Adept Technology Inc (ADEP) SEC Filing 10-K Annual report for the fiscal year ending Saturday, June 30, 2007

Adept Technology Inc

CIK: 865415 Ticker: ADEP


                                                                    EXHIBIT 99.1

                 Adept Reports Financial Results for
               Its Fourth Quarter and Fiscal Year 2007

    Fourth Quarter Restructuring Expected to Lower Expense Base and
    Accelerate Company's Transition to High-Value, Growing Markets

    LIVERMORE, Calif.--(BUSINESS WIRE)--Sept. 13, 2007--Adept
Technology, Inc. (Nasdaq:ADEP), a leading provider of intelligent
vision-guided robotics and global robotics services, today reported
financial results for its fiscal fourth quarter and year ended June
30, 2007.

    Fourth Quarter Results

    Fourth quarter 2007 revenues were $12.3 million, down 18% from
revenues of $14.9 million for the fourth quarter of 2006 and down 2%
compared to revenues of $12.6 million in the third quarter of 2007.
Gross margin for the fourth quarter of fiscal 2007 was 44.9%, compared
with 47.4% in the fourth quarter of 2006 and 45.7% in the third
quarter of 2007. Gross margin in the fourth quarter of fiscal 2007
includes $329,000 of writedowns for obsolete and consigned inventory.
Excluding these writedowns, gross margin was 47.6% in the quarter, a
margin percentage management believes helpful for investors to
understanding normal gross margin for the quarter.

    Operating loss for the fourth quarter of fiscal 2007 was $(6.0)
million, compared with operating income of $740,000 in the fourth
quarter of fiscal 2006. Fiscal 2007 fourth quarter operating expenses
include $1.0 million in restructuring expense and $3.2 million in
non-cash expense for impairment of goodwill and amortization of
intangibles, compared with amortization of intangibles of $48,000 in
the fourth quarter of fiscal 2006. Fourth quarter 2007 net loss was
$(5.7) million, or $(0.73) per basic share, compared with net income
of $984,000, or $0.14 per basic share, for the fourth quarter of 2006.

    Cash, cash equivalents and short-term investments as of June 30,
2007 were $10.9 million, down $88,000 from the end of the previous
quarter and compared with $14.1 million as of June 30, 2006.

    Full Year Results

    Revenues for the full year ended June 30, 2007 were $48.7 million,
down 15.5% from revenues of $57.6 million for fiscal 2006 due to a
continued soft capital investment climate in the global disk drive and
U.S. industrial markets. Gross margin for the full fiscal year 2007
was 43.3%, compared with gross margin of 47.3% in the previous year.

    Operating loss for fiscal 2007 was $(12.4) million, compared with
operating income of $566,000 in fiscal 2006. Fiscal 2007 operating
expenses include the $4.2 million in restructuring, goodwill
impairment and amortization expenses listed above, as well as $1.9
million in non-cash settlement expense, compared with amortization of
intangibles of $195,000 and a reversal of restructuring charges of
$22,000 in fiscal 2006. Net loss for the full fiscal year 2007 was
$(11.5) million, or $(1.50) per basic and diluted share, compared with
net income of $538,000, or $0.08 per basic and diluted share for the
prior year.

    In the fourth quarter the Company restructured its operations,
which included a 15% reduction in personnel and a reduction in
operating expenses of approximately 13%. The ongoing quarterly savings
in operating expenses from the restructuring is expected to be between
$750,000 and $950,000, beginning in the first quarter with the full
effects being realized in the second quarter of fiscal 2008.

    Commented Rob Bucher, chief executive officer of Adept Technology,
"2007 was a difficult year for Adept, as we lost a significant portion
of our revenue from the continued down cycle in the disk drive market
and experienced a sharp decrease in demand from industrial automation
markets in the U.S., as traditional manufacturers continued to
outsource production to low cost geographies. In response to, and in
anticipation of, these market changes we have intensified our vertical
market focus by introducing our innovative Quattro(TM) robot, a
high-speed packaging robot targeted at the expanding opportunity for
high-value automation in the packaged goods markets of Europe and the
U.S., and by investing in the high growth medical automation markets."

