Robotics and control supplier Adept Technology, Inc. on Wednesday reported sizable fourth-quarter and fiscal 2008 revenue increases, defying a downward trend in the overall robotics industry.
At the same time, the company announced that Adept President John Dulchinos is taking over as chief executive officer, succeeding Robert Bucher, who was named executive chairman of the board. Dulchinos will also retain his title as president.
Adept’s fourth-quarter revenue reached $16.7 million, up 35.8% from $12.3 million in the prior year’s fourth quarter. And the company turned last year’s red ink black with net income of $900,000, compared with a net loss of $5.7 million. A positive currency exchange contributed $560,000 to the net income total.
For fiscal 2008, revenue totaled $60.8 million, up 24.8% from $48.7 million in fiscal 2007. Net income of $3.6 million reversed a 2007 net loss of $11.5 million. The positive impact of currency exchanges for the year was $755,000.
Executives attributed the company’s gains to the success of its diversification strategy, in both vertical and geographic markets. Adept lists its target vertical markets as packaging, solar, medical, and disk drives, conspicuously omitting automotive, where robotics sales have foundered, particularly in North America. Adept’s business plan has taken it into China, Korea, Japan, India, Mexico, Brazil, and Argentina, largely via reseller agreements.
The Robotics Industries Association last month issued a report stating that North American robotics orders fell 23% in the first half of 2008 against the same period in 2007. The RIA numbers show that orders from automotive manufacturers and their suppliers fell 43% in the first half of the year, though non-automotive orders rose 23% in units and 16% in dollars. “Traditionally, orders from automotive-related companies account for 60% to 70% of new robot orders,” the RIA said in its report, which also stated that alternative energy markets, such as solar and full cell technology, will be growth areas in the future.
Adept appears to be following a strategy to get in on the ground floor in those up-and-coming markets. In announcing the change in executive leadership, Bucher told analysts on a conference call yesterday that the company has executed on all of its key strategic objectives during his five-year tenure as CEO, and that the “turnaround of Adept is behind us.” He termed 2008 a “pivotal year,” and said Adept is entering the new fiscal year with a “substantially improved” financial model and more than $15 million in cash. He promised a smooth transition in the executive suite, noting that he and Dulchinos have worked together over the years to frame the company’s growth strategy.
The company is looking to its Quattro robot for increasing opportunities in the solar market, and is investing heavily in marketing to the solar industry. Adept describes Quattro as a high-speed manufacturing, packaging, and assembly robot.
Last week, the company announced its Adept Solaris product line for solar energy companies, which is debuting this week at the European Photovoltaic Solar Energy Conference and Exhibition in Spain. The product line will encompass Adept’s existing offerings: the Adept Quattro s650 robot, AdeptSight 2.0 PC-based software, and the compact Adept Cobra s600 SCARA robot, plus additional software and sensing technology aimed at the solar market.
The European market, particularly Germany and France, presents a growing opportunity in solar, with “signs of activity in Asia for solar cell automation equipment,” Dulchinos told analysts.