Perceptron Announces Third Quarter Fiscal 2014 Financial Results

Perceptron Announces Third Quarter Fiscal 2014 Financial Results 
Strong Sales and Return to Year-to-Date Profitability 
PLYMOUTH, MI -- (Marketwired) -- 05/06/14 --   Perceptron, Inc.
(NASDAQ: PRCP) today announced results for the third quarter and nine
months of its fiscal year 2014.  


 
                                                                            
Financial Highlights (in millions, except per share data)                   
                                                                            
                                                                            
                 Third Quarter Ending March 31  Nine months Ending March 31 
                   Fiscal    Fiscal              Fiscal    Fiscal           
                    2014      2013     Change     2014      2013    Change  
                 --------- --------- --------- --------- --------- -------- 
                                                                            
Net Sales        $    17.3 $    14.8 $     2.5 $    42.2 $    40.1 $    2.1 
Net Income             2.5       1.4       1.1       1.5       2.2     (0.7)
                                                                            
Diluted Earnings                                                            
 per Share       $    0.26 $    0.16 $    0.10 $    0.16 $    0.26 $  (0.10)

 
Jeff Armstrong, President and Chief Executive Officer, commented, "As
we anticipated, delivery of scheduled shipments in Europe and higher
sales of Automated Systems in Asia drove strong third quarter sales
and led to a net profit for both the quarter and nine-month period.
During the quarter, we began a forecasted reduction in backlog from
the record level it had reached at the end of the second quarter. We
expect to further lower our backlog in the fourth fiscal quarter, as
we anticipate another strong quarter of sales in excess of bookings.
For full-year 2014, we project to be profitable and will have sales
comparable to fiscal 2013." 
Mr. Armstrong added, "Perceptron's non-contact 3D measurement
solutions offer manufacturers a significant value proposition. Our
solutions help them improve quality, reduce costs and shorten their
product development cycle while offering service and support from our
global operations. We will continue to leverage these strengths over
the next several years to grow revenue and increase shareholder value
by implementing a four-part strategy to continue to expand
profitability in our core markets, pursue prudent diversification,
extend our technological leadership, and maintain fiscal discipline
to ensