Adept Technology Reaffirms and Extends Guidance

March 17, 2002 by Jeff Shepard

Adept Technology Inc. (San Jose, CA) announced that it is taking additional measures to restructure the company to fit current market conditions. Adept intends to maintain the focus of its resources on key markets with potential high growth. The company believes that this focus is a critical strategy that leverages product initiatives that embody Adept's technological lead in controls and fully integrated wafer-handling tools for the semiconductor market and in sub-micron precision assembly automation.

As part of Adept's reallocation of resources, the company is also taking the following cost cutting measures: divestiture of non-strategic product lines; elimination of facilities and organizations related to excess capacity; and a 16-percent reduction of headcount. The measures size the restructured company to reach quarterly break even at $20.0 million, if gross margins of 46 to 48 percent are obtained.

Brian Carlisle, chairman and CEO of Adept, stated, “While Adept has taken the necessary measures to bring costs in line with current market conditions, we have maintained, and will continue to maintain, the level of spending on new product development and deployment that we believe is critical to our long-term growth strategy.”