Form 10-Q ADEPT TECHNOLOGY INC For: Sep 27

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November 4, 2014 4:03 PM EST

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�

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

�

FORM 10-Q

�

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September�27, 2014

�

�	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from �� to ��

Commission File No. 0-27122

�

ADEPT TECHNOLOGY, INC.

(Exact Name of Registrant as Specified in its Charter)

�


Delaware	�	94-2900635
(State or Other Jurisdiction of Incorporation or Organization)	�	(I.R.S. Employer Identification No.)

5960 Inglewood Drive, Pleasanton, California	�	94588
(Address of Principal Executive Offices)	�	(Zip Code)

(925) 245-3400

(Registrant�s Telephone Number, Including Area Code)

�

Indicate by check mark whether the Registrant (1)�has filed all reports required to be filed by Section�13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)�has been subject to such filing requirements for the past 90 days.��YES��x��NO��

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (�232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).��YES��x��NO��

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of �large accelerated filer�, �accelerated filer� and �smaller reporting company� in Rule�12b-2 of the Exchange Act.

�


Large�accelerated�filer	�	�	��	Accelerated�filer	�	x

Non-accelerated�filer	�	��(Do not check if a smaller reporting company)	��	Smaller�reporting�company	�	�

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).��YES��NO��x

The number of shares of the Registrant�s common stock outstanding as of October 31, 2014 was 13,100,161.

�

ADEPT TECHNOLOGY, INC.

�


�	��	�	��	Page
	��	PART I � FINANCIAL INFORMATION	��

Item�1.	��	Condensed Consolidated Financial Statements	��	��3

	��	Condensed Consolidated Balance Sheets	��	��3

	��	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	��	��4

	��	Condensed Consolidated Statements of Cash Flows	��	��5

	��	Notes to Condensed Consolidated Financial Statements	��	��6

Item�2.	��	Management�s Discussion and Analysis of Financial Condition and Results of Operations	��	12

Item�3.	��	Quantitative and Qualitative Disclosures about Market Risk	��	15

Item�4.	��	Controls and Procedures	��	15

	��	PART II � OTHER INFORMATION	��

Item�1.	��	Legal Proceedings	��	16

Item�1A.	��	Risk Factors	��	16

Item�2.	��	Unregistered Sales of Equity Securities and Use of Proceeds	��	16

Item 3.	��	Defaults Upon Senior Securities	��	16

Item�4.	��	Mine Safety Disclosures	��	16

Item�5.	��	Other Information	��	16

Item�6.	��	Exhibits	��	16

Signatures	��		��	16

�

PART I � FINANCIAL INFORMATION

ITEM�1. Condensed Consolidated Financial Statements

ADEPT TECHNOLOGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

�


�	��	September�27, 2014		�	�	June�30, 2014		�
�	��	(unaudited)		�	�	�		�
ASSETS	��				�
Current assets:	��				�
Cash and cash equivalents	��	$	4,772	��	�	$	7,600	��
Restricted cash	��	�	188	��	�	�	194	�
Accounts receivable, less allowance for doubtful accounts of $619 and $610 at September�27, 2014 and June�30, 2014, respectively	��	�	11,098	��	�	�	10,974	��
Inventories	��	�	11,248	��	�	�	10,296	��
Other current assets	��	�	789	��	�	�	545	��
	��	�	�	�	�	�	�	�
Total current assets	��	�	28,095	��	�	�	29,609	��
Property and equipment, net	��	�	986	��	�	�	1,082	��
Goodwill	��	�	1,493	��	�	�	1,493	��
Other intangible assets, net	��	�	735	��	�	�	796	��
Other assets	��	�	95	��	�	�	90	��
	��	�	�	�	�	�	�	�
Total assets	��	$	31,404	��	�	$	33,070	��
	��	�	�	�	�	�	�	�
LIABILITIES AND STOCKHOLDERS� EQUITY	��				�
Current liabilities:	��				�
Accounts payable	��	$	6,512	��	�	$	7,709	��
Accrued payroll and related expenses	��	�	1,986	��	�	�	2,235	��
Accrued warranty expenses	��	�	901	��	�	�	897	��
Deferred revenue	��	�	457	��	�	�	644	��
Accrued income tax, current	��	�	63	��	�	�	10	��
Other accrued liabilities	��	�	701	��	�	�	848	��
	��	�	�	�	�	�	�	�
Total current liabilities	��	�	10,620	��	�	�	12,343	��
Long-term liabilities:	��				�
Deferred income tax, long-term	��	�	430	��	�	�	430	��
Long-term obligations	��	�	78	��	�	�	130	��
	��	�	�	�	�	�	�	�
Total liabilities	��	�	11,128	��	�	�	12,903	��
Stockholders� equity:	��				�
Common stock, $0.001 par value: 19,000 shares authorized, 13,072 shares issued and 13,067 shares outstanding at September�27, 2014, and 13,056 shares issued and 13,051 shares outstanding at June�30, 2014	��	�	189,738	��	�	�	189,427	��
Treasury stock, at cost, 5 shares at September�27, 2014 and June�30, 2014	��	�	(42	)�	�	�	(42	)�
Accumulated deficit	��	�	(169,286	)�	�	�	(169,368	)�
Accumulated other comprehensive income (loss)	��	�	(134	)�	�	�	150	��
	��	�	�	�	�	�	�	�
Total stockholders� equity	��	�	20,276	��	�	�	20,167	��
	��	�	�	�	�	�	�	�
Total liabilities and stockholders� equity	��	$	31,404	��	�	$	33,070	��
	��	�	�	�	�	�	�	�

See accompanying notes

�

ADEPT TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(unaudited)

(in thousands, except per share amounts)