    "Restructuring the organization is expected to significantly lower
our quarterly break-even and has provided us with the opportunity to
realign our resources and focus them on more profitable opportunities
in Europe and in our target verticals of life sciences and consumer
goods, as well as disk drive, as it recovers,' said John Dulchinos,
president and chief operating officer of Adept Technology. "These
markets support higher sales prices and larger unit volumes, providing
Adept with better leverage from our sales and marketing activities."

    Fiscal 2007 Highlights

    During fiscal 2007, Adept:

    --  Achieved record revenues in Europe, supported both by
        continued strong demand from traditional automation markets in
        Germany and from new customers in the food and consumer goods
        industries in France;

    --  Achieved record orders of AdeptViper(TM) six-axis robots,
        which are targeted at high-speed precision assembly
        applications in the food, medical and other emerging
        automation markets;

    --  Launched Adept Quattro, the industry's fastest robot for
        high-speed packaging operations, targeted at the food,
        consumer goods, cosmetics and pharmaceutical industries;

    --  Made progress against its strategy to lower the cost of sales
        by signing new distribution partners - now totaling 15 - as
        part of a plan to sell more product through indirect channels;

    --  Achieved first design win for Adept controls and software in
        the surgical-assist robot market.

    Fiscal 2008 Outlook

    The Company expects to achieve improvement in operating results
through fiscal 2008, beginning in the second quarter. The Company
further expects to generate positive cash flow from operations
beginning in the second quarter of fiscal 2008 and to be cash flow
positive for the fiscal year as a whole. These improvements are based
on expected revenue improvement as a result of increasing demand for
Adept's Quattro robots, combined with sustained gross margins and
expected decreases in operating expenses resulting from the Company's
recent restructuring. Additionally, the Company expects to record
additional restructuring charges of approximately $300,000 in the
first quarter of fiscal 2008. It further expects expense reductions
will be achieved beginning in the first quarter with the full impact
of the savings to be achieved in the second quarter of fiscal 2008.

    Conference Call and Simultaneous Webcast

    Robert Bucher, Chief Executive Officer, John Dulchinos, President
and Lisa Cummins, Vice President, Finance and Chief Financial Officer,
will host an investor conference call today, September 13, 2007, at
5:00 P.M. Eastern Time to review the Company's financial and operating
performance for the fiscal 2007 fourth quarter and year. The call will
be open to all interested investors through a live audio Web broadcast
via the Internet at or may be accessed through
the investor relations section of our website at For
those who are not available to listen to the live broadcast, the call
will be archived at, and A telephonic playback of the conference call
will also be available for five days. Listeners should call
719-457-0820 or 888-203-1112 and use CODE No. "3419070".

    About Adept Technology, Inc.

    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, Adept provides specialized, cost-effective robotics
systems and services to high-growth markets including Packaged Goods,
Life Sciences, Disk Drive/Electronics and Semiconductor; as well as to
traditional industrial markets including machine tool automation and
automotive components. More information is available at

    Forward-Looking Statements

    This press release contains certain forward-looking statements
including statements regarding the Company's restructuring activities,
decreasing operating expense, financial performance including revenue
and income, and market opportunities that involve a number of risks
and uncertainties. The Company's actual results could differ
materially from those expressed in any of the above forward-looking
statements for a variety of reasons, including but not limited to: the
actual results of our restructuring activities, and potential impact
of current restructuring efforts; factors affecting our operating
results including factors difficult to forecast; future economic,
competitive and market conditions including those in Europe and Asia
and those related to the Company's strategic markets; risks of
acceptance of the Company's new or current products in the
marketplace; the financial and operating risks and regulatory
requirements associated with international operations, sales and
foreign suppliers; the cyclicality of capital spending of the
Company's customers and lack of long-term customer contracts;
customers' ability to pay invoices in a timely manner; the risk that
some customers may become insolvent; dependence on the continued
growth of the intelligent automation market; the highly competitive
nature of and rapid technological change and competition within the
intelligent automation industry; the lengthy sales cycles for the
Company's products; the Company's limited cash resources and
significant fixed costs which are not easily reduced; the Company's
outsourced manufacturing dependence and risks associated with sole or
single sources of supply and lengthy procurement lead times; risks
associated with the seasonality of the Company's products; risks
associated with product defects; potential delays associated with the
development and introduction of new products or software releases; the
Company's ability to sell its products through systems integrators and
original equipment manufacturers who may also promote competing
products; risks associated with variations in our gross margins based
on factors not always in Adept's control; the need to hire and retain
qualified managerial personnel and to complete acquisitions to expand
operations; risks of unfair termination claims by employees; risks
associated with variations in gross margins; risks related to the
Company's potential inability to strengthen its internal controls over
financial reporting; potential securities class action litigation if
Adept's stock price remains volatile or operating results suffer; and
costs of being a public company as a result of legislation requiring
greater general and administrative costs to be incurred and higher
insurance costs.

