Adept Technology Reports Fiscal Year 2015 Third Quarter Results
May 04 2015 - 4:01PM
Adept Technology, Inc. (Nasdaq:ADEP), a leading provider of
intelligent robots, autonomous mobile solutions and services, today
announced its fiscal 2015 third quarter financial results.
"During the third quarter, our mobile business made significant
progress, contributing over 20 percent of total revenues generated
by a record number of unit shipments, and receiving orders from 13
new customers, " said Rob Cain, Adept's President and CEO.
"Further, total revenues in the third quarter of $14.1 million were
within our expectations, despite significant headwinds from the
strong dollar. Looking ahead, based on the backlog, pipeline and
order activity we have seen so far, we believe revenues in the
fourth quarter will be in the range of $13.5 million to $15
million."
Third Quarter Fiscal 2015 Results
- Revenues for the third quarter of fiscal 2015 were $14.1
million, compared with $15.1 million in the third quarter of fiscal
2014.
- Gross margin was 41%, compared with 46% in the third quarter of
fiscal 2014.
- Operating expenses were $6.9 million, compared with $6.6
million in the third quarter of fiscal 2014.
- The Company's operating loss for the third quarter was $1.1
million, compared with operating income of $0.3 million in the
third quarter of fiscal 2014.
- GAAP net loss attributable to common shareholders of $1.3
million, or $0.10 per share, compared to $0.1 million, or $0.00 per
share, in the third quarter of fiscal 2014.
- Non-GAAP adjusted EBITDA loss was $0.9 million in the third
quarter of fiscal 2015, compared with adjusted EBITDA of $ 1.2
million in the third quarter of fiscal 2014. A discussion of this
non-GAAP measure and reconciliation to the applicable GAAP measure
is included below.
- Cash and cash equivalents at March 28, 2015 totaled $2.7
million.
Quarterly Conference Call on May 4, 2015
Rob Cain, President and Chief Executive Officer, and Seth Halio,
Chief Financial Officer, will host an investor conference call on
Monday, May 4, 2015 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific
Time), to review the Company's financial and operating performance
for the third quarter of fiscal 2015. The call can be accessed by
dialing 1-888-364-3109. International callers can dial
1-719-325-2308. 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 www.adept.com in the Investor Relations section. A webcast
archive will also be available following the call's conclusion
until the Company reports its financial results for its fourth
quarter of fiscal 2015. The call may include statements regarding
the Company's anticipated future financial performance and
operational activities. 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.
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 www.adept.com. All
trade names are either trademarks or registered trademarks of their
respective holders.
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 charges, 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
for stabilization of our business and revenues, market strategies
for our sales and opportunities in our geographic markets, and our
ability to grow our customer base, revenues, and cash flow. Such
statements are based on current expectations 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 dependence of our
growth consistent with our long-term model on the successful
execution of our mobile strategy and continued evolution towards
collaborative automation, 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 acquisitions 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, see Adept's
SEC filings, including the Company's annual report on Form 10-K for
the fiscal year ended June 30, 2014, which includes the discussion
in Management's Discussion and Analysis of Financial Condition and
Results of Operations and Risk Factors.
