Adept Technology CEO Discusses F4Q12 Results - Earnings Call Transcript

Adept Technology, Inc. (ADEP)

F4Q12 Earnings Call

August 29, 2012 5:00 pm ET

Executives

John Dulchinos - President and Chief Executive Officer

John Dulchinos -President and Chief Executive Officer

John Boutsikaris - Senior Vice President of Global Sales and Marketing

Analysts

Laura Engel - Stonegate Securities

Mark Tobin - Roth Capital Partners

Frank Barresi - Ameriprise Financial

Michael Sage - Private Investor

Presentation

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Adept Q4 fiscal 2012 year-end conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. (Operator Instructions). This conference is being recorded today, Wednesday, August 29, 2012.

Now, I would like to turn the conference over to Lisa Cummins, Chief Financial Officer. Please go ahead.

Lisa Cummins

Good afternoon, everyone and thank you for joining us. 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 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, August 29, 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, including the risks described in our press release and in our annual report on 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 that the 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 fourth quarter 2012 press release which has been furnished to the SEC on Form 8-K.

The press release and all financial statistical or 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 introductory comments, we will open the call to take your questions.

I would now like to turn the call over to John Dulchinos for some opening remarks.

John Dulchinos

Thank you, Lisa, and good afternoon, everyone. Results of the fourth quarter were solid marking the end of what we believe was a very successful year in which we achieved the first step in the transformation of our business. As we began to translate the leading edge technology we acquired from MobileRobots and InMoTx, drew products and revenues focused on large underserved markets.

In our packing solutions business, we delivered the next four cells to Earthbound Farms for automation of their leafy green clamshell packaging line. These cells are bringing excellent value to Earthbound Farms and allowing them to strategically rebalance their workforce from low value to high value function while improving their internal cost structure.

The operation with the newly installed Adept packaging solution cells was highlighted last Sunday in the front page of the New York Times article on robotics where Earthbound Farms spoke to the value proposition of automated packaging and the strategic value to their company. The online article had an excellent video where it shows the EBS systems in full operation along with a very nice review of Adept in our industry leading vision guided robot solutions.

In the quarter, we also announced the signing of a strategic development agreement with Earthbound Farms where we will work together to develop, test and market advanced technologies for automated packaging in the fresh cut market. This should allow Adept to continue to advance and refine our automated packaging solution with an industry leading and well respected customer.

In the quarter, we also re-architected our packaging solution to make them more modular, easy to build and facilitated more flexible more sourcing strategy. As part of this, we rebranded the technology we acquired from InMoTx to better reflect the solutions we are providing from our customer's perspective.

In connection with this, we announced the launch of the Adept ClamPAC, Adept's standard automated solution for clamshell packaging utilizing our acquired SoftPIC technology and validated at Earthbound Farms. We will be doing the official market launch of this rebranded product line at Pack Expo, the country's largest packaging show in October in Chicago.

Over the course of this upcoming fiscal year, we expect to launch several additional Adept pack solutions for various secondary packaging applications in the fresh cut and other fruit markets. Finally, in packaging solutions, we have realigned our U.S. sales force as we added dedicated packaging solutions sales people to focus on the commercialization of our solution.

In our mobile robots business, I am pleased to announce the installation and validation of our first vertical application solution with a leading semiconductor foundry customer. Over the past 15 months, we have been working with this lead customer to adapt our unique natural feature navigation technology to automate and optimize the movement of wafer cassettes within their semiconductor wafer fab.

They have recently published article in the Business Times of Singapore. Our customer sates, the typical operator will walk 11 to 14 kilometers per day resulting in more than hour of lost productivity per shift. They went on to say that with efficiency gains made with our robots, they expect to save more than $800,000 in this year alone. This fall, we would be validating the next phase of this program with the installation of the first robot to automatically load and unload wafer cassettes from their process tool.

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