    For a discussion of risk factors relating to Adept's business, see
Adept's annual report on Form 10-K for the fiscal year ended June 30,
2007 which will be filed later today and quarterly report on Form 10-Q
for the quarter ended March 31, 2007 including the discussion in
Management's Discussion and Analysis of Financial Condition and
Results of Operations and Factors Affecting Future Operating Results
contained therein.

    All trade names are trademarks or registered trademarks of their
respective holders.

                        ADEPT TECHNOLOGY, INC.

                                              Year Ended June 30,
                                           2007      2006      2005
                                         --------- --------- ---------
                                          (in thousands, except per
                                                  share data)

Revenues                                 $  48,688 $  57,637 $  50,480
Cost of revenues                            27,611    30,349    27,319
                                         --------- --------- ---------
Gross margin                                21,077    27,288    23,161
Operating expenses:
   Research, development and engineering     7,220     7,143     6,868
   Selling, general and administrative      20,132    19,406    15,257
   Restructuring charges (reversals)         1,023      (22)      (33)
   Amortization of other intangible
    assets                                      33       195       195
   Goodwill impairment                       3,176         -         -
   Crosslink settlement costs                1,861         -         -
                                         --------- --------- ---------
Total operating expenses                    33,445    26,722    22,287
                                         --------- --------- ---------

Operating income (loss)                   (12,368)       566       874

Other income                                     -         -       314
Currency exchange gain                         208        86       270
Interest income                                481        83        29
Interest expense                              (36)     (120)     (192)
                                         --------- --------- ---------

Income (loss) from operations before
 income taxes                             (11,715)       615     1,295
Provision for (benefit from) income
 taxes                                       (202)        77         -
                                         --------- --------- ---------

Net income (loss)                        $(11,513) $     538 $   1,295
                                         ========= ========= =========

Basic income (loss) per share            $  (1.50) $    0.08 $    0.21
                                         ========= ========= =========

Diluted income (loss) per share          $  (1.50) $    0.08 $    0.19
                                         ========= ========= =========

Basic number of shares used in computing
 per share amounts :                         7,676     6,412     6,063
                                         ========= ========= =========

Diluted number of shares used in
 computing per share amounts:                7,676     6,784     7,873
                                         ========= ========= =========

Comprehensive income (loss)
   Net income (loss)                     $(11,513) $     538 $   1,295
   Foreign currency translation
    adjustment                                 476         -         -
                                         --------- --------- ---------

      Total comprehensive income (loss)  $(11,037) $     538 $   1,295
                                         ========= ========= =========

                        ADEPT TECHNOLOGY, INC.
                             INCOME (LOSS)
                (in thousands, except per share data)

                               Three Months Ended  Twelve Months Ended
                               ------------------- -------------------
                               June 30,  June 30,  June 30,  June 30,
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------
Revenues                       $  12,265 $  14,943 $  48,688 $  57,637
Cost of revenues                   6,760     7,856    27,611    30,349
                               --------- --------- --------- ---------
Gross margin                       5,505     7,087    21,077    27,288
Operating expenses:
   Research, development and
    engineering                    1,949     1,763     7,220     7,143
   Selling, general and
    administrative                 5,385     4,558    20,132    19,406
   Restructuring charges
    (reversals)                    1,022      (22)     1,023      (22)
   Amortization of other
    intangible assets                  -        48        33       195
   Goodwill impairment             3,176         -     3,176         -
   Crosslink settlement costs          -         -     1,861         -
                               --------- --------- --------- ---------
Total operating expenses          11,532     6,347    33,445    26,722
                               --------- --------- --------- ---------

