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Adept Technology, Inc. (NASDAQ:ADEP)

Q3 2014 Results Earnings Conference Call

May 08, 2014, 05:00 PM ET

Executives

Laura Guerrant – Investor Relations

Rob Cain – President and Chief Executive Officer

Seth Halio – Chief Financial Officer

Analysts

Mark N. Argento - Lake Street Capital Markets LLC

Dick Ryan - Dougherty & Company

Jim Kennedy - Marathon Capital

Operator

Good day, ladies and gentlemen and thank you for standing by. Welcome to the Adept Technology's Fiscal 2014 Third Quarter Financial Results Conference Call. During today's presentation, all parties will be in a listen-only mode and following the presentation, the conference will be opened for questions. (Operator Instructions). And now, I would like to turn the conference over to Ms. Laura Guerrant, Adept Technology's Investor Relations. Please go ahead, ma'am.

Laura Guerrant

Thank you, Daniel. Good afternoon everyone and thank you for joining us. With us on today's call are Rob Cain, Adept Technology's President and Chief Executive Officer and Seth Halio, Adept’s Chief Financial Officer.

As we begin today's call, let me remind you that, during the course of this conference call, we may make certain remarks regarding Adept's expectations as to future events and future financial and operational performance, plans and prospects of the company, all of which are based on the company's position as of today, May 8, 2014.

Any such forward-looking statements involve a number of risks and uncertainties and the company's actual results could differ materially from those expressed in any of these forward-looking statements for a variety of reasons, including the risks described in today's press release, the 10-Q for the quarter ended March 29, 2014 filed today and in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013 filed with the SEC on September 20, 2013 as well as the risks described in the company's other SEC filings. No one should assume that any forward-looking statements made by the company remains consistent with our expectations after the date that the forward-looking statement is made.

Certain financial information that we review on today's conference call is presented on a non-GAAP basis. The most directly comparable GAAP information and a reconciliation between the non-GAAP and GAAP amounts are provided in our fiscal first quarter press release, which was issued today and has been furnished to the SEC on Form 8-K. The press release and all financial, statistical or operational information referred to in this conference call is also available on the Investor Relations section of the Adept website. Following introductory comments by management, we will open the call to take your questions.

And with that, I would like to now turn the conference over to Rob Cain. Rob?

Rob Cain

Thank you, Laura. I will begin today with a review of our third quarter overall performance and then Seth Halio, our CFO will provide a more detailed review of our financial results and after that I will give some color to the quarter to date and we'll wrap-up with some questions.

While we are pleased with our third quarter performance and the progress we are making in stabilizing and growing the business, we have much more work to do to meet our long-term objectives. We continue to invest in markets and verticals where we see significant opportunities to grow our top and bottom lines in a sustainable manner and today I would like to share with you some of the steps that we are taking to position Adept in the forefront of this drilling market.

We believe that our progress has been and will continue to be depended on four imperatives that frame our approach to stabilize, sustain and grow this business overtime. These imperatives include; Number one, a disciplined focus on the voice of the customers. Number two, a regular introduction of new products. Number three, expanding margins and number four lastly, profitably growing our sales.

Focusing on Q3 specifically we did generate $15.1 million in revenue and gross margins of 46% both significant improvements over the third quarter of last year. Our operating income for the third quarter was approximately $0.3 million, compared to an operating loss of the third quarter of last year. Adjusted EBITDA was $1.2 million, which was a $2.4 million improvement over the last years EBITDA loss. So overall, we are incurred with our progress to date that we are making on our turnaround efforts. We've stabilized the business and we are well into the process of sustaining the revenue stream through strategic customers, which are providing volume and visibility. These efforts combined with our longer-term strategic plan provided with us with a path forward for long-term sustainable growth.

I would now like to turn the call over to Seth to discuss the financial performance for the quarter. Seth?

Seth Halio

Thank you Rob and good afternoon everyone. Since much of this information is contained in our earnings release and Form 10-Q filed today, I will be brief. Revenues for Adept's third quarter were $15.1 million, compared with $10.9 million reported in the 2013 third quarter, a 38% increase. Compared to a year ago, revenues in the United States increased 41%, in Europe 23% and sales in Asia nearly double.

Service revenue grew 17% versus a year ago. Our revenues also grew 4% compared to this year's second quarter. Gross margin for the third quarter was 45.7%, a 300 basis points improvements since last year. Operational expenses in the third quarter was flat two year ago with $6.6 million. We continue to closely monitor our spending as our operating expenses in the third quarter were down slightly, compared to the second quarter despite the modest revenue increase.

