Perceptron Announces Second Quarter Fiscal 2014 Financial Results

Perceptron Announces Second Quarter Fiscal 2014 Financial Results 
Backlog Grows to Record Level on Strong Quarterly Bookings 
PLYMOUTH, MI -- (Marketwired) -- 02/12/14 --   Perceptron, Inc.
(NASDAQ: PRCP) today announced its results for the second quarter of
its fiscal year 2014 that ended December 31, 2013. 
Net sales in the second quarter of fiscal year 2014 were $12.5
million with a net loss of $407,000, or ($0.05) per diluted share,
compared to net sales of $13.2 million and net income of $184,000, or
$0.02 per diluted share in the 2013 second fiscal quarter. Bookings
during the quarter were $17.0 million, or approximately 40.5% higher
than in the second quarter of fiscal year 2013 and were strong in all
geographic regions. Backlog grew to a record $40.4 million,
surpassing the previous record quarterly backlog of $35.9 million
achieved in the first quarter of fiscal year 2014. 
Net sales in the first half of fiscal year 2014 were $24.9 million
with a net loss of $995,000, or ($0.11) per diluted share, compared
to net sales of $25.4 million and net income of $839,000, or $0.10
per diluted share in the first half of fiscal 2013. Included in the
six months ended December 31, 2012, was a $26,000 gain, net of taxes,
from the discontinued operations of the Company's Commercial Products
Business Unit that was sold in August 2012.  
Jeff Armstrong, President and Chief Executive Officer, commented,
"Reported results for the second quarter and first half of fiscal
2014 were not reflective of Perceptron's strong competitive position
or our longer-term prospects. In fact, with backlog at a record $40.4
million, we expect significantly higher sales in the second half of
our 2014 fiscal year compared to the first six months of the year as
we deliver on scheduled shipments and begin to partially work down
that record backlog. In particular, we have a large number of
shipments and installations scheduled in Europe, a challenge we
believe our team is prepared to handle successfully. Sales for the
full fiscal year are expected to be in the same range as fiscal 2013
and we also expect a profitable fiscal year 2014." 
Armstrong added, "Our confidence in our full-year outlook is driven
by the positive reception our products continue to receive in our
core automotive markets. Over the past several months, we have been
recognized by several auto manufacturers for the contributions our
systems make to improving the quality of their vehicles while
enabling lower production costs." 
Highlights of Operations 
Geographic information on sales, bookings and backlog for the Company
from continuing operations in fiscal years 2014 and 2013 is shown in
the tables that follow: 


 
                                                                            
SALES (in millions)                                                         
                         Second Quarter Ending        Six months Ending     
                              December 31                December 31        
                        Fiscal   Fiscal            Fiscal   Fiscal          
                         2014     2013    Change    2014     2013    Change 
                       -------- -------- -------  -------- -------- ------- 
Geographic Region                                                           
Americas               $    4.4 $    5.0 $  (0.6) $    9.2 $   10.3 $  (1.1)
Europe                      5.7      5.2     0.5      10.3      9.3     1.0 
Asia                        2.4      3.0    (0.6)      5.4      5.8    (0.4)
                       -------- -------- -------  -------- -------- ------- 
Total Sales            $   12.5 $   13.2 $  (0.7) $   24.9 $   25.4 $  (0.5)
                       ======== ======== =======  ======== ======== ======= 
                                                                            
                                                                            
BOOKINGS (in millions)                                                      
                          Second Quarter Ending        Six months Ending    
                               December 31                December 31       
                         Fiscal   Fiscal            Fiscal   Fiscal         
                          2014     2013    Change    2014     2013    Change
                        -------- -------- -------  -------- -------- -------
Geographic Region                                                           
Americas                $    6.4 $    3.6 $   2.8  $   10.1 $    6.7 $   3.4
Europe                       5.4      6.0    (0.6)     15.1     12.9     2.2
Asia                         5.2      2.5     2.7       9.7      5.2     4.5
                        -------- -------- -------  -------- -------- -------
Total Bookings          $   17.0 $   12.1 $   4.9  $   34.9 $   24.8 $  10.1
                        ======== ======== =======  ======== ======== =======

