Exhibit 99
FINAL TRANSCRIPT
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May. 14. 2007 / 2:00PM PT, ADEP - Q3 2007 Adept Technology Earnings Conference
Call.
CORPORATE PARTICIPANTS
Steve Moore
Adept Technology - CFO
Rob Bucher
Adept Technology - CEO
John Dulchinos
Adept Technology - VP, Worldwide Sales & Marketing
CONFERENCE CALL PARTICIPANTS
[Removed By Adept]
PRESENTATION
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Operator
Good day, and welcome to the Adept Technology Incorporated third quarter 2007
earnings results discussion. As a reminder, today's call is being recorded.
At this time, I would like to turn the conference over to Mr. Steve Moore.
Please go ahead, sir.
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Steve Moore - Adept Technology - CFO
Good afternoon, everyone, and thank you for joining us. Also on today's call is
Rob Bucher, our CEO, and John Dulchinos, our VP of Worldwide Sales and
Marketing.
As we begin today's call, let me remind you that during the course of this
conference call, we will make certain remarks regarding Adept's expectation as
to future events, and future financial performance, plans, and prospects of the
Company, all of which are based on the Company's position as of today, May 14,
2007.
Any such forward-looking statements involve a number of risks and uncertainties
and the Company's actual results could differ materially from those expressed in
any of the forward-looking statements for a variety of reasons, including the
risks described in our quarterly report on 10-Q, and in our press release, as
well as the risks described in the Company's other SEC filings.
No one should assume that any forward-looking statements made by the Company
remain consistent with our expectations after the date that the forward-looking
statements are made. The financial, statistical, or operational information
referred to in this conference call is available on the Investor Relations'
section of our website. Following our introductory comments, we will open up the
call to take your questions. The purpose of today's call is to give you a brief
summary of Adept's fiscal 2007 third quarter, and to discuss current trends in
our business.
So let's start with a summary of third quarter results. Revenues for Adept's
fiscal 2007 third quarter ended March 31, 2007, were $12.6 million, down 16%
from revenues of $15.1 million in the third quarter of fiscal 2006. The
year-over-year decline was related to the continuation in this quarter of the
low cycle of capital expenditure in the U.S. and Asian disk drive industry,
following record disk drive revenue in Q3 of last year, along with the ongoing
decline in the general U.S. manufacturing sector, which has outpaced our
European growth, and our initiatives in the vertical markets. Sequentially, Q3
revenues were up 14% from $11.1 million in the second quarter of 2007.
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We had a strong quarter in Europe, where our traditional market continues modest
growth, and where Adept has made significant investments to expand localized
capabilities, and to build vertical industry revenues in the packaging sector.
By business segment, robotics revenues, which represent sales of our motion
control systems, robotics mechanisms and components, and Vision guidance
software, were $8.1 million in the fiscal 2007 third quarter, down 12.7% from
revenues of $9.2 million in the third quarter of fiscal 2006. Sequentially,
robotic revenues were up 33.9% from revenues of $6 million in the second quarter
of fiscal 2007.
Looking now at our services and support business, revenues were $4.5 million in
the fiscal 2007 third quarter, down 22.5% from $5.8 million in the third quarter
fiscal 2006. This decrease is primarily due to the previously mentioned down
cycle in the disk drive capital spending.
Looking at revenue by region, 42% of sales were from the U.S. and 58% were
international. This compares with Q3 of 2006, when 39% of sales were from the
U.S. and 61% from international. European sales were strong in Q3, up 33%
year-over-year, and reflected both a stable market for industrial robots, as
well as orders from new customers in the packaging sector. Asian sales reflected
the lack of capital spending in the disk drive market, and U.S. sales were down
slightly for Q3 year-over-year.
Turning now to gross margin, for the fiscal 2007 third quarter gross margin was
45.7% of revenue, up slightly from 45.3% in the same period of fiscal 2006.
Sequentially, third quarter 2007 gross margin was substantially improved over
the 35.1% gross margin we recorded in the second quarter of 2007, primarily due
to operational focus, and execution on improved absorption of manufacturing
expenses, short development programs that improved the margin on current
products sold, and the acquisition and use of lower cost parts in remanufactured
robots.
Operating expenses in fiscal 2007 third quarter were $8.3 million, including a
non-cash expense of $1.9 million, associated with the settlement of a dispute
between Adept and Crosslink Capital Partners, which is described in the 8-K
filed today. Not including the $1.9 million related to the settlement, operating
expenses were down slightly, compared with operating expenses of $6.6 million in
the third quarter of fiscal 2006. Operating loss in Q3 2007 was $2.6 million,
and $717,000 prior to the non-cash settlement expense, as compared with
operating income in Q3 of 2006 of $213,000.
