EXHIBIT 99.1
Adept Technology, Inc. Reports First Quarter Fiscal 2008 Results
Strong Revenues, Expense Reductions Drive Profitability
LIVERMORE, Calif.--(BUSINESS WIRE)--Nov. 8, 2007--Adept
Technology, Inc. (NASDAQ: ADEP) today announced financial results for
its fiscal 2008 first quarter, ended September 29, 2007.
Revenues in the fiscal 2008 first quarter were $13.7 million, up
7% year over year from $12.7 million in the first quarter of fiscal
2007 and up 10% on a sequential basis from $12.3 million in the fourth
quarter of fiscal 2007. Recovery of demand for Adept products in the
U.S. and continued strong demand in Europe drove higher revenues.
Gross margin was 53.5% of revenue in the first quarter of fiscal
2008, compared with 46.5% of revenue in the first quarter of fiscal
2007 and 44.9% in the fourth quarter of fiscal 2007. Improvement in
gross margin was primarily due to favorable product mix, incremental
software licensing revenue, positive currency effect on pricing in the
quarter and lower product manufacturing costs as a result of the
Company's ongoing cost reduction activities.
Operating expenses in the first quarter of 2008 were $6.8 million,
including $251,000 in restructuring charges, compared with operating
expenses of $7.0 million in the same quarter of fiscal 2007, in which
no restructuring expenses were recorded. Operating income was $549,000
in the first quarter of fiscal 2008, compared with operating loss of
$(1.1) million in the first quarter of fiscal 2007.
Adept reported net income of $293,000, or $0.04 per share for the
first quarter of fiscal 2008, versus net loss of $(785,000), or
$(0.10) per share, for the first quarter of fiscal 2007.
Adjusted EBITDA was $1.1 million in the first quarter of fiscal
2008, compared with ($318,000) in the first quarter of fiscal 2007 and
($2.0) million in the fourth quarter of fiscal 2007. A discussion of
this non-GAAP measure and reconciliation of this measure to the
applicable GAAP measure is included below.
Adept's cash and short-term investment balance at September 30,
2007 was $9.9 million, as compared to $10.9 million at June 30, 2007.
Accounts receivable, which reflects the timing of cash yet to be
collected, was up $2.0 million in the fiscal 2008 first quarter
compared with the previous quarter.
John Dulchinos, president and chief operating officer of Adept
Technology, commented, "The results of our first quarter validate our
strategy of targeting a select group of high-growth vertical markets.
We are also very excited to have received our first major order for
Quattro(TM), a truly innovative robot that is the centerpiece of our
strategy to offer high-speed capabilities across a range of
applications in our target verticals. We expect to begin shipping
Quattro robots for this program beginning in the second quarter."
"We're very pleased with the results of the first quarter," said
Robert Bucher, chief executive officer of Adept Technology. "Our base
operating expenses were down 11% sequentially in the first quarter as
a result of our restructuring actions, with additional benefit
expected to be realized in future quarters. We recorded strong and
balanced sales of Viper (TM) 6-axis articulated and Cobra(TM) SCARA
robots in the U.S. and Europe. We now have a business that is sized to
be profitable and to support growth. We also have the core products
and programs to drive that growth across our target markets of
Packaging, Life Sciences, Disk Drive and Semiconductor/Solar."
During the fiscal 2008 first quarter, Adept:
-- Experienced increased system and service product demand in the
U.S. and Europe, resulting in one third of total revenues
coming from the Packaging and Life Sciences vertical markets;
-- Shipped its 500th Adept Viper(TM) 6-Axis robotic mechanism,
which combines advanced robot technology with seamlessly
integrated vision and sensing to provide unique capabilities
in the marketplace;
-- Launched the Adept Packaging Market initiative to promote
Quattro and Inverted Cobra packaging robots; and
-- Signed three new distributors in the U.S. and two new
distributors in South America as part of the Company's
initiative to expand its indirect sales channels.
Fiscal 2008 Outlook
For fiscal 2008 as a whole, the Company currently expects revenues
to increase to $52.0 million to $57.0 million, an increase of 5% to
15% from fiscal 2007 levels. The Company further expects to record net
income of $800,000 to $2.3 million and adjusted EBITDA of $2.75
million to $4.5 million, and to be cash flow positive.
Conference Call and Simultaneous Webcast
Robert Bucher, Chief Executive Officer, John Dulchinos, President
and Lisa Cummins, Vice President and Chief Financial Officer, will
host an investor conference call today, November 8, 2007, at 5:00 p.m.
Eastern Time to review the Company's financial and operating
performance for the fiscal 2008 first quarter. 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 Web site 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. "4411742".
About Adept Technology, Inc.
Adept Technology, Inc. designs, manufactures and markets robotic
systems, motion control and machine vision technology for global
markets including automotive, consumer electronics, consumer goods,
disk drive, food, industrial tooling, medical devices, and
pharmaceutical. Adept robots, controllers, and software are used for
small parts assembly, material handling and packaging. Adept
intelligent automation product lines include industrial robots,
configurable linear modules, machine controllers for robot mechanisms
and other flexible automation equipment, machine vision, and systems
and applications software. Founded in 1983, Adept Technology is the
largest U.S.-based manufacturer of industrial robots. More information
is available at www.adept.com.
All trade names are either trademarks or registered trademarks of
their respective holders.