�


�	��	Three Months Ended						�
�	��	September�27, 2014		�	�	September�28, 2013		�
Revenues	��	$	14,402	��	�	$	13,571	��
Cost of revenues	��	�	7,959	��	�	�	7,309	��
	��	�	�	�	�	�	�	�
Gross margin	��	�	6,443	��	�	�	6,262	��
Operating expenses:	��				�
Research, development and engineering	��	�	1,496	��	�	�	1,555	��
Selling, general and administrative	��	�	4,802	��	�	�	4,888	��
Amortization of other intangible assets	��	�	61	��	�	�	61	��
	��	�	�	�	�	�	�	�
Total operating expenses	��	�	6,359	��	�	�	6,504	��
	��	�	�	�	�	�	�	�
Operating income (loss)	��	�	84	��	�	�	(242	)
Interest expense, net	��	�	��	��	�	�	(5	)
Foreign currency exchange gain (loss)	��	�	78	��	�	�	(96	)
	��	�	�	�	�	�	�	�
Income (loss) before income taxes	��	�	162	��	�	�	(343	)
Provision for income taxes	��	�	80	��	�	�	55	��
	��	�	�	�	�	�	�	�
Net income (loss)	��	�	82	��	�	�	(398	)
Effects of redeemable convertible preferred stock:	��				�
Accretion of preferred stock to redemption value	��	�	��	��	�	�	(24	)
Dividends allocated to preferred stockholders	��	�	��	��	�	�	(80	)
	��	�	�	�	�	�	�	�
Net income (loss) attributable to common stockholders	��	$	82	��	�	$	(502	)
	��	�	�	�	�	�	�	�
Net income (loss) per share attributable to common stockholders:	��				�
Basic	��	$	0.01	��	�	$	(0.05	)
	��	�	�	�	�	�	�	�
Diluted	��	$	0.01	��	�	$	(0.05	)
	��	�	�	�	�	�	�	�
Shares used to compute net income (loss) per share attributable to common stockholders:	��				�
Basic	��	�	13,059	��	�	�	10,855	��
	��	�	�	�	�	�	�	�
Diluted	��	�	13,488	��	�	�	10,855	��
	��	�	�	�	�	�	�	�
Comprehensive loss:	��				�
Net income (loss)	��	$	82	��	�	$	(398	)
Foreign currency translation adjustment	��	�	(284	)�	�	�	313	��
	��	�	�	�	�	�	�	�
Total comprehensive loss	��	$	(202	)�	�	$	(85	)
	��	�	�	�	�	�	�	�

See accompanying notes

�

ADEPT TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

�


�	��	Three Months Ended						�
�	��	September�27, 2014		�	�	September�28, 2013		�
Operating activities	��				�
Net income (loss)	��	$	82	��	�	$	(398	)
Non-cash adjustments to reconcile net income (loss) to net cash provided by (used in)operating activities:	��				�
Deferred income taxes	��	�	��	��	�	�	(67	)�
Depreciation and amortization	��	�	262	��	�	�	275	��
Loss on disposal of property and equipment	��	�	��	��	�	�	61	��
Stock-based compensation	��	�	201	��	�	�	526	��
Net changes in operating assets and liabilities:	��				�
Accounts receivable, net	��	�	(490	)�	�	�	1,447	��
Inventories	��	�	(1,301	)�	�	�	(756	)
Other current assets	��	�	(253	)�	�	�	(46	)
Accounts payable	��	�	(1,137	)�	�	�	(536	)
Other	��	�	(506	)�	�	�	(365	)
	��	�	�	�	�	�	�	�
Net cash provided by (used in) operating activities	��	�	(3,142	)�	�	�	141	��
	��	�	�	�	�	�	�	�
Investing activities	��				�
Purchase of property and equipment	��	�	(6	)�	�	�	(51	)
Restricted cash	��	�	6	��	�	�	(93	)
	��	�	�	�	�	�	�	�
Net cash used in investing activities	��	�	��	��	�	�	(144	)
	��	�	�	�	�	�	�	�
Financing activities	��				�
Principal payments on capital lease	��	�	��	��	�	�	(8	)
Proceeds from employee stock incentive program and employee stock purchase plan	��	�	111	��	�	�	239	��
	��	�	�	�	�	�	�	�
Net cash provided by financing activities	��	�	111	��	�	�	231	��
	��	�	�	�	�	�	�	�
Effect of foreign exchange rates on cash and cash equivalents	��	�	203	��	�	�	45	��
	��	�	�	�	�	�	�	�
Net increase (decrease) in cash and cash equivalents	��	�	(2,828	)	�	�	273	��
Cash and cash equivalents, beginning of period	��	�	7,600	��	�	�	6,274	��
	��	�	�	�	�	�	�	�
Cash and cash equivalents, end of period	��	$	4,772	��	�	$	6,547	��
	��	�	�	�	�	�	�	�
Cash paid during the period for:	��				�
Interest	��	$	��	��	�	$	1	��
Taxes	��	�	18	��	�	�	23	��
Supplemental disclosure of non-cash investing and financing activities:	��				�
Transferred from inventory to property and equipment	��	�	116	��	�	�	50	��
Accretion of redeemable convertible preferred stock to redemption value	��	�	��	��	�	�	24	��
Undistributed dividends allocated to redeemable convertible preferred stock	��	�	��	��	�	�	80	��

See accompanying notes

�

ADEPT TECHNOLOGY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation

Adept (�Adept� or the �Company�) is a global, robotics-based automation supplier of industrial (fixed) and mobile robots to enable customers to improve speed, quality and efficiency of their production environments. The Company operates in two segments: Robotics and Services and Support. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with �Management�s Discussion and Analysis of Financial Condition and Results of Operations,� and the Financial Statements included in Items 7 and 8, respectively, in the Company�s Annual Report on Form 10-K for the year ended�June 30, 2014 filed with the Securities and Exchange Commission (�SEC�) on August�25, 2014.

The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (�GAAP�), and the applicable rules�and regulations of the SEC for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The�June 30, 2014, condensed consolidated balance sheet was derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements.

The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, considered necessary to state fairly the Company�s financial position as of�September 27, 2014, and the results of operations, comprehensive income (loss), and cash flows for the�three months ended�September 27, 2014 and September�28, 2013. The interim results for the�three months ended�September 27, 2014, are not necessarily indicative of the results that may be expected for the year ending June�30, 2015, or for any other future annual or interim period.

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. The primary estimates underlying the Company�s financial statements include revenue recognition, product warranty, inventory valuation, allowance for doubtful accounts receivable, assumptions used in the fair value of the Company�s equity awards, useful lives of property and equipment and intangible assets, and contingent liabilities. Actual results could differ from those estimates.

