Adept Technology Reports Fiscal Results
During the quarter, Adept implemented new expense reductions expected to result in quarterly savings of approximately $1 million starting in the fourth quarter of fiscal 2009, which began on March 29, 2009, with the full effect realized in the first quarter of fiscal 2010, which begins on July 1, 2009. Included in the savings were additional voluntary executive salary reductions lowering the base salary of our CEO by 15% and of other executive management by 10%, which together with salary reductions effected in January 2009, reflects a total reduction of 35% and 20%, respectively, in addition to other employee salary reductions.
Adept's cash and short-term investment balance at March 28, 2009 was $8.7 million, as compared to $11.0 million reported as of December 27, 2008.
"We experienced a significant slowdown in January and February of this year as a result of the worldwide recession," said John Dulchinos, Adept's president and chief executive officer. "We saw numerous customers idle production lines and delay capital investments in the first two months of the year, which had a significant impact on our revenue. We are encouraged by an increase in activity since then, including a 29% increase in Quattro orders during the quarter, indicating that our business may be stabilizing. Looking forward we continue to focus on managing our resources and returning to cash flow positive operations. We took steps during the quarter to reduce our operating expenses by $1 million per quarter, which should be fully reflected in our first fiscal quarter of 2010. We have now secured a $5 million line of credit and our balance sheet remains strong. With our realigned cost structure we are confident that we have sufficient cash to weather this downturn. With our new product offerings and solid design wins in our key markets of packaging and solar, we are also confident we are well positioned to return to growth and profitability once the economy begins to recover."
The company also obtained a line of credit for up to $5 million in borrowings from Silicon Valley Bank, and signed two new distribution partners during the quarter, which are focused on the Japanese robotics market, the largest in the World.