Adept Technology Reports Second Quarter Fiscal 2003 Results.Business Editors 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)--Jan. 22, 2003 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 optic /op·tic/ (op´tik) ocular (1). op·tic or op·ti·cal adj. 1. Of or relating to the eye or vision. 2. and semiconductor industries, today reported financial results for its second quarter ended December December: see month. 28, 2002. Net revenues for the quarter ended December 28, 2002 were $10.7 million, a decrease of 25.5% from net revenues of $14.4 million for the quarter ended December 29, 2001. Gross margin for the quarter was 27.7% versus 36.4% in the same quarter a year ago. The decrease in gross margin reflects lower volumes and pricing pressure. 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. for the quarter were $9.7 million, a decrease of 18.0% compared to $11.9 million in the quarter ended December 29, 2001. R&D and SG&A expenses for the quarter ended December 28, 2002 were $9.5 million, a decrease of 18.4% compared to $11.7 million for the same period a year ago. Adept reported a net loss of $6.7 million, or $0.45 per share, for the quarter ended December 28, 2002, versus a net loss of $6.6 million, or $0.48 per share, for the quarter ended December 29, 2001. The figures above include non-cash amortization of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. of $0.2 million for the quarter ended December 28, 2002 and $0.2 million for the quarter ended December 29, 2001. Cash and cash equivalents at the end of the quarter were $8.2 million. 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, "The marketplace continues to be challenging and our results of operations reflect the soft capital equipment spending by our customers as well as the effects of pricing pressure." For the six months ended December 28, 2002, Adept reported revenues of $21.0 million compared to revenues of $27.8 million for the six months ended December 29, 2001, a decrease of 24.4%. Gross margin for the first half of fiscal 2003 was 23.7% versus 35.6% in the first half of fiscal 2002. Operating expenses for the six months ended December 28, 2002 were $21.0 million compared to $38.0 million in operating expenses for the same period a year ago, a decrease of 44.7%. For the first six months of fiscal 2003 Adept had operating losses 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. of $16.0 million, as compared to operating losses of $28.0 million, before cumulative effect of change in accounting principle, for the first six months of fiscal 2002. The figures above include amortization and 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 $1.5 million for the six months ended December 28, 2002 and $12.7 million for the same period one year ago. Carlisle added, "While the capital expenditures of our customers remains weak, our new products are gaining market acceptance. In addition, we have continued to reduce our cost structure and manage our cash. We expect that these combined efforts will enable us to maintain our top line and show incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. improvement in our bottom line." Adept's 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 third quarter of fiscal 2003 to be up 3% to 12% from second quarter fiscal 2003 net revenues of $10.7 million. -- The company has experienced deterioration in average selling prices of several of its earlier generation products. In addition, the company is utilizing less than 50% of its capacity and expects its gross margin percentage to be approximately 27% to 30% for the third quarter of fiscal 2003. The company expects that as volume increases for newer generation products and the benefits of the expense reduction activities take effect, gross margins will steadily improve. -- R&D and SG&A expenses in the third quarter of fiscal 2003 are expected to be flat to down 5% compared to second quarter expenses of $9.5 million. -- The company is pursuing various debt and equity financing alternatives to improve its cash position. In the event that none of these financing alternatives is successfully concluded, the company expects to use substantially all of its cash in fiscal 2003. -- The company does not expect to book any tax benefit associated with current year operations during fiscal 2003. -- Depreciation and amortization is expected to be approximately $1.0 million in the third quarter of fiscal 2003. 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, January January: see month. 22, 2003 at 5:00p.m. Eastern Time to review the company's financials and operations for the second quarter of fiscal 2003. The call will include statements regarding the company's anticipated financial performance in the third quarter of fiscal 2003. 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 Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Asia and those
related to the company's strategic markets; the cyclicality of