There have been no material changes to the Company�s critical accounting policies during the�three months ended�September 27, 2014, as compared to the critical accounting policies described in the Company�s Annual Report on Form 10-K for the year ended�June 30, 2014.

Recent Accounting Pronouncements

The Company does not believe that the adoption of recently issued accounting pronouncements will have a material impact on its consolidated financial statements.

2. Balance Sheet Detail

Cash and cash equivalents-The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Restricted cash consists of deposit accounts held to secure a leased facility and a credit card facility.

Inventories-Inventories are stated at the lower of standard cost, which approximates actual cost on a first-in, first-out basis, or market. The components of inventory are as follows (in thousands):

�


�	��	September�27,�2014		�	��	June�30,�2014		�
�	��	(unaudited)		�	��	�		�
Raw materials	��	$	6,684	��	��	$	6,408	��
Work-in-process	��	�	1,553	��	��	�	1,614	��
Finished goods	��	�	3,011	��	��	�	2,274	��
	��	�	�	�	��	�	�	�
Total inventory	��	$	11,248	��	��	$	10,296	��
	��	�	�	�	��	�	�	�

�

Property and equipment-Property and equipment are recorded at cost. The components of property and equipment are summarized as follows (in thousands):

�


�	��	September�27,�2014		�	�	June�30,�2014		�
�	��	(unaudited)		�	�	�		�
Machinery and equipment	��	$	4,035	��	�	$	3,991	��
Computer equipment	��	�	5,446	��	�	�	5,456	��
Software development costs	��	�	2,688	��	�	�	2,688	��
Demonstration equipment	��	�	1,649	��	�	�	1,605	��
Office furniture and equipment	��	�	967	��	�	�	1,052	��
	��	�	�	�	�	�	�	�
	��	�	14,785	��	�	�	14,792	��
Less accumulated depreciation	��	�	(13,799	)	�	�	(13,710	)�
	��	�	�	�	�	�	�	�
Net property and equipment	��	$	986	��	�	$	1,082	��
	��	�	�	�	�	�	�	�

Other intangible assets-Other intangible assets subject to amortization were as follows (in thousands):

�

��

September�27, 2014 (unaudited)

�

��

June�30, 2014

�

��

Gross�Assets

�

��

Accumulated
Amortization

�

Impairment�of
Intangible
Assets

�

Net
Carrying
Amount

�

��

Gross
Assets

�

��

Accumulated
Amortization

�

Impairment�of
Intangible
Assets

�

Net
Carrying
Amount

�

Developed Technology/ Patents

��

1,930

��

(1,037

)�

�

(158

)�

�

735

��

1,930

��

(976

)�

�

(158

)�

�

796

��

Customer Base

��

�

340

��

�

(340

)�

�

��

�

��

�

340

��

�

(340

)�

�

��

�

��

Trademarks/ Tradenames

��

�

231

��

�

(154

)�

�

(77

)�

�

��

�

231

��

�

(154

)�

�

(77

)�

�

��

�

��

�

��

�

��

�

Total

��

2,501

��

(1,531

)�

�

(235

)�

�

735

��

2,501

��

(1,470

)�

�

(235

)�

�

796

��

�

��

�

��

�

��

�

A summary of future amortization as of September�27, 2014 is as follows (in thousands):

�

��

2015

�

��

2016

�

��

2017

�

��

2018

�

��

Total

�

Developed Technology/Patents

��

184

��

245

��

245

��

735

��

Warranty-The estimated cost of product warranty is provided for at the time revenue is recognized. Changes in the Company�s warranty liability:

�


�	��	Three Months Ended						�
(unaudited)	��	September�27, 2014		�	�	September�28, 2013		�
Balance at beginning of period	��	$	897	��	�	$	1,070	��
Provision for warranties issued	��	�	223	��	�	�	237	��
Warranty claims	��	�	(219	)�	�	�	(251	)�
	��	�	�	�	�	�	�	�
Balance at end of period	��	$	901	��	�	$	1,056	��
	��	�	�	�	�	�	�	�

3. Stock-Based Compensation

The Company has adopted equity incentive plans that provide for the grant to employees, consultants and directors of stock-based awards, including stock options, restricted shares, and restricted stock units of Adept common stock. Option awards granted have an exercise price equal to or greater than the market price of the Company�s stock on the date of grant and generally have ten-year contractual terms. The Company also has an employee stock purchase plan (�ESPP�) that allows employees to purchase a limited number of shares of its common stock at a discount of 15% of the market value at certain plan-defined dates that are established at six-month intervals. As of September�27, 2014, there were options to purchase approximately 252,000 shares of common stock available for grant under all option plans and approximately 314,000 shares available for issuance under the ESPP.

Employee grants under the option plans generally vest, and are expensed, monthly in equal installments over a four year period, except for performance awards which vest when achievement of the performance criteria occurs, begin to be expensed when achievement of the performance criteria is probable, and are expensed over the service period or when the criteria is met. For performance awards, the Company estimates the service period based on its analysis of when the vesting criteria (typically some or all of the following components: share price, annual revenue amounts, earnings per share, net cash, and/or new customers) will occur. Restricted stock grants made under performance programs are subject to vesting quarterly over two years following the end of the relevant fiscal year of performance.

�

Annual option grants of 6,000 shares to non-employee directors vest in full on the date of the annual meeting of stockholders following the meeting at which the director is elected and the annual grant is made, and the initial option grant of 10,000 shares to non-employee directors vests in the amount of 50% of the grant on the first annual meeting of stockholders following the initial appointment or election of the director and the remaining 50% vests at the second annual meeting of stockholders of the Company following the initial appointment or election of the director.

Employee option grants are subject to a change of control plan adopted by the Company in 2014 for equity awards that provides for acceleration and vesting in full of options in connection with a change of control transaction under certain circumstances. All stock compensation has been accounted for as an equity instrument, and the Company recognizes the fair value of stock-based compensation as an expense ratably over the service period of the individual equity instruments.

