Perceptron Announces Profitable Second Quarter Fiscal Year 2013 Financial Results

Perceptron Announces Profitable Second Quarter Fiscal Year 2013 Financial 
Results 
PLYMOUTH, MI -- (Marketwire) -- 02/12/13 --  Perceptron, Inc.
(NASDAQ: PRCP) today announced its results for the second quarter of
fiscal year 2013 that ended December 31, 2012.  
Net sales in the second quarter of fiscal year 2013 were $13.2
million while net income was $184,000, or $0.02 per diluted share. In
the second quarter of fiscal 2012, Perceptron reported net sales of
$16.2 million and net income of $1.7 million, or $0.20 per diluted
share. In the second quarter of fiscal 2012 the Company recorded a
loss from discontinued operations, net of taxes, of $375,000 or $0.05
per diluted share principally related to its Commercial Products
Business Unit (CBU) that was sold in August 2012. 
Year-to-date, net sales were $25.4 million, with income from
continuing operations of $813,000, or $0.10 per diluted share. This
compares with net sales of $25.4 million and income from continuing
operations of $927,000, or $0.11 per diluted share in the first six
months of fiscal year 2012. In the first half of fiscal year 2013,
the Company recorded a $26,000 gain, net of taxes, from the
discontinued operations of CBU. In the first half of fiscal year
2012, the Company recorded $1.4 million in losses from discontinued
operations, net of taxes, or $0.17 per diluted share, which resulted
from the settlement of a lawsuit against the Company's former Forest
Products business unit and from the results of the discontinued
operations of CBU. Year-to-date net income in fiscal 2013 was
$839,000, or $0.10 per diluted share, compared to a net loss of
$478,000, or a loss of $0.06 per diluted share, in fiscal 2012.  
"Our second quarter sales and operating income this year were
considerably lower compared to the very strong second quarter of
fiscal year 2012," said Jack Lowry, Perceptron's Chief Financial
Officer. "We experienced a very different quarterly sales pattern in
the first two quarters of this year, and expect to experience a
different pattern of sales in the third and fourth quarters, compared
to fiscal 2012. In fiscal 2012, our first quarter sales were very
soft, followed by very strong second and third quarter sales, and by
fairly soft fourth quarter sales. Thi
s year we have seen modest, but
improving sales in the first two quarters and anticipate
strengthening sales in each of the third and fourth quarters on a
sequential basis."  
"A shift in sales patterns from year to year is to be expected to
some extent in our business. However, despite these very different
quarterly sales patterns, on a year-to-date basis our financial
results in fiscal 2013 are very comparable to the first six months of
fiscal 2012. Our year-to-date sales are flat with last year, while
our gross margin is at 42.5% compared to 40.8% last year, and income
from continuing operations is down by $114,000, or approximately 12%
from last year. The drop in income from continuing operations this
year is due, in part, to our decision to increase our investment in
engineering R&D for Helix(R) over last year's levels and because
foreign exchange rates for the Euro throughout the first six months
this year were below the exchange rates last year."  
Harry Rittenour, President and Chief Executive Officer, added, "The
significant majority of our sales decline from the very strong $16.2
million level in the second quarter last year occurred in North
America. Sales in North America in the second quarter last year were
particularly strong due to several large, light truck projects that
were underway during the second and third quarters of fiscal 2012.
While bookings in the second quarter this year remain lower in North
America for similar reasons as outlined above, we are encouraged by
the increase in bookings in both Europe and Asia. Additionally, our
backlog remains strong at $29.7 million. During the second quarter,
we released an enhanced version of the first of five sensors in the
Helix family of sensors and an upgraded version of our core Vector
software platform. In January 2013 we released the second sensor of
the enhanced version of Helix sensors and by the end of the fiscal
year we expect to release three additional sensors in this family.
These releases will increase the types of applications we can perform
using the Helix technology." 
Highlights of Operations 
Geographic information on sales, bookings and backlog for the Company
from continuing operations in fiscal years 2013 and 2012 are shown in
the tables that follow: 


 
SALES                                                                       
(all numbers in millions)                                                   
                            Second Quarter Ending      Six months Ending    
                                 December 31              December 31       
                            Fiscal  Fiscal           Fiscal  Fiscal         
                             2013    2012   Change    2013    2012   Change 
                           ------- ------- -------  ------- ------- ------- 
Geographic Region                                                           
Americas                   $   5.0 $   7.7 $  (2.7) $  10.3 $  10.4 $  (0.1)
Europe                         5.2     4.7     0.5      9.3     8.8     0.5 
Asia                           3.0     3.8    (0.8)     5.8     6.2    (0.4)
                           ------- ------- -------  ------- ------- ------- 
Total Sales                $  13.2 $  16.2 $  (3.0) $  25.4 $  25.4 $   0.0 
                           ======= ======= =======  ======= ======= ======= 
                                                                            