We recorded interest income of $98,000, and a gain on currency exchange of
$32,000 in the third quarter of fiscal 2007, compared to interest expense of
$17,000, and a loss on currency exchange of $17,000 in Q3 of 2006. Net loss in
the third quarter of fiscal 2007 was $2.4 million, or $0.32 per share, compared
with net income of $172,000, or $0.03 per basic share, and $0.02 per diluted
share, in Q3 2006.
Turning now to the balance sheet, Adept ended the quarter with cash and
short-term investments of $11 million, compared with $11.7 million at the end of
December. This decrease was primarily the result of cash used in the operations
in the quarter. Accounts receivable were $10.3 million at the end of March,
compared with $9.6 million in December. Days sales outstanding for receivables
improved from 90 days at the end of December, to 72 days at the end of March.
Inventory levels also improved from $11.1 million at the end of December, to
$10.4 million at the end of March.
Looking ahead, we intend to record restructuring expense in the fourth quarter
of fiscal 2007 of approximately $1 million, in association with our
previously-announced plans to restructure and rebalance our business, and to
reallocate our sales and service resources, to more effectively address our
target vertical markets in the years ahead. The $1 million restructuring charge
that we expect to take in the fourth quarter is tied primarily to excess
facilities or leases expenses.
I would like to close with an update of our outlook for fiscal 2007. Given what
we see as an irreversible decline in our traditional industrial markets in the
U.S. accelerating faster than the growth in Europe, and the inroads in the
target vertical markets, our current expectations for revenue for the full
fiscal year 2007, are that they will be approximately 13% lower than fiscal
2006.
I will now turn the call over to Rob Bucher for a strategic view of the
business.
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Rob Bucher - Adept Technology - CEO
Thank you, Steve. As we have laid out in the last couple of conference calls,
Adept's near and long-term financial success is tied to our program success in
the aforementioned automation markets of Data Management or disk drive, Life and
Health Sciences, Semiconductor/Solar, and Specialized High-speed packaging.
Since the last quarter's update, Adept has been aggressively transitioning our
business away from traditional industrial and integrated markets, towards these
select vertical OEM markets.
They offer higher project revenue, increased value to both the customer and
Adept, and a long-term replicatable project opportunity. Our unique technology
of integrated motion vision provides precision with performance, which when
applied to these markets, and combined with specialized clean room mechanisms
and regulatory conformance, reshapes our product portfolio as the most
competitive in these markets.
I will now ask John Dulchinos to review our investments and capabilities of the
business, to provide both a short-term and consistent revenue base, on which we
can further build on. John?
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John Dulchinos - Adept Technology - VP, Worldwide Sales & Marketing
Thank you, Rob. Today I would like to focus on giving you a clearer picture of
the traction and momentum we are seeing in our vertical markets. To briefly
recap, we have identified four broad vertical markets, that we believe will
provide us more and higher quality sales opportunities. These markets are Data
Management, Life Sciences, High-speed Packaging, and Semiconductor/Solar. Each
of them are in an early stage of transitioning their operations to automation,
and Adept is ideally positioned to capture an early market lead, by leveraging
our technology experience and established relationships.
Adept has been investing in the products and infrastructure to address the
requirements of our target verticals, both by developing custom controls, and in
some cases robot mechanisms that incorporate Adept's proprietary motion and
control software, adding control network and information handling capabilities,
and by building a dedicated sales and service capability, for each vertical that
encompasses both domestic and worldwide personnel as required. We expect to
replace the business we have lost from the U.S. industrial sector, with revenues
from our target verticals as they begin to ramp.
The first vertical that we expect to contribute significantly to our sales is
Packaging, which we expect to begin to reach volume levels in our upcoming
fiscal year. The market for High-speed Packaging robots is concentrated in
Europe and the U.S., it is characterized by higher ASPs, and even more
significantly, by orders for multiple units, which means that sales into the
Packaging market will have a much higher average dollar value, than sales into
the industrial sector. Adept has participated in the Packaging vertical for
several years with our controls and vision products, and has existing
relationships with many of the volume packaging machine companies.
Last summer we introduced our inverted Cobra robots for carton and case-loading
applications, and this product has systemically been building revenue and sales.