The Company recorded $0.2 million and $0.5 million of stock-based compensation expense for the three months ended September�27, 2014 and September�28, 2013, respectively. The Company did not record an income-tax benefit for the stock compensation expense because of the extent of its net operating loss carry-forwards. The Company utilized the Black-Scholes option pricing model for estimating the fair value of the stock-based compensation. The weighted average grant-date fair values of the options granted to employees and non-employee directors under the equity incentive plans were $6.37 and $1.98 for the three months ended September�27, 2014 and September�28, 2013, respectively.�There were no shares purchased under the ESPP for the three months ended September�27, 2014 and September�28, 2013. The weighted average grant-date fair values were calculated using the following assumptions:

�


�	��	Three Months Ended						�
�	��	September�27, 2014		�	�	September�28, 2013		�
Average risk free interest rate	��	�	1.66	%�	�	�	0.75	%�
Expected life (in years)	��	�	4.66	��	�	�	5.75	��
Expected volatility	��	�	78	%�	�	�	77	%�
Dividend yield	��	�	0	%�	�	�	0	%�

The dividend yield of zero is based on the fact that the Company has never paid cash dividends on its common stock, is restricted from paying cash dividends by its credit facility, and has no present intention to pay cash dividends on its common stock. Expected volatility is based on the historical volatility of Adept�s common stock over the period commensurate with the expected life of the options. The risk-free interest rate is based on the observed and expected life of options and is indexed to the Treasury Constant Maturity rate. The expected life in years is based on the historic time to post-vesting exercise and forfeitures of the options. Stock-based compensation expense was based on the Company�s historical experience of option cancellations prior to vesting. The Company has generally assumed an annualized forfeiture rate of 5% for each period for its options. The Company adjusts stock-based compensation expense if the actual forfeiture rate is different than estimated.

A summary of stock option activity under the option plans is presented below:

�

Options

��

Shares
(in�thousands)

�

Weighted-
Average
Exercise�Price
Per Share

�

��

Weighted-
Average
Remaining
Contractual
Term�(years)

�

��

Aggregate
Intrinsic
Value
(in�thousands)

�

Outstanding at June�30, 2014

��

�

1,158

��

�

5.87

��

Granted

��

�

126

��

�

10.37

��

Exercised

��

�

(24

)�

�

4.70

��

Forfeited or Expired

��

�

)�

�

5.38

��

�

��

Outstanding at September�27, 2014

��

�

1,251

��

�

6.35

��

�

8.27

��

3,627

��

�

��

�

��

�

Vested/Expected to Vest

��

�

1,216

��

�

6.29

��

�

8.24

��

3,571

��

�

��

�

��

�

Exercisable

��

�

857

��

�

5.01

��

�

7.87

��

3,064

��

�

��

�

��

�

In 2014, the Company granted restricted stock units (�RSUs�) for up to 112,500 shares of common stock to its Chief Executive Officer (�CEO�). The RSUs vest upon the earlier of the CEO�s separation from service or a change in control.�The number of shares issuable upon vesting and settlement of the RSUs, if any, will be determined based on the Company�s stock price on the vesting date and, in the case of a separation from service, the extent to which certain performance criteria has been met.�No compensation expense has been recognized on these RSUs as the fair value is not determinable.

As of September�27, 2014 , there was approximately $1.6 million of total unrecognized compensation cost related to non-vested stock options and restricted stock awards granted and outstanding, the cost of which is expected to be recognized through fiscal 2017.

4. Redeemable Convertible Preferred Stock

In 2013, the Company issued 8,000 shares of its Series A redeemable convertible preferred stock (the �redeemable convertible preferred stock�), par value $0.001 per share, at a price of $1,000 per share, subject to the terms of its Certificate of Designations, Preferences and Rights of Series A Convertible Preferred Stock for net proceeds of $7.6 million. Dividends on the redeemable convertible preferred stock accrued at the prime rate plus 3% up to a maximum amount of 4%. In February 2014, all of the outstanding redeemable convertible preferred stock plus accrued dividends through the date of conversion was converted into 1.7�million shares of common stock of the Company.

�

5. Bank Credit Facility

In 2014, the Company entered into a Loan and Security Agreement (the �Agreement�) with a bank. Under the Agreement, the Company may borrow an amount not to exceed the lesser of (i)�$10.0 million and (ii)�$2.5 million plus 80% of eligible domestic and foreign subsidiary accounts receivable.�The Agreement specifies the criteria for determining eligible accounts receivable and sets forth ongoing conditions precedent to the Company�s ability to borrow under the Agreement. Amounts borrowed under the Agreement may be repaid and reborrowed until its maturity on June�9, 2016, at which time all advances shall be immediately due and payable in full.�Amounts borrowed under the Agreement shall bear interest at the prime rate plus 0.75%. Adept and certain of its subsidiaries have granted the bank a security interest in substantially all of their respective assets (excluding intellectual property) to secure the outstanding obligations under the Agreement.

The Agreement contains customary representations and warranties by the Company and customary affirmative and negative covenants, including, among other requirements, requirements as to permissible use of proceeds, restrictions on Adept�s ability to dispose of assets, make acquisitions, be acquired, undergo a change of control, incur indebtedness, grant liens, transfer funds to subsidiaries, make distributions to its stockholders, make investments, or enter into certain transactions with affiliates, subject to specified exceptions. Further, the Agreement contains a financial covenant that requires the Company to achieve certain minimum EBITDA levels specified in the Agreement.

The Agreement contains customary events of default that entitle the bank to accelerate Adept�s obligations and require repayment of the outstanding indebtedness, increase the applicable interest rate by an additional 4.00%�per annum, and enforce the bank�s security interest against the collateral. These events of default include, among others, Adept�s breach of payment obligations or covenants, material misrepresentations, events constituting a material adverse change, and bankruptcy and insolvency defaults.

At September�27, 2014, the Company had no borrowings under the Agreement.

6. Legal Proceedings

From time to time, the Company is party to various legal proceedings or claims, either asserted or unasserted, which arise in the ordinary course of its business. The Company has reviewed pending legal matters and believes that the resolution of these matters will not have a material adverse effect on its business, financial condition, or results of operations.