Our operating income for the third quarter was $300,000, compared with an operating loss of $1.9 million in the 2013 third quarter. We reported GAAP net loss attributable to common shareholders of $0.00 per share. This compares with a loss of $0.17 per share in the 2013 third quarter.

Our Non-GAAP adjusted EBITDA was $1.2 million, compared with an adjusted EBITDA loss of $1.1 million last year. Adept's cash and cash equivalents at March 29, 2014 totaled $6.6 million, an increase of $300,000 compared to the June 30th. At March, we continue to have no bank debt outstanding but have available an $8 million line of credit, which contains no financial governance. During the quarter all of the debts outstanding preferred stock was converted into $1.7 million shares of common stock. As a result, our stockholder equity increased by $8 million from this transaction.

With that I’ll turn the call back to Rob.

Rob Cain

Thank you, Seth. In the third quarter we saw a strong order activity in all of our markets. For example, during the quarter, we received a large follow-on order for our customer in the Asian consumer electronics base. Orders for fixed products in the food, pharmaceutical markets and orders in Europe to supply products for the automotive industry, small flexible manufacturing applications as well as high volume electronics. We also received several orders from mobile products from warehouse and logistic customers in Asia and North America.

In addition to the OEM business, accelerating the service business is an important part of our effort to grow our revenue and also position the company closer to the customer. Our service business grew 17% year-over-year as we continue to offer traditional products and services as well as expanded offerings in professional services arenas including advanced applications and consulting support worldwide. Adept continues to listen to the voice of the customer through its outreach program, install base registration and strategy integrator initiatives. We also continue to introduce products relates to the voice of the customer which are geared toward serving large vertical markets.

During the third quarter, we've released several new products including 7 inch HMI touch screen and wireless peripherals for remote calling and automatic door operation for our mobile robots product. In addition to that, we also released a new Quattro robot which is well positioned for our key markets. As I mentioned earlier, we are pleased with our progress in Q3 but we're not satisfied with these results and we have much work to do to continue to execute on our business goals and grow our top-line and earnings per share. We recently kicked-off a five year strategic process and I am excited by the opportunities that lay ahead for Adept.

We see strong growth opportunities for mobile, in warehouse, logistics, flexible manufacturing food and semiconductor markets. We conservatively estimate tam for these markets to be $1.5 billion over the next five years with addressable portion of that to be half for Adept. To enable us to fully take advantage of these opportunities, we will continue to invest resources in new products, applications and sales resources. We will also accelerate how we go to market by leveraging strategic integrators where appropriate or have Adept provide the complete mobile solution for a large volume OEM customers and will collectively seek corporate partners to expand our market share in key verticals and geographies.

We'll also want targeted sales strategies in North America, European and Asian markets for all of our mobile products. Based on our discussion with existing and potential customers, we believe that Adept's technology will met, it's well positioned to meet the needs of the market now and in the future. We'll also see significant growth opportunities for our traditional fixed robots. Our global markets for fixed products include small flexible manufacturing, food and packaging within our capacity range of 7.5 pounds and below. Within these markets, there is an opportunity to expand our sales through new products and new sales channel worldwide.

Before I turn the call over to the operator for questions, I would like to take a moment and thank all of your employees. An important part of our customer buying decision are based upon our people and our ability to implement automation solutions worldwide, more effectively than our competition. I'd like to thank each of them personally for their support as we make our business stronger every day through advance services and new products.

With that, I'd like to turn the call over to the operator.

Question-and-Answer Session

Operator

Thank you sir. We will conduct a question-and-answer session. (Operator Instructions). And we have a question from the line of Philip Shen with ROTH Capital. Please go ahead.

Unidentified Analyst

Hi. Good afternoon guys. Matt in for Phil.

Rob Cain

Hi Matt, how are you?

Unidentified Analyst

Good thanks. So, I just want to explore on your geographic markets. Obviously in third quarter, you guys posted strong growth across kind of all of your key markets. How do you view these markets ahead and what might we expect?

Rob Cain

That's a great question. As you know we don't guidance but I'll talk about the tone of the markets and some of our action plan in each part of the region. As you noticed that North America had some pretty significant growth. There is a couple of things that we look at there. First of all, there is facing off the year-over-year numbers and we were very impressed with previous year numbers.

