Adept Technology Reports Third Quarter Fiscal Year 2013 Results

Adept Technology Reports Third Quarter Fiscal Year 2013 Results

PLEASANTON, Calif., May 10, 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 third quarter ended March 30, 2013. 

Third Quarter Fiscal 2013 Results

Revenue for the third quarter of fiscal 2013 was $10.9 million, below $17.5
million in revenue for the third quarter of fiscal 2012, and slightly above
$10.8 million in revenue for the second quarter of fiscal 2013. Adept
reported a GAAP net loss of $1.8 million, or a loss of $0.17 per share in the
third quarter of fiscal 2013, compared to a net loss of $1.5 million, or a
loss of $0.16 per share in the third quarter of fiscal 2012, and a net loss of
$5.2 million, or a loss of $0.50 per share in the second quarter of fiscal

Gross margin was 42.7% of revenue in the third quarter of fiscal 2013,
compared to 41.1% of revenue in the third quarter of fiscal 2012 and 31.8% in
the second quarter of fiscal 2013.Gross margin percentage in the third
quarter of fiscal of 2013 returned to a more typical percentage of revenue
from the previous quarter's gross margin percentage, which was lower due to
reserves for excess and obsolete inventory.Operating expenses in the third
quarter of fiscal 2013 were $6.6 million, compared to $8.3 million for the
same period last year and $8.8 million in the second quarter of fiscal 2013.
Operating expenses in the third quarter of fiscal 2013 included $114,000 in
restructuring expenses.The second quarter of fiscal 2013 included $392,000in
restructuring expenses and a $1.7 million charge for the impairment of
intangible assets and goodwill. The Company's operating loss for the third
quarter of fiscal 2013 was $1.9 million, compared to an operating loss of $1.2
million for the third quarter of fiscal 2012 and an operating loss of $5.3
million in the second quarter of fiscal 2013.

Adept's non-GAAP adjusted EBITDA loss in the third quarter of fiscal 2013 was
$1.1 million, compared with an adjusted EBITDA loss of $51,000 in the third
quarter of fiscal 2012, and adjusted EBITDA loss of $2.4 million in the second
quarter of fiscal 2013.A discussion of this non-GAAP measure and
reconciliation to the applicable GAAP measure is included below.

Adept's cash and cash equivalents at the end of the third quarter of fiscal
2013 totaled $6.7 million, compared to cash and cash equivalents of $6.9
million at the end of the second fiscal quarter of 2013.The Company had no
line of credit borrowings at the end of the second or third fiscal quarters of

"During the third fiscal quarter, the Company accepted additional orders for
our mobile robots in the semiconductor space and received our first order in
the logistics space.We also restored margins to historical levels and are on
target with our company wide cost reduction plans.While our European markets
remain soft, we did win strategic new business in North America and Asia,"
said Rob Cain, Adept's chief executive officer."We continue to invest in our
industrial and mobile products, and during the last quarter released new
products focusing on ease of use and connectivity for our worldwide markets,"
Mr. Cain concluded.

Recent Highlights

  *Accepted $1.0 million in additional orders from a key customer within the
    semiconductor space.
  *Received a $1.1 million initial order through our partnership with a
    significant Asian-based systems integrator.
  *Won new business with the Lynx mobile robot in the logistics segment.
  *Restored margins to historical levels.

Quarterly Conference Call

Rob Cain, president and chief executive officer, and Michael Schradle, chief
financial officer, will host an investor conference call Monday, May 13, 2013
at 4:00 P.M. Eastern Time, to review the Company's financial and operating
performance for the third quarter of fiscal 2013.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 1-877-941-0844.International callers can
dial 1-480-629-9835.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 our website.A webcast archive will also be
available following the call's conclusion until the Company reports financial
results for its fiscal 2013 fourth quarter.

