Adeptron Q2 Revenues Up 21%



    
    Company: Adeptron Technologies Corporation
    Stock Symbol: ATQ
    Listing: Toronto Stock Exchange (TSX)
    Web Site: www.adeptron.com

    Cost reduction actions to achieve in excess of $1 million in future
    annual savings
    

    TORONTO, Aug. 14 /CNW/ - Adeptron Technologies Corporation (ATQ: TSX)
("Adeptron" or the "Company"), a specialist at delivering integrated product
solutions and support to the global technology and electronics industry, today
reports 2009 unaudited second quarter financial results for the three-month
and six-month periods ended June 30, 2009.

    
    Q2 2009 Financial Highlights:

    -   Sales increased by $2.154 million, or 21%, to $12.345 million from
        $10.191 million in the second quarter of 2008
    -   Gross margin declined because of the dramatic strengthening of the
        CDN$ during the quarter to 5.5% compared to 14.9% for the same
        quarter last year
    -   Net loss of $1.649 million compared to a net loss of $0.939 million
        for the same quarter last year
    -   EBITDA of $(0.914 million) compared to EBITDA of $0.349 million for
        the same quarter last year,
    -   Loss of $0.02 per share compared to loss of $0.01 per share for the
        same quarter last year

    Business Development highlights

    -   Announced the win of an Aerospace & Defense customer with sales
        valued at approximately $3 million annually
    -   Announced the contract win for 3D interactive display and
        entertainment equipment with sales valued at approximately $2 million
        annually
    -   Announced the contract win for laboratory automation equipment with
        sales valued at approximately $1 million annually
    -   Unveiled new corporate logo and new website
    

    F. Michael Marti, President & CEO of Adeptron stated, "The second quarter
of 2009 was really a tale of two different developments. First, our business
development activities continued to grow our customer base and revenue
opportunities. In support of this I point to our announced new customer wins
and to the following information. Our US$ denominated sales of US$8.1 million
in this quarter were actually US$1.0 million higher than such sales of US$7.1
million in the first quarter of 2009. Our CDN$ denominated sales of $2.0
million in this quarter were marginally less by $0.1 million than such sales
of $2.1 million in the first quarter of 2009. Given these facts, one would
have expected to see us report higher revenue this quarter than in the first
quarter. The second development was of course the dramatic strengthening of
the CDN$ versus the US$ during the second quarter. The monthly average
Canadian dollar to U.S. dollar rates went from $1.2633 at March 2009 to
$1.1271 in June 2009, a strengthening of 12.8% or $0.1362. This change in the
foreign exchange had a negative impact on income of $1.2 mil. The resulting
effect was to actually reduce our reported revenue after translation into
CDN$. This also obscured the fact that we actually shipped more units of
product than in the prior quarter and therefore used more raw materials and
labour to produce the extra items. This decrease in translated revenue
combined with the increase in resources used to generate the revenue caused a
pincer like narrowing of the gross margin."
    Marti continued, "In response to the foreign exchange situation we
decided on two key strategies. The first was to continue to focus on, and not
deviate from, our continuing and increasingly successful business development
efforts. We expect to continue to be able to announce new customer and program
wins over the next few weeks and months.
    The second strategy was to redouble our efforts at cost reduction and
efficiency optimization. To this end we executed cost reduction actions in
June to achieve over $1 million in future annual savings. Further actions were
carried out in July and August resulting in significantly further increasing
the annual savings. These cost saving actions had a negative impact on second
quarter results as severance costs were expensed in the second quarter."
    Marti concluded by saying, "Early in the third quarter we invested in a
new very high speed surface mount line in our Ottawa facility costing
approximately $0.8 million. This investment provides very significant
manufacturing efficiencies that allow us to better support our existing higher
volume business as well as to position Adeptron to win new and profitable
business."

