TORONTO – Adeptron Technologies Corp. reported a third-quarter loss of $1.12 million, including a one-time $460,263 restructuring charge for consolidation of its Markham manufacturing facilities.

Third-quarter sales were $8.4 million, down 22.6% year-over-year. This decrease is primarily attributable to a significant reduction in sales generated from the company's former largest customer, Adeptron said. In the current quarter, sales to that customer decreased by approximately $3 million compared to the third quarter last year.

“Although Q3 results were a disappointment, we see Q4 bouncing back with an expected revenue increase over Q3, along with significant growth in 2008," F. Michael Marti, president and CEO said.

Marti continued, "We made the conscious decision earlier this year to be proactive in the delivery of efficiency improvements in preparation for the strong Canadian currency in 2008. Management completed execution of a restructuring plan in Q3, resulting in the consolidation of Adeptron's two Markham facilities to provide ongoing cost savings with no loss of production capacity."

"A further hedge against exposure to foreign exchange fluctuations is derived from our new customer activity in the USA. As our USA-based business activity grows, it provides balance to Adeptron's operations between Canada and the U.S.," said Marti.

Marti continued, "The expected resurgence in our sales growth, our lower per unit cost structure resulting from the restructuring, and a reduced impact of foreign exchange fluctuations are expected to be the catalysts which should lead to a healthy 2008 ... "

 

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