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Adept Technology, Inc. (ADEP)
F1Q13 Earnings Call
November 8, 2012 5:00 pm ET
John Dulchinos – President and Chief Executive Officer
Cathy Denham – Controller
Mark Tobin – Roth Capital Partners
Previous Statements by ADEP
» Adept Technology CEO Discusses F4Q12 Results - Earnings Call Transcript
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» Adept Technology's CEO Discusses F1Q 2012 Results - Earnings Call Transcript
I would now like to turn the conference over to John Dulchinos, the CEO. Please go ahead.
Thank you and good afternoon everybody. Thank you for joining us. Joining me today is Cathy Denham, our Controller and Mike Schradle, our recently appointed CFO. I would now turn the call over to Cathy to begin the call with us. Cathy?
Thank you, John. As we begin today’s call, let me remind you that during the course of this conference call, we may make certain remarks regarding Adept’s expectations as to the future events and future financial and operational performance, plans and prospects of the company, all of which are based on the company’s position as of today, November 8, 2012.
Any such forward-looking statements involve a number of risks and uncertainties and the company’s actual results could differ materially from those expressed in any of these forward-looking statements for a variety of reasons. These risks are described in our press release and in our Annual Report on Form 10-K for the fiscal year ended June 30, 2011 as well as the risks described in the company’s other SEC filings.
No one should assume that any forward-looking statements made by the company remain consistent with our expectations after the date forward-looking statements are made.
Certain financial information that we review on today’s conference call is presented on a non-GAAP basis. The most directly comparable GAAP information and reconciliation between the non-GAAP and GAAP figures is provided in our fiscal first quarter 2013 press release which has been furnished to the SEC on Form 8-K and it is available on our website.
The press release and all financial statistical and operational information referred to in this conference call, including the GAAP reconciliation and explanations discussed above is available on the Investor Relations section of our website. Following our comments, we will open the call to take your questions.
I’m now going to turn the call back to John.
Thank you, Cathy. First quarter of our fiscal year 2013 reflected a mark downturn in our customer’s capital spending driven by what we believe to be an increase concerns on the global economy.
On our last quarter’s conference call, we told you that during the final month of the quarter, we were seeing increasingly cautious order patterns from customer, particularly in Europe and Asia. And unfortunately this trend continues throughout the quarter. The result was a sequential and annual revenue decline that evaporates the normal seasonality we see in our first quarter. The impacts of the weak economic climate, was heightened with election year uncertainty driven driving lengthier demand by vote and order patterns.
On the one-hand, the across-the-board weakness is obviously disappointing. Particularly at this juncture when you’re relying on our core businesses for the investment we are making in our new initiatives. On the other hand, it does provide evidence that the weak environment is not specific to Adept and doesn’t reveal any inherent weakness in the fundamentals of our business.
Customers remain highly interested in our products, however, uncertainty has translated into our customers programs being scaled back or delayed. Although we do not believe this changed the long-term opportunities for the business, it does represent near-term downward pressure that we’re taking steps to address.
First, the company recently raised $8 million in capital to a private placement Hale Capital Partners substantially improving our cash position. However, given the rapid decline in our recent revenues, we are initiating a comprehensive cost reduction plan. In the near-term, our priority will be on minimizing the impacts on our balance sheet and we are evaluating our strategy initiatives based on achieving this objective.
As a result, we are taking aggressive actions to lower our operating costs. We’re in the process of formulating our plans which will substantially reduce operating costs while continuing to focus on our customers.
Also, I want to welcome Michael Schradle to our operating team as Chief Financial Officer. Michael brings over 20 years of senior level of global financial management experience, nearly half of which was with public companies, guiding organizations with a clear focus on discipline and cash financial management and positioning for growth.
While these are challenging times for Adept, we feel comfortable that we’re taking the right steps to ensure we emerge from the capital spending trough and it preserved our balance sheet and maintain our competitiveness in our market. While spending cost may slow down the level of near-term investment we can make, we believe these are prudent assets to take that will position the company to maximize our long-term success.
Now for some comments on the quarter. In our MobileRobots business, we continue to work with global foundries, our leading semiconductor foundry customer to develop our wafer cassette handling application. As you know, we’ve been working with them to adapt our unique natural feature navigation technology to automate and optimize the movement of wafer cassettes within their path.