Adept has in the past received communications from third parties asserting that it has infringed upon certain patents and other intellectual property rights of others, or seeking indemnification against alleged infringement. While it is not feasible to predict or determine the likelihood or outcome of any actual or potential actions from such assertions against the Company or other matters, the Company believes the ultimate resolution of these matters will not have a material adverse effect on its financial position, results of operations, or cash flows.

In March 2014, the Commercial Court of Lorient, France held that Adept did not fulfill certain obligations relating to a contract between Adept and a sub-contractor, requiring Adept to pay the sub-contractor 362,000 euros. Adept reached agreement to settle this matter and, in 2014, accrued $159,000 relating to the settlement.

7. Income Taxes

The Company provides for income taxes during interim reporting periods using the discrete period method. The Company also maintains a liability to cover the cost of additional tax exposure items pertaining to the filing of federal and state income tax returns, as well as filings in foreign jurisdictions. Each of these filing jurisdictions may audit the tax returns filed and propose adjustments. Adjustments may arise from a variety of factors, including different interpretations of statutes and regulations.

The Company recorded a tax provision of $0.1 million for each of the three months ended September�27, 2014 and September�28, 2013, respectively, primarily due to foreign tax of certain foreign entities and a nominal amount of state minimum taxes.

The Company had gross unrecognized tax benefits of approximately $7.4 million as of each of September�27, 2014 and June�30, 2014, respectively.�Approximately $6.0 million of the unrecognized tax benefit as of each period has been offset by a full valuation allowance. If all of these unrecognized tax benefits were recognized, approximately $0.4 million, as of both September�27, 2014 and June�30, 2014, would benefit the income tax provision.�In addition, the Company does not expect any material changes to the estimated amount of the liability associated with its uncertain tax positions within the next twelve months.

The Company files income tax returns in the U.S.�federal jurisdiction, California and various state and foreign tax jurisdictions in which it has a subsidiary or branch operation. The tax years 1999 to 2014 remain open to examination by the U.S.�and state tax authorities, and the tax years 2010 to 2014 remain open to examination by the foreign tax authorities. Adept�s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of September�27, 2014, accrued interest and penalties associated with unrecognized tax benefits was not material.

�

8. Net Loss per Share

The computation of diluted net income (loss) per share attributable to common stockholders for the three months ended September�27, 2014 and September�28, 2013, does not include 0.3million and 0.7�million, respectively, of unvested restricted shares and options to purchase shares as these common stock equivalents were anti-dilutive.

9. Segment Information

The Company discloses certain information regarding operating segments, geographic areas of operations and major customers. This reporting is based upon the Company�s operating segments for which separate financial information is (i)�available and (ii)�evaluated regularly by the Chief Executive Officer who is the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company has two operating segments: Robotics and Services and Support.

Segment operating income is comprised of income before unallocated research, development and engineering expenses, unallocated selling, general and administrative expenses, interest income, and other expenses. Management does not fully allocate research, development and engineering expenses and selling, general and administrative expenses when making capital spending and expense funding decisions or assessing segment performance. All goodwill is carried in the Robotics segment. Segment information for total assets and capital expenditures is not presented as such information is not used in measuring segment performance or allocating resources between segments. There is no inter-segment revenue recognized. Transfers of materials or labor between segments are recorded at cost.

The operating results for the Company�s identified segments are presented as follows (in thousands):

�


�	��	Three Months Ended						�
(unaudited)	��	September�27, 2014		�	�	September�28, 2013		�
Revenues:	��				�
Robotics	��	$	11,283	��	�	$	10,357	��
Services and Support	��	�	3,119	��	�	�	3,214	��
	��	�	�	�	�	�	�	�
Total revenues	��	$	14,402	��	�	$	13,571	��
	��	�	�	�	�	�	�	�
Segment operating income:	��				�
Robotics	��	$	905	��	�	$	1,176	��
Services and Support	��	�	1,213	��	�	�	1,358	��
	��	�	�	�	�	�	�	�
Segment operating income	��	�	2,118	��	�	�	2,534	��
Unallocated research, development and engineering and general and administrative expenses	��	�	(1,973	)�	�	�	(2,715	)�
Amortization of intangible assets	��	�	(61	)�	�	�	(61	)�
	��	�	�	�	�	�	�	�
Operating income (loss)	��	�	84	��	�	�	(242	)�
Net interest expense	��				�	�	(5	)�
Foreign currency exchange gain (loss)	��	�	78	��	�	�	(96	)�
	��	�	�	�	�	�	�	�
Income (loss) before income taxes	��	$	162	��	�	$	(343	)�
	��	�	�	�	�	�	�	�

Management also assesses the Company�s performance, operations and assets by geographic areas. Revenue and long-lived tangible assets are summarized as follows (in thousands):

�


�	��	Three Months Ended						�
(unaudited)	��	September�27, 2014		�	��	September�28, 2013		�
Revenues:	��				��
United States	��	$	2,349	��	��	$	2,933	��
Europe	��	�	8,279	��	��	�	6,313	��
Asia	��	�	3,230	��	��	�	3,953	��
All other countries	��	�	544	��	��	�	372	��
	��	�	�	�	��	�	�	�
Total	��	$	14,402	��	��	$	13,571	��
	��	�	�	�	��	�	�	�

�


(unaudited)	��	September�27,�2014		�	��	June�30,�2014		�
Long-lived tangible assets:	��				��
United States	��	$	709	��	��	$	795	��
All other countries	��	�	372	��	��	�	377	��
	��	�	�	�	��	�	�	�
Total long-lived tangible assets	��	$	1,081	��	��	$	1,172	��
	��	�	�	�	��	�	�	�

Adept�s revenues are reported by geographic region based on the ship-to location of the customer order.