Company Profile

Adept is a global, leading provider of intelligent robots and autonomous
mobile solutions that enable customers to achieve precision, speed, quality
and productivity in their assembly, handling, packaging, testing and
logistical processes.With a comprehensive portfolio of high-performance
motion controllers, application development software, vision-guidance
technology and high-reliability robot mechanisms with autonomous capabilities,
Adept provides specialized, cost-effective robotics systems and services to
high-growth markets including Packaging, Medical, Electronics, and Logistics;
as well as to traditional industrial markets including Automotive Components.
More information 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 loss, we present non-GAAP adjusted EBITDA loss,
which we define as earnings before interest expense, income taxes,
depreciation and amortization, intangibles and 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, new product introductions,
opportunities in our core 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; our limited
liquidity due to historical operating losses and negative cash flow, the
effect of the current state of the manufacturing sector and other businesses
of our customers; the effectiveness and unintended consequences of our
restructuring actions and other expense-related matters; the impact of our
acquired businesses and strategic plans on our cash resources and on the
Company's operations,the Company's inability to accurately forecast or react
quickly to changes in demand for our products;risks of technical and
commercial acceptance of the Company's new or current products; 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 outsourced manufacturing and single sources
of supply;and potential delays associated with the development and
introduction of new products.

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)
                                                        March 30,  June 30,
                                                        2013       2012
Current assets:                                                    
Cash and cash equivalents                               $ 6,716 $8,722
Accounts receivable, less allowance for doubtful
accounts of$715 at March 30, 2013 and $629 at June 30,  8,946      11,905
Inventories                                             7,871      7,954
Other current assets                                    478        514
Total current assets                                    24,011     29,095
Property and equipment, net                              1,739      2,292
Goodwill                                                 1,493      2,967
Other intangible assets, net                             1,130      1,686
Other assets                                             99         121
Total assets                                            $28,472   $36,161
Current liabilities:                                               
Accounts payable                                        $5,884    $6,183
Line of credit                                          −         5,500
Accrued payroll and related expenses                    1,633      2,006
Accrued warranty                                        1,063      1,243
Other accrued liabilities                               1,980      2,040
Total current liabilities                               10,560     16,972
Long-term liabilities:                                             
Income tax payable, long-term                           589        399
Other long-term liabilities                             328        446
Total liabilities                                       11,477     17,817
Redeemable convertible preferred stock                  7,737      − 
Total stockholders' equity                              9,258      18,344
Total liabilities, redeemable convertible preferred      $28,472   $36,161
stock and stockholders' equity

(in thousands, except per share data)
                                 Three Months Ended    Nine Months Ended
                                 March 30,  March 31,  March 30,   March 31,
                                 2013       2012       2013        2012
Revenues                          $10,943    $17,476    $33,121     $49,247
Cost of revenues                  6,267      10,301     20,303      28,290
Gross margin                      4,676      7,175      12,818      20,957
Operating expenses:                                              
Research, development and         1,839      2,293      5,878       6,699
Selling, general and              4,513      5,128      14,300      15,300
Restructuring charges             114        791        509         1,214
Amortization of intangibles       89         117        322         350
Impairment of intangible assets   −          −         1,708       −
and goodwill
Total operating expenses          6,555      8,329      22,717      23,563
Operating loss                    (1,879)    (1,154)    (9,899)     (2,606)
Interest income (expense), net    8          (59)       (41)        (172)
Currency exchange gain (loss)    213        (168)      109         (389)
Loss before income taxes          (1,658)    (1,381)    (9,831)     (3,167)
Provision from income taxes       96         157        198         198
Net loss                          $(1,754) $(1,538) $(10,029) $(3,365)
Effects of preferred stock                                      
Less accretion of preferred stock 24         −         49          −
to redemption value
Less dividends allocated to       80         −         171         −
preferred stockholders
Net loss attributable to the      $(1,858) $(1,538) $(10,249) $(3,365)
company's common stockholders
Basic and diluted net loss per
share attributable to common      $(0.17)  $(0.16)  $(0.97)   $(0.36)
Shares used in computing basic
and diluted net loss per share    10,704     9,398      10,542      9,352
attributable to common


Reconciliation of GAAP Net Loss to Adjusted EBITDA Loss
(in thousands)
                                    Three Months   Three Months Three Months
                                   ended          ended        ended
                                    March 30, 2013 December 29, March 31, 2012
Net loss                            $(1,754)     $(5,215)   $(1,538)
Interest expense, net              (8)           40          59
Income taxes                       96            115         157
Depreciation                       245           246         212
Amortization of intangibles        89            116         117
Stock compensation expense         88            246         151
Restructuring charges              114            392          791
Impairment of intangibleassets    −             1,708        −
and goodwill
Adjusted EBITDA loss                $(1,130)      $(2,352)    $(51)

CONTACT: Michael Schradle
         Chief Financial Officer

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