Perceptron Announces Profitable Third Quarter Fiscal Year 2013 Financial Results

Perceptron Announces Profitable Third Quarter Fiscal Year 2013 Financial Results 
PLYMOUTH, MI -- (Marketwired) -- 05/08/13 --  Perceptron, Inc.
(NASDAQ: PRCP) today announced its results for the third quarter of
fiscal year 2013, which ended March 31, 2013.  
"In fiscal 2013 we have seen improving sales in each of the first
three quarters and anticipate stronger sales again in the fourth
quarter," said Jack Lowry, Perceptron's Chief Financial Officer. "As
we have previously indicated, we expected to experience a very
different quarterly sales pattern this year compared to fiscal 2012.
In fiscal 2012, we had a very strong second quarter, and a record
third quarter in sales. While sales in the third quarter this year
compared unfavorably with the third quarter of fiscal 2012, we see
this as a result of the record level last year and not an indication
of any particular weakness in the third quarter this year." 
Net sales in the third quarter of fiscal year 2013 were $14.8
million, while income from continuing operations was $1.3 million, or
$0.16 per diluted share. In the third quarter of fiscal 2012,
Perceptron reported net sales of $19.2 million and income from
continuing operations of $3.2 million, or $0.38 per diluted share. In
the third quarter of fiscal 2013 the Company recorded a gain from
discontinued operations, of $31,000 net of taxes, compared to a loss
from discontinued operations in the third quarter of fiscal 2012 of
$463,000 ($0.05 per diluted share) related to its Commercial Products
Business Unit (CBU) that was sold in August 2012. Net income for the
third quarter was $1.4 million, or $0.16 per diluted share, compared
to net income of $2.8 million, or $0.33 per diluted share in the
third quarter of fiscal year 2012. 
For the first nine months of fiscal year 2013, net sales were $40.1
million and income from continuing operations was $2.1 million, or
$0.25 per diluted share. This compares with net sales of $44.6
million and income from continuing operations of $4.2 million, or
$0.48 per diluted share, in the first nine months of fiscal year
2012. In the first nine months of fiscal year 2013, the Company
recorded a $57,000 gain, net of taxes, or $0.01 per diluted share,
from the discontinued operations of CBU. In the f
irst nine months of
fiscal year 2012, the Company recorded $1.9 million in losses from
discontinued operations, net of taxes, or a loss of $0.22 per diluted
share, 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 $2.2 million, or $0.26 per diluted share, compared to net
income of $2.3 million, or $0.26 per diluted share, in fiscal 2012.  
Jack Lowry continued, "We are particularly pleased with our gross
margin and operating income in the third quarter this year. Not only
was our gross margin very strong at 49.7%, but our operating income
for the quarter represented 15.6% of sales. Bookings of $14.9 million
in the third quarter this year were essentially at the same level as
sales in the quarter, at $14.8 million, resulting in our backlog
remaining about the same at $29.8 million. Selling, general, and
administrative cost increased by $161,000, or 5.0% over the third
quarter of fiscal year 2012. The principal reasons for the increase
were higher salary and related expenses this year. Engineering R&D
cost increased by $226,000, or 16% over the same quarter last year.
Engineering R&D cost has been higher than last year in each quarter
this year due to our decision to add resources to engineering in
fiscal year 2013. The increase in engineering cost was principally
due to higher salary, payroll taxes and benefit related expenses. The
$249,000 foreign currency loss in the third quarter this year was due
to the continued weakness of the Japanese yen relative to the U.S.
dollar. Our balance sheet remains very strong with $24.8 million in
cash and short-term investments, no debt, and book value of $6.25 per
share based on 8,556,347 total shares outstanding on March 31, 2013." 
Harry Rittenour, President and Chief Executive Officer, added, "We
are pleased with third quarter earnings of $0.16 per diluted share on
sales of less than $15.0 million. We expect our sales and operating
income to be stronger in the fourth quarter this year compared to
last year. Our Helix technology developments continue to be on
schedule. We just released the third of five sensors with different
standoffs and expect to complete the two remaining sensors in the
enhanced family by the end of our fiscal year. The release of the
additional sensors will increase the types of applications we can
perform using our Helix technology. 
"We are pleased that, yesterday, the Board of Directors declared
Perceptron's first annual regular dividend of $0.15 for fiscal year
2013, to be paid on June 27, 2013 to shareholders of record on June
6, 2013. This dividend represents a yield of 2.1% based on our May 6
closing price, and adds further to the return our shareholders have
received so far this fiscal year. Our stock price began fiscal year
2013 at $5.50 per share and closed on May 6, 2013 at $7.20, for a
fiscal year-to-date return of 35.4%, adjusted for the special
dividend paid in November."  
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                                                                       
(in millions)                                                               
                          Third Quarter Ended         Nine months Ended     
                                March 31                   March 31         
                        Fiscal   Fiscal            Fiscal   Fiscal          
                         2013     2012    Change    2013     2012    Change 
                       -------- -------- -------  -------- -------- ------- 
Geographic Region                                                           
Americas               $    5.5 $    9.5 $  (4.0) $   15.8 $   19.9 $  (4.1)
Europe                      8.0      5.9     2.1      17.3     14.7     2.6 
Asia                        1.3      3.8    (2.5)      7.0     10.0    (3.0)
                       -------- -------- -------  -------- -------- ------- 
Total Sales            $   14.8 $   19.2 $  (4.4) $   40.1 $   44.6 $  (4.5)
                       ======== ======== =======  ======== ======== ======= 
                                                                            