10. Leases

Adept leases facilities in the United States, Germany, France, Singapore and China. Adept records lease expense on a straight-line basis over the related lease term. Rent expense for each of the three months ended of September�27, 2014 and September�28, 2013 was $0.5 million. Future minimum lease payments under non-cancelable operating leases with original terms in excess of one year as of September�27, 2014 are as follows (in thousands):

�


Fiscal Year	��
2015	��	$	1,500	��
2016	��	�	1,400	��
2017	��	�	500	��
2018	��	�	200	��
2019	��	�	��	��
Thereafter	��	�	��	��
	��	�	�	�
Total minimum lease payments	��	$	3,600	��
	��	�	�	�

�

ITEM�2. MANAGEMENT�S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This report contains forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements include, but are not limited to, statements about:

�

the economic environment affecting us and the markets we serve;

�

the timing and impact of our restructuring actions and other expense-related matters;

�

sources of revenues and anticipated revenues, including the contribution from new products and markets;

�

our expectations regarding our cash flows and capital requirements and the impact of the timing of receipts and disbursements and requirements of our credit facility;

�

our new management team;

�

marketing and commercialization of our products under development and services;

�

our ability to attract customers and the market acceptance of our products;

�

our ability to establish relationships with suppliers, systems integrators and OEMs for the supply and distribution of our products;

�

plans for future products and services and for enhancements of existing products and services; and

�

plans for future acquisitions of products, technologies and businesses.

In some cases, you can identify forward-looking statements by terms such as �may,� �intend,� �might,� �will,� �should,� �could,� �would,� �expect,� �believe,� �estimate,� �predict,� �potential,� or the negative of these terms, and similar expressions intended to identify forward-looking statements. These statements reflect our current views with respect to future events and are based on assumptions, which may or may not prove to be correct, and are subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these statements. We discuss many of these risks in greater detail in Item�1A � Risk Factors in our Annual Report on Form 10-K filed with the SEC on August�25, 2014. Statements made in this report represent our estimates and assumptions only as of the date of this report.

In this report, unless the context indicates otherwise, the terms �Adept,� �we,� �us,� and �our� refer to Adept Technology, Inc., a Delaware corporation, and its subsidiaries.

OVERVIEW

Adept is a global, leading provider of intelligent robots, autonomous mobile solutions and services that enable customers to achieve precision, speed, quality and productivity in their assembly, handling, packaging, testing, and logistical processes. With a comprehensive portfolio of high-performance motion controllers, application development software, vision-guidance technology and high-reliability robot mechanisms with autonomous capabilities, Adept provides specialized, cost-effective robotics systems and services to high-growth markets including medical, electronics, food and semiconductor; as well as to traditional industrial markets including machine tool automation and automotive components. Through sales to system integrators, distributors, OEM partners and end-user companies, we sell our products and services into a few broad industries where we believe we can provide the best solutions for particular applications. We operate in two segments: Robotics and Services and Support.

Strategy

We develop innovative and proprietary products and solutions that meet the needs of our customers and that are based on our core expertise in industrial robots, vision guidance and autonomous vehicle technologies. In pursuit of our strategy, we intend to:

�

Accelerate the launch of our mobile robot products into the global market��Our global markets for mobile products include flexible manufacturing, semiconductor, logistics and warehousing, and food.

�

Revitalize our core fixed robot business, including expanding our channels and accelerating our regional selling and marketing approach��Our global markets for our fixed products include small flexible manufacturing, food and packaging within our capacity range of 7.5 pounds and below.

�

Grow our services business��Offer our customers a broader selection of support solutions.

Our Actions in Support of our Strategy

�

We intend to integrate strategic relationships from core markets that will drive volume and visibility.

�

We intend to have collaborative new product development for innovative products.

�

We intend to continue to accelerate our service and support revenues with existing and new product offerings.

�

We have set specific sales objectives to leverage the cost of selling our products as we grow.

�

We intend to scale our engineering resources, supply chain, and operations worldwide.

�

We continue to foster our culture by providing employees with clear direction, a focus on accountability and execution, and bottom line results.

This discussion should be read with the unaudited condensed consolidated financial statements and related disclosures included in this Quarterly Report on Form 10-Q and in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended June�30, 2014, included in our Annual Report on Form 10-K as filed with the SEC on August�25, 2014.

Revenues

Revenues by segment are shown below (in thousands, except %):

�

��

Three Months Ended

�

(unaudited)

��

September�27,
2014

�

%
Change

�

September�28,
2013

�

Robotics

��

�

Revenues

��

11,283

��

�

%�

�

10,357

��

Percentage of total revenues

��

�

%�

�

Services and Support

��

�

Revenues

��

�

3,119

��

�

)%�

�

3,214

��

Percentage of total revenues

��

�

%�

�

��

�

Total Revenues

��

14,402

��

�

%�

�

13,571

��

�

Total revenues were $14.4 million and $13.6 million for the three months ended September�27, 2014 and September�28, 2013, respectively, representing an increase of 6%. Robotics segment revenues were $11.3 million and $10.4 million for the three months ended September�27, 2014 and September�28, 2013, respectively, representing an increase of 9%. Services and support segment revenues were $3.1 million and $3.2 million for the three months ended September�27, 2014 and September�28, 2013, respectively, representing a decrease of 3%.

Revenue by geography is shown below (in thousands, except�%):

�

��

Three Months Ended

�

(unaudited)

��

September�27,
2014

�

%
Change

�

September�28,
2013

�

United States

��

�

Revenues

��

2,349

��

�

(20

)%�

�

2,933

��

�

Percentage of total revenues

��

�

%�

�

��

�

Europe

��

�

Revenues

��

�

8,279

��

�

%�

�

6,313

��

Percentage of total revenues

��

�

%�

�

Asia

��

�

Revenues

��

�

3,230

��

�

(18

)%�

�

3,953

��

Percentage of total revenues

��

�

%�

�

Other countries

��

�

Revenues

��

�

544

��

�

%�

�

372

��

Percentage of total revenues

��

�

%�

�

��

�

Total International Revenues

��

�

12,053

��

�

%�

�

10,638

��

�

Percentage of total revenues

��

�

%�

�

��

�

Total Revenues

��

14,402

��

�

%�

�

13,571

��

�

US revenues were $2.3 million and $2.9 million for the three months ended September�27, 2014 and September�28, 2013, respectively, representing a decrease of 20%. The decrease in fiscal 2014 was primarily due to lower service revenues and sales to the medical and research markets, offset to some extent, by sales in other markets. The Company continues to implement its efforts to improve market share in the US. International revenues were $12.1 million and $10.6 million for the three months ended September�27, 2014 and September�28, 2013, respectively, representing an increase of 13%. The increase in fiscal 2014 was primarily due to higher service revenues and sales in the automotive, packaging and research markets, offset to a lesser extent by a decrease in sales to the consumer electronics and solar markets.

