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Adept results hit by weak Asian and European demand

By Joe Whitworth , 09-Nov-2012
Last updated on 09-Nov-2012 at 12:11 GMT2012-11-09T12:11:58Z

Adept Technology has seen revenues and gross margin drop from Q1 2012 and said global cuts in spending led to delayed orders and slowed customer deployments.

The firm said decline was widespread but their Q1 2013 results for the period ending 29 September most significantly affected customers in Asia and Europe, in core product lines and new initiatives.

John Dulchinos, president and chief executive officer of Adept Technology, said: “We are disappointed with the results, particularly at this junction when we are relying on our core business to support the investments we are making in our new businesses.”

Figures down

Revenues for Q1 2013 were $11.4m, which compares to $16.6m for Q1 2012 and $17m for the previous quarter, said the robotic solutions provider.

Gross margin was 41.4% of revenue in the first quarter of fiscal 2013 compared to 43.8% of revenue in the first quarter of fiscal 2012 and 41.5% in the previous quarter.

In a conference call around the results, Dulchinos added the packing solutions business continued to generate strong interest.

"However the selling cycle has proven to be longer than anticipated and follow-on orders beyond Earth Down sponge have been slowed to materialize in part due to economic conditions but also because we are introducing a new level of solutions, a disruptive one, to a market that is historically in their decision making.”

Adept reported a GAAP net loss of $3.1m, in the first quarter of 2013, which compares to a net loss of $619,000, in the first quarter of 2012, and a net loss of $358,000, in the fourth quarter of 2012.

The company's operating loss for the first quarter was $2.7m, which compares to an operating loss of $435,000 for the first quarter of 2012 and an operating loss of $531,000 in the previous quarter.

Looking ahead

“Moving forward, our priority will be on maintaining our balance sheet and we will evaluate our strategy and initiatives based on achieving this objective, including opportunities to consolidate facilities, eliminate duplicate functions and streamline our operations with a focus on better serving our customers at lower operating costs,” Dulchinos added.

“We are confident that with a streamlined cost structure and clear focus on delivering value to our customers we will emerge from this downturn with a strong balance sheet and poised for growth.”

The firm also announced the appointment of Michael Schradle as senior vice president of finance and chief financial officer.

Schradlesaid: "The company is recognized as a leader in the robotics market and has a unique set of leading edge technologies aimed at large market opportunities. I believe my experience and capabilities can help the company execute on its near term priorities while maintaining its focus on its long term growth objectives."

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