 
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)                                                       
                                          Second Quarter Ending December 31 
                                         Fiscal 2014 Fiscal 2013    Change  
                                         ----------- ----------- -----------
Geographic Region                                                           
Americas                                 $       9.1 $       8.7 $       0.4
Europe                                          17.9        13.5         4.4
Asia                                            13.4         7.5         5.9
                                         ----------- ----------- -----------
Total Backlog                            $      40.4 $      29.7 $      10.7
                                         =========== =========== ===========

 
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 of $12.5 million in the current second quarter decreased
$700,000 compared to sales of $13.2 million in the second quarter a
year ago. The $500,000 sales increase in Europe was offset by small
declines in the Americas and Asia. The strength of the Euro this
quarter compared to the same quarter a year ago increased sales by
approximately $280,000. The Company's sales levels fluctuate from
quarter to quarter due to requested delivery schedules from our
customers.  
Bookings in all geographic regions were strong in the second quarter
of fiscal 2014 and represented significant increases in the Americas
and Asia when compared to the same quarter a year ago. Europe's
bookings decreased $600,000 when compared to the high second quarter
fiscal year 2013 bookings of $6.0 million. The stronger Euro in the
current quarter mitigated the bookings decrease by approximately
$420,000.  
The $40.4 million backlog at December 31, 2013, represented a record
level quarterly backlog for the Company. Backlog was $10.7 million or
36.0% higher than the second quarter a year ago and reflected
increases in all geographic regions, with the most significant
increases occurring in Asia and Europe.  
The gross margin percentage was comparable at 39.7% of sales in the
second quarter this year to 39.3% last year. In quarters where sales
are soft, the gross margin percentage is normally lower due to the
fixed nature of certain of the Company's cost of goods sold. Gross
margin was $5.0 million in the current quarter and decreased by
approximately $223,000, or 4.3%, compared to the second quarter of
last year due to the lower level of sales in the quarter.  
Selling, general, and administrative (SG&A) expenses increased
$142,000 or 4.1% compared to the second quarter of fiscal 2013. The
effect of the stronger Euro relative to the U.S. dollar in the second
quarter this year compared to the quarter last year represented
approximately one third of the increase. Higher recruiting and
relocation costs, and higher salary costs contributed to the
increase. 
Engineering, research and development expenses increased $49,000, or
3.1%, over the second quarter last year. The increase primarily
resulted from higher salary and salary related costs. 
The Company's financial position remained strong at December 31,
2013, with cash and short-term investments at $34.0 million, no debt
and shareholders' equity at $6.70 per diluted share. 
Quarterly Conference Call and Webcast 
Perceptron, Inc. will hold its second quarter conference call and
webcast chaired by Jeff Armstrong, President and Chief Executive
Officer, on Thursday, February 13, 2014 at 10:00 AM (EST). Investors
can access the call at: 
Webcast 
 http://www.visualwebcaster.com/event.asp?id=98005  
Conference Call 
 888 539-3612 (domestic callers) or
 719 325-2329
(international callers) 
Conference ID 
 2071667 
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 Thursday, February 13, 2014. 
Rebroadcast 
 888 203-1112 (domestic callers) or
 719 457-0820
(international callers) 
Passcode 
 2071667 
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 3D machine vision solutions for measurement, inspection,
and robot guidance in industrial applications. Manufacturing
companies throughout the world rely on Perceptron's hardware and
software solutions to help them manage their complex manufacturing
processes to improve quality, shorten product launch times and reduce
costs. Perceptron also offers Value Added Services such as training
and customer support services. Headquartered in Plymouth, Michigan,
Perceptron has approximately 240 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 2014, 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," "prospects" 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 2013. 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, Euro, Chinese
Yuan and Japanese Yen. 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,     
                                    2013       2012       2013       2012   
                                 ---------  ---------  ---------  --------- 
Net Sales                        $  12,519  $  13,229  $  24,891  $  25,377 
Cost of Sales                        7,543      8,030     15,628     14,581 
                                 ---------  ---------  ---------  --------- 
  Gross Profit                       4,976      5,199      9,263     10,796 
Operating Expenses                                                          
Selling, General and                                                        
 Administrative Expense              3,598      3,456      7,074      6,819 
Engineering, Research and                                                   
 Development Expense                 1,642      1,593      3,296      3,150 
                                 ---------  ---------  ---------  --------- 
  Operating Income (Loss)             (264)       150     (1,107)       827 
Other Income and Expense                                                    
Interest Income, net                    51         32         63         76 
Foreign Currency and Other                                                  
 Expense                              (245)      (299)      (249)      (153)
                                 ---------  ---------  ---------  --------- 
Income (Loss) from Continuing                                               
 Operations Before Income Taxes       (458)      (117)    (1,293)       750 
Income Tax Benefit                      51        301        298         63 
                                 ---------  ---------  ---------  --------- 
Income (Loss) from Continuing                                               
 Operations                           (407)       184       (995)       813 
                                 ---------  ---------  ---------  --------- 
Discontinued Operations                                                     
  Commercial Products Business                                              
   Unit (net of $13 tax expense)         -          -          -         26 
                                 ---------  ---------  ---------  --------- 
                                                                            