Operating income (loss)          (6,027)       740  (12,368)       566

Interest income (expense), net       101        27       445      (37)
Currency exchange gain (loss)         50       292       208        86
                               --------- --------- --------- ---------

Income (loss) before income
 taxes                           (5,876)     1,059  (11,715)       615
Provision for (benefit from)
 income taxes                      (203)        75     (202)        77
                               --------- --------- --------- ---------
Net income (loss)              $ (5,673) $     984 $(11,513) $     538
                               ========= ========= ========= =========

   Basic net income (loss) per
    share                      $  (0.73) $    0.14 $  (1.50) $    0.08
                               ========= ========= ========= =========

   Diluted net income (loss)
    per share                  $  (0.73) $    0.13 $  (1.50) $    0.08
                               ========= ========= ========= =========

Basic number of shares used in
 computing per share amounts:      7,800     6,913     7,676     6,412
                               ========= ========= ========= =========

Diluted number of shares used
 in computing per share
 amounts:                          7,800     7,693     7,676     6,784
                               ========= ========= ========= =========

                        ADEPT TECHNOLOGY, INC.
                (In thousands, except per share data)

                                                  June 30,   June 30,
                                                    2007       2006
                                                 ---------- ----------
Current assets:
   Cash and cash equivalents                     $    8,900 $   11,054
   Short-term investments                             1,962      3,003
   Accounts receivable, less allowance for
    doubtful accounts of $506 in 2007
          and $467 in 2006                           10,185     11,591
   Inventories, net                                   9,806     11,600
   Other current assets                                 598        439
                                                 ---------- ----------
      Total current assets                           31,451     37,687

Property and equipment at cost                       14,903     12,076
Less accumulated depreciation and amortization       11,271      9,480
                                                 ---------- ----------
Property and equipment, net                           3,632      2,596
Goodwill                                                  -      3,176
Other intangible assets, net                              -         34
Other assets                                            152        199
                                                 ---------- ----------
      Total assets                               $   35,235 $   43,692
                                                 ========== ==========

Current liabilities:
   Accounts payable                                   5,175      6,952
   Accrued payroll and related expenses               1,708      1,719
   Accrued warranty                                   1,207      1,638
   Deferred revenue                                      33          3
   Accrued restructuring charges                        293          -
   Other accrued liabilities                            594        258
                                                 ---------- ----------
      Total current liabilities                       9,010     10,570

Long-term liabilities:
   Restructuring charges                                638          -
   Other long-term liabilities                          183        433
                                                 ---------- ----------
      Total liabilities                               9,831     11,003
                                                 ---------- ----------

Commitments and contingencies                             -          -

Redeemable convertible preferred stock, no par
 value: 5,000 shares authorized, none issued and
 outstanding                                              -          -

Stockholders' equity:
   Preferred stock, $0.001 par value: 1,000
    shares authorized, none issued and
                                                          -          -
   Common stock, $0.001 par value: 19,000 shares
    authorized, 7,914 and 7,583 shares issued
    and outstanding in 2007 and 2006,
                                                    162,385    158,633
   Accumulated other                              (137,457)  (125,944)
   Accumulated other comprehensive income               476          -
      Total stockholders' equity                     25,404     32,689
                                                 ---------- ----------
      Total liabilities, redeemable convertible
       preferred stock and stockholders' equity
                                                 $   35,235 $   43,692
                                                 ========== ==========

    CONTACT: Adept Technology, Inc.
             Lisa Cummins, 925-245-3400
             Chief Financial Officer

The following information was filed by Adept Technology Inc (ADEP) on Thursday, September 13, 2007 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Adept Technology Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Adept Technology Inc.


Assess how Adept Technology Inc's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Adept Technology Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2007 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors


SEC Filing Tools