Adept Technology Reorganizes

  • June 29, 2007
  • Adept Technology, Inc.
  • News
LIVERMORE, Calif. - June 29, 2007 - Adept Technology announced that John Dulchinos has been promoted to President and Chief Operating Officer, reporting to Robert Bucher, Chief Executive Officer.Mr. Dulchinos joined Adept in 1987 and has served in numerous management roles in the Company, most recently as Vice President, Global Sales and Marketing, where he has been responsible for developing Adept's vertical market sales strategy focusing on the Packaged Goods, Life Sciences, Disk Drive/Electronics, and Semiconductor industries. In his new role as President and COO, Mr. Dulchinos will focus on optimizing Adept's sales, development activities and operations, including implementing the Company's plans to reduce expenses and rebalance its sales and operational resources to cost effectively support growth in its target vertical markets.Robert Bucher will continue to focus on leading Adept's strategic initiative to explore and develop new opportunities to grow and diversify the Company's business, both through the transition of the Company's business into high-growth emerging markets and through external partnerships and acquisitions.Additionally, Joachim Melis has been promoted to Vice President, Worldwide Sales. Mr. Melis was formerly Vice President Sales, Europe, where he made significant contributions to sales growth, resulting in Europe accounting for between 40% and 50% of the Company's total revenues in recent quarters. In his new role as Vice President, Worldwide Sales, Mr. Melis will be responsible for overseeing and coordinating Adept's product and services sales initiatives on a global basis.Separately, Steven Moore, VP Finance and Chief Financial Officer, has accepted a position with another company and will be leaving Adept effective mid-July. The Company, with the input of the Audit Committee, is considering its alternatives for Mr. Moore's replacement as CFO."We appreciate Steve's contributions in developing the finance team and implementing the systems to strengthen the operational and accounting functions that are critical to our financial reporting," said Robert Bucher. "We wish him well in his future endeavors."Restructuring DetailsAdept also announced details of its planned restructuring, which is intended to lower fixed operating costs and redistribute sales and engineering resources to more quickly grow its target vertical markets while maintaining momentum in key existing markets. The plan consists of the following:
  • A headcount reduction of approximately 15%;
  • Rationalization of certain manufacturing operations at its Livermore, California headquarters, with a corresponding reduction of leased space;
  • Closure of Adept's Canada and Connecticut facilities due to North American market erosion;
  • The reallocation of some operational headcount from the U.S. to Europe to accelerate positive market momentum;
  • The consolidation of software development activities in Adept's Livermore, California headquarters and the consolidation of U.S. sales and service operations in the Company's new Cincinnati Technical Center;
  • The realignment of Adept's North American sales organization to create dedicated sales teams focused on the Life Sciences and Packaged Goods industries, further strengthening the Company's ability to address its target vertical markets;
  • Transfer and consolidation of sales coverage of the Disk Drive/Electronics market to the Company's Singapore office;
  • Continued outsourcing manufacturing operations for standard products.As a result of these restructuring measures, Adept expects to incur restructuring charges of approximately $1.6 million, of which the majority relate to facility closure and lease terminations. Approximately $1.2 million of these charges will be recorded in the fourth quarter ending June 30, 2007. Additionally, the consolidation of software development activities in the Company's Livermore facility is expected to have an impairment impact on the goodwill on Adept's balance sheet and Adept is currently reviewing that impact. As of March 31, 2007, Adept had approximately $3.2 million of goodwill related to the acquisition of HexaVision in 2000 and META in 2002."The rebalancing of our sales resources will enable Adept to optimize our current sales levels with new channels and redeploy direct salespeople to emerging high-growth markets," commented Robert Bucher. "At the same time, we will pursue acquisitions and partnerships to diversify our company into new markets.""These strategic organizational changes will allow Adept to better leverage the significant opportunities for growth in our European and target vertical markets while we continue to drive operational cost efficiencies and pursue technology and business acquisitions and partnerships to achieve our growth and profitability objectives," commented John Dulchinos.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. All trade names are either trademarks or registered trademarks of their respective holders. Learn More

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