Adept Technology Reports Third Quarter Fiscal 2002.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)--April 24, 2002 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 third quarter ended March 30, 2002. Net revenues for the quarter ended March 30, 2002 were $14.6 million, a decrease of 39.0% from net revenues of $23.9 million for the quarter ended March 31, 2001. Gross margin for the quarter was 32.4% versus 39.8% in the same quarter a year ago. 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 $17.7 million, compared to $16.6 million in the same quarter ended March 31, 2001. The March 30, 2002 operating expenses includes the first of five quarterly expenditures of $1.0 million which are part of joint development commitments with 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. , Inc. as well as $5.3 million of non-cash 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. . The non-cash restructuring charges include $3.0 million for the shut down of the company's Tucson Tucson (t  `sŏn'), city (1990 pop. 405,390), seat of Pima co., SE Ariz.; inc. 1877. , AZ manufacturing facility and
$2.3 million for the write off of a strategic investment made to secure
manufacturing capacity 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). . The charges are part of
management's continuing efforts to align align ( līn),v to move the teeth into their proper positions to conform to the line of occlusion. capacity needs with the company's business outlook. Adept reported a net loss before cumulative effect of accounting changes of $9.9 million, or $0.72 per share, for the quarter ended March 30, 2002, versus a net loss of $11.7 million, or $0.99 per share, for the quarter ended March 31, 2001. The figures above include amortization of $0.2 million for the quarter ended March 30, 2002 versus $2.1 million for the same quarter a year ago. As described below, Adept implemented 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 during the first quarter of fiscal 2002. It completed the measurement of 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. loss in the third quarter of 2002 and is reporting an impairment charge of $9.8 million or $0.71 per share as the cumulative effect of a change in accounting principle. Including the cumulative effect of a change in accounting principle, Adept reported a net loss of $19.7 million or $1.43 per share for the quarter ended March 30, 2002. 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, "We believe our business has stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. and will now show modest improvement over the rest of this calendar year. While wireless 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. remain extremely weak, inquiry activity is up in both our base component business and our semiconductor business. As the market environment improves, we will benefit from the product line expansions, expense reductions and consolidations we have completed in the past year." For the nine months ended March 30, 2002, Adept reported revenues of $42.4 million compared to revenues of $79.6 million for the same period in the previous year, a decrease of $46.7%. Gross margin for the first nine months of fiscal 2002 was 34.5% versus 44.1% in the first nine months of fiscal 2001. Operating expenses for the nine months ended March 30, 2002 were $55.7 million compared to $45.6 million in operating expenses for the nine months ended March 31, 2001. The operating expenses for the nine months ended March 30, 2002 include the first of five quarterly expenditures of $1.0 million which are part of joint development commitments with JDS Uniphase, Inc., as well as $17.7 million ( $17.1 million non-cash) of restructuring charges. For the first nine months of fiscal 2002 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 $41.1 million, as compared to operating losses of $10.5 million for the first nine months of fiscal 2001. The figures above include amortization of $0.6 million for the nine months ended March 30, 2002 and $5.0 million for the same period a year ago. Including the cumulative effect of a change in accounting principle, Adept reported a net loss of $47.7 million or $3.50 per share for the nine months ended March 20, 2002. Carlisle added, "The expected completion of the sale of the Inspection portion of SILMA, combined with an anticipated tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. , should allow us to maintain our cash level in our fourth quarter." Cumulative Effect of Change in Accounting Principle In June June: see month. 2001, the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). ("FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ") issued Statements of Financial Accounting Standards No. 141, Business Combinations ("SFAS 141"), and No. 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. ("SFAS 142"). SFAS 141 requires that the purchase method of accounting be used for all business combinations initiated after June 30, 2001. Adept has adopted SFAS 141, and does not expect this Statement to have a material effect on Adept's financial position or results of operations. Under SFAS 142, goodwill (and intangible assets deemed to have 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 lives) will no longer be amortized but will be subject to annual impairment tests in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the Statements. Other intangible assets with finite finite - compact lives will be amortized over those useful lives. Adept has implemented SFAS 142 during the first quarter of fiscal 2002. Statement 142 requires that the first of two impairment tests be completed within six months of adoption and any impairment loss recognized when adopting Statement 142 be reflected as the cumulative effect of a change in accounting principle. Adept completed the measurement of the impairment loss in the third quarter of fiscal 2002. Adept has determined the amount of the impairment loss to be $9.8 million. 