A few months ago we launched our cornerstone product for packaging, for the
packaging vertical, QUATTRO, which is a specialized high-speed robot that
leverages our controls platform, complements our inverted Cobra robot, and
boasts better performance than any other robot on the market for packaging
applications. In the third quarter of fiscal 2007, we recognized our first
revenue for QUATTRO from a French food processing company for the specialized
European food market.
Based on market projections from ARC Advisory Group, robot upgrades and new
packaging OEMs will continue an opportunity for sales of 1,000 to 1,500 robots
per year. Our current OEM customers are contemplating the purchase of 20 to 50
high-speed packaging robots a year. QUATTRO has targeted this opportunity, and
we expect the product to help our packaging vertical markets generate a
meaningful revenue stream for Adept in the upcoming fiscal year.
The other vertical we expect to see a significant revenue contribution to Adept
is Life Sciences. Within this vertical, we are currently focused on a few key
applications. As stated in previous releases, Adept continues to enjoy a
recurring revenue stream from Becton Dickinson, as they utilize our robots in a
safe, fully-validated, automated blood handling solution sold to high-volume
diagnostics labs. We also participate in providing the automation for several
mail order pharmacies, and during the quarter signed with a major North American
prescription benefit management provider, to supply robots for their automated
distribution centers.
Medical devices are another important target application within Life Sciences
for Adept, during our third quarter, we added a new OEM customer in the medical
device space, Integrated BioSciences. IBS is an FDA-registered, an industry
certified medical device contract manufacturer, that has built a business model
of full automation in each of the facilities they build. They have chosen Adept
to be their exclusive robot supplier, and commissioned their first line of 16
Adept COBRA i600 robots, which are used to build, which they are using in their
fully-automated production facility.
Sales cycles in the Life Sciences vertical tend to be quite long, and once begun
may be slow to ramp. We are very pleased to have reached this first milestone
with IBS, and anticipate being able to build up a significant business with them
over the next several quarters. Likewise, we expect that this will be our first
of several agreements in the Life Sciences sector, as we continue to progress in
our active and future sales cycles.
Finally in Q3, Adept signed our first customer in the surgical assist area of
Life Sciences. We believe this market is a very attractive long-term business
for Adept, as it leverages our strength in controls, software, and precision
robotics. We are very confident in our strategic vision, and proud of our
progress to-date in our vertical markets.
I will now hand it over to Rob to conclude the call.
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Rob Bucher - Adept Technology - CEO
In order to ensure our ability to compete and grow, last quarter Adept
announced our intention to implement a series of actions to rebalance our
resources towards the vertical products and market areas, and to incorporate new
operational strategies, that allow Adept to most cost and time effectively meet
the needs of our new market opportunities. Basically, this is about shifting
personnel, assets, and product development focus as much as possible to those
segments that can give us the most return as rapidly as possible.
First, in terms of product distribution, we are redeploying sales and marketing
dollars from the domestic market to Europe. This will take advantage of our
recent product delivery investment in Germany, and the benefit afforded to adapt
from the increase in the Euro against the U.S. dollar. Since Europe is also a
major high-speed packaging market, we will be focusing dedicated application and
service support into the European high-speed packaging market, in order to
capture a greater share of this important segment.
In addition, we are focusing all sales and marketing resources in the U.S. to be
100% focused on Packaging, as well as Life Science opportunities, a growth,
high-value domestic market. These activities may increase the erosion of our
traditional U.S. sales, while we expect these actions will result in additional
significant Life Sciences and Packaging orders by the end of the calendar year.
In terms of Asia, we will make our Singapore facility into our disk drive
center, paralleling our disk drive customers' move of their manufacturing
operations to southeast Asia. This will also allow Adept Asia to utilize
low-cost sub-suppliers to additionally improve margins. The program should allow
Adept to parallel the localization success we saw when we moved product
deliveries for Europe to Germany.
During the third quarter, Adept added distributors in the unserved markets of
South America and Australia. Distributor revenue increased during the third
quarter, and in the near future we will push more of Adept's standard product,
especially the traditional customer industrial customer base through this
channel. Finally, we will also continue to evaluate target market revenue and
market opportunities by mergers and acquisitions.
The other major component of Adept's response is the acceleration of operation
strategies, to the change in our business model to align with the OEM market
situation. First, we continue to outsource the manufacture of our standard
industrial robots and components, in order to align product and cost reduction
with the decreased volume of sales and the competitors for these markets.
