Adept Technology Reports Third Quarter Fiscal Year 2011 Results
Adept Technology, Inc. Posted 04/28/2011
Adept Technology, Inc. (Nasdaq:ADEP), a leading provider of intelligent vision-guided and autonomous mobile robotic solutions, today announced financial results for its fiscal 2011 third quarter ended March 26, 2011.
Third Quarter 2011 Results
Revenues for the third quarter of fiscal 2011 were $12.8 million, which compares to $14.3 million for the third quarter of fiscal 2010 and $13.3 million for the previous quarter of fiscal 2011. The decline in revenues is due to the downturn in the historically cyclical disk drive industry which helped drive growth during fiscal 2010.
Revenues from Adept's core markets, including packaging, automotive, industrial, electronics and solar, as well as sales from MobileRobots partially offset the decline, and taken together, more accurately reflect the Company's ongoing performance in its core markets. Adept reported a GAAP net loss of $3.3 million, or $0.37 per share in the third quarter of fiscal 2011, which compares to net income of $596,000, or $0.07 per diluted share in the third quarter of fiscal 2010, and a net loss of $1.7 million, or $0.20 per share in the previous quarter.
Gross margin was 45% of revenue in the third quarter of fiscal 2011, compared to 43% of revenue in the third quarter of fiscal 2010 and 39% in the previous quarter. The increase in gross margin was due to favorable product mix as well as improvements in inventory management.
Operating expenses in the third quarter of fiscal 2011 were $8.6 million, compared to $5.7 million for the same period last year and $7.0 million in the previous quarter. The increase in operating expenses was driven almost entirely by costs associated with our recent acquisitions of MobileRobots and InMoTx including $498,000 in transaction fees; restructuring charges of $595,000 as we streamline operations to eliminate redundancies; and an expected increase in SG&A associated with the respective acquisitions. The aforementioned restructuring charges includes $498,000 in accelerated stock compensation expense. Operating loss for the third quarter of fiscal 2011 was $2.9 million, which compares to operating income of $374,000 for the third quarter of fiscal 2010 and an operating loss of $1.8 million in the previous quarter.
Adept's adjusted EBITDA loss was $1.5 million in the third quarter of fiscal 2011, compared with adjusted EBITDA of $1.1 million in the third quarter of fiscal 2010 and adjusted EBITDA loss of $190,000 in the previous quarter. A discussion of this non-GAAP measure and reconciliation to the applicable GAAP measure is included below.
Adept's cash and cash equivalents balance at March 26, 2011 was $7.4 million, compared to $6.7 million as of December 25, 2010.
"We continued to see the return of demand from our core European markets with solid orders from our automotive, industrial and consumer electronics customers, and experienced an uplift in sales to the solar market," said John Dulchinos, president and chief executive officer of Adept. "We experienced customer program delays in some areas, however our pipeline is strong across multiple markets and our outlook is positive for both revenue growth and cash flow generation. We are making substantial progress in the integration of our recent acquisitions, InMoTx and MobileRobots, which create unique value propositions for a wider and more diversified customer base for Adept. As we move forward, we intend to leverage what we believe is the strongest position in the worldwide packaging industry to emerge as the leader in the high-volume natural products handling market."
- Received order from a large solar equipment manufacturer for deployment in China. This order is expected to be fulfilled by the end of calendar year 2011.
- Received first orders for Adept's new Octomation packaging solution from leading northern European seafood and tomato producers.
- Undertook organizational improvement including office consolidation to reduce redundancies, reorganization within the sales infrastructures and general streamlining of the America's business operations.
Quarterly Conference Call
John Dulchinos, president and chief executive officer, and Lisa Cummins, vice president and chief financial officer, hosted an investor conference call April 27, 2011 at 5:00 P.M. Eastern Time, to review the Company's financial and operating performance for the fiscal 2011 third quarter. The Company intends to continue its practice of not updating forward-looking statements or providing anticipated financial performance information not included in this press release. The call can be accessed by dialing 877-941-6012. The call will be archived at www.adept.com and a telephonic playback of the conference call will also be available for seven days following the call. Replay listeners should call (800) 406-7325 and enter the passcode 4434292#.
Adept is a global, leading provider of intelligent robotics systems and services that enable customers to achieve precision, speed, quality and productivity in their assembly, handling, packaging, testing and other automated 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, Disk Drive/Electronics and Solar; as well as to traditional industrial markets including machine tool automation and automotive components.
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