                                                                            
BOOKINGS                                                                    
(all numbers in millions)                                                   
                            Second Quarter Ending      Six months Ending    
                                 December 31              December 31       
                            Fiscal  Fiscal           Fiscal  Fiscal         
                             2013    2012   Change    2013    2012   Change 
                           ------- ------- -------  ------- ------- ------- 
Geographic Region                                                           
Americas                   $   3.6 $  11.0 $  (7.4) $   6.7 $  17.8 $ (11.1)
Europe                         6.0     4.4     1.6     12.9    11.3     1.6 
Asia                           2.5     1.2     1.3      5.2     5.9    (0.7)
                           ------- ------- -------  ------- ------- ------- 
Total Bookings             $  12.1 $  16.6 $  (4.5) $  24.8 $  35.0 $ (10.2)
                           ======= ======= =======  ======= ======= ======= 

 
Note: the level of new order bookings fluctuates from quarter to
quarter and is not necessarily indicative of the future operating
performance of the Company.  


 
BACKLOG                                                                     
(all numbers in millions)                                                   
                                         Second Quarter Ending December 31  
                                        Fiscal 2013 Fiscal 2012    Change   
                                        ----------- ----------- ----------- 
Geographic Region                                                           
Americas                                $       8.7 $      
15.1 $      (6.4)
Europe                                         13.5        11.2         2.3 
Asia                                            7.5         7.3         0.2 
                                        ----------- ----------- ----------- 
Total Backlog                           $      29.7 $      33.6 $      (3.9)
                                        =========== =========== =========== 

