Adept Technology reports revenue grew 24% over FY2009

Aug. 31, 2010
 Adept Technology announced financial results for its fiscal 2010 fourth quarter and year ended June 30, 2010.

Adept Technology (Nasdaq:ADEP; Pleasonton, CA, USA), a provider of intelligent vision-guided and autonomous-mobile robotic solutions, announced financial results for its fiscal 2010 fourth quarter and year ended June 30, 2010.

Revenues for the fourth quarter of fiscal 2010 grew 15% to $16.5 million, compared to $14.3 million in the third quarter of fiscal 2010 and 92% when compared to the $8.6 million for the fourth quarter of fiscal 2009. The Company reported a GAAP net loss of $186,000, or $0.02 per diluted share in the fourth quarter of fiscal 2010, which compares to net income of $596,000, or $0.07 per diluted share in the previous quarter and a net loss of $3.3 million, or $0.40 per share in the fourth quarter of fiscal 2009.

Gross margin was 41.5% of revenue in the fourth quarter of fiscal 2010, compared with 42.8% in the previous quarter and 31.7% of revenue in the fourth quarter of fiscal 2009. Fluctuations in gross margin are primarily related to product mix and the impact of currency exchange in each period.

Operating expenses in the fourth quarter of fiscal 2010 were $6.9 million, compared to $5.7 million in the previous quarter and $6.0 million in the fourth quarter of fiscal 2009. Operating loss for the fourth quarter of fiscal 2010 was $59,000, compared to operating income of $374,000 in the previous quarter and an operating loss of $3.3 million for the fourth quarter of fiscal 2009.

Adept's adjusted EBITDA was $992,000 in the fourth quarter of fiscal 2010, compared with adjusted EBITDA of $1.1 million in the third quarter of fiscal 2010 and adjusted EBITDA loss of $1.5 million in the fourth quarter of fiscal 2009. A discussion of this non-GAAP measure and reconciliation of this measure to the applicable GAAP measure is included below.

During the fourth quarter of fiscal 2010, Adept acquired MobileRobots Inc. in a cash and stock transaction, including restricted stock, subject to retention requirements with its management, valued at approximately $5.0 million. MobileRobots' results are included in Adept's results for fiscal 2010, but were immaterial to Adept as the acquisition was completed near Adept's fiscal year end. Expenses incurred in connection with the acquisition totaled $690,000. Excluding these transaction costs, net income in the fourth quarter would have been $504,000, or, $0.06 per share and operating expenses would have been $6.2 million. The adjusted EBITDA number for the fourth quarter does not include the aforementioned transaction expenses as noted in the discussion of non-GAAP measures below.

Adept's cash and cash equivalents balance at June 30, 2010 was $8.6 million, compared to $8.2 million as of March 27, 2010.

Fiscal year 2010 results

Revenues for the full fiscal year ended June 30, 2010, grew 24% to $51.6 million, compared to $41.5 million for fiscal 2009. The Company reported GAAP net loss for the year of $1.4 million, or $0.17 per diluted share, which compares to net loss of $13.1 million, or $1.60 per diluted share in fiscal 2009.

Gross margin was 43.2% of revenue in fiscal 2010, compared with 40.7% in fiscal 2009. Fluctuations in gross margin are primarily related to product mix and the impact of currency exchange in each period.

Operating expenses for the year were $23.8 million, down 18% compared to $28.9 million in fiscal 2009.

Adept's adjusted EBITDA was $1.7 million for fiscal 2010, compared with adjusted EBITDA loss of $8.1 million for fiscal 2009. A discussion of this non-GAAP measure and reconciliation of this measure to the applicable GAAP measure is included below.

"Fiscal 2010 was a year of solid execution in which we achieved several key objectives," said John Dulchinos, president and chief executive officer of Adept. "We were profitable during the second half of the year, excluding acquisition related costs in the fourth quarter. This is partly the result of a major cost cutting initiative that we undertook after the onset of the global economic downturn resulting in an annualized operating expense reduction of 18 percent. The second half of the equation is our ability to gain new design wins over the past several quarters, which enabled us to return quarterly revenues to pre-recession levels. The net effect of these achievements reflects a vastly improved financial model and momentum as we head into fiscal 2011."

"Another major achievement is our acquisition of MobileRobots Inc., a premier provider of autonomous mobile robotic systems and automated guided vehicle (AGV) technologies, near the end of the fiscal year. Through this acquisition, Adept strengthens its ability to develop and deliver highly flexible automation solutions aligned with the needs and demands of our existing target markets and creates opportunities to gain entry into new markets for variable environment applications. These non-structured environments, such as a single robot in a hospital room or a fleet of robots in a warehouse, are poised for explosive growth in the coming years. With our experienced and established sales team, our industry reputation and relationships, we expect to leverage MobileRobots' technology into substantial growth opportunities in the future," Dulchinos concluded.

Posted by Vision Systems Design

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