About Non-GAAP financial measures
In addition to presenting net income in accordance with GAAP, we
have determined that adjusted EBITDA, which we define as earnings
before interest income, income taxes, depreciation and amortization,
and stock-based compensation expense under SFAS No. 123(R), is a
relevant measure of performance for our company as an approximate
measure of operating cash flow, as it is a metric commonly used among
technology companies and provides meaningful supplemental information
regarding our operating performance. As a result, we believe it is a
helpful tool for communicating our performance to our investors and
analysts and for comparisons to other companies within the technology
industry.
Adjusted EBITDA should be considered in addition to, but not as a
substitute for, other measures of financial performance reported in
accordance with accounting principles generally accepted in the United
States. For more information on our adjusted EBITDA, please see the
table captioned "Reconciliation of Adjusted EBITDA Calculation to GAAP
Accounting" included below. While we believe that adjusted EBITDA is
useful within the context described above, it is in fact incomplete
and not a measure that should be used to evaluate the full performance
of the Company or its prospects. Stock-based compensation has been and
will continue to be for the foreseeable future a recurring expense for
our business and an important incentive component of executive and
other employee compensation. Such evaluation needs to consider all of
the complexities associated with our business including, but not
limited to, how past actions are affecting current results and how
they may affect future results, and how regulations and the other
aforementioned items affect the final amounts that are or will be
available to shareholders as a return on their investment. Net income
determined in accordance with GAAP is the most complete measure
available today to evaluate all elements of our performance.
Similarly, our Consolidated Statement of Cash Flows, as presented in
our filings with the Securities and Exchange Commission, provide the
full accounting for how we have decided to use resources provided to
us from our customers and shareholders.
Forward-Looking Statements
This press release contains certain forward-looking statements
including statements regarding revenues, profitability, products,
market opportunities and Adept's growth and impact of its
restructuring based on its current products, strategy and market
presence 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, 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 actual results of our restructuring activities, and
potential impact of current restructuring efforts; 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.
For a discussion of risk factors relating to Adept's business, see
Adept's SEC filings, including the Company's annual report on Form
10-K for the fiscal year ended June 30, 2007, which include the
discussion in Management's Discussion and Analysis of Financial
Condition and Results of Operations and Risk Factors contained
therein.
ADEPT TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three months ended
---------------------------
September 29, September 30,
2007 2006
------------- -------------
Revenues $13,652 $12,743
Cost of revenues 6,349 6,819
------------- -------------
Gross margin 7,303 5,924
Operating expenses:
Research, development and engineering 1,342 1,721
Selling, general and administrative 5,142 5,248
Amortization of other intangibles 19 33
Restructuring 251 --
------------- -------------
Total operating expenses 6,754 7,002
------------- -------------
Operating income (loss) 549 (1,078)
Interest income (expense), net 100 135
Currency exchange gain (loss) (25) 167
------------- -------------
Income (loss) before income taxes 624 (776)
Provision for income taxes 331 9
------------- -------------
Net income (loss) $ 293 $ (785)
============= =============
Net income (loss) per share:
Basic $ 0.04 $ (0.10)
============= =============
Diluted $ 0.04 $ (0.10)
============= =============
Shares used in computing per share
amounts:
Basic 7,917 7,595
Diluted 7,978 7,595
============= =============
ADEPT TECHNOLOGY, INC.
Reconciliation of Adjusted EBITDA Calculation to GAAP Accounting
(in thousands)
(unaudited)
------------------------------------------
Three Months Three Months Three Months
ended ended ended
September 29, June 30, September 30,
2007 2007 2006
------------------------------------------
Net income (loss) $ 293 $ (5,674) $ (785)
Interest earned (100) (100) (135)
Taxes 331 (203) 9
Depreciation 381 492 292
Amortization of
intangibles 19 3,176 33
Stock compensation
expense 180 335 268
------------------------------------------
Adjusted EBITDA $ 1,104 $ (1,974) $ (318)
==========================================
Reconciliation of Outlook Provided in Non-GAAP Measures
(in thousands)
(unaudited)
----------------------------
Year ending
June 30, 2008
----------------------------
Net income (loss) $800 - $2,300
Interest earned (400) - (400)
Taxes 400 - 600
Depreciation 1,000 - 1,000
Amortization of intangibles 25 - 25
Stock option expense 925 - 975
----------------------------
Adjusted EBITDA $2,750 - $4,500
============================
ADEPT TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 29, June 30,
2007 2007
------------- --------
ASSETS (in thousands)
Current assets:
Cash and cash equivalents $ 9,207 $ 8,900
Short-term investments 652 1,962
Accounts receivable, less allowance for
doubtful accounts of $597 in 2008 and $506
in 2007 12,158 10,185
Inventories, net 9,158 9,806
Other current assets 547 598
------------- --------
Total current assets 31,722 31,451
Property and equipment, net 3,748 3,632
Goodwill -- --
Other intangible assets, net 131 --
Other assets 154 152
------------- --------
Total assets $ 35,755 $ 35,235
============= ========
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED
STOCK, AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 4,999 5,175
Accrued payroll and related expenses 1,620 1,708
Accrued warranty 1,115 1,207
Deferred revenue 78 33
Accrued restructuring charges 217 293
Other accrued liabilities 601 594
------------- --------
Total current liabilities 8,630 9,010
Long-term liabilities 723 821
Total stockholders' equity 26,402 25,404
------------- --------
Total liabilities and
stockholders' equity $ 35,755 $ 35,235
============= ========
CONTACT: Adept Technology, Inc.
Lisa Cummins, 925-245-3400
Chief Financial Officer
investor.relations@adept.com