    
    Q2-2009 - Financial Summary

    Selected comparative financial information for the three-month periods
ended June 30, 2009 and 2008 is shown below. (All numbers below expressed in
thousands, except per share information and gross margin percentages):

    Income Statement        3-Month        3-Month      6-Month      6-Month
                             Period         Period       Period       Period
                            June 30,       June 30,     June 30,     June 30,
                               2009           2008         2009         2008
                           ---------      ---------    ---------    ---------

    Sales                   $12,345        $10,191      $24,980      $20,010
    Gross Profit                679          1,518        2,359        2,786
    Gross Profit %             5.5%          14.9%         9.4%        13.9%
    Net Income (loss)        (1,649)          (939)      (1,599)      (1,555)
    EBITDA(1)                  (914)           349         (167)         292
    Net Income (loss) per
     share-basic
     & diluted               ($0.02)        ($0.01)      ($0.02)      ($0.03)
    Weighted average
     number of shares
     outstanding
     - diluted               96,708         63,081       96,708       49,894

    EBITDA(1) reconciliations to GAAP Net Income/(Loss) for the three-month
    and six-month periods ended June 30, 2009 and 2008 are shown below. (All
    numbers below expressed in thousands):

                            3-Month        3-Month      6-Month      6-Month
                             Period         Period       Period       Period
                            June 30,       June 30,     June 30,     June 30,
                               2009           2008         2009         2008
                           ---------      ---------    ---------    ---------

    Net income (loss)
     per GAAP               ($1,649)         ($939)     ($1,599)     ($1,555)
    Add (deduct):
    Embedded foreign
     currency
     derivatives                258             10          349         (118)
    Interest expense            261            307          507          694
    Loss on settlement
     of subordinated
     debenture                    -            638            -          638
    Income tax recovery        (173)             -         (231)           -
    Depreciation and
     amortization               365            301          738          597
    Stock-based
     compensation                24             32           69           36
    EBITDA(1)                 ($914)          $349        ($167)        $292

    EBITDA(1) Earnings before embedded foreign currency derivatives,
    interest, taxes, depreciation, amortization, goodwill impairment, and
    stock-based compensation.
    

    Working capital, defined as current assets less current liabilities, as
at June 30, 2009, was $2,464 compared to $3,876 at December 31, 2008,
representing a decrease of $1,412. This decrease in working capital is
primarily explained by decrease in accounts receivables and inventories.
    Adeptron's unaudited 2009 second quarter financial statements and MD&A
will be available on Adeptron's web site on August 14, 2009 at
www.adeptron.com and the System for Electronic Document Analysis and Retrieval
("SEDAR") at www.sedar.com.

    About Adeptron:

    Adeptron is a specialist at delivering integrated product solutions and
support to the global technology and electronics industry. As a leading global
provider of complete Electronics Manufacturing Services (EMS), Adeptron offers
world class manufacturing facilities and global partners throughout Canada,
the United States, Israel and China, allowing the Company to provide its
customers the flexibility and scalability to competitively achieve total
solutions to their present and future electronics outsourcing needs. Adeptron
is a public company whose common shares are listed for trading on the Toronto
Stock Exchange (TSX) under the symbol: "ATQ". Visit Adeptron at:
www.adeptron.com.
    Adeptron is a public company whose common shares are listed for trading
on The Toronto Stock Exchange under the symbol: "ATQ". Visit Adeptron at:
www.adeptron.com or www.investorfile.com.

    THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION
RELATING TO SUCH MATTERS AS EXPECTED FINANCIAL PERFORMANCE, BUSINESS
PROSPECTS, TECHNOLOGICAL DEVELOPMENTS, DEVELOPMENT ACTIVITIES AND LIKE
MATTERS. THESE STATEMENTS INVOLVE RISK AND UNCERTAINTIES, INCLUDING BUT NOT
LIMITED TO RISK FACTORS DESCRIBED IN DOCUMENTS FILED WITH REGULATORY
AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED ANNUAL AND QUARTERLY
REPORTS AND ANNUAL INFORMATION FORM. ACTUAL RESULTS COULD DIFFER MATERIALLY
FROM THOSE PROJECTED AS A RESULT OF THESE RISKS AND SHOULD NOT BE RELIED UPON
AS A PREDICTION OF FUTURE EVENTS. ADEPTRON TECHNOLOGIES CORPORATION UNDERTAKES
NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR
CIRCUMSTANCES AFTER THE DATE ON WHICH SUCH STATEMENT IS MADE, OR TO REFLECT
THE OCCURRENCE OF UNANTICIPATED EVENTS.

    %SEDAR: 00012076E




For further information:

For further information: Adeptron Company Contact: F. Michael Marti,
President & Chief Executive Officer, Tel: (416) 705-6534,
fmmarti@adeptron.com; Francis K. Lindayen, Chief Financial Officer, Tel: (905)
470-0109 x2223, flindayen@adeptron.com

Organization Profile

ADEPTRON TECHNOLOGIES CORPORATION

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