�

Gross margin

Gross margin was 44.7% and 46.1% for the three months ended September�27, 2014 and September�28, 2013, respectively. The decrease in gross margin was primarily due to product and region mix.

We may experience significant fluctuations in our gross margin percentage from period to period due to changes in volume, changes in availability of components, changes in product configuration, increased price-based competition, fluctuations in foreign currency exchange rates, changes in sales mix of products and/or changes in operating costs.

Operating Expenses

Total operating expenses were $6.4 million and $6.5 million for the three months ended September�27, 2014 and September�28, 2013, respectively, representing a decrease of 2%. Average headcount during the quarter increased 9% compared to 2013.

Research, Development and Engineering Expenses. Research, development and engineering (�R&D�) expenses were $1.5 and $1.6 million for the three months ended September�27, 2014 and September�28, 2013, respectively, representing a decrease of 4%. The decrease was primarily the result of lower stock compensation and incentive bonus costs in the three months ended September�27, 2014. R&D costs are expensed as incurred, with the exception of software development costs incurred subsequent to establishing technological feasibility and up to the general release of the software products that are capitalized. Technological feasibility is demonstrated by the completion of a working model or a detailed program design. Capitalized costs are amortized on a straight-line basis over either two or three years, whichever term is the estimated life of the software product.

Selling, General and Administrative Expenses. Selling, general and administrative (�SG&A�) expenses were $4.8 and $4.9 million for the three months ended September�27, 2014 and September�28, 2013, respectively, representing a decrease of 2%. SG&A expenses consist primarily of employee compensation, professional fees arising from legal, auditing and other consulting services, indirect costs for service, as well as tradeshow participation and other marketing costs.

Amortization . For each of the three months ended September�27, 2014 and September�28, 2013, amortization of other intangible assets expense was $0.1 million.

Foreign Currency Exchange Gain (loss)

Adept�s foreign subsidiaries� balance sheet accounts are translated at current period ending exchange rates and statements of operations are translated at the average rate for the period. Translation gains and losses are recorded as a separate component of accumulated other comprehensive income (loss) in stockholders� equity. Foreign currency exchange gains (loss) were $0.1 million and $(0.1) million for the three months ended September�27, 2014 and September�28, 2013, respectively. As Adept conducts business on a global basis it is exposed to adverse or beneficial movements in foreign currency exchange rates. The dollar/euro and the dollar/yen markets currently present the largest exchange rate risk for Adept.

Provision for Income Taxes

Adept typically provides for income taxes during interim reporting periods based upon an estimate of our annual effective tax rate. We also maintain a liability to cover the cost of additional tax exposure items on the filing of federal and state income tax returns as well as filings in foreign jurisdictions. Each of these filing jurisdictions may audit the tax returns filed and propose adjustments. Adjustments arise from a variety of factors, including different interpretations of statutes and regulations. The liability method is used to account for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is expected to be realized on a more-likely-than-not basis. Deferred tax expense results from the change in the net deferred tax asset or liability between periods.

The provision for income taxes was $0.1 million for each of the three months ended September�27, 2014 and September�28, 2013, respectively, which related primarily to taxes in non-U.S. jurisdictions and state minimum taxes.

Liquidity and Capital Resources

As of September�27, 2014, cash and cash equivalents were $4.8�million, a decrease of $2.8 million from June�30, 2014. Cash used in operating activities for the three months ended September�27, 2014 was $3.1 million, representing net income adjusted for non-cash depreciation, amortization and stock based compensation expenses, offset by the use of $3.5 million of cash for working capital purposes. Cash provided by financing activities was $0.1 million from proceeds received from the exercise of stock options.

�

Bank Line of Credit

At September�27, 2014, the Company had no borrowings under the Agreement.

Adept has no off balance sheet arrangements and believes that its current cash and cash equivalents, together with funds available pursuant to its credit facility, provide sufficient liquidity for operations in fiscal year 2015. Based on operating needs, strategic activities and other factors, we may further utilize the line of credit in the future or seek alternative credit or other financing in the future to pursue additional expansion opportunities or make other investments in our growth.

New Accounting Pronouncements

See Notes to condensed consolidated financial statements.

ITEM�3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest rate sensitivity:�There have been no significant changes to our market interest rate risk assessment as discussed in our�2014�Annual Report on Form 10-K.

Foreign currency exchange rate sensitivity:�We transact our revenue primarily in U.S.�dollars, Euros, and to a lesser extent, ChineseRMBs and Japanese Yen.�The U.S.�dollar is our reporting currency.�The U.S. dollar is our functional currency except for our international subsidiaries in China, France and Germany, and Singapore where the Chinese Yuan, Euro, and Singapore dollar are the functional currencies, respectively.

As of September�27, 2014, we had not entered into foreign exchange forward contracts to hedge balance sheet exposures and inter-company balances against future movements in foreign exchange rates.

We maintain certain cash balances denominated in the Chinese Yuan, Euro, and Singapore dollar.�If foreign exchange rates were to weaken against the U.S. dollar immediately and uniformly by 10% from the exchange rates at September�27, 2014, the fair value of these foreign currency amounts would decline by an amount which is not material.

ITEM�4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We are committed to maintaining disclosure controls and procedures designed to ensure that information required to be disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC�s rules and forms, and that such information is accumulated and communicated to our management, including our Chief�Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and we necessarily are required to apply our judgment in evaluating the cost-benefit relationship of possible controls and procedures and implementing controls and procedures.

Based on management�s evaluation, with the participation of our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), as of the end of the period covered by this report, our CEO and CFO have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)), are effective to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended�September 27, 2014�that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

�

PART II � OTHER INFORMATION

�

ITEM�1.

LEGAL PROCEEDINGS

�

ITEM�1A.

RISK FACTORS

There have been no material changes in the risk factors previously disclosed in �Item 1A. Risk Factors� in our Annual Report on Form 10-K for the fiscal year ended June�30, 2014.

�

ITEM�2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable.

�

ITEM�3.