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(in thousands, except
per share amounts) |
|
|
March 28, 2015 |
June 30,
2014 |
|
(unaudited) |
|
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 2,712 |
$ 7,600 |
Restricted cash |
74 |
194 |
Accounts receivable |
11,057 |
10,974 |
Inventories |
9,921 |
10,296 |
Other current assets |
801 |
545 |
|
|
|
Total current assets |
24,565 |
29,609 |
Property and equipment, net |
878 |
1,082 |
Goodwill |
1,493 |
1,493 |
Other intangible assets, net |
613 |
796 |
Other assets |
106 |
90 |
|
|
|
Total assets |
$ 27,655 |
$ 33,070 |
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
Current liabilities: |
|
|
Line of credit |
$ 1,750 |
$ — |
Accounts payable |
4,954 |
7,709 |
Accrued payroll and related
expenses |
1,919 |
2,235 |
Accrued warranty expense |
901 |
897 |
Deferred revenue |
106 |
644 |
Accrued income tax,
current |
— |
10 |
Other accrued liabilities |
624 |
848 |
|
|
|
Total current liabilities |
10,254 |
12,343 |
Long-term liabilities: |
|
|
Deferred income tax,
long-term |
287 |
430 |
Long-term obligations |
7 |
130 |
|
|
|
Total liabilities |
10,548 |
12,903 |
Stockholders' equity: |
|
|
Common stock |
190,466 |
189,427 |
Treasury stock |
(42) |
(42) |
Accumulated deficit |
(172,967) |
(169,368) |
Accumulated other comprehensive
income (loss) |
(350) |
150 |
|
|
|
Total stockholders' equity |
17,107 |
20,167 |
|
|
|
Total liabilities and
stockholders' equity |
$ 27,655 |
$ 33,070 |
|
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(unaudited) |
(in thousands, except
per share amounts) |
|
|
Three Months
Ended |
Nine Months
Ended |
|
March 28, 2015 |
March 29, 2014 |
March 28,
2015 |
March 29, 2014 |
Revenues |
$ 14,114 |
$ 15,121 |
$ 40,313 |
$ 43,280 |
Cost of revenues |
8,277 |
8,207 |
22,973 |
23,265 |
|
|
|
|
|
Gross margin |
5,837 |
6,914 |
17,340 |
20,015 |
Operating expenses: |
|
|
|
|
Research, development and
engineering |
2,041 |
1,774 |
5,413 |
5,180 |
Selling, general and
administrative |
4,827 |
4,813 |
14,765 |
14,479 |
Settlement of litigation |
— |
— |
260 |
— |
Amortization of other
intangible assets |
61 |
61 |
183 |
183 |
|
|
|
|
|
Total operating expenses |
6,929 |
6,648 |
20,621 |
19,842 |
|
|
|
|
|
Operating income (loss) |
(1,092) |
266 |
(3,281) |
173 |
Interest income (expense), net |
(11) |
12 |
(11) |
7 |
Foreign currency exchange gain (loss) |
(291) |
140 |
(387) |
201 |
|
|
|
|
|
Income (loss) before income taxes |
(1,394) |
418 |
(3,679) |
381 |
Provision for (benefit from) income
taxes |
(70) |
153 |
(80) |
310 |
|
|
|
|
|
Net income (loss) |
(1,324) |
265 |
(3,599) |
71 |
|
|
|
|
|
Effects of redeemable convertible preferred
stock: |
|
|
|
|
Accretion of preferred stock to
redemption value |
— |
(234) |
— |
(282) |
Dividends allocated to
preferred stockholders |
— |
(43) |
— |
(203) |
|
|
|
|
|
Net loss attributable to common
stockholders |
$ (1,324) |
$ (12) |
$ (3,599) |
$ (414) |
|
|
|
|
|
Net loss per share attributable to common
stockholders: |
|
|
|
|
Basic |
$ (0.10) |
$ (0.00) |
$ (0.28) |
$ (0.04) |
Diluted |
$ (0.10) |
$ (0.00) |
$ (0.28) |
$ (0.04) |
Number of shares used in computing net loss
per share attributable to common stockholders |
|
|
|
|
Basic |
13,113 |
11,955 |
13,087 |
11,278 |
Diluted |
13,113 |
11,955 |
13,087 |
11,278 |
|
Reconciliation of GAAP
Net Income (Loss) to Adjusted EBITDA (Loss) |
(in
thousands) |
|
|
Three Months
Ended |
Nine Months
Ended |
|
March 28, 2015 |
March 29, 2014 |
March 28, 2015 |
March 29, 2014 |
Net income (loss) |
$ (1,324) |
$ 265 |
$ (3,599) |
$ 71 |
Interest income (expense), net |
(11) |
12 |
(11) |
7 |
Provision for (benefit from) income
taxes |
(70) |
153 |
(80) |
310 |
Depreciation and amortization |
255 |
273 |
783 |
821 |
Stock compensation expense |
233 |
549 |
684 |
1,640 |
Adjusted EBITDA (loss) |
$ (895) |
$ 1,228 |
$ (2,201) |
$ 2,835 |
CONTACT: Seth Halio
Chief Financial Officer
925-245-3400
Investor.relations@adept.com