Adept saw modest sequential growth to end FY09, lower expenses

SEPTEMBER 10, 2009--Adept Technology has announced financial results for its fiscal fourth quarter and year ended June 30, 2009.

Sep 10th, 2009

SEPTEMBER 10, 2009--Adept Technology (Pleasanton, CA, USA; www.adept.com), a provider of intelligent vision-guided robotics, has announced financial results for its fiscal fourth quarter and year ended June 30, 2009.

Revenues for 4Q09 were $8.6 million, compared to $7.7 million in 3Q09 and $16.7 million for the same period last year. The company reported a GAAP net loss of $3.3 million, or $0.40 per share, which compares to a net loss of $3.5 million, or $0.42 per diluted share in the previous quarter and net income of $900,000, or $0.10 per diluted share, in 4Q08.

Adept's adjusted EBITDA loss was $1.5 million in 4Q09, compared with adjusted EBITDA loss of $2.6 million in 3Q09 and adjusted EBITDA of $1.4 million in 4Q08. A discussion of this non-GAAP measure and reconciliation of this measure to the applicable GAAP measure is included below.

Gross margin was 31.7% of revenue in 4Q09, compared with 38.2% in 3Q09 and 48.5% of revenue in 4Q08. Adept's gross margins were negatively impacted by lower volumes, which caused under-absorption of fixed manufacturing expenses, as well as inventory write-downs totaling $782,000. The company expects overall gross margins to begin to return to more normalized levels as revenues increase throughout FY2010.

In 4Q09, the company was successful in fully realizing the benefits from the cost reduction efforts that began in March. Cash expenses decreased by $1.0 million from 3Q09, excluding non-cash items of $659,000 related to the write-off of acquired intangible assets and goodwill related to the acquisition of Cerebellum in FY2008. Including these non-cash items, reported operating expenses were $6.0 million for 4Q09, down from $6.4 million last quarter and $8.0 million in the same quarter of FY2008. Operating loss for the quarter was $3.3 million, compared with an operating loss of $3.5 million in 3Q09 and to operating income of $116,000 a year ago.

Adept's cash and short-term investment balance at June 30, 2009 was $7.5 million, compared to $8.7 million as of March 28, 2009.

Revenues for the full FY2009 were $41.5 million, compared to $60.8 million for FY2008. Net loss for the year was $13.1 million, or $1.60 per diluted share, which compares with net income of $3.6 million or $0.44 per diluted share for 2008.

The company's adjusted EBITDA loss was $8.1 million for FY2009, compared with adjusted EBITDA of $6.2 million for FY2008. A discussion of this non-GAAP measure and reconciliation of this measure to the applicable GAAP measure is included below.

Gross margin for the full FY2009 was 40.7%, compared with gross margin of 49.5% in the previous year. Operating loss for FY2009 was $12.0 million, compared with operating income of $2.8 million in FY2008.

"Despite continued weakness in the global economy, we are pleased with the modest sequential growth we achieved and believe we have seen the bottom of the downturn," says John Dulchinos, Adept's president and CEO. "Stronger and more stable order patterns among our customers, particularly in the packaging market, indicate that perhaps the economy, and consequently our business, is on the road to recovery. In addition, we continued to see solid design activity within the solar segment, though as we've said in the past these wins will not translate into meaningful revenue growth until manufacturing spending increases.

"During the fourth quarter, we successfully met our previously stated objective of reducing cash operating expenses by $1.0 million, excluding the non-cash writedowns," continues Dulchinos. "As the economy improves and revenues increase, we will continue to strategically invest to facilitate growth, though we believe we will maintain much of these cost savings going forward, to improve margins and cash flow."

Recent highlights:

  • Finalized cost-cutting measures during the quarter resulting in a quarterly cash savings of approximately $1.0 million
  • Received a $2.5 million order for vision-guided robots from a leading international consumer electronics manufacturer. The order is expected to be fulfilled and recognized as revenue in the first fiscal quarter of 2010
  • Announced a partnership with CASTEC of Taiwan and Innovation Matrix of California, to develop and integrate a vision-guided solar wafer unloading process for a major solar wafer manufacturer in Taiwan. The partnership marks Adept's entrance into this market in the Asia region
  • Continued to broaden its distribution channel in Japan by signing on Nihon Kizai as its newest distributor to cover the Japanese robotics market


-- Posted by Vision Systems Design, www.vision-systems.com

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