LIVERMORE, Calif. --(BUSINESS WIRE)--May 4, 2006--Adept Technology, Inc. (Nasdaq:ADEP) today announced the results of operations for its third quarter of fiscal 2006 which ended April 1, 2006.
Revenues were $15.1 million and GAAP earnings were $1.3 million or $0.20 per basic share outstanding, as compared with revenues of $13.0 million and earnings of $292,000 or $0.05 per basic share for the third quarter of 2005.
Revenues for the nine months ended April 1, 2006 were $42.7 million and GAAP earnings were $1.4 million, or $0.23 per basic share, as compared with revenues of $36.1 million and earnings of $392,000 or $0.06 per basic share for the same period of the prior year.Non-GAAP earnings for the third quarter were $1.5 million, or $0.23 per share, up over 400% from the third quarter of last year.
Non-GAAP earnings for the nine months of fiscal 2006 were $2.1 million, or $0.33 per share.The reconciling item between GAAP and non-GAAP earnings for 2006 is the expense for stock-based compensation, which the Company was required to include in its financial statements beginning in the first quarter of fiscal 2006.
This expense amounted to $200,000, or $0.03 per basic share, for the third quarter and $641,000, or $0.10 per basic share, for the nine months ended April 1, 2006." These great results for the third quarter of 2006 are a testament to the knowledge and dedication of Adept employees around the world and the acceptance of our new product portfolio to improve manufacturing through automation," said Robert Bucher, Adept's Chief Executive Officer. "The new product portfolio has resulted in additional design wins in the USA and Singapore, and expanded sales of Adept controls into lab automation and electronic assembly cells primarily destined for South East Asia and China manufacturers.
European sales increased due to machine tool, OEM motion control and vision-based robot applications." Bucher continued, "In response to customer needs, Adept has moved from hardware to a software-centric portfolio of robotic controllers. Adept MotionBLOX combined with AdeptSight, industry's highest performance vision guidance technology, can now improve the control and network capability for any brand and any generation of robot or motion automation. The MotionBLOX robot controller is common to the Adept Cobra SCARA, Adept Viper 6-axis articulated robot, Adept Python linear robot, and now, through the advanced Smart RX controller, to competitive brand mechanisms and robots.
These programs will continue to expand Adept applications."
Q3 FY 2006 Business Highlights
Adept delivered a record 1300 embedded robot controllers including over 800 MotionBLOX 10 linear robot controllers. Over 900 of these controllers were destined for non-Adept mechanisms and robots.Adept delivered a record 360 precision robots from both Livermore USA and Dortmund Germany production facilities. These were primarily Cobra SCARA and Viper 6-axis articulated robots plus 150 re-manufactured Adept Legacy Robots.Adept introduced a new line of software-centric Smart Controller upgrade packages to replace out of support, pre-2000 vintage robot controllers.
Successful sales and installations were made on competitive legacy robots.Adept delivered over 80 vision guidance add-ons to Adept robot controllers through various OEM and Integrator programs. AdeptSight was introduced and delivered in volume during the quarter. Adept maintains market share leadership in vision guided motion for small part handling and manufacturing precision.During the quarter, Adept expanded its Singapore facilities, adding new personnel for sales, applications, training and, ultimately, local assembly and test, supporting our expanding base of precision automation integration partners supplying China and South East Asia.
Q3 and YTD FY 2006 Financial Highlights
Revenues for the three and nine months of fiscal 2006 increased 15.7% and 18.3%, respectively, from the comparable periods of fiscal 2005.
The revenue increases resulted from increased sales of Adept robots, upgrades to new robot controllers and gains in sales of remanufactured robots.Gross margin was 52.7% in the third quarter of fiscal 2006 compared to 45.8% in the same quarter of fiscal 2005.
For the first nine months, gross margin was 52.2% in fiscal 2006 as compared with 46.4% in fiscal 2005.
The gross margin improvement resulted from increased volumes, expanding new and upgrade robot controller and software sales and greater productivity in production operations, assembly and test.Research & Development (R&D) expense in the third quarter of fiscal 2006 decreased 2.6% as compared with the third quarter of fiscal 2005 and for the first nine months, increased 7.4% in fiscal 2006 compared with the same period of fiscal 2005, primarily the result of software development activities.Selling, General & Administrative (SG&A) expense increased 26.5% and 29.6%, respectively, for the three and nine months of 2006 as compared with the same periods of 2005.
The increases are primarily due to new product launches, the evolving Vertical market distribution programs, information technology investments plus expenses related to FAS 123R stock compensation charges, the Company's reincorporation in Delaware and re-listing on the Nasdaq National Market.Currency exchange loss in the third quarter of fiscal 2006 was $10,000 as compared with a gain of $50,000 in the third quarter of fiscal 2005. The exchange loss for the first nine months of 2006 was $378,000 as compared with a gain of $374,000 for the first nine months of 2005. The currency exchange gains and losses are primarily related to movement in the Euro as compared with the U.S.
Dollar.
Non-GAAP Financial Measures
This press release and its attachments contain Non-GAAP financial measures which Adept believes are helpful in allowing readers to more accurately assess and compare results over multiple periods. However, these Non-GAAP financial measures are not meant to be considered in isolation, nor as a substitute for financial information provided in accordance with GAAP. About Adept Technology, Inc. Adept Technology, Inc. designs, manufactures and markets robotic systems, motion control and machine vision technology for global markets including automotive, consumer electronics, consumer goods, disk drive, food, industrial tooling, medical devices, and pharmaceutical.
Adept robots, controllers, and software are used for small parts assembly, material handling and packaging. Adept intelligent automation product lines include industrial robots, configurable linear modules, machine controllers for robot mechanisms and other flexible automation equipment, machine vision, and systems and applications software. Founded in 1983, Adept Technology is the largest U.S. -based manufacturer of industrial robots.
