Adept Technology Reports Second Quarter Fiscal Year 2013 Results

Adept Technology Reports Second Quarter Fiscal Year 2013 Results

PLEASANTON, Calif., Feb. 6, 2013 (GLOBE NEWSWIRE) -- Adept Technology, Inc.
(Nasdaq:ADEP), a leading provider of intelligent vision-guided and autonomous
mobile robotic solutions, today announced financial results for its fiscal
2013 second quarter ended December 29, 2012.

Second Quarter Fiscal 2013 Results

Revenue for the second quarter of fiscal 2013 was $10.8 million, below $15.2
million in revenue for the second quarter of fiscal 2012, and slightly below
$11.4 million in revenue for the previous first quarter of fiscal 2013. Adept
reported a GAAP net loss of $5.2 million, or $0.49 per share in the second
quarter of fiscal 2013, compared to a net loss of $1.2 million, or $0.13 per
share in the second quarter of fiscal 2012, and a net loss of $3.1 million, or
$0.29 per share in the first quarter of fiscal 2013.

Gross margin was 31.8% of revenue in the second quarter of fiscal 2013,
compared to 43.0% of revenue in the second quarter of fiscal 2012 and 41.4% in
the previous quarter. Gross margin percentage in the second quarter of fiscal
of 2013 was down largely due to reserves for excess and obsolete inventory of
$875,000, compared to $87,000 in the second quarter of fiscal 2012, and
$75,000 in the first quarter of fiscal 2013.Operating expenses in the second
quarter of fiscal 2013 were $8.8 million, compared to $7.5 million for the
same period last year and $7.4 million in the first quarter of fiscal 2013.
Operating expenses in the second quarter include $392,000in restructuring
expenses incurred in connection with a reduction in force in early November,
and a $1.7 million charge for the impairment of intangible assets and goodwill
recorded in the acquisition of InMoTx in January, 2011.The Company's
operating loss for the second quarter of fiscal 2013 was $5.3 million, which
compares to an operating loss of $1.0 million for the second quarter of fiscal
2012 and an operating loss of $2.7 million in the first quarter of fiscal

Adept's adjusted, non-GAAP EBITDA in the second quarter of fiscal 2013 was a
loss of $2.4 million, compared with an adjusted EBITDA loss of $79,000 in the
second quarter of fiscal 2012, and adjusted EBITDA loss of $2.4 million in the
first quarter of fiscal 2013.A discussion of this non-GAAP measure and
reconciliation to the applicable GAAP measure is included below.Adept ended
the quarter with cash and cash equivalents of $6.9 million, and during the
quarter paid off the Company's line of credit borrowings.

"Over the last quarter we narrowed our focus, restructured our team, and
implemented aggressive actions to achieve major cost reductions, substantially
lowering the breakeven of the business. These efforts will give the company
the opportunity to both invest key strategic resources in our future growth
opportunities, while simultaneously becoming cash flow positive," said John
Dulchinos, Adept's chief executive officer. "At the same time we achieved a
major milestone in the business with the introduction and first installation
of Lynx, our revolutionary autonomous mobile robot platform. Going forward our
focus will be on scaling our Lynx platform through existing and new channels
to market," Dulchinos concluded.

Recent Highlights

  *Launched groundbreaking Lynx fully autonomous mobile robot platform and
    Enterprise Manager mobile robot fleet management software solution at
    Automate 2013
  *Completed delivery and installation of Lynx mobile robot wafer cassette
    transfer application solution to customer in semiconductor industry
  *Introduced FlexiBowl automated flexible robotic parts feeding system at
    Automate 2013
  *Featured in 60 Minutes story entitled "March of the Machines" discussing
    the benefits of reshoring using flexible automation
  *Completed restructuring of company's operations that are expected to
    result in annual savings of approximately $6 million.These savings will
    be fully realized by the fourth quarter of fiscal 2013.

