Adept Technology Reports Fiscal Year 2014 Third Quarter Results

Adept Technology Reports Fiscal Year 2014 Third Quarter Results

  *38% Increase in Revenues, 31% for First Nine Months of Fiscal 2014;
  *Operating Income of $0.3 Million for Quarter;
  *Adjusted EBITDA of $1.2 Million, $2.8 Million for First Nine Months;

PLEASANTON, Calif., May 8, 2014 (GLOBE NEWSWIRE) -- Adept Technology, Inc.
(Nasdaq:ADEP), a leading provider of intelligent robots, autonomous mobile
solutions and services, today announced financial results for its fiscal 2014
third quarter.

Fiscal 2014 Third Quarter Highlights

  *Revenue of $15.1 million increased 38% compared with the 2013 third
  *Gross margin of 45.7% expanded 300 basis points over the 2013 third
  *Operating income was $0.3 million, a $2.1 million improvement over the
    2013 third quarter operating loss;
  *Adjusted EBITDA was $1.2 million, compared with the 2013 third quarter
    adjusted EBITDA loss of $1.1 million.

Commenting on fiscal 2014 third quarter results, Rob Cain, President and CEO,
noted, "While we are pleased with our third quarter performance and the
progress we are making in stabilizing and growing the business, we have much
work to do to meet our long term objectives. We continue to invest in the
markets and verticals where we see significant opportunities to grow the top
and bottom line in a sustainable manner. Specific markets that we are
addressing include warehousing and logistics, small flexible manufacturing,
semiconductor and food."

Third Quarter Fiscal 2014 Results

Revenues for the third quarter of fiscal 2014 were $15.1 million, compared
with $10.9 million reported in the 2013 third quarter. Gross margin for the
third quarter was 45.7%, compared with 42.7% in the third quarter of fiscal
2013. Operating expenses in the third quarter of fiscal 2014 were $6.6
million, compared to $6.6 million in the third quarter of 2013. The Company's
operating income for the third quarter was $0.3 million, compared with an
operating loss of $1.9 million in the 2013 third quarter.

In the 2014 third quarter, Adept reported GAAP net loss attributable to common
shareholders of $12,000, or $0.00 per share. This compares with a net loss of
$1.9 million, or a loss of $0.17 per share, in the 2013 third quarter. Adept's
non-GAAP adjusted EBITDA was $1.2 million in the 2014 third quarter, compared
with an adjusted EBITDA loss of $1.1 million in the 2013 third 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 March 29, 2014 totaled $6.7 million,
compared to cash and cash equivalents of $6.3 million at June 30, 2013. The
increase was primarily due to cash provided by stock plans. During the
quarter, all of Adept's outstanding redeemable convertible preferred stock was
converted into 1.7 million shares of common stock.

Quarterly Conference Call (May 8, 2014)

Rob Cain, President and Chief Executive Officer, and Seth Halio, Chief
Financial Officer, will host an investor conference call Thursday, May 8, 2014
at 5:00 P.M. Eastern Time, to review the Company's financial and operating
performance for the fiscal 2014 third 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 1-877-941-8631. International callers can dial
1-480-629-9643. 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 fourth quarter.

Company Profile

Adept is a global, leading provider of intelligent robots, autonomous mobile
solutions and services 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 medical, electronics, food and semiconductor; as
well as to traditional industrial markets including machine tool automation
and automotive components. More information is available at All
trade names are either trademarks or registered trademarks of their respective

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 (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 of our
business, the impact of our restructuring and resulting cost reductions,
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 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 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.

(in thousands)
                                                        March 29,   June30,
                                                         2014        2013
Current assets:                                                     
Cash and cash equivalents                                $6,589    $6,274
Restricted cash                                          95          —
Accounts receivable                                      12,153      10,848
Inventories                                              8,291       8,135
Other current assets                                     731         477
Total current assets                                     27,859      25,734
Property and equipment, net                              1,068       1,525
Goodwill                                                 1,493       1,493
Other intangible assets, net                             857         1,040
Other assets                                             231         241
Total assets                                             $31,508   $30,033
Current liabilities:                                                
Accounts payable                                         $6,381    $7,069
Accrued payroll and related expenses                     2,133       1,986
Accrued warranty expenses                                987         1,070
Deferred revenue                                         297         1,314
Accrued income tax, current                              305         —
Other accrued liabilities                                729         815
Total current liabilities                                10,832      12,254
Long-term liabilities:                                              
Deferred income tax, long-term                           207         155
Long-term obligations                                    186         284
Total liabilities                                        11,225      12,693
Redeemable convertible preferred stock                   --          7,760
Stockholders' equity:                                               
Common stock                                             188,899     178,386
Treasury stock                                           (42)        (42)
Accumulated deficit                                      (168,958)   (169,029)
Accumulated other comprehensive income                   384         265
Total stockholders' equity                               20,283      9,580
Total liabilities, redeemable convertible preferred      $31,508   $30,033
stock and stockholders' equity

(in thousands, except per share amounts)
                                  Three Months Ended    Nine Months Ended
                                  March 29, March 30,  March 29, March 30,
                                   2014       2013       2014      2013
Revenues                           $15,121  $10,943  $43,280 $33,121
Cost of revenues                   8,207      6,267      23,265    20,303
Gross margin                       6,914      4,676      20,015    12,818
                                  45.7%      42.7%      46.2%     38.7%
Operating expenses:                                             
Research, development and          1,774      1,839      5,180     5,878
Selling, general and               4,813      4,513      14,479    14,300
Restructuring charges              —         114        —        509
Amortization of other intangible   61         89         183       322
Impairment of intangible assets    —         —         —        1,708
and goodwill
Total operating expenses           6,648      6,555      19,842    22,717
Operating income (loss)            266        (1,879)    173       (9,899)
Interest income (expense), net     12         8          7         (41)
Foreign currency exchange gain     140        213        201       109
Income (loss) before income taxes  418        (1,658)    381       (9,831)
Provision for income taxes         153        96         310       198
Net income (loss)                  265        (1,754)    71        (10,029)
Effects of redeemable convertible                               
preferred stock:
Accretion of preferred stock to    (234)      (24)       (282)     (49)
redemption value
Dividends allocated to preferred   (43)       (80)       (203)     (171)
Net loss attributable to common    $(12)    $(1,858) $(414)  $(10,249)
Net loss per share attributable to                              
common stockholders:
Basic                              $ (0.00)   $ (0.17)   $ (0.04)  $ (0.97)
Diluted                            $ (0.00)   $ (0.17)   $ (0.04)  $ (0.97)
Number of shares used in computing
net loss per share attributable to                              
common stockholders
Basic                              11,955     10,704     11,278    10,542
Diluted                            11,955     10,704     11,278    10,542
Comprehensive income (loss):                                    
Net income (loss)                  $265     $(1,754)  $71     $(10,029)
Foreign currency translation       (139)      (299)      119       272
Total comprehensive income (loss)  $126     $(2,053)  $190    $(9,757)

Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (Loss)
(in thousands)

                                    Three months ended   Nine months ended
                                    March 29, March 30, March 29, March 30,
                                     2014      2013       2014      2013
Net income (loss)                    $265     $(1,754)  $71      $(10,029)
Interest income (expense), net       12        8          7         (41)
Provision for income taxes           153       96         310       198
Depreciation and amortization        273       334        821       1,056
Stock compensation expense           549       88         1,640     670
Restructuring and impairment charges --        114        --        2,217
Adjusted EBITDA (loss)               $1,228    $(1,130)   $2,835    $(5,847)

CONTACT: Seth Halio
         Chief Financial Officer

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