Second, we have reorganized Livermore into a new product center, focusing on the
needs of the target OEM markets. During Q3, we released a new inverted COBRA for
packaging, we acquired regulatory approvals for UL and clean room necessary for
all these key markets, and we put a total commitment on the completion and
delivery of QUATTRO, the world's fastest robot, and the most significant new
design in robotics in a decade.
Third, we will be reviewing our application engineering and support methods. We
need to align these services with OEM requirements, taking into account the
longer program cycles, the closer customer relationships, and the global
servicing programs required versus the On-Demand service provided today. Having
started this transition in Q3, we are aiming to make measured but substantial
progress through the next several quarters. The programs and cost savings are
expected to lower the level at which Adept can breakeven, improve our cost of
selling and product delivery, and generate consistent positive cash flow.
In Q3 we made substantial progress in both margins and operational
profitability. Adept and our employees continue to have full confidence in our
market strategy of controlled software, application value, and focus on
fast-growing vertical markets. This moves Adept's core offerings from what could
have become a commodity robot sale, to advanced OEM products with high-value
software and application content.
I would now like to turn the call over to your questions.
QUESTION AND ANSWER
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Operator
(OPERATOR INSTRUCTIONS) No one has signaled at this time. (OPERATOR
INSTRUCTIONS) We will take a question from [Removed ByAdept].
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Unnamed Participant
Good afternoon, gentleman.
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Rob Bucher - Adept Technology - CEO
Hello, [Removed By Adept].
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Unnamed Participant
Can you give me a sense as to the progression of the cost savings efforts?
Where you are starting from a breakeven standpoint? Where you think you will
get? And over what timeframe it will take you to get there?
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Rob Bucher - Adept Technology - CEO
Who wants to answer that one? (laughter) I will try. What we have been doing is
that previously last quarter, what we are trying to do, [Removed By Adept], is
increase or improve the flexibility of the Company, so that as the, so that we
can have a breakeven in a much lower revenue stream. That is one of the reasons
why we are looking at outsourcing and those types of activities. And then at the
same time, we are also investing in short-term projects, in order to improve the
margins of the Company.
As you can see this quarter, we actually improved the margins close to 10%.
Obviously, we can't continue that forever, but we will see some incremental
improvement next quarter. What we are really doing is through the next quarter
and the following quarter, probably for our fourth quarter and our first quarter
over the next fiscal year, you will see us move into a situation where we get to
or beyond our breakeven target.
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Unnamed Participant
Okay. Is that comment based on both revenue, an expectation of revenue growth,
as well as cost reduction, or is that really just focused on the cost reduction
side of it?
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Rob Bucher - Adept Technology - CEO
It is mostly focused on the cost reduction quotient, but it is incorporating
historically the first quarter and second quarter of our business, traditionally
being a low-revenue quarter. So we are contemplating both, in terms of the
program, that is a low revenue stream, as well as reducing our operating
expenses. Obviously, we are hoping that we do more than we need, in order to
improve on the bottom line.
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Unnamed Participant
I think at one point your breakeven was thought to be around $12.5 million,
probably layered in a little additional cost, or there was some cost associated
with some of the reallocation that tempered that.
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Rob Bucher - Adept Technology - CEO
There was one or two special costs we had. We did a standards cost rollup this
quarter, which contributed $300,000 to our cost, or close to it.
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Steve Moore - Adept Technology - CFO
I think from a breakeven standpoint, our current breakeven is well above the
$12 million that you described, but that is more the target that we are looking
for. That will depend on two things, one, rationalizing some of our expenses,
but also getting a better margin out of our products through cost reductions in
cost in our manufacturing side, but also through better pricing.
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Unnamed Participant
Okay. And we should see some some of the positive impact associated with that
in Q4, and more of it in Q1, is that the right way to think about it?
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Rob Bucher - Adept Technology - CEO
Yes, that is the way to look at it. What we can't afford to do, because to put
it plainly we are not a big company, and don't have the total amount of
resources that you need in order to do a 90-degree shift, is that we are coming
out with a measured plan, in order to improve ourselves on a quarter-by-quarter
basis.
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Unnamed Participant
Okay.
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Rob Bucher - Adept Technology - CEO
What I would like to say, is that we are very cognizant of the fact that cash
is king, and maintaining our capacity to be profitable as quickly as possible,
and then ensuring that we have the investment that we need going forward.
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Unnamed Participant
Okay. Considering the anticipated growth in revenue in Q4 along with some
expense reduction,is there any reason that there wouldn't be profitability in
the Q4 timeframe? Are there some additional costs that maybe I am not thinking
about?