We are impressed with the momentum in North America. That's based on primarily food. We talked a lot of about the Food Safety Administration Act and we've got quite a bit of small flexible manufacturing business there as well. We are selling mobile products now through North America and service business is picking in accordance with both of those increased revenue platforms. Asia-Pacific Rim you heard that we doubled our revenue and we're not done there yet either.

How did we do, that again through some major integrator channels which we are continue to deepen. We've also hired some significant talent both in terms of service and sales included a new General Manager in Shanghai. So, we are investing heavily right now in China and that is going to pay-off. We've also manage to secure some very long-term customers with current products and they are taking deep look at our technology roadmap and helping us guide that. So, that's been very helpful.

Europe as you know is our most mature market and our goals there are to understand where the industry is at and make sure that we provide a meaningful stake in those results in the quarter. That's about all I can say in term of members. But I will say specifically, we understand how that market is growing and we actually performed just about exactly how thought we would there. The growth drivers there are high volume electronics, a little bit of food manufacturing and some other complex integrators that we are working with. So, I'll remind everybody that, we have three separate strategies for those three continents because they frankly need that level of detail. All of those continents now are selling our mobile products. All of those continents now further accelerating service business as well.

Unidentified Analyst

Great. That's very helpful. Moving on you guys had some great wins in the quarter, new orders, new deliveries. Can you kind of just walk us through current customer trials and kind of that shaping up?

Rob Cain

Yeah. I am going to avoid customer names and too many specifics, but I will set the tone. As I said, we kicked-off a five year strategy plan and this thing has been in place for about a year now. As we put hat plan together, there is a number of new names that are big names surfacing in that plan and we don't POs with many of them but we do have some detailed conversion and how that work goes is, we may trial a current catalog product whether that's a links or handler or transporter or Quattro and after we satisfy our first series of performance requirement, that client may want major or minor altercations to that product to fit application perfectly.

So, we typically sell quantity one, two and then that far was up at the longer-term PO. I will share that, we are in very deep conversations in every one of the continents just mentioned for either fixed products or mobile product or both with the same clients. Our focus the five major markets were going after with those kind of dialogs are warehouse, logistics, small flexible manufacturing, food and semiconductor. Notice, the pharmaceuticals is not in there. Pharmaceutical certainly an important business for us but it's highly regulated and slower to adopt which is not like us.

Warehouse and logistics is like us. They're fast to adopt in their growing. As a matter of fact, 35% of all major third-party logistic companies will increase there warehouses in the distribution centers in the next five years. 70% plan to add automation to manage inventory and incoming and outgoing dock work and that's got range all over it and 67% are going to take real time inventory with automation that also our range in all over it. So, that $1.5 billion tam that we talked about you can bet we have talked to the major clients in every one of those vertical I just mentioned how we can penetrate our current and our future products into those at the highest level.

Unidentified Analyst

That's great color. Thank you. Just turning you know product mix for minute here. Could you give us a sense of kind of how revenue shaped between fixed versus mobile products in the quarter and kind of how you expect the mix to trend ahead?

Rob Cain

Sure. I will avoid specific numbers on that. I did mention service business itself grew 17% year-over-year. Our fix business grew equally by region and really outperformed what we plan to do quarter-over-quarter. The mix between our mobile products and our fixed products was pretty similar to what it was last quarter and I think we'll see that a little bit in the future again without giving any numbers or any guidance. We've got plans to obviously adjust that moving forward given the five year strategy that I just talked about. Most of the warehouse and logistics markets we talked about, those are probably be the reverse of the mix that we've seen now for the last 10 years at Adept in other words that will be a much higher mix in mobile markets, while still providing very competitive fix product in the warehouse and logistics space.

Unidentified Analyst

Great, Rob. Thank you very much. I'll get back in Queue.

Rob Cain

Alright. Thanks. Good to hear your voice.

Operator

And our next question is from the line of March Argento with Lake Street Capital Markets. Please go ahead.

Mark N. Argento - Lake Street Capital Markets LLC

Hi, Rob. Just kind of digging a little bit deeper into the logistics opportunity. I know at one of the recent trade shows, it became more and more apparent that Amazon's acquisition of key of those creating an opportunity or a situation where warehouse automation -- Amazon is going to allowing existing key customers to expand in the additional warehouses using that technology. Can you talk about the opportunity you see in terms of kind of picking up or a key to left off or the opportunity to duck-tail your systems and integrate into some of those existing key customers?