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 fourth quarter of fiscal 2002 to be flat to up 4% from third quarter 2002 net revenues of $14.6 million. Management emphasized that the business climate remains very volatile. Since the company books and ships the majority of its revenue within the same quarter, it makes precise revenue estimates difficult to rely on. -- The company is currently utilizing less than 50% of its capacity and expects its gross margin percentage to be approximately 31 to 33 percent for the fourth quarter of fiscal 2002. The company expects that as volume increases and the benefits of the restructuring activities take effect, gross margins will steadily improve by the third quarter of fiscal 2003. -- R&D and SG&A in the fourth quarter of fiscal 2002 are expected to be down approximately by 6% to 10% as compared to third quarter expenses of $11.2 million. In addition, the company will incur a research and development expense for the fourth quarter of fiscal 2002 of approximately $1.0 million for joint development commitments related to a project with JDS Uniphase Corporation. We are contractually committed to this level of expenditure through the third quarter of fiscal 2003. Overall, expenses are expected to continue to decrease through the first quarter of fiscal 2003 and then level out. -- The company expects to have approximately $20 million of cash on hand at the end of the fourth quarter of fiscal 2002, and no debt. In addition, the company expects to recover approximately $3 million in prior taxes by filing amended tax returns for 1996, 1997 and 1998 in accordance with the extended loss carry back provision of the economic stimulus package. Should this be completed in the fourth quarter the company's cash balance could be approximately $23 million. -- The company does not expect to book any tax benefit associated with current year operations during fiscal 2002. -- Depreciation and amortization is expected to be approximately $0.9 million in the fourth quarter of fiscal 2002. -- The company has adopted of SFAS 142 - "Goodwill and Other Intangible Assets". The company will perform the required impairment tests of goodwill and indefinite lived intangible assets as of June 30, 2002. The company expects this to result in a charge for impairment of approximately $0.5 million to $1.0 million during the quarter. 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, April 24, 2002 at 5:00p.m. Eastern Time to review the company's financials and operations for the third quarter of fiscal 2002. The call will include statements regarding the company's anticipated financial performance in the fourth 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, HexaVision and CHAD; 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 as well as the company's Form 10Q for the quarters ended September September: see month. 29, 2001 and December December: see month. 29, 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 ultra Member of the extreme right (ultraroyalist) wing of the royalist movement in the French Bourbon Restoration (1815–30). The ultras included large landowners, clericalists, and the former émigré nobility. 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 Nine months ended
March 30, March 31, March 30, March 31,
2002 2001 2002 2001
-------- -------- -------- --------
(unaudited) (unaudited) (unaudited) (unaudited)
Net revenues $ 14,588 $ 23,913 $ 42,404 $ 79,568
Cost of revenues 9,856 14,393 27,765 44,458
-------- -------- -------- --------
Gross margin 4,732 9,520 14,639 35,110
Operating expenses:
Research, development
and engineering 5,008 5,182 15,432 15,056
Selling, general
and administrative 7,192 9,297 22,025 25,504
Restructuring expenses 5,323 -- 17,659 --
Amortization of goodwill
and other intangibles 216 2,077 575 5,020
-------- -------- -------- --------
Total operating expenses 17,739 16,556 55,691 45,580
-------- -------- -------- --------
Operating income (loss) (13,007) (7,036) (41,052) (10,470)
Interest income, net 123 165 344 420
-------- -------- -------- --------
Income (loss) before
income taxes and
cumulative effect of
change in accounting
principle (12,884) (6,871) (40,708) (10,050)
Provision (benefit)
for income taxes (2,935) 4,828 (2,789) 4,828
-------- -------- -------- --------
Net income (loss)
before cumulative
effect of change in
accounting principle (9,949) (11,699) (37,919) (14,878)
Cumulative effect of
change in accounting
principle (9,786) -- (9,786) --
-------- -------- -------- --------
Net income (loss) $(19,735) $(11,699) $(47,705) $(14,878)
======== ======== ======== ========
Net income (loss)
per share:
Before cumulative
effect of change in
accounting principle
Basic ($ 0.72) ($ 0.99) ($ 2.78) ($ 1.33)
======== ======== ======== ========
Diluted ($ 0.72) ($ 0.99) ($ 2.78) ($ 1.33)
======== ======== ======== ========
After cumulative
effect of change in
accounting principle
Basic ($ 1.43) ($ 0.99) ($ 3.50) ($ 1.33)
======== ======== ======== ========
Diluted ($ 1.43) ($ 0.99) ($ 3.50) ($ 1.33)
======== ======== ======== ========
Number of shares
used in computing
per share amounts:
Basic 13,829 11,795 13,648 11,147
======== ======== ======== ========
Diluted 13,829 11,795 13,648 11,147
======== ======== ======== ========
ADEPT TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
March 30, June 30,
2002 2001
------- -------
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and
short term investments $22,643 $21,500
Accounts receivable, less
allowance for doubtful accounts of
$695 at March 30, 2002
and $742 at June 30, 2001 12,980 21,272
Inventories 13,000 17,750
Deferred tax assets
and prepaid expenses 3,947 2,069
------- -------
Total current assets 52,570 62,591
Property and equipment at cost 11,938 34,520
Less accumulated depreciation
and amortization 5,882 23,789
------- -------
Net property and equipment 6,056 10,731
Goodwill and other intangibles, net 14,688 16,332
Other assets 2,969 5,919
------- -------
Total assets $76,283 $95,573
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,573 $10,369
Other accrued liabilities 10,559 12,438
Accrued restructuring charges 2,438 --
------- -------
Total current liabilities 20,570 22,807
Commitments and contingencies
Long term liabilities:
Restructuring charges 1,847 --
Deferred income tax and
other long term liabilities 1,374 1,284
Redeemable convertible preferred stock 25,000 --
Total shareholders' equity 27,492 71,482
------- -------
Total liabilities and
shareholders' equity $76,283 $95,573
======= =======
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