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Rob Bucher - Adept Technology - CEO
I can't think of any costs, but we are at the mercy of the revenue line.
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Unnamed Participant
Okay.
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Rob Bucher - Adept Technology - CEO
The reason I say that is that these are nontraditional times. We may do better
than we think, we may do worse than we think, and it is really due to the fact
that we are in that transitional element right now.
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Unnamed Participant
Okay. But if you do put up a revenue number of something around $13.5 million,
which I think gets to the fiscal '07 outlook, at that level should there be
profitability if you were to achieve that revenue level?
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Steve Moore - Adept Technology - CFO
At that level we would expect profitability, but again we hesitate to give any
real guidance on a quarter-by-quarter basis.
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Unnamed Participant
Sure.
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Steve Moore - Adept Technology - CFO
Our plans do depend on achieving that level of revenue.
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Unnamed Participant
Okay. Lastly, based on what, the trends you are seeing in Europe, and the
trends that you are seeing in the vertical markets, recognizing we often see
some seasonality in your business, but we are kind of coming off some lower
levels, is there the chance that some of that seasonality is mitigated, based on
some of the strengths starting to offset the U.S. weakness?
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Rob Bucher - Adept Technology - CEO
You can answer that one.
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John Dulchinos - Adept Technology - VP, Worldwide Sales & Marketing
Hi, {Removed by Adept]. We would hope that given that our fiscal second half of
the year has not been as strong as it has historically been, that we would not
then have the typical substantial stepdown in Q1 and Q2. As we do our financial
planning though, we are cognizant of that traditional model, and we are taking
steps to make sure that we comprehend what could potentially be a stepdown, just
because we have got such a long history of being able to see it.
From a business standpoint, we don't believe we will see the same level of
stepdown that we have seen in the past.
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Unnamed Participant
Okay.
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Rob Bucher - Adept Technology - CEO
One other thing I would like to say about that {Removed by Adept], is that we
are transitioning from a traditional supplier to integrator program, to more of
an OEM market. And as the OEM market takes traction, we will see the seasonality
in our business go away also.
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Unnamed Participant
Okay, great. If I could just ask one more. Is there a long-term model that you
would then be shooting for? Is it something approaching a mid-50s gross margin
at some point down the road, and a 15% operating margin, or any sense as to what
kind of model we could anticipate at some point?
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Rob Bucher - Adept Technology - CEO
I think we have discussed those operating models before, and the numbers you
are throwing around are in that ballpark. We realize the fact that we want to
have margins that are higher than our current and our traditional margins have
been.
The other thing we are also trying to do, which is not contemplated in what you
just said, is we want to very much improve the price per unit, so that we are
not relying on small ASPs on lots of units, but we are looking for big ASPs on a
lower number of units, which would therefore have the nicety of reducing our
operating expense primarily from a distribution activity.
So that is another piece to take into the pie, is that we are trying to get
away, we saw the ASPs in our business trying to approach, maybe even breaking
through the commodity end of it. And with these OEM activities, we will be
greatly increasing our ASPs back to what the Company traditionally saw five, ten
years ago.
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Unnamed Participant
Okay. So while you had some degradation in those legacy areas, the changes that
you are affecting really should only accentuate the prior model?
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Rob Bucher - Adept Technology - CEO
That is right.
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Unnamed Participant
Great. Thank you, guys.
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John Dulchinos - Adept Technology - VP, Worldwide Sales & Marketing
The only thing I will add, [Removed by Adept], is the other objective of the
vertical activity is to create a more predictable revenue stream. As Rob talked
about, our current business model has a lot of variability from quarter to
quarter, on which customers are buying and the size of the orders. The whole
model on the vertical side is to establish long-term relationships with OEMs
that in the long run will give us a more predictable and consistent revenue
stream, which is obviously important to all of us.
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Unnamed Participant
Welcome by all.
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Rob Bucher - Adept Technology - CEO
Yes.
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Unnamed Participant
Thank you.
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Rob Bucher - Adept Technology - CEO
Okay.
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Operator
(OPERATOR INSTRUCTIONS) [Removed By Adept].
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Unnamed Participant
Hi, gents.
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Rob Bucher - Adept Technology - CEO
Hello, [Removed by Adept].
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Unnamed Participant
I don't know whether you intend to going forward, break out your revenues by
these four verticals or not? Does that make sense, or are we just talking noise
level in some instances where you are just starting into the market? It would be
certainly helpful as we try to calibrate how you are doing in these various
verticals going forward.