Net Income (Loss)                $    (407) $     184  $    (995) $     839 
                                 =========  =========  =========  ========= 
                                                                            
Basic Earnings (Loss) Per Common                                            
 Share                                                                      
  Continuing operations          $   (0.05) $    0.02  $   (0.11) $    0.10 
  Discontinued operations                -          -          -          - 
                                 ---------  ---------  ---------  --------- 
  Net Income (Loss)              $   (0.05) $    0.02  $   (0.11) $    0.10 
                                 =========  =========  =========  ========= 
                                                                            
Diluted Earnings (Loss) Per                                                 
 Common Share                                                               
  Continuing operations          $   (0.05) $    0.02  $   (0.11) $    0.10 
  Discontinued operations                -          -          -          - 
                                 ---------  ---------  ---------  --------- 
  Net Income (Loss)              $   (0.05) $    0.02  $   (0.11) $    0.10 
                                 =========  =========  =========  ========= 
                                                                            
Weighted Average Common Shares                                              
 Outstanding                                                                
  Basic                              8,972      8,505      8,827      8,464 
  Diluted                            8,972      8,569      8,827      8,541 
                                                                            
                                                                            
                                                                            
                              PERCEPTRON, INC.                              
                           SELECTED FINANCIAL DATA                          
                               (In Thousands)                               
                                                                            
Condensed Balance Sheets                          December 31,    June 30,  
                                                      2013          2013    
                                                 ------------- -------------
Cash and Cash Equivalents                        $      18,121 $      13,364
Short-term Investments                                  15,860        13,321
Receivables, net                                        12,368        22,266
Inventories, net                                         8,220         6,783
Other Current Assets                                     3,032         2,810
                                                 ------------- -------------
  Total Current Assets                                  57,601        58,544
                                                                            
Property and Equipment, net                              5,586         5,578
Long-term Investments                                      725           725
Deferred Tax Asset                                       9,134         9,298
                                                 ------------- -------------
  Total Non-Current Assets                              15,445        15,601
                                                                            
                                                 ------------- -------------
    Total Assets                                 $      73,046 $      74,145
                                                 ============= =============
                                                                            
Accounts Payable                                 $       1,626 $       2,561
Deferred Revenue                                         6,881         6,496
Other Current Liabilities                                4,426         8,193
                                                 ------------- -------------
  Total Current Liabilities                             12,933        17,250
Shareholders' Equity                                    60,113        56,895
                                                 ------------- -------------
  Total Liabilities and Shareholders' Equity     $      73,046 $      74,145
                                                 ============= =============

  
Contact: 
Sylvia M. Smith
Vice President and Acting CFO
734 414-4816 
 
 
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