Analyst Conference Summary


Adept Technology

conference date: May 4, 2015 @ 2:00 PM Pacific Time
for quarter ending: March 31, 2015 (Q3 fiscal 2015)

But I did own ADEP starting 11/05/2012 and ending 2/10/2014.
Forward-looking statements

Overview: Improving sequentially, with mobile robot orders ramping.

Basic data (GAAP):

Revenue was $14.1 million, up 19% sequentially from $11.8 million but down 7% from $15.1 million year-earlier.

Net income was negtive $1.3 million, up sequentially from negative $2.4 million but down from $0.0 million in the year-earlier quarter.

Diluted Earnings Per Share (EPS) were negative $0.10, up sequentially from negative $0.18 and down from $0.00 year-earlier.


Revenue in the June quarter (fiscal Q4) is expected between $13.5 to $15.0 million.

Conference Highlights:

Seeing improvements in mobile robot sales, with test robot placements leading to fleet sales. Expects mobile robot sales to expand significantly, and also introducing new robots for heavier load handling situations. Expects to have 2 to 3 fleets in production by year end.

There was about $1 million negative impact on sales due to European exchange rates.

Cash and equivalents balance ended at $2.7 million, down sequentially. There was $1.75 million debt.

Cost of revenue was $8.3 million. Gross margin $5.8 million. Operating expenses were $6.9 million, consisting of: research and development $2.0 million; selling, general and administrative $4.8 million; amortization $61 thousand. Leading to operating income of negative $1.1 million. Foreign currency loss $291 thousand. Income tax benefit $70 thousand.


Strong mobile order color? It is a mixture of new and old customers. In Europe and Asia we have seen existing fleets expand. In the fall we sold a test handler to a large semiconductor maker, and received a several unit order from them this quarter.

Heavier duty mobile? It is for the same markets. Warehouse logistics, manufacturing and semiconductor. Older model took about 60 kg, cart goes to 120 kg, then a heavier model. These are for the same companies, but it adds some possibility of new customers as well.

Enterprise management software, new version release? It works on 100 units simultaneously. It is more efficient. We have some advanced customers that need more advanced features, including even larger fleets.

47 trials, timelines? Each trial is different, some are trying multiple units. We understand our sales funnel client by client, including what install base we expect over time. Our sales cycle has shortened a little bit.

Large fleets among the 47? Global Foundries is the only fleet production environment today. A few customers have more than 5 units in testing, but not in production. In most cases these are global, extremely large organizations; if the tests work, there could be more large deployments.

Margin expectations? Until the exchange rates improve, with 40% of sale in Europe and sold in Euros, we won't see margin improvements.

We are seeing accounts that are referrals, which is helpful.

Our overall backlog and pipeline for mobile has been growing, but has been lumpy, but our momentum is headed in the right direction.

We did ship some units to GlobalFoundries in the March quarter, and have a long-term roadmap with them. We are grateful for that relationship.

Competitive issues? There are startups coming out with mobile robots, but it is a software game requiring features, communication between robots, and actually do something. "We have not lost an order to a competitor." One customer said he evaluated everything available, and while Adept was an 8.5, the closest competitor was a 4.

We will be mining cash from working capital as best we can over the next few quarters.

Adept Technology (ADEP) Openicon main page (more summaries, stories & analysis)

Adept Technology corporate site



More Analyst Conference Pages:


Disclaimer: Our analyst summaries may include both our condensations of statements made by company representatives and our own analysis. They are not covered by any warranty. We cannot guarantee anything said by company representatives is true. We try not to make errors, but it is possible. Before making or terminating an investment you should always verify any factual basis of your decision.

Copyright 2015 William P. Meyers