And second of all, if you could elaborate a little on the Life Sciences area,
you mentioned another new client, but then you also referred to surgical assist.
Could you elaborate a bit on that as to where you are headed?
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Steve Moore - Adept Technology - CFO
On the first part of your question, we don't intend at least over the next
couple of quarters, to be breaking out the verticals, for the reason you gave.
Some of them are still pretty new.
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Unnamed Participant
Right.
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Steve Moore - Adept Technology - CFO
But we will continue to reevaluate that as our business becomes more vertically
oriented, to see whether our segment reporting should be revised.
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John Dulchinos - Adept Technology - VP, Worldwide Sales & Marketing
{Removed by Adept], I'll answer the, this is John Dulchinos. I'll answer the
question on Life Sciences and Medical. There are several slices of this that we
look at, and some start very traditionally, which is medical device assembly,
which looks a lot like our industrial applications.
I won't talk a lot about that, other than the relationship we have with
Integrated BioSciences is a little bit different in that they are a contract
manufacturer, and they are setting up basically turnkey automated factories to
build medical devices. So we think this may be a model that others will embrace
over time, and that is why we believe it is noteworthy in terms of its activity.
What was important in the most recent quarters, they have got their first line
commissioned, and they are starting to look at how they would now take this, and
leverage it to more additional lines. It is a good step forward in taking a
traditional application and making it more specialized for the future.
Second area we have had reasonable success in and I would expect it to continue,
is in mail order pharmacies, and this is somewhat traditional in that it uses
robots as a material handler to fulfill prescription orders over the internet.
This is a growth area, there are several companies that are doing it. We have
got positions with a number of companies that we have not publicly been able to
disclose, but we have a good position there, and we would expect that over time
more and more of prescription drugs would be fulfilled over the internet, and
will drive more need for automated facilities.
The third category is what we are doing with Becton Dickinson, this is what
would be fairly traditional Life Sciences, but in this segment, we have got a
couple of OEMs, Becton Dickinson being one, who takes our controls, software,
and robot technology, and applies it to diagnostics labs, where they will
automatically handle certain specimens for testing. The capabilities of our
software platform, the strength of our controls to handle the data reliably is a
key piece of those applications.
The last one, which the most intriguing of the group, although certainly the
most immature is in the area of surgical assist. There have been companies who
have obviously started to come to market, who have taken automation and robots
into the hospital for certain surgical procedures, and I believe we commented in
our release, that we had made an initial sale with a company who, an OEM company
who is looking at using our robots as a surgical assistant in a procedure in a
hospital, that is probably all I can talk about at the moment.
We believe that this market had strong long-term attractiveness, and as Rob
mentioned, a real opportunity to get margins and ASPs higher than we have had in
our traditional businesses. Those are kind of the four segments we look at from
a Life and Health Sciences standpoint. Does that answer your question?
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Unnamed Participant
Yes, okay, thanks.
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Rob Bucher - Adept Technology - CEO
The one other thing I would say about that market, {Removed by Adept], is that
it offers us a great competitive, if we want to say barrier, in terms of the
traditional Japanese robot suppliers. We do not see them in this arena. Maybe
probably due to the regulatory requirements that are basically coming out of the
U.S. FDA and medical needs.
We look at this as a great area for us to target because it is growth, it is
domestic. It supports a good ASP, and it also supports a small competitor base,
which is more focused on results versus low-cost commodity products.
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Unnamed Participant
Okay, thanks.
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Rob Bucher - Adept Technology - CEO
Okay.
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Operator
(OPERATOR INSTRUCTIONS) I show no further questions at this time. Mr. Bucher,
I will turn the conference back over to you for any additional or closing
comments.
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Rob Bucher - Adept Technology - CEO
Thank you. In conclusion, Adept has speeded up our transition to what we,
independent market consultants, and our first major OEM partners in some of
these verticals, believe will offer Adept a high-growth and consistent
profitable revenue base. These markets are independent of U.S. industrial
weakness, they are independent of commercial market cycles, and they certainly
relieve us of our traditional low-cost competitors. In order to obtain traction
in these vertical markets, Adept is accelerating distribution and operations
programs, that will give Adept the dedicated focus to move quickly and exploit
these opportunities.
We look forward to discussing our success in the next and future calls with you.
Thank you for joining us today.
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Operator
Ladies and gentlemen, if you wish to access the replay, you may do so by
dialing 1-888-203-1112 or 719-457-0820, using the passcode 6339418.
This concludes our conference for today. Thank you, all, for participating, and
have a nice day. All parties may now disconnect.
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