Rob Cain

By the way Mark, it's good to hear your voice. The answer is this, Kiva has a specific amount of customers. We know exactly who they are. We've already talked to a handful of them and we've got plan to talk to the rest of them. The second half of the answer is, the Kiva solution while we respect every competitor is different than ourselves. It's a grade system, it's an X-Y grade system. So, if you want a warehouse you start putting in a grade system in your floor and then a series of robots.

The Adept system is truly totally autonomous. We could take this robot out of the box, walk it around your warehouse with a joystick, unplug it and you have a moving robot, no cables, no lights, no changes to the infrastructure in your warehouse. So, we probably would not make an iteration of X-Y grid coordinates in our system. We believe that we offer the suit spot of what people really wanting moving forward.

Now having said that, you can bet that's a new market for us that market now we are talking to those customers about; A, how do we extend what you have in your current space? And B, when you do your next warehouse, let show your next wave of the technology and how we can really help with that. The other thing with the Kiva solution is, it's bringing goods demand but it's not bringing exactly what you want to command. It's bringing the entire shelf demand. We believe that, we should bring only what you want to and that means a easiest technology. So instead of bringing an entire shelf rack back to a person who have been shifting and receiving just bring them exactly what they want we call that Etches. So, that's our strategy to take that market and then move it to the next level of technology.

Mark N. Argento - Lake Street Capital Markets LLC

That's helpful. And when you going after these different market vertical, I assume you are typically working with some of the key integrators that put whole systems together and you kind of plug in as part of a broader solution. Is that how you typically go in the market to some opportunities, vertical?

Rob Cain

In some cases. In some cases, we are sitting next to some very powerful warehouse providers, and in another cases we believe that some of those warehouses are already mature and we can get in there on around and penetrate. So, I think we're being keenly aware where we need to get into a door with a major partner or an alliance or going there independently. So, we are in fact going dual path.

Mark N. Argento - Lake Street Capital Markets LLC

Sure. And then in terms of the migration of kind of the initial kind of bay to touch relationship kind of figuring out the fine tuning of the systems and then moving towards full scale deployment once kind of the bugs for like a better word or worked out. Do you have any customers in the field right now using mobile product and what you would consider in a full scale production environment?

Rob Cain

Yes. I am not going mention their names, but we certainly do in North America, Asia and the ones we have in Europe I wouldn't call those production. We have got some in non-commercial environment which have been there for about nine months and we have got a couple what I would call pre-production mode. So, the good news is, they are all in different markets and they're all performing well at plan. Our products at global foundry since we last talk we now have 49 consecutive robots and they are working hand-in-hand and total autonomous handlers and what we have learned together with global founders has been compelling us and certainly queue this up quite nicely for the rest of that 200 millimeter market.

Mark N. Argento - Lake Street Capital Markets LLC

Then are you working in multiple fab at this point or is that is mostly in fab?

Rob Cain

It's one fab. We have finished one bay, one fab and that's a nice milestone for everyone. So, what use to be full of people is got a couple of people running around and it with some robots managing most of wafers in that bay, in that one fab. So, there is much more work to do there at global foundries, we have to earn every bit of it and we will, we are happy to that and we are just happy to have then as a key customer.

Mark N. Argento - Lake Street Capital Markets LLC

Great. Then one last one for me. In the food market, I know it's been talked about food safety. Maybe you can -- how does the food safety regulations dug tail into the product that you guys have and that you're selling into the market? Could you just kind of make the connection for me so I understand how one can potentially draw do other?

Rob Cain

Sure. So, it's Food Safety Administration Act and it basically regulates automation of food manufacturing from the all farm all the way to the table and after you read that 300 page law, that basically says, anything that can be automated really should be automated in overtime the U.S. Government will put a lot more pressure on the major food manufacture whether organic or in organic to ensure they're automated. And they point quite clearly that anytime the food company has had problems with a bacteria or some sort of issue, it's probably, very probably related to human activity.

So, A, get humans out of that process where ever you can. We are going to further educate most of the audience in North America, Canada, U.S. and Mexico and that starts next summer and they'll also add to the labels that we are all familiar with our meat packages that says needs probably no longer did after such and such date. That same label will say if it's assembled or manufactured by a robot or not.

So it's education to the consumer and it's also added pressure to the manufactures that there is technology available to do this. And I have some more color there as well, we've hired a consultant to really break us into a number of the major food customers and many of you probably wondering why don't ever hear about all the big name clients, are we winning those yet and the answer is, in most cases, yes we are.

