Business News

Adept Technology Reports Fiscal Year 2013 Fourth Quarter and Year-End Results

Monday 23. September 2013 - 25 Percent Increase in Fourth Quarter Revenue; Fourth Quarter Operating Loss Narrows to $242,000 and EBITDA Positive $186,000

Adept Technology, Inc. (Nasdaq:ADEP), a leading provider of intelligent vision-guided and autonomous mobile robotic solutions, today announced financial results for its fiscal 2013 fourth quarter and year-end (ended June 30, 2013).
Fiscal 2013 Fourth Quarter Highlights
Revenue of $13.7 million increased 25% as compared with $10.9 million in the 2013 third quarter and was down 19% compared to $17.0 million in the 2012 fourth quarter.
Gross margin of 46.0% expanded 3% over 42.7% reported in the 2013 third quarter and 5 % over the prior year’s 41.5% 2012 fourth quarter.
Operating loss was $242,000, a $1.6 million improvement over the 2013 third quarter operating loss of $1.9 million and $0.3 million better than the fourth quarter 2012 operating loss of $531,000.
Adjusted positive EBITDA was $186,000, compared with the 2013 third quarter adjusted EBITDA loss of $1.1 million and the fourth quarter of 2012 EBITDA loss of $341,000.
Recent Business Highlights
Launched a new series of ePLC Connect Server PLC-based robot control software products for our industrial products family.
Received and shipped a $2.5 million order from CASTEC International Corp., Taiwan for robotics to be used in high precision assembly workcells for an independent semiconductor manufacturing service provider to automate sub-assembly of smart phones.
Commenting on fiscal 2013 fourth quarter results, Rob Cain, President and CEO, noted, “Fiscal 2013 was a year of transition for Adept, in which we embarked on a major restructuring. Our efforts have yielded initial favorable results, as we begin to stabilize and grow the business. By partnering with our key suppliers on a cost reduction program as well as focusing on higher margin products and services, we increased fourth quarter revenue, gross margins, adjusted EBITDA and our net operating results on a sequential basis.”
Mr. Cain continued, “During the quarter we made inroads within the food space, the mobile product family and won a significant reorder from an Asian semiconductor customer and an initial order from a European luxury watch manufacturer. In our industrial robot business we received a major order for SCARA robots to be used in the manufacture of smart phones in Asia and received a large reorder from a European consumer electronics company for line expansion.
“In addition, we have strengthened our leadership team, with the recent appointments of four key executives: Vice Presidents of North America, Asia-Pacific, Mobile Robot Sales; and a Chief Business Development and Corporate Strategy Officer. Each brings a record of success in growing mid-tier companies; and their combined depth and experience will help drive Adept’s product strategy, execute on our mobile initiatives and grow market share in our key geographies.” Mr. Cain concluded, “We enter fiscal 2014 a reinvigorated Company, with focused execution across all aspects of the business. Adept is the leader in vision-based autonomous robotics, with an installed base of more than 57,000 automation systems worldwide, addressing a broad spectrum of high-growth markets. We are well positioned to execute on our strategy of organic growth with mobile and industrial products, and to capture the momentum in the robotics industry.”
Fourth Quarter Fiscal 2013 Results
Revenues for the fourth quarter of fiscal 2013 were $13.7 million, compared with $10.9 million reported in the 2013 third quarter, and $17.0 million in the 2012 fourth quarter. Gross margin for the fourth quarter was 46.0%, compared with 42.7% in the third quarter and 41.5% in the 2012 fourth quarter.
Operating expenses in the fourth quarter of fiscal 2013 were $6.5 million, down slightly from $6.6 million reported in the 2013 third quarter, and a 14% decline compared with $7.6 million reported in the 2012 fourth quarter. Fourth quarter operating expenses included $51,000 in restructuring expenses, while the third quarter of fiscal 2013 included restructuring expenses of $114,000. The Company’s operating loss for the 2013 fourth quarter was $242,000, compared with an operating loss of $1.9 million for the 2013 third quarter and an operating loss of $531,000 in the 2012 fourth quarter.
Adept reported GAAP net income of $157,000, or earnings of $0.00 per share on a diluted basis, in the 2013 fourth quarter. This compares with a net loss of $1.8 million, or a loss of $0.17 per share, in the 2013 third quarter, and a net loss of $358,000, or a loss of $0.04 per share in the 2012 fourth quarter. The current quarter’s results are after tax benefits totaling $507,000, resulting mainly from conclusion of statutory tax audits, expiration of statutes of limitation for certain tax years, and a corresponding release of respective tax reserves provided for in prior periods, in certain of our foreign subsidiaries.
Adept’s non-GAAP adjusted EBITDA was $186,000 in the 2013 fourth quarter, compared with an adjusted EBITDA loss of $1.1 million in the 2013 third quarter, and an adjusted EBITDA loss of $341,000 in the 2012 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 the end of the 2013 fourth quarter totaled $6.3 million, compared to cash and cash equivalents of $6.7 million at the end of the 2013 third quarter. The decline in cash was predominantly due to increases in accounts receivable and inventories which were partially offset by an increase in the Company’s accounts payable. In the fourth quarter, accounts receivable increased to $10.8 million from $8.9 million in the 2013 third quarter, inventories increased to $8.3 million from $7.9 million in the 2013 third quarter, and accounts payable increased to $7.1 million from $5.9 million in the third quarter.
Fiscal Year 2013 Results
Revenues for the fiscal year ended June 30, 2013 were $46.8 million, compared to $66.2 million reported for fiscal 2012. The Company reported a GAAP net loss for the year of $9.9 million, or $0.98 per share, which compares to a net loss of $3.7 million, or $0.40 per share, in fiscal 2012.
Gross margin was 40.8% of revenue in fiscal 2013, compared with 42.3% of revenue in fiscal 2012. The decrease in margin was mainly due to an $875,000 reserve of excess and obsolete inventories in the second quarter of 2013.
Operating expenses for fiscal 2013 were $29.3 million, compared to $31.1 million in fiscal 2012. The 2013 operating expenses included a $1.7 million charge for impairment of intangible assets and goodwill recorded by the Company in the second quarter. The decrease in operating expenses is due to a combination of the reduction in force taken by the Company in the second quarter of 2013, combined with a focus on cost reductions in all areas of the business.
Adept’s non-GAAP adjusted EBITDA loss was $5.7 million for fiscal 2013, compared with a non-GAAP adjusted EBITDA loss of $0.1 million in fiscal 2012. A discussion of this non-GAAP measure and reconciliation to the applicable GAAP measure is included below.