DEFAULTS UPON SENIOR SECURITIES

Not applicable.

�

ITEM�4.

MINE SAFETY DISCLOSURES

Not applicable.

�

ITEM�5.

OTHER INFORMATION

None.

�

ITEM�6.

EXHIBITS

See the Exhibit Index following the signature page to this Quarterly Report on Form 10-Q for a list of exhibits filed or furnished with this report, which Exhibit Index is incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

�


ADEPT TECHNOLOGY, INC.

By:	�	/s/ SETH HALIO
	�	Seth Halio
	�	Chief Financial Officer

By:	�	/s/ ROB CAIN
	�	Rob Cain
	�	President and Chief Executive Officer

Date: November�4, 2014

�

INDEX TO EXHIBITS

The following exhibits are filed as part of this report or incorporated by reference herein, as noted below.

�



��3.1	��	Certificate of Incorporation of Adept-Delaware (incorporated by reference to Exhibit 3.1 to the Registrant�s Current Report on Form 8-K12G3 filed with the Securities and Exchange Commission on November�10, 2005).

��3.2	��	Certificate of Amendment of Certificate of Incorporation of Adept-Delaware (incorporated by reference to Exhibit 3.2 to the Registrant�s Current Report on Form 8-K12G3 filed with the Securities and Exchange Commission on November 10, 2005).

��3.3	��	Certificate of Designations, Preferences and Rights of Series A Convertible Preferred Stock (incorporated by reference to Exhibit 3.3 to the Registrant�s Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 24, 2012).

��3.4	��	Amended and Restated Bylaws of Adept-Delaware (incorporated by reference to Exhibit 3.4 to the Registrant�s Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 24, 2012).

��4.1	��	Specimen of Common Stock Certificate of Adept-Delaware (incorporated by reference to Exhibit 4.1 to the Registrant�s Current Report on Form 8-K12G3 filed with the Securities and Exchange Commission on November 10, 2005).

��4.2	��	Specimen of Preferred Stock Certificate of Adept Delaware (incorporated by reference to Exhibit 4.2 to the Registrant�s Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 24, 2012).

��4.3	��	Form of Registration Rights Agreement, dated as of November 18, 2003 by and among the Registrant and the investors party thereto (incorporated by reference to Exhibit 4.5 to the Registrant�s Registration Statement on Form S-2 (No. 333-112360) filed on January 30, 2004).

��4.4	��	Letter Agreement by and between Adept Technology, Inc. and Hale Capital Partners, LP, dated March 27, 2013 (incorporated by reference to Exhibit 4.1 to Registrant�s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 29, 2013).

��4.5	��	Registration Rights Agreement, dated as of September 5, 2012, by and among Adept Technology, Inc. and Hale Capital Partners, LP (incorporated by reference to Exhibit 4.5 to the Registrant�s Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 24, 2012).

��4.6	��	Side Letter Agreement, dated as of September 5, 2012 by and among Adept Technology, Inc. and Hale Capital Partners, LP (incorporated by reference to Exhibit 4.6 to the Registrant�s Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 24, 2012).

��31.1+	��	Certification by the Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

��31.2+	��	Certification by the Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

��32.1+	��	Certification by the Chief Executive Officer and the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.1-	��	The following financial information from the Company�s quarterly report on Form 10-Q for the period ended September 27, 2014 is formatted in XBRL interactive data files: (i) Condensed Consolidated Balance Sheets as of September 27, 2014 and June 30, 2014 (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended September 27, 2014 and September 28, 2013 (iii) Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 27, 2014 and September 28, 2013 and (iv) Notes to Condensed Consolidated Financial Statements.

�

+	Filed with this Quarterly Report on Form 10-Q

Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Section�11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for the purposes of Section�18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under these sections

�

Exhibit 31.1

CERTIFICATIONS

I, Rob Cain, President and Chief Executive Officer of Adept Technology, Inc., certify that:

�

I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended September�27, 2014 of Adept Technology, Inc.;

�

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

�

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

�

The registrant�s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules�13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant�s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant�s internal control over financial reporting that occurred during the registrant�s most recent fiscal quarter (the registrant�s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant�s internal control over financial reporting; and

�

The registrant�s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant�s auditors and the audit committee of the registrant�s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant�s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant�s internal control over financial reporting.

�


Date: November�4, 2014	�	�	�	/s/ Rob Cain
	�	�	�	Rob Cain
	�	�	�	President and Chief Executive Officer

Exhibit 31.2

CERTIFICATIONS

I, Seth Halio, Chief Financial Officer of Adept Technology, Inc., certify that:

�

I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended September�27, 2014 of Adept Technology, Inc.;

�

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant�s internal control over financial reporting.

�


Date: November�4, 2014	�	�	�	/s/ Seth Halio
	�	�	�	Seth Halio
	�	�	�	Chief Financial Officer

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the fiscal quarter ended September�27, 2014 of Adept Technology, Inc. (the �Company�) as filed with the Securities and Exchange Commission (the �Report�), each of the undersigned hereby certifies, in his or her capacity as an officer of the Company, pursuant to 18 U.S.C. Section�1350, as adopted pursuant to Section�906 of the Sarbanes-Oxley Act of 2002, that to such officer�s knowledge:

1. The Report fully complies with the requirements of Section�13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

�


	�	/s/ Rob Cain
	�	Rob Cain
	�	President and Chief Executive Officer

Dated:	�	November 4, 2014

	�	/s/ Seth Halio
	�	Seth Halio
	�	Chief�Financial�Officer

Dated:	�	November 4, 2014

The foregoing certification is being furnished solely pursuant to Section�906 of the Sarbanes-Oxley Act of 2002 (subsections (a)�and (b)�of Section�1350, Chapter 63 of Title 18, United States Code) and shall not be deemed filed by the Company for purposes of Section�18 of the Securities Exchange Act of 1934, as amended or incorporated by reference in any registration statement of the Company filed under the Securities Act of 1933, as amended.

A signed original of this written statement required by Section�906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section�906, has been provided to Adept Technology, Inc. and will be retained by Adept Technology, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Form 10-Q ADEPT TECHNOLOGY INC For: Sep 27

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