In Q2, we won a number of major accounts in the foods space and we will continue to provide those products. Most of that work happens through integrators. So, you don't go the large food company ABC and get an order through them. You meet them, show some your capability, team up with integrator and provide a complete solution to them. So, that momentum is picking. Of course it's never as fast as we want and not as fast as you want, but the market is there and as we get into some of these what I would call to Tier 1.5 and Tier 2 companies, we don't name the big companies, some names that you probably don't know that are several $100 million dollars in revenue. They're as automated as thought that they would be, which is great news for us. So, our task is to partner at the sea level, establish automation strategies for those companies and partner with them and show them how to save some significant dollars while extending and while increasing their productivity.

Mark N. Argento - Lake Street Capital Markets LLC

Great. That's very helpful. I hope you to see continue strong momentum in the business.

Rob Cain

Thanks, Mark. I appreciate the question.

Operator

(Operator Instructions). And our next question is from the line of Dick Ryan with Dougherty. Please go ahead.

Dick Ryan - Dougherty & Company

Thank you. So Rob, I think in earlier comment on the mix of fixed and mobile, you said it was comparable to last quarter. So, that would be something in the 15% to 18% of total sales would be mobile?

Rob Cain

If you want to get real specific on, it's 16% of our sales in Q2 were mobile.

Dick Ryan - Dougherty & Company

15%. Okay. So, obviously it sounds semi is doing well. Have you succeeded and moving beyond global foundries in the some of the other chip manufactures? And also, can you talk a little bit more of what other verticals are adopting the mobile solution now?

Rob Cain

Sure. So, I don't want to get over our skews with our satisfaction on mobile revenue. I am not happy with it. We need to be doing an off a lot more. Off a lot more in semiconductor, the other markets you just ask about. We need to be doing an off a lot more in warehouse, logistics, small flexible manufacturing and the food space and semiconductor. I'm going to come back and talk about food right now.

We've talked about food with the Quattro robot for the last three quarters. We are now beginning to talk those same food customers about our mobile products. So, there is five key markets for mobile and as we launch this five year strategic plan for our company, we see that $1.5 million tam, this is conservative and we see that we need to accelerate our sales and close business much, much faster I think that's where Mark was getting at.

So how long does it take to sell that first unit? And then after the first unit when the volume PO and if you work inside of this company, you'll hear that question a lot from me. The first answer is we know how to accelerate unit number 1 and 2 and we are doing that. That means more people, more marketing, demo units on site with some of our best and brightest people showcase in our products in the production facility, step one. Step two, partner with that client and demonstrate how they can make it even better so it's a perfect application for them, and that part does take some time.

Our clients won't take major risk to implement our products yet they still need them. So, it's up to us to demonstrate our value-added proposition as quick as we can. We have not yet announced other semiconductor business. I'd say stay tuned for some months for pretty great news in the semi space. The food space is progressing very well for us both in the fix and in the mobile. We've talked about that in detail.

We are in some extremely exciting conversations for small flexible manufacturing for our mobile products and that's worldwide. Logistics and warehouse, that's our key focus. All of those five markets through mobile we expect to participate very significantly compared to that $1.5 billion tam.

Dick Ryan - Dougherty & Company

In the semi space, do you have opportunities to grow from the 200 fabs to the 300 millimeter fabs?

Rob Cain

I think we do and I also think our previous direction there is right, which is we are not going to go there until we get told there. So, it's been 10 years in that space and what I've learn there is, if you are on the bleeding edge of technology sometimes margins can be pretty tough. If you are working with fab, it's a cash call and you can go in and show how you can get another 10% or 20% or 35% improvement in the process which is what we are doing, then you can do some profitable business there.

All of that business in the 200 millimeter fabs is 22 different companies. We need to won a significant amount of those. As we do that, let's left those partners pull us into 300 millimeter. As we go into the 300 millimeter space, we know there will be some NRE cost and we'd want to share some of those and I want to make sure we get the volume in that space. This business is about generating earnings per share and doing it profitably. I don't want to sell x amount of robots of 200 millimeter or call it we find ourselves in 300 millimeter.

I want to make a profit, a long-term profit both on OEM and service with the 200 millimeter space and we are beginning to interview many of those clients that we're already talking to at the 200 millimeter level, that how we could help them that 300 millimeter. We do not have that technical answer yet. We have a lot of what I would call patterns of what our products and services could look like at that level, but that's not our focus.

