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Segment Information (Notes)
 6 Months Ended
Dec. 29, 2012
Segment Reporting [Abstract]  
Segment Information
Segment Information
The Company discloses certain information regarding operating segments, products and services, geographic areas of operation and major customers. This reporting is based upon the “management approach”: how management organizes the Company’s operating segments for which separate financial information is (i) available and (ii) evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Adept’s chief operating decision maker is its Chief Executive Officer, or CEO.
Adept’s business is focused towards delivering intelligent, flexible production automation products, components and services for assembly, packaging, material handling and lab automation applications under two operating segments: Robotics and Services and Support.
•
The Robotics segment provides intelligent motion control systems, production automation software, including vision-guidance and application software, and robot mechanisms, including robots with autonomous capabilities, to customers.
•
The Services and Support segment provides support services to customers including: spare parts for, and/or remanufacture of, robot mechanisms; information regarding the use of the Company’s automation equipment; ongoing support of installed systems; consulting services for applications; and training courses ranging from system operation and maintenance to advanced programming, geared towards manufacturing engineers who design and implement automation lines.
The Company evaluates performance and allocates resources based on segment revenue and segment operating income. Segment operating income is comprised of income before unallocated research, development and engineering expenses, unallocated selling, general and administrative expenses, interest income, and interest 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. There is no inter-segment revenue recognized. Transfers of materials or labor between segments are recorded at cost.
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. The operating results for the Company’s identified segments are presented as follows (in thousands).
 
Three Months Ended
 
Six Months Ended
(unaudited)
December 29, 2012
 
December 31, 2011
 
December 29, 2012
 
December 31, 2011
Revenues:
 
 
 
 
 
 
 
Robotics
$
8,199

 
$
12,874

 
$
17,051

 
$
26,098

Services and Support
2,609

 
2,278

 
5,127

 
5,673

Total revenues
$
10,808

 
$
15,152

 
$
22,178

 
$
31,771

Segment operating income (loss):
 
 
 
 
 
 
 
Robotics
$
(1,190
)
 
$
3,271

 
$
(1,834
)
 
$
4,993

Services and Support
542

 
245

 
1,432

 
1,118

Segment operating income (loss)
(648
)
 
3,516

 
(402
)
 
6,111

Unallocated research, development and engineering and general and administrative expenses
(2,458
)
 
(3,994
)
 
(5,282
)
 
(6,907
)
Restructuring charges
(392
)
 
(423
)
 
(395
)
 
(423
)
Amortization of intangible assets
(116
)
 
(116
)
 
(233
)
 
(233
)
Impairment of intangibles and goodwill
(1,708
)
 
—

 
(1,708
)
 
—

Operating loss
(5,322
)
 
(1,017
)
 
(8,020
)
 
(1,452
)
Net interest expense
(40
)
 
(58
)
 
(49
)
 
(113
)
Foreign currency exchange gain (loss)
262

 
(121
)
 
(104
)
 
(221
)
Loss before income taxes
$
(5,100
)
 
$
(1,196
)
 
$
(8,173
)
 
$
(1,786
)

Management also assesses the Company’s performance, operations and assets by geographic areas, and, therefore, revenue and long-lived tangible assets related to continuing operations are summarized in the following tables (in thousands):
 
Three Months Ended
 
Six Months Ended
(unaudited)
December 29, 2012
 
December 31, 2011
 
December 29, 2012
 
December 31, 2011
Revenues:
 
 
 
 
 
 
 
United States
$
2,675

 
$
4,683

 
$
6,426

 
$
8,195

Europe
6,194

 
6,576

 
11,534

 
14,967

Asia
1,679

 
2,265

 
3,587

 
6,426

All other countries
260

 
1,628

 
631

 
2,183

Total
$
10,808

 
$
15,152

 
$
22,178

 
$
31,771


(unaudited)
December 29, 2012
 
June 30, 2012
Long-lived tangible assets:
 
 
 
United States
$
1,661

 
$
1,997

All other countries
420

 
416

Total long-lived tangible assets
$
2,081

 
$
2,413


Adept’s revenues are reported by geographic region based on the ship-to location of the customer order. Revenues by country are broken out when they exceed 10% of total revenue or deemed useful.
Goodwill
At December 29, 2012, Adept had $1.5 million in goodwill related to the acquisition of MobileRobots in the fourth quarter of fiscal 2010. The goodwill from the acquisition of InMoTx in the third quarter of fiscal 2011 was fully impaired during the three months ended December 29, 2012. See Note 6 of the Notes to Consolidated Financial Statements for discussion of the impairment of goodwill and intangible assets. All of the goodwill is carried in the Robotics segment and none is allocated to the Service and Support segment.