Quarterly Conference Call

John Dulchinos, president and chief executive officer, and Michael Schradle,
chief financial officer, will host an investor conference call today, February
6, 2013 at 5:00 P.M. Eastern Time, to review the Company's financial and
operating performance for the fiscal 2013 second quarter.The call may also
include statements regarding the Company's anticipated operational activities
during the remainder of fiscal 2013.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 or providing anticipated
financial performance information except as is included in this press release.
The call can be accessed by dialing 1-877-941-2332.Participants are asked to
call the assigned number approximately 10 minutes before the conference call
begins.In addition, the conference call will be available over the Internet
at in the Investor Relations section of the website.For those
who are not available to listen to the live broadcast, the call will be
archived at and a telephonic playback of the conference call
will also be available for seven days following the call. Replay listeners
should call 303-590-3030 and enter the passcode 4572765#.

Company Profile

Adept is a global, leading provider of intelligent and mobile robot solutions
and services that enable customers to achieve increased productivity and
quality in their assembly, handling, packaging, testing and logistics
processes.With a comprehensive portfolio of intuitive application software,
integrated vision and sensing, real-time motion controllers and
high-reliability robots and autonomous vehicles, Adept provides specialized,
cost-effective robotic systems and services to high-growth markets including
Medical, Electronics, Food and Semiconductor; as well as to traditional
industrial markets including Machine Tool Automation and Automotive
Components. More information is available at

The Adept Technology logo is available at

All trade names are either trademarks or registered trademarks of their
respective holders.

Use of Non-GAAP Financial Information

In addition to presenting GAAP net income (loss), we present non-GAAP adjusted
EBITDA (loss), which we define as earnings before interest expense, income
taxes, depreciation and amortization, goodwill impairment, merger and
acquisition related expenses, stock compensation expense, and restructuring
charges as a relevant measure of performance approximating operating cash
flow, a metric commonly used among technology companies. We believe that this
provides meaningful supplemental information to our investors regarding our
ongoing operating performance, and it has been used as a basis for Adept's
incentive compensation programs for our management team.

Adjusted EBITDA (loss) should be considered in addition to, and not as a
substitute for, GAAP measures of financial performance. For more information
on our adjusted EBITDA (loss) please see the table captioned "Reconciliation
of GAAP net loss to Adjusted EBITDA (loss)" below. While we believe that
adjusted EBITDA (loss) is useful as described above, it is incomplete and
should not be used to evaluate the full performance of the Company or its
prospects. Although historically infrequent, unpredictable and significantly
variable and thus included in this adjustment, mergers and acquisitions
expenses may occur in the future if additional acquisitions are
pursued.Further, while we have incurred restructuring expense in the past,
this is not a routine aspect of our operating activities and varies in amount
and effect.Additionally, stock-based compensation has been, and will continue
to be, a recurring expense as an important incentive component of employee
compensation. GAAP net loss is the most complete measure available 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, provides 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 forward-looking statements including, without
limitation, statements about our expectations about the impact of our
restructuring and resulting cost reductions, opportunities in our core
markets, our strategic initiatives to enter potential new markets, and our
ability to grow our customer base, revenues, and cash flow. Such statements
are based on current expectations and projections about the Company's
business. These statements are not guarantees of future performance and
involve numerous risks and uncertainties that are difficult to predict. The
Company's actual results could differ materially from those expressed in
forward-looking statements for a variety of reasons, including but not limited
to factors affecting our fluctuating operating results that are difficult to
forecast or outside our control: the effect of the current state of the
manufacturing sector and other businesses of our customers; the timing and
impact of the Company's decisions to engage in restructuring actions and other
expense-related matters; the impact of integrating our acquired businesses and
strategic plans on our cash resources andrequirements of our credit facility;
the impact of the acquired companies on the Company's operations,the
Company's inability to react quickly to changes in demand for our
products;risks of acceptance of the Company's new or current products in the
marketplace; the costs of international operations, sales and foreign
suppliers and the impact of foreign currency exchange; the cyclicality of
capital spending of the Company's customers and lack of long-term customer
contracts; the highly competitive nature of and rapid technological change
within the intelligent automation industry; the lengthy sales cycles for the
Company's products; the Company's increasing investment in markets that are
subject to increased regulation; risks associated with sole or single sources
of supply, including suppliers located in Japan;potential delays associated
with the development and introduction of new products; and the need to
complete acquisitions to expand operations.