Dick Ryan - Dougherty & Company

Okay. The five year plan you mentioned and the tam available. Can you give a sense of what your expectation might be or your objectives might be for growth in that five year window for fixed and mobile front?

Rob Cain

I think I might be given a little too might guidance. I will say, management team is keenly aware of our last three quarters performance and we are not satisfied with those numbers. We are certainly not satisfied with our market share. We are satisfied with our regular stream of new products to the market. We are not satisfied with our sales close rate and our sales acceleration. So, those five markets that we listed that feed both fixed in mobile, we expect some material differences there overtime.

Dick Ryan - Dougherty & Company

Great. Good job, guys. Thank you.

Rob Cain

Thank you Dick. Good to hear your voice.

Operator

And our next question is from the line of Jim Kennedy with Marathon Capital Market. Please go ahead.

Jim Kennedy - Marathon Capital

Hi, Rob.

Rob Cain

Hi, Jim.

Jim Kennedy - Marathon Capital

I apologize for the reception. I am actually car driving. And I apologize because I drop the call or this question has been asked. Could you share your thoughts on what you kind of expect us to do relative to certainly increases in revenue? I mean if you guys rose let's say 20-30%. What are your thoughts on the OpEx? And secondly, as you scale this, how gross margins work here? I mean we are mid-upper 40 is that a good number long-term or do you expect those to be higher? On mix that kind of give us some thoughts on OpEx and gross margins?

Seth Halio

Yeah. Hi, Jim. This is Seth. Maybe I'll take a short at that and Rob can play in if has further cover. As you know, our practice is not to give guidance or specific future financial information. What I would say as you know this is competitive business and the competitive looks different in each region. So, we got to look at differently in each of our geographic regions and of course in each of our markets.

With that said, we are continually working on improving our gross margins and we believe that the improved gross margins will come from two ways, by continuing to deliver value-added products that we can price accordingly and to diligently pay attention to product cost reduction. So, as Rob said earlier, our goal is continue to release new products where we can price properly and we continually to look to take cost out of our products where we can. But of course, we got a lay on that top the competitive environment that we play in.

With respect to operating expenses, as we grow, we should see some leveraging of our infrastructure. So, we would expect over the longer-term that our operating expenses would not grow as fast as sales and in some cases significantly less than sales growth. I hope that gives you a little bit of color,

Jim Kennedy - Marathon Capital

Yeah. I think what I am hearing that the current gross margins may improve overtime, but you don't expect them to deteriorate?

Seth Halio

Well, I think what I would say is, we are not happy with where we are today. So certainly would be less happy if they deteriorate.

Jim Kennedy - Marathon Capital

Okay. And last question for you. As you get into different regions of the world, is language an issue at all in terms of either your screen prompts, your programming, your instruction, your manuals et cetera? Are there some barriers to entry there?

Rob Cain

Well, sure, there are. In order to be global you got to feel local and we saw product in France that comes out of our France office. In Italy, we have recently launched Direct Sales Leader in Italy. So, grow shares, language, contracts and we do business in multiple languages and multiple currencies and that is the price of entry and in side of company you hear the word intuitive, innovation. Our products have to be simple and easy to use worldwide. And when you look at our workforce of 151 people on the pay-roll today, we have a dynamic, flexible workforce that understands their regions very nicely.

Rob Cain

Yes. I'll add more thing another words you hear is localization. So, we talk a lot right now about localizing with in China to advantage of that growing market.

Jim Kennedy - Marathon Capital

So, as you are going into a new market ex-marketing materials on speaking language, when it comes down to the core technology, I've got a mobile robot with a screen readout. You've got through just adopt to the local languages as you along?

Rob Cain

In in most cases.

Jim Kennedy - Marathon Capital

Okay. Very good. Okay guys. Thank you very much.

Rob Cain

You bet, Jim.

Operator

(Operator Instructions). And there are no questions at this time, I'd like to turn the call back over to Mr. Rob Cain.

Rob Cain

Thank you. Our business is stabilized and we are accelerating our sales in our markets. We believe we are well positioned with our mobile products and advanced our fixed products. There is much more to need to grow our business and reach our long-term objectives and we are happy to do it. Thank you again for your interest and support in Adept and we look forward to updating you on our next progress in our next quarter's call. Thank you.

Operator

Ladies and gentlemen, that does conclude the Adept Technology's fiscal 2014 third quarter financial results conference call. We would like to thank you for your participation. Everyone may now disconnect.

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