Adeptron Technologie : Adeptron Reports Third Quarter Results

TORONTO, Nov. 28, 2011/CNW/ - Adeptron Technologies Corporation  (ATQ: TSX-V) ("Adeptron" or the "Company"), a specialist at delivering integrated product solutions and support to the global technology and electronics industry, today reports unaudited third quarter financial results for the three-month and nine-month periods ended September 30, 2011.

Adeptron reports in U.S. dollars and all numbers below are expressed in thousands of U.S. dollars, except per share information and gross margin percentages.

On January 1, 2011, Adeptron adopted International Financial Reporting Standards ("IFRS") for financial reporting purposes, using a transition date of January 1, 2010. The financial statements for the three month and nine-month periods ended September 30, 2011, including required comparative information, have been prepared in accordance with International Financial Reporting Standards 1, First-time Adoption of International Financial Reporting Standards, and with International Accounting Standard ("IAS") 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"). Previously, the Company prepared its Interim and Annual Consolidated Financial Statements in accordance with Canadian generally accepted accounting principles ("previous GAAP"). Unless otherwise noted, 2010 comparative information has been prepared in accordance with IFRS.

The adoption of IFRS has not had an impact on the Company's operations, strategic decisions and cash flow. The most significant area of impact was the adoption of the IFRS upstream accounting principles. Further information on the IFRS impacts is provided in the Accounting Policies and Estimates Section of the MD&A, including reconciliations between previous GAAP and IFRS net earnings, operating earnings and other financial metrics and in the condensed consolidated interim financial statements for the period ended September 30, 2011which will be available on the Company's website at and the System for Electronic Document Analysis and Retrieval ("SEDAR") at on November 29, 2011.

Q3 2011 Financial Highlights:

• Sales decreased by $4,043or 38.3% over the third quarter of 2010 to $6,516,
• Gross margin decreased to 5.4% compared to 6.7% for the same quarterly period last year,
• Loss from continuing operations of $775compared to net loss of $1,041for the same quarterly period last year,
• Loss from discontinued operations of $95compared to net loss of $1,342for the same quarterly period last year,
• Net loss and comprehensive loss for period of $870compared to net loss of $2,383for the same quarterly period last year,
• Adjusted EBITDA loss from continuing operations of $270compared to an Adjusted EBITDA gain of $205for the same quarterly period last year,
• Adjusted EBITDA loss from discontinued operations of $nil compared to an Adjusted EBITDA loss of $196for the same quarterly period last year,
• Loss of $0.01per share compared to loss of $0.02per share for the same quarterly period last year,
• Cash provided by operating activities of $103during the quarter compared to cash provided by operating activities of $286for the same quarterly period last year.

Trent Carruthers, CEO of Adeptron stated, "Shipped revenue in the third quarter of 2011 was disappointing and below our expectations. Although we continued to experience some significant reductions in orders from our larger customers during the quarter which were expected, we were unable to complete orders of more than $1.2 milliongiven material procurement issues experienced during the quarter which resulted in part from flooding in Thailand. Overall, the lower sales revenue impacted overall profitability and margins which resulted in a net loss from continuing operations of $775compared to net loss of $1,041for the same period of 2010. Notwithstanding that the loss in the quarter was largely the result of lower sales; the Company also had significant charges to both severance and termination benefits of $154and a loss from discontinued operations of $95during the quarter, which resulted from further restructuring efforts."

"Although the quarter was disappointing, the sales order backlog for the fourth quarter remains strong and overall outlook from many customers has improved. We continue to be optimistic given the recent and potential revenue opportunities with new and existing customers spanning across many of the Company's industry sales segments and continue to focus on growing the business in 2012." continued Carruthers.

Carruthers added, "The efforts of the management team in attracting additional working capital in amount of $0.5 millionduring the quarter from R.H. Technologies, one of our majority shareholders, and motivation and commitment in pursuing the amalgamation with Artaflex Inc. of Markham, Ontario is evidence that we believe strongly in this business and our people. The recent execution of a definitive agreement between the Company and Artaflex on November 21, 2011allows the parties to move towards completing the transaction as quickly as possible.  Overall, we look forward to a new chapter for Adeptron and appreciate the continued support of our customers, suppliers, employees, lenders and shareholders during this important transition."

Q3-2011 - Financial Summary

Selected comparative financial information for the three-month and nine-month periods ended September 30, 2011and 2010 is shown below. (All numbers below expressed in thousands of U.S. dollars, except per share information and gross margin percentages):

Income Statement Continuing Operations	3-Month Period September 30, 2011	3-Month Period September 30, 2010	9-Month Period September 30, 2011	9-Month Period September 30, 2010
Sales	$6,516	$10,559	$25,045	$33,828
Gross Profit	352	709	2,469	2,622
Gross Profit %	5.4%	6.7%	9.9%	7.8%
Net Income (loss)	(775)	(1041)	(1,300)	(1,174)
Adjusted EBITDA2	(270)	205	93	966
Basic & diluted income (loss) per share	($0.01)	($0.02)	($0.01)	($0.01)
Number of common shares outstanding	96,708	96,708	96,708	96,708

EBITDA¹ and Adjusted EBITDA2 reconciliations to IFRS Net Income/(Loss) for the three-month and nine-month periods ended September 30, 2011and 2010 are shown below.  (All numbers below expressed in thousands of U.S. dollars):

	3-Month Period September 30, 2011	3-Month Period September 30, 2010	9-Month Period September 30, 2011	9-Month Period September 30, 2010
Net income (loss) per IFRS	($870)	($2,383)	($1,649)	($2,971)
Add (deduct):
Finance costs	169	193	594	595
Income tax expense (recovery)	-	-	-	-
Depreciation and amortization	202	266	608	829
EBITDA1	($499)	($1,924)	($447)	($1,547)
Loss (income) from discontinued operations	95	1,342	349	1,797
Severance and termination benefits	154	778	264	778
Embedded foreign currency derivatives	-	9	-	(74)
Stock-based compensation	(20)	-	(10)	12
Adjusted EBITDA2	($270)	$205	$126	$966

EBITDA means earnings before interest, taxes, depreciation and amortization.

2Adjusted EBITDA means earnings before interest, taxes, depreciation, amortization, loss on settlement of subordinated debenture, stock-based compensation, embedded foreign currency derivatives, goodwill impairment, severance and termination benefits and discontinued operations.

3EBITDA and Adjusted EBITDA are not recognized measures under IFRS. However, management believes that EBITDA and Adjusted EBITDA as herein defined are  useful supplemental measures to net income (loss), as it provides investors with an indication of cash earnings prior to debt service, capital expenditures, income taxes and other non-recurring and non-cash items. Readers should be cautioned, however, that EBITDA and Adjusted EBITDA should not be construed as an alternative to net income (loss) determined in accordance IFRS as an indicator of the Company's performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. The Company's method of calculating EBITDA and Adjusted EBITDA may differ from the methods by which other companies calculate EBITDA and Adjusted EBITDA and, accordingly, the EBITDA and Adjusted EBITDA used herein may not be comparable to measures used by other companies.

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, Chinaan Mexico, 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 TSX Venture Exchange under the symbol: "ATQ". Visit Adeptron at: .

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

For further information:

Adeptron Company Contact:		Adeptron Company Contact:
Trent Carruthers Chief Executive Officer Tel: [phone] [e-mail]		Jon Szczur Chief Financial Officer Tel: [phone] [e-mail]