                                                                            
BOOKINGS                                                                    
(in millions)                                                               
                          Third Quarter Ended          Nine months Ended    
                              March 31                    March 31          
                        Fiscal   Fiscal            Fiscal   Fiscal          
                         2013     2012    Change    2013     2012    Change 
                       -------- -------- -------  -------- -------- ------- 
Geographic Region                                                           
Americas               $    5.9 $    7.0 $  (1.1) $   12.7 $   24.7 $ (12.0)
Europe                      4.4      5.5    (1.1)     17.3     16.9     0.4 
Asia                        4.6      5.
0    (0.4)      9.8     10.9    (1.1)
                       -------- -------- -------  -------- -------- ------- 
Total Bookings         $   14.9 $   17.5 $  (2.6) $   39.8 $   52.5 $ (12.7)
                       ======== ======== =======  ======== ======== ======= 

 
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                                          
(in millions)                                    
                          Third Quarter Ended    
                                March 31         
                        Fiscal   Fiscal          
                         2013     2012    Change 
                       -------- -------- ------- 
Geographic Region                                
Americas               $    9.0 $   12.4 $  (3.4)
Europe                      9.9     10.9    (1.0)
Asia                       10.9      8.5     2.4 
                       -------- -------- ------- 
Total Backlog          $   29.8 $   31.8 $  (2.0)
                       ======== ======== ======= 

 
Note: the level of backlog at any particular point in time is not
necessarily indicative of the future operating performance of the
Company.  
Financial Outlook 
Harry Rittenour commented, "Our backlog remains strong at
approximately $29.8 million and we expect a robust fourth quarter of
bookings. Based on our customers' current schedules for delivery and
installation of our systems, we continue to expect revenue in fiscal
year 2013 to be in the same range as in fiscal 2012 and we expect our
fourth quarter to be profitable. We remain confident in our outlook
for growth in sales in fiscal 2014 as our customers continue to
launch appealing new products and our Helix technology becomes a more
significant component of our product portfolio. 
"We are in the process of finalizing our plans for our investor day
at our Plymouth headquarters on Wednesday, May 22, 2013. As part of
the day, we plan to conduct demonstrations of product applications in
order to provide investors with a better understanding of how our
current and new systems provide value to our customers. We will also
hold a question and answer session and one of our customers will
discuss how they use Perceptron's systems in their assembly process.
Investors interested in attending who have not notified us to-date,
should contact Jill Bamford at 734-414-4810." 
Quarterly Earnings Call and Webcast 
Perceptron, Inc. will hold its third quarter earnings conference
call/webcast, chaired by Harry T. Rittenour, President and Chief
Executive Officer, on Thursday, May 9, 2013 at 10:00 AM (EDT).
Investors can access the call at: 
Webcast 
 http://www.visualwebcaster.com/event.asp?id=93869  
Conference Call 
 888 312-3048 (domestic callers) or
 719 325-2448
(international callers) 
Conference ID 
 9527386 
If you are unable to participate during the live webcast, the call
will be digitally rebroadcast for seven days, beginning at 2:00 PM
(EDT) on Thursday, May 9, 2013. 
Rebroadcast 
 888 203-1112 (domestic callers) or
 719 457-0820
(international callers) 
Passcode 
 9527386 
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, future new order bookings, revenue, expenses,
income and backlog levels, future dividend payments, 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 bookings 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 products 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     Nine Months Ended  
                                       March 31,             March 31,      
                                    2013       2012       2013       2012   
                                 ---------  ---------  ---------  --------- 
Net Sales                        $  14,765  $  19,191  $  40,142  $  44,553 
Cost of Sales                        7,420      9,513     22,001     24,517 
                                 ---------  ---------  ---------  --------- 
                                                                            
