Adept Technology Reports Revenue Increase

LIVERMORE, Calif.—(BUSINESS WIRE)—Feb. 2, 2006— Adept Technology, Inc. (Nasdaq: ADEP) today announced results of its operations for its second quarter of fiscal 2006 which ended December 31, 2005. Revenues were $13.0 million, an increase of $1.2 million or 10.1% over the comparable period in fiscal 2005. Gross margin for the second quarter 2006 was $6.8 million, an increase of $1.5 million or 28.5% from the same period of the prior year. Adept reported net loss of $10,000 for the three months ended December 31, 2005, versus net income of $60,000 for the same period a year ago. The results compared with the same quarter in fiscal 2005 are highlighted in the table below.

The Company adopted the requirements of FAS 123R to begin expensing stock option grants and share purchases under its employee stock purchase plan effective with the start of fiscal 2006. The resulting charge to the income statement amounted to $213,000 for the second quarter.
   
                                                                Basic
                                     Gross  Operating         Earnings
                             Gross   Margin  Income     Net      Per
 Time Period     Revenues    Margin    %     (Loss)    Income   Share
 -----------     --------    ------  ------  -------   ------  -------
---------------------------------------------------------------------
Current quarter:
Q2-06            $12,979    $6,840    52.7%  $ 201     $(10)   $0.00
---------------------------------------------------------------------
Prior year's
quarter: Q2-05   $11,785    $5,324    45.2%  $(139)    $ 60    $0.01
---------------------------------------------------------------------
% Change from
Q2-05 to Q2-06      10.1%     28.5%   16.6%    244%      NM    (100)%
---------------------------------------------------------------------



Revenues for the six months ended December 31, 2005 were $27.6 million, an increase of $4.5 million or 19.7% over the comparable period in fiscal 2005. Gross margin for the first half of fiscal 2006 was $14.3 million, an increase of $3.5 million or 32.7% from the same period of the prior year. During the six months ended December 31, 2005, Adept reported net income of $150,000, or $0.02 per basic share, compared with $100,000, or $0.02 per basic share, for the same period a year ago. The results compared with the first six months of fiscal 2005 are highlighted in the table below.

The Company adopted the requirements of FAS 123R to begin expensing stock option grants and share purchases under its employee stock purchase plan effective with the start of fiscal 2006. The resulting charge to the income statement amounted to $448,000 for the first half of fiscal 2006.

                                                                Basic
                                     Gross  Operating         Earnings
                             Gross   Margin  Income     Net      Per
 Time Period     Revenues    Margin    %     (Loss)    Income   Share
 -----------     --------    ------  ------  -------   ------  -------
---------------------------------------------------------------------
Current year:
 First Half-06   $27,620   $14,314    51.8%  $ 559     $150    $0.02
---------------------------------------------------------------------
Prior year's
First Half:
1H-05            $23,078   $10,790    46.8%  $(133)    $100    $0.02
---------------------------------------------------------------------
% Change from
1H-05 to 1H-06      19.7%     32.7%   10.7%    520%      50%      --
---------------------------------------------------------------------



"First half revenues and bookings were both up 20% in fiscal 2006 from last year, and the quarter's gross margins improved again to 52.7%," said Robert Bucher, CEO of Adept Technology, Inc. "Adept Cobra 600 and 800 SCARA robot deliveries exceeded 200 units in the quarter and orders for the 6-axis Adept Viper, especially the new s850 clean room robot designed for food packaging and wash-down environments, were exceptional. First production Adept Python linear robots were delivered to Asia and the advanced Adept Smart SERVO MotionBLOX 10 and 40 products increased Adept's market share in motion and vision guidance."

"Adept's Service business continued its momentum. First half revenue increased 65% versus the first half of fiscal 2005. Q2 service spares revenue saw a 20% increase over Q1 delivery and a new Smart SERVO control system upgrade for the over 10,000 Adept legacy robots was introduced and delivered."

Bucher continued, "Overall we head into Q3 with a stronger backlog, delivered by an over $15 million combined US and European bookings quarter. The first half of our fiscal year has been traditionally Adept's seasonally weak half, but the overall results signal positive traction from major first half investments in new products, expanded distribution and proactive marketing."

Details of the Second Quarter and First Half

Business Highlights

-- On November 15, 2005, Adept Technology, Inc. resumed trading on the NASDAQ National Market, an important step in our 18-month recovery program to deliver financial stability and growth to our shareholders.

-- Becton Dickinson chose Adept as the robotic supplier for its BD Viper system for in vitro diagnostic applications. Becton Dickinson and other medical and life sciences applications are a key market for Adept's portfolio of Robotic and Control products.

-- Parker Hannifin and Adept announced the availability of a co-developed linear robot family. The Adept Python modules combined with Adept Smart SERVO MotionBLOX represent a major advancement in automation for manufacturing applications that require superior precision, strength and reliability.

Statement of Operations Highlights -- Three and six months ended December 31, 2005

-- Revenues for the second quarter and first half of fiscal 2006 increased 10.1% and 19.7%, respectively, from the comparable periods of fiscal 2005. The revenue increases resulted from Robotics sales in 4-axis Cobra and new 6-axis Viper robots and continued momentum in Service spare parts and new products for the legacy and remanufactured robots segment.

-- Gross margin was 52.7% in the second quarter of fiscal 2006 compared to 45.2% in the same quarter of fiscal 2005. For the first half, gross margin was 51.8% in fiscal 2006 as compared with 46.8% in fiscal 2005. The gross margin improvement resulted from a sales mix favoring higher margin products, as well as improved robot component designs with reduced cost, increased outsourcing of robot subassemblies, and reduced manufacturing overhead costs.

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