EXHIBIT 99.1
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.--(BUSINESS WIRE)--Sept. 13, 2007--Adept
Technology, Inc. (Nasdaq:ADEP), 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 for the fourth quarter of fiscal 2007 was $(6.0)
million, compared with operating income of $740,000 in the fourth
quarter of fiscal 2006. Fiscal 2007 fourth quarter operating expenses
include $1.0 million in restructuring expense and $3.2 million in
non-cash expense 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 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 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 our resources and focus them on more profitable opportunities
in Europe and in our target verticals of life sciences and consumer
goods, as well as disk drive, as it recovers,' said John Dulchinos,
president and chief operating officer 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
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 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
This press release contains certain forward-looking statements
including statements regarding the Company's restructuring activities,
decreasing operating expense, 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 and regulatory
requirements associated with international operations, sales and
foreign suppliers; the cyclicality of capital spending 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 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; 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 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 to be incurred and higher
insurance costs.
For a discussion of risk factors relating to Adept's business, see
Adept's annual report on Form 10-K for the fiscal year ended June 30,
2007 which will be filed later today and quarterly report on Form 10-Q
for the quarter ended March 31, 2007 including the discussion in
Management's Discussion and Analysis 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.
ADEPT TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Year Ended June 30,
-----------------------------
2007 2006 2005
--------- --------- ---------
(in thousands, except per
share data)
Revenues $ 48,688 $ 57,637 $ 50,480
Cost of revenues 27,611 30,349 27,319
--------- --------- ---------
Gross margin 21,077 27,288 23,161
Operating expenses:
Research, development and engineering 7,220 7,143 6,868
Selling, general and administrative 20,132 19,406 15,257
Restructuring charges (reversals) 1,023 (22) (33)
Amortization of other intangible
assets 33 195 195
Goodwill impairment 3,176 - -
Crosslink settlement costs 1,861 - -
--------- --------- ---------
Total operating expenses 33,445 26,722 22,287
--------- --------- ---------
Operating income (loss) (12,368) 566 874
Other income - - 314
Currency exchange gain 208 86 270
Interest income 481 83 29
Interest expense (36) (120) (192)
--------- --------- ---------
Income (loss) from operations before
income taxes (11,715) 615 1,295
Provision for (benefit from) income
taxes (202) 77 -
--------- --------- ---------
Net income (loss) $(11,513) $ 538 $ 1,295
========= ========= =========
Basic income (loss) per share $ (1.50) $ 0.08 $ 0.21
========= ========= =========
Diluted income (loss) per share $ (1.50) $ 0.08 $ 0.19
========= ========= =========
Basic number of shares used in computing
per share amounts : 7,676 6,412 6,063
========= ========= =========
Diluted number of shares used in
computing per share amounts: 7,676 6,784 7,873
========= ========= =========
Comprehensive income (loss)
Net income (loss) $(11,513) $ 538 $ 1,295
Foreign currency translation
adjustment 476 - -
--------- --------- ---------
Total comprehensive income (loss) $(11,037) $ 538 $ 1,295
========= ========= =========
ADEPT TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
(in thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
------------------- -------------------
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
--------- --------- --------- ---------
Revenues $ 12,265 $ 14,943 $ 48,688 $ 57,637
Cost of revenues 6,760 7,856 27,611 30,349
--------- --------- --------- ---------
Gross margin 5,505 7,087 21,077 27,288
Operating expenses:
Research, development and
engineering 1,949 1,763 7,220 7,143
Selling, general and
administrative 5,385 4,558 20,132 19,406
Restructuring charges
(reversals) 1,022 (22) 1,023 (22)
Amortization of other
intangible assets - 48 33 195
Goodwill impairment 3,176 - 3,176 -
Crosslink settlement costs - - 1,861 -
--------- --------- --------- ---------
Total operating expenses 11,532 6,347 33,445 26,722
--------- --------- --------- ---------
Operating income (loss) (6,027) 740 (12,368) 566
Interest income (expense), net 101 27 445 (37)
Currency exchange gain (loss) 50 292 208 86
--------- --------- --------- ---------
Income (loss) before income
taxes (5,876) 1,059 (11,715) 615
Provision for (benefit from)
income taxes (203) 75 (202) 77
--------- --------- --------- ---------
Net income (loss) $ (5,673) $ 984 $(11,513) $ 538
========= ========= ========= =========
Basic net income (loss) per
share $ (0.73) $ 0.14 $ (1.50) $ 0.08
========= ========= ========= =========
Diluted net income (loss)
per share $ (0.73) $ 0.13 $ (1.50) $ 0.08
========= ========= ========= =========
Basic number of shares used in
computing per share amounts: 7,800 6,913 7,676 6,412
========= ========= ========= =========
Diluted number of shares used
in computing per share
amounts: 7,800 7,693 7,676 6,784
========= ========= ========= =========
ADEPT TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share data)
June 30, June 30,
2007 2006
---------- ----------
ASSETS
- ------------------------------------------------
Current assets:
Cash and cash equivalents $ 8,900 $ 11,054
Short-term investments 1,962 3,003
Accounts receivable, less allowance for
doubtful accounts of $506 in 2007
and $467 in 2006 10,185 11,591
Inventories, net 9,806 11,600
Other current assets 598 439
---------- ----------
Total current assets 31,451 37,687
Property and equipment at cost 14,903 12,076
Less accumulated depreciation and amortization 11,271 9,480
---------- ----------
Property and equipment, net 3,632 2,596
Goodwill - 3,176
Other intangible assets, net - 34
Other assets 152 199
---------- ----------
Total assets $ 35,235 $ 43,692
========== ==========
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED
STOCK, AND STOCKHOLDERS' EQUITY
- ------------------------------------------------
Current liabilities:
Accounts payable 5,175 6,952
Accrued payroll and related expenses 1,708 1,719
Accrued warranty 1,207 1,638
Deferred revenue 33 3
Accrued restructuring charges 293 -
Other accrued liabilities 594 258
---------- ----------
Total current liabilities 9,010 10,570
Long-term liabilities:
Restructuring charges 638 -
Other long-term liabilities 183 433
---------- ----------
Total liabilities 9,831 11,003
---------- ----------
Commitments and contingencies - -
Redeemable convertible preferred stock, no par
value: 5,000 shares authorized, none issued and
outstanding - -
Stockholders' equity:
Preferred stock, $0.001 par value: 1,000
shares authorized, none issued and
outstanding
- -
Common stock, $0.001 par value: 19,000 shares
authorized, 7,914 and 7,583 shares issued
and outstanding in 2007 and 2006,
respectively
162,385 158,633
Accumulated other (137,457) (125,944)
Accumulated other comprehensive income 476 -
Total stockholders' equity 25,404 32,689
---------- ----------
Total liabilities, redeemable convertible
preferred stock and stockholders' equity
$ 35,235 $ 43,692
========== ==========
CONTACT: Adept Technology, Inc.
Lisa Cummins, 925-245-3400
Chief Financial Officer
investor.relations@adept.com