and software products are used for small parts assembly, material handling and ultra precision process applications. Our intelligent automation product lines include industrial robots An industrial robot is officially defined by ISO[1] as an automatically controlled, reprogrammable, multipurpose manipulator programmable in three or more axes. , configurable linear modules, flexible feeders, semiconductor process components, nanopositioners, machine controllers for robot mechanisms and other flexible automation equipment, machine vision systems and software, application software, and simulation software Simulation software is based on the process of imitating a real phenomenon with a set of mathematical formulas. It is, essentially, a program that allows the user to observe an operation through simulation without actually running the program. . Founded in 1983, Adept is America's largest manufacturer of industrial robots. More information is available at www.adept.com.
ADEPT TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Three months ended
September 29, September 30,
2001 2000
Net revenues $ 13,385 $ 27,621
Cost of revenues 8,737 14,783
---------- ----------
Gross margin (loss) 4,648 12,838
Operating expenses:
Research, development and engineering 5,838 4,866
Selling, general and administrative 7,715 7,836
Restructuring expenses 12,335 --
Amortization of goodwill and
other intangibles 180 1,425
---------- ----------
Total operating expenses 26,068 14,127
---------- ----------
Operating income (loss) (21,420) (1,289)
Interest income, net 83 189
---------- ----------
Income (loss) before income taxes (21,337) (1,100)
Provision (benefit) for income taxes 81 (385)
---------- ----------
Net income (loss) ($ 21,418) ($ 715)
========== ==========
Net income (loss) per share:
Basic ($ 1.63) ($ 0.07)
========== ==========
Diluted ($ 1.63) ($ 0.07)
========== ==========
Number of shares used in computing
per share amounts:
Basic 13,169 10,743
========== ==========
Diluted 13,169 10,743
========== ==========
ADEPT TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Three months ended
September 29, June 30,
2001 2001
ASSETS
Current assets:
Cash, cash equivalents and
short term investments $ 13,678 $ 21,500
Accounts receivable, less allowance
for doubtful accounts of
$695 at September 29, 2001 and
$742 at June 30, 2001 16,930 21,272
Inventories 18,076 17,750
Deferred tax assets and prepaid expenses 2,691 2,069
---------- ----------
Total current assets 51,375 62,591
Property and equipment at cost 6,987 34,520
Less accumulated depreciation
and amortization 2,164 23,789
---------- ----------
Net property and equipment 4,823 10,731
Goodwill and other intangibles, net 16,118 16,332
Other assets 5,781 5,919
---------- ----------
Total assets $ 78,097 $ 95,573
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,468 $ 10,369
Other accrued liabilities 13,229 12,438
Accrued restructuring charges 3,119 --
---------- ----------
Total current liabilities 23,816 22,807
Commitments and contingencies
Long term liabilities:
Restructuring charges 2,876 --
Deferred income tax and other
long term liabilities 1,271 1,284
Total shareholders' equity 50,134 71,482
---------- ----------
Total liabilities and
shareholders' equity $ 78,097 $ 95,573
========== ==========
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