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, 2012, which includes the discussion in Management's
Discussion and Analysis of Financial Condition and Results of Operations and
Risk Factors.

                        – FINANCIALS FOLLOW –

(in thousands)
                                                      December 29, June 30,
                                                      2012         2012
Current assets:                                                    
Cash and cash equivalents                              $ 6,948   $8,722
Accounts receivable, less allowance for doubtful
accountsof$739 at December 29, 2012 and $629 at June 9,366        11,905
30, 2012
Inventories                                            7,730        7,954
Other current assets                                   539          514
Total current assets                                  24,583       29,095
Property and equipment, net                            1,954        2,292
Goodwill                                               1,493        2,967
Other intangible assets, net                           1,219        1,686
Other assets                                           127          121
Total assets                                          $29,376     $36,161
Current liabilities:                                               
Accounts payable                                      $4,663      $6,183
Line of credit                                        −           5,500
Accrued payroll and related expenses                  1,796        2,006
Accrued warranty                                      1,128        1,243
Other accrued liabilities                             1,944        2,040
Total current liabilities                             9,531        16,972
Long-term liabilities:                                             
Deferred income tax, long-term                        495          399
Other long-term liabilities                           375          446
Total liabilities                                     10,401       17,817
Redeemable convertible preferred stock                7,608        − 
Total stockholders' equity                            11,367       18,344
                                                      $29,376     $36,161
Total liabilities, redeemable convertible preferred
stock and stockholders' equity

(in thousands, except per share data)
                                   Three Months Ended     Six Months Ended
                                   December 29, December  December  December
                                                 31,       29,       31,
                                   2012         2011      2012      2011
Revenues                           $10,808     $15,152  $22,178 $31,771
Cost of revenues                    7,375        8,644     14,036    17,989
Gross margin                        3,433        6,508     8,142     13,782
Operating expenses:                                               
Research, developmentand           1,909        2,210     4,039     4,406
Selling, general andadministrative 4,630        4,776     9,787     10,172
Restructuring charges               392          423       395       423
Amortization of intangibles         116          116      233       233
Impairment of intangibleassets    1,708        −        1,708     −
and goodwill
Total operating expenses            8,755        7,525     16,162    15,234
Operating loss                      (5,322)      (1,017)  (8,020)   (1,452)
Interest expense, net               (40)         (58)     (49)      (113)
Currency exchange gain (loss)       262          (121)    (104)     (221)
Loss before income taxes            (5,100)      (1,196)  (8,173)   (1,786)
Provision from income taxes         115          12       102       41
Net loss                            $(5,215)    $(1,208) $(8,275) $(1,827)
Basic and diluted net loss per      $(0.49)     $(0.13)  $(0.79)  $(0.20)
Shares used in computing basic and  10,652       9,467     10,452    9,317
diluted per share amounts

Reconciliation of GAAP Net Loss to Adjusted EBITDA (Loss)
(in thousands)
                                       Three Months Three Months  Three Months
                                      ended        ended         ended
                                       December 29, September 29, December 31,
                                       2012         2012          2011
Net loss                               $(5,215)   $(3,060)    $(1,208)
Interest expense, net                 40          9            58
Income taxes                          115         (13)         12
Depreciation                          246         243          218
Amortization of intangibles           116         117          116
Stock compensation expense            246         336          302
Restructuring charges                 392          3             423
Impairment of intangibleassets and   1,708        −            −
Adjusted EBITDA (loss)                 $(2,352)   $(2,365)     $(79)

CONTACT: Michael Schradle
         Chief Financial Officer
         Bonnie McBride
         Avalon IR

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