slumped after the maker of control software, precision robotics and automation services said it will probably have to restate some of its quarterly results from the fiscal year that ended June 30.
Shares of Adept were losing $1.79, or 13.8%, to $11.21 Monday.
Adept said it discovered errors in a number of accounts, primarily related to its consolidation of its international divisions. The company believes the total amount of the errors will be less than $2.5 million.
The company expects that the potential adjustments will have a material effect on its results and force the restatement of one or more of its quarterly reports. Because of the review, Adept won't be able to file its annual report with regulators by the due date and plans to seek an extension.
Also, Adept's management has concluded that the errors indicate the company has material weaknesses in its internal controls. The company expects to get a letter identifying the weaknesses from its independent auditors.
As for the fourth quarter, Adept estimates revenue totaled $14.9 million, compared with $14.4 million in the same period a year ago.
"Our fundamental business is unaffected by these internal accounting issues, and we anticipate continued growth in our business over fiscal 2007 and beyond," the company. "We remain enthusiastic about our vision to make Adept a leading player in next-generation automation systems both for traditional manufacturing and for emerging applications in new markets."