 
Note: the level of backlog at any particular point in time is not
necessarily indicative of the future operating performance of the
Company.  
Second Quarter Results 
Sales were approximately $13.2 million, or 19%, below the $16.2
million in the second quarter of fiscal year 2012. The decrease
occurred in the Americas and Asia where sales in the second quarter
of fiscal year 2012 were particularly strong.  
Bookings in the quarter were approximately $12.1 million, or 27%,
lower than the $16.6 million booked in the second quarter of fiscal
year 2012. A $2.9 million increase in bookings in Europe and Asia was
offset by a $7.4 million reduction in bookings in the Americas.
Bookings in the second quarter last year were particularly strong in
the Americas at $11.0 million due to orders for light truck projects
in the U.S.  
The Company's backlog on December 31, 2012 was approximately $29.7
million, or 11.6% lower than the record backlog of $33.6 million at
December 31, 2011. Despite the decline, the Company's backlog remains
very strong.  
Gross margin decreased by approximately $2.5 million, or 32%,
compared to the second quarter of last year. The gross margin was
39.3% of sales in the second quarter this year compared to 47.2% last
year. The decline in gross margin percent was primarily due to the
impact of certain fixed cost of goods sold relative to the lower
sales levels and from the timing of the recognition of certain
labor-related expenses compared to the timing of revenue recognition. 
Selling, general, and administrative (SG&A) expenses increased by
approximately 1.4% over the second quarter of fiscal 2012 and were
primarily due to normal year-over-year cost increases.  
Engineering, research and development expenses were approximately
$284,000, or 22%, higher in the second quarter this year compared to
the second quarter one year ago. The increase was primarily due to
higher salary and salary related costs from the Company's decision to
increase its R&D investment in fiscal 2013. 
Financial Outlook 
Harry Rittenour commented, "We expect stronger sales in the second
half of fiscal 2013 compared to our sales in the first half. Sales
are expected to improve in the third quarter over the second quarter
of this year and be higher again in the fourth quarter. Based on
customer projects that are scheduled to begin in the near term, we
also expect bookings to increase significantly in the second half of
the year compared to the first half. Our backlog remains strong, at
approximately $29.7 million, and we expect it will increase in the
second half of the year. Based on our customers current schedules for
delivery and installation of our systems, we expect revenue in fiscal
year 2013 to be in the same range as in fiscal 2012, and we expect to
have similar income from continuing operations as in fiscal 2012. Our
outlook for fiscal 2014 shows a resumption of sales growth as our
customers continue to launch enticing new products and Helix
technology becomes a more significant component of our product
portfolio."  
Quarterly Earnings Call and Webcast 
Perceptron, Inc. will hold its second quarter earnings conference
call/webcast chaired by Harry T. Rittenour, President and Chief
Executive Officer, on Wednesday, February 13, 2013 at 10:00 AM (EST).
Investors can access the call at: 
Webcast    
 http://www.visualwebcaster.com/event.asp?id=92144  
Conference Call    
 888 427-9376 (domestic callers) or
 719 325-2215
(international callers)  
Conference ID
 9644929 
If you are unable to participate during the live webcast, the call
will be digitally rebroadcast for seven days, beginning at 2:00 PM
(EST) on Wednesday, February 13, 2013. 
Rebroadcast
 888 203-1112
(domestic callers) or
 719 457-0820 (international callers) 
Passcode
 9644929 
A replay of the call will also be available on the Company's website
at www.perceptron.com for approximately one year following the call. 
About Perceptron(R) 
 Perceptron develops, produces, and sells
non-contact measurement and inspection solutions for industrial
applications. The Company's products provide solutions for
manufacturing process control as well as sensor and software
technologies for non-contact measurement, scanning, and inspection
applications. Automotive and manufacturing companies throughout the
world rely on Perceptron's metrology solutions to help them manage
their complex manufacturing processes to improve quality, shorten
product launch times and reduce overall manufacturing costs. The
Company also offers Value Added Services such as training and
customer support services. Headquartered in Plymouth, Michigan,
Perceptron has approximately 230 employees worldwide, with operations
in the United States, Germany, France, Spain, Brazil, Japan,
Singapore, China and India. For more information, please visit
www.perceptron.com. 
Safe Harbor Statement 
 Certain statements in this press release may
be "forward-looking statements" within the meaning of the Securities
Exchange Act of 1934, including the Company's expectation as to its
fiscal year 2013, and future new order bookings, revenue, expenses,
income and backlog levels, trends affecting its future revenue
levels, the rate of new orders, the timing of revenue and income from
new products which we have recently released or have not yet
released, and the timing of the introduction of new products. When we
use words such as "will," "should," "believes," "expects,"
"anticipates," "estimates" or similar expressions, we are making
forward-looking statements. We claim the protection of the safe
harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 for all of our
forward-looking statements. While we believe that our forward-looking
statements are reasonable, you should not place undue reliance on any
such forward-looking statements, which speak only as of the date
made. Because these forward-looking statements are based on estimates
and assumptions that are subject to significant business, economic
and competitive uncertainties, many of which are beyond our control
or are subject to change, actual results could be materially
different. Factors that might cause such a difference include,
without limitation, the risks and uncertainties discussed from time
to time in our reports filed with the Securities and Exchange
Commission, including those listed in "Item 1A - Risk Factors" of the
Company's Annual Report on Form 10-K for fiscal 2012. Other factors
not currently anticipated by management may also materially and
adversely affect our financial condition, liquidity or results of
operations. Except as required by applicable law, we do not
undertake, and expressly disclaim, any obligation to publicly update
or alter our statements whether as a result of new information,
events or circumstances occurring after the date of this report or
otherwise. The Company's expectations regarding future booki
ngs and
revenues are projections developed by the Company based upon
information from a number of sources, including, but not limited to,
customer data and discussions. These projections are subject to
change based upon a wide variety of factors, a number of which are
discussed above. Certain of these new orders have been delayed in the
past and could be delayed in the future. Because the Company's
products are typically integrated into larger systems or lines, the
timing of new orders is dependent on the timing of completion of the
overall system or line. In addition, because the Company's products
have shorter lead times than other components and are required later
in the process, orders for the Company's tend to be issued later in
the integration process. A significant portion of the Company's
projected revenues and net income depends upon the Company's ability
to successfully develop and introduce new products, expand into new
geographic markets and successfully negotiate new sales or supply
agreements with new customers. Because a significant portion of the
Company's revenues are denominated in foreign currencies and are
translated for financial reporting purposes into U.S. Dollars, the
level of the Company's reported net sales, operating profits and net
income are affected by changes in currency exchange rates,
principally between the U.S. Dollar and Euro. Currency exchange rates
are subject to significant fluctuations, due to a number of factors
beyond the control of the Company, including general economic
conditions in the United States and other countries. Because the
Company's expectations regarding future revenues, order bookings,
backlog and operating results are based upon assumptions as to the
levels of such currency exchange rates, actual results could differ
materially from the Company's expectations. 