capital spending capital spendingSpending 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 and lack of long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. customer contracts; the company's dependence on the continued growth of the intelligent automation market; the company's highly competitive industry; rapid technological change within the intelligent automation industry; the lengthy sales cycles for the company's products; the company's 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 continuing operating losses causing the company to need to raise additional financing in the future; 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 acquisitions, including integration risks associated with our previous acquisitions; the risks associated with product defects; the potential delays associated with the development and introduction of new products or software releases; decreased acceptance of the company's new or current products in the marketplace; or the risks of the company's failure to comply with Nasdaq's listing requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. . 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 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 June: see month. 30, 2002, and Adept's quarterly report on Form 10-Q Form 10-Q See 10-Q. for the fiscal quarter ended September September: see month. 28, 2002, 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, Inc. designs, manufactures and markets intelligent production automation solutions for the 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. , telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. , semiconductor, automotive, appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. , food and life sciences industries throughout the world. Adept products are used for small parts assembly, material handling and ultra precision process applications and include robot mechanisms, real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. vision and motion controls, machine vision systems, system design software, process knowledge software, precision solutions and other flexible automation equipment. Adept was incorporated in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). in 1983. 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 Six months ended
-------------------- ---------------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2002 2001 2002 2001
----------- -------- ----------- ---------
(unaudited) (unaudited)
Net revenues $10,748 $14,431 $21,023 $27,816
Cost of revenues 7,773 9,172 16,032 17,909
----------- -------- ----------- ---------
Gross margin 2,975 5,259 4,991 9,907
Operating expenses:
Research, development and
engineering 3,071 4,585 6,593 10,423
Selling, general and
administrative 6,477 7,117 12,920 14,831
Restructuring expenses - - 1,136 12,336
Amortization of other
intangibles 199 180 348 360
----------- -------- ----------- ---------
Total operating expenses 9,747 11,882 20,997 37,950
----------- -------- ----------- ---------
Operating loss (6,772) (6,623) (16,006) (28,043)
Interest income, net 30 137 209 219
----------- -------- ----------- ---------
Loss before income taxes
and cumulative effect of
change in accounting
principle (6,742) (6,486) (15,797) (27,824)
Provision for income taxes - 66 31 146
----------- -------- ----------- ---------
Net loss before cumulative
effect of change in
accounting principle (6,742) (6,552) (15,828) (27,970)
Cumulative effect of change
in accounting principle (a) - - - (9,973)
----------- -------- ----------- ---------
Net loss $(6,742) $(6,552) $(15,828) $(37,943)
=========== ======== =========== =========
Net loss per share:
Before cumulative effect
of change in
accounting principle
Basic ($ 0.45) ($ 0.48) ($ 1.08) ($ 2.07)
=========== ======== =========== =========
Diluted ($ 0.45) ($ 0.48) ($ 1.08) ($ 2.07)
=========== ======== =========== =========
After cumulative effect
of change in
accounting principle
Basic ($ 0.45) ($ 0.48) ($ 1.08) ($ 2.81)
=========== ======== =========== =========
Diluted ($ 0.45) ($ 0.48) ($ 1.08) ($ 2.81)
=========== ======== =========== =========
Number of shares used in
computing per share amounts:
Basic 15,074 13,567 14,701 13,485
=========== ======== =========== =========
Diluted 15,074 13,567 14,701 13,485
=========== ======== =========== =========
(a) The cumulative effect of change in accounting principle of $10.0
million was originally reported in our results of operations in the
Form 10-Q for the fiscal quarter ended March 30, 2002, when the amount
of the impairment under SFAS 142 was determined. However, because the
impairment relates to the effective date of SFAS 142, or July 1, 2001
for Adept, the cumulative effect of change in accounting principle was
properly restated to the first quarter of fiscal 2002 and is reflected
in the six month period ended December 29, 2001 in the table above.
ADEPT TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 28, June 30,
2002 2002
--------------------
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short term
investments $8,172 $21,681
Accounts receivable, less allowance for
doubtful accounts of $851 at
December 28, 2002 and $832 at June 30, 2002 10,403 12,500
Inventories 10,246 11,189
Prepaid expenses and other current assets 2,901 854
------- --------
Total current assets 31,722 46,224
Property and equipment at cost 13,238 12,688
Less accumulated depreciation and amortization 8,493 6,965
-------- --------
Net property and equipment 4,745 5,723
Goodwill 7,671 6,889
Other intangibles, net 1,556 1,124
Other assets 2,433 2,534
-------- --------
Total assets $48,127 $62,494
======== ========
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED
STOCK AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,856 $6,561
Other accrued liabilities 9,077 10,428
Accrued restructuring charges 1,798 1,909
--------- ---------
Total current liabilities 18,731 18,898
Commitments and contingencies
Long term liabilities:
Restructuring charges 706 1,450
Other long term liabilities 2,099 1,242
Redeemable convertible preferred stock 25,000 25,000
Total shareholders' equity 1,591 15,904
--------------------
Total liabilities and shareholders'
equity $48,127 $62,494
====================
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion