Adept Technology Reports Fiscal Year 2014 First Quarter Results

Adept Technology Reports Fiscal Year 2014 First Quarter Results

  *19.4% Increase in Revenues;
  *Operating Loss Narrows to $0.2 Million;
  *Adjusted EBITDA of $0.5 Million.

PLEASANTON, Calif., Nov. 7, 2013 (GLOBE NEWSWIRE) -- Adept Technology, Inc.
(Nasdaq:ADEP), a leading provider of intelligent vision-guided fixed and
autonomous mobile robotic solutions, today announced financial results for its
fiscal 2014 first quarter.

Fiscal 2014 First Quarter Highlights

  oRevenue of $13.6 million increased 19.4% as compared with the 2013 first
    quarter and was flat compared to the 2013 fourth quarter, despite typical
    seasonal slowness for the first quarter.
  oGross margin of 46.1% expanded nearly 5% over the 2013 first quarter.
  oOperating loss was $0.2 million, a $2.5 million improvement over the 2013
    first quarter operating loss and a $0.2 million improvement over the 2013
    fourth quarter operating loss.
  oAdjusted EBITDA was $0.5 million, compared with the 2013 first quarter
    adjusted EBITDA loss of $2.4 million.

Commenting on fiscal 2014 first quarter results, Rob Cain, President and CEO,
noted, "We continued on the path we laid out in the second half of fiscal
2013. The business is stabilizing and we are continuing to focus on improving
our bottom line while growing the top line. We are pleased with the progress
in the first quarter and have made substantial progress in restructuring and
repositioning the business, but recognize we still have a lot of work to do.
With the formal release of the Lynx and improvements to the Quattro, we are
investing in the markets where we see significant opportunities including
mobile and food. Further, I am also pleased with our year on year 28% growth
in service revenue."

First Quarter Fiscal 2014 Results

Revenues for the first quarter of fiscal 2014 were $13.6 million, compared
with $11.4 million reported in the 2013 first quarter, and $13.7 million in
the 2013 fourth quarter. Gross margin for the first quarter was 46.1%,
compared with 41.4% in the first quarter of fiscal 2013 and 46.0% in the 2013
fourth quarter. Operating expenses in the first quarter of fiscal 2014 were
$6.5 million compared to $7.4 million in the first quarter of 2013 and $6.8
million in the fourth quarter of 2013. The Company's operating loss for the
2014 first quarter was $0.2 million compared with $2.7 million in the 2013
first quarter and $0.5 million in the 2013 fourth quarter.

In the 2014 first quarter, Adept reported GAAP net loss attributable to common
shareholders of $0.5 million, or $0.05 loss per share. This compares with a
net loss of $3.1 million, or a loss of $0.29 per share, in the 2013 first
quarter, and net loss of $0.1 million, or $0.01 per share in the 2013 fourth
quarter. Adept's non-GAAP adjusted EBITDA was $0.5 million in the 2014 first
quarter, compared with an adjusted EBITDA loss of $2.4 million in the 2013
first quarter, and an adjusted EBITDA of $0.2 million in the 2013 fourth
quarter. A discussion of this non-GAAP measure and reconciliation to the
applicable GAAP measure is included below.

Adept's cash and cash equivalents at September 28, 2013 totaled $6.5 million,
compared to cash and cash equivalents of $6.3 million at June 30, 2013. The
modest increase in cash was primarily due to cash provided by operating
activities and stock plans totaling $0.4 million offset by cash used in
investing activities of $0.2 million.

Quarterly Conference Call (November 7, 2013)

Rob Cain, President and Chief Executive Officer, and Seth Halio, Chief
Financial Officer, will host an investor conference call Thursday, November 7,
2013 at 5:00 P.M. Eastern Time, to review the Company's financial and
operating performance for the fiscal 2014 first quarter. The call may also
include statements regarding the Company's anticipated operational activities
for the remainder of fiscal 2014. 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 1-877-941-0843. International callers can
dial 1-480-629-9644.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 its
financial results for its fiscal 2014 second quarter.

Company Profile

Adept is a global, leading provider of intelligent robots for fixed 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
and food packaging. More information is available at trade
names are either trademarks or registered trademarks of their respective

Use of Non-GAAP Financial Information

In addition to presenting GAAP income (loss), we present non-GAAP adjusted
EBITDA (loss), which we define as earnings before (to the extent otherwise
applicable) 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.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 income (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 income (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 stabilization, the impact
of our restructuring and resulting cost reductions, new product introductions
and improvements, recent orders and opportunities in our 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; changes in our management team; 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; seasonality of results,
particularly in Europe; 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; potential delays
associated with the development and introduction of new products; and
potential costs of regulatory compliance.

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, 2013, which includes the discussion in Management's
Discussion and Analysis of Financial Condition and Results of Operations and
Risk Factors.

                            — FINANCIALS FOLLOW —

(in thousands)
                                                     September 28, June 30,
                                                     2013           2013
Current assets:                                                     
Cash and cash equivalents                            $6,547         $6,274
Restricted cash                                       93             --
Accounts receivable, net                              9,590          10,848
Inventories                                          9,006          8,135
Other current assets                                 619            477
Total current assets                                 25,855         25,734
Property and equipment, net                          1,329          1,525
Goodwill                                              1,493          1,493
Intangible assets, net                                979            1,040
Other assets                                         213            241
Total assets                                         $29,869        $30,033
Current liabilities:                                                
Accounts payable                                     $6,547         $7,069
Accrued payroll and related expenses                 2,041          1,986
Accrued warrantyexpenses                             1,056          1,070
Deferred revenue                                      937            1,314
Accrued income tax, current                           54             --
Other accrued liabilities                            755            815
Total current liabilities                            11,390         12,254
Long-term liabilities:                                              
Deferred income tax, long-term                        208            155
Long-term obligations                                252            284
Total liabilities                                    11,850         12,693
Total stockholders' equityand redeemable convertible 18,019         17,340
preferred stock
Total liabilities and stockholders' equityand        $29,869        $30,033
redeemable convertible preferred stock

(in thousands, except per share data)
                                        Three Months Ended
                                        September 28, June 30,  September 29,
                                        2013          2013      2012
Revenues                                 $ 13,571      $ 13,695  $ 11,370
Cost of revenues                         7,309         7,393     6,661
Gross margin                             6,262         6,302     4,709
                                        46.1%         46.0%     41.4%
Operating expenses:                                            
Research, development and engineering    1,555         1,756     2,130
Selling, general andadministrative      4,888         4,658     5,157
Restructuring charges                    --            276       3
Amortization of other Intangible assets  61            89        117
Total operating expenses                 6,504         6,779     7,407
Operating loss                           (242)        (477)    (2,698)
Interest and other income (expense), net (5)          75       (9)
Foreign currency exchange loss           (96)         (112)    (366)
Loss before income taxes                 (343)        (514)    (3,073)
Provision for (benefit from) income      55           (518)    (13)
Net income (loss)                        (398)        4        (3,060)
Effects of redeemable convertible                              
preferred stock:
Accretion of preferred stock to          (24)         (24)     --
redemption value
Dividends allocated to redeemable        (80)         (80)     --
convertible preferred stockholders
Net loss attributable to common          $(502)      $(100)  $(3,060)
Basic and diluted net loss pershare     $(0.05)     $(0.01) $(0.29)
attributable to common stockholders
Number of shares used in computing basic 10,855        10,698    10,536
and diluted per share amounts

Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (Loss)
(in thousands)
                              Three Months Ended
                              September 28, June 30, September 29,
                              2013           2013      2012
Net income (loss)              $(398)       $4      $(3,060)
Interest income (expense), net (5)           3         (9)
Income tax expense (benefit)  55            (518)    (13)
Depreciation and amortization  275            322       360
Stock compensation expense     526            166       336
Restructuring charges          --             276       3
Adjusted EBITDA (loss)         $463         $247    $(2,365)

CONTACT: Seth Halio
         Chief Financial Officer

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