 
                              PERCEPTRON, INC.                              
                          SELECTED FINANCIAL DATA                           
                  (In Thousands Except Per Share Amounts)                   
                                                                            
                                                                            
Condensed Income Statements    Three Months Ended       Six Months Ended    
                                  December 31,            December 31,      
                                2012        2011        2012        2011    
                             ----------  ----------  ----------  ---------- 
Net Sales                    $   13,229  $   16,217  $   25,377  $   25,362 
Cost of Sales                     8,030       8,561      14,581      15,004 
                             ----------  ----------  ----------  ---------- 
    Gross Profit                  5,199       7,656      10,796      10,358 
Operating Expenses                                                          
Selling, General and                                                        
 Administrative Expense           3,456       3,407       6,819       6,647 
Engineering, Research and                                                   
 Development Expense              1,593       1,309       3,150       2,636 
                             ----------  ----------  ----------  ---------- 
    Operating Income                150       2,940         827       1,075 
Other Income and Expense                                                    
Interest Income, net                 32          65          76         131 
Foreign Currency and Other                                                  
 Income (Expense)                  (299)         14        (153)       (128)
                             ----------  ----------  ----------  ---------- 
Income (Loss) from                                                          
 Continuing Operations                                                      
 Before Income Taxes               (117)      3,019         750       1,078 
Income Tax Benefit (Expense)        301        (898)         63        (151)
                             ----------  ----------  ----------  ---------- 
Income (Loss) from                                                          
 Continuing Operations              184       2,121         813         927 
                             ----------  ----------  ----------  ---------- 
Discontinued Operations                                                     
  Litigation Settlement from                                                
   Forest Products Business                                                 
   Unit (net of $27 and $493                                                
   of tax benefit,                                                          
   respectively)                      -         (52)          -      (1,009)
  Commercial Products                                                       
   Business Unit (net of                                                    
   $166 tax benefit, $13 tax                                                
   expense and $202 tax                                                     
   benefit, respectively)             -        (323)         26        (396)
                             ----------  ----------  ----------  ---------- 
                                                                            
Net Income (Loss)            $      184  $    1,746  $      839  $     (478)
                             ==========  ==========  ==========  ========== 
                                                                            
Basic Earnings (Loss) Per                                                   
 Common Share                                                               
    Continuing operations    $     0.02  $     0.25  $     0.10  $     0.11 
    Discontinued operations           -       (0.05)          -       (0.17)
                             ----------  ----------  ----------  ---------- 
    Net income (loss)        $     0.02  $     0.20  $     0.10  $    (0.06)
                             ==========  ==========  ==========  ========== 
                                                                            
Diluted Earnings (Loss) Per                                                 
 Common Share                                                               
    Continuing operations    $     0.02  $     0.25  $     0.10  $     0.11 
    Discontinued operations           -       (0.05)          -       (0.17)
                             ----------  ----------  ----------  ---------- 
    Net income (loss)        $     0.02  $     0.20  $     0.10  $    (0.06)
                             ==========  ==========  ==========  ========== 
                                                                            
Weighted Average Common                                                     
 Shares Outstanding                                                         
    Basic                         8,505       8,421       8,464       8,470 
    Diluted                       8,569       8,531       8,541       8,470 
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                              PERCEPTRON, INC.                              
                           SELECTED FINANCIAL DATA                          
                                                                            
Condensed Balance Sheets                          December 31,    June 30,  
                                                      2012          2012    
                                                 ------------- -------------
Cash and Cash Equivalents                        $      13,224 $  
    12,984
Short-term Investments                                  10,640        11,227
Receivables, net                                        13,687        15,982
Inventories, net                                         6,576         5,396
Net Assets of Discontinued Operations                       52         1,365
Other Current Assets                                     3,715         3,519
                                                 ------------- -------------
  Total Current Assets                                  47,894        50,473
                                                                            
Property and Equipment, net                              5,624         5,497
Long-term Investments                                    2,192         2,192
Deferred Tax Asset                                       8,881         8,647
                                                 ------------- -------------
  Total Non-Current Assets                              16,697        16,336
                                                                            
                                                 ------------- -------------
    Total Assets                                 $      64,591 $      66,809
                                                 ============= =============
                                                                            
Accounts Payable                                 $       1,709 $       1,519
Deferred Revenue                                         5,938         7,812
Net Liabilities of Discontinued Operations                 300         1,443
Other Current Liabilities                                4,419         3,776
                                                 ------------- -------------
  Total Current Liabilities                             12,366        14,550
Shareholders' Equity                                    52,225        52,259
                                                 ------------- -------------
  Total Liabilities and Shareholders' Equity     $      64,591 $      66,809
                                                 ============= =============

  
Contact: 
Jack Lowry
Vice President of Finance and CFO
734 414-6100 
 
 
Press spacebar to pause and continue. Press esc to stop.