      Gross Profit                   7,345      9,678     18,141     20,036 
                                                                            
Operating Expenses                                                          
Selling, General and                                                        
 Administrative Expense              3,413      3,252     10,232      9,899 
Engineering, Research and                                                   
 Development Expense                 1,636      1,410      4,786      4,046 
                                 ---------  ---------  ---------  --------- 
                                                                            
      Operating Income               2,296      5,016      3,123      6,091 
                                                                            
Other Income and Expense                                                    
Interest Income, net                    50         57        126        188 
Foreign Currency and Other                                                  
 Expense                              (249)      (243)      (402)      (371)
                                 ---------  ---------  ---------  --------- 
Income from Continuing                                                      
 Operations Before Income Taxes      2,097      4,830      2,847      5,908 
Income Tax Expense                    (761)    (1,602)      (698)    (1,753)
                                 ---------  ---------  ---------  --------- 
Income from Continuing                                                      
 Operations                          1,336      3,228      2,149      4,155 
                                 ---------  ---------  ---------  --------- 
                                                                            
Discontinued Operations                                                     
  Litigation Settlement from                                                
   Forest Products Business Unit                                            
   (net of $493 of tax benefit)          -          -          -     (1,009)
                                                                            
  Commercial Products Business                                              
   Unit (net of $16 tax expense,                                            
   $237 tax benefit, $29 tax                                                
   expense and $439 tax benefit,                                            
   respectively)                        31       (463)        57       (859)
                                 ---------  ---------  ---------  --------- 
                                                                            
Net Income                       $   1,367  $   2,765  $   2,206  $   2,287 
                                 =========  =========  =========  ========= 
                                                                            
Basic Earnings (Loss) Per Common                                            
 Share                                                                      
      Continuing operations      $    0.16  $    0.38  $    0.25  $    0.49 
      Discontinued operations            -      (0.05)      0.01      (0.22)
                                 ---------  ---------  ---------  --------- 
      Net income                 $    0.16  $    0.33  $    0.26  $    0.27 
                                 =========  =========  =========  ========= 
                                                                            
Diluted Earnings (Loss) Per                                                 
 Common Share                                                               
      Continuing operations      $    0.16  $    0.38  $    0.25  $    0.48 
      Discontinued operations            -      (0.05)      0.01      (0.22)
                                 ---------  ---------  ---------  --------- 
      Net income                 $    0.16  $    0.33  $    0.26  $    0.26 
                                 =========  =========  =========  ========= 
                                                                            
Weighted Average Common Shares                                              
 Outstanding                                                                
      Basic                          8,538      8,393      8,489      8,444 
      Diluted                        8,647      8,498      8,568      8,562 
                                                                            
                                                                            
                                                                            
                              PERCEPTRON, INC.                              
                           SELECTED FINANCIAL DATA                          
                   (In Thousands Except Per Share Amounts)                  
                                                                            
Condensed Balance Sheets                                March 31,  June 30, 
                                                          2013       2012   
                                                       ---------- ----------
Cash and Cash Equivalents                              $   12,602 $   12,984
Short-term Investments                                     12,204     11,227
Receivables, net                                           13,731     15,982
Inventories, net                                            7,382      5,396
Net Assets of Discontinued Operations                           -      1,365
Other Current Assets                                        3,782      3,519
                                                       ---------- ----------
      Total Current Assets                                 49,701     50,473
                                                                            
Property and Equipment, net                                 5,652      5,497
Long-term Investments                                       2,192      2,192
Deferred Tax Asset                                          8,537      8,647
                                                       ---------- ----------
      Total Non-Current Assets                             16,381     16,336
                                                                            
                                                       ---------- ----------
         Total Assets                                  $   66,082 $   66,809
                                                       ========== ==========
                                                                            
Accounts Payable                                       $    1,539 $    1,519
Deferred Revenue                                            5,549      7,812
Net Liabilities of Discontinued Operations                     30      1,443
Other Current Liabilities                                   5,504      3,776
                                                       ---------- ----------
      Total Current Liabilities                            12,622     14,550
Shareholders' Equity                                       53,460     52,259
                                                       ---------- ----------
      Total Liabilities and Shareholders' Equity       $   66,082 $   66,809
                                                       ========== ==========

  
Contact: 
Jack Lowry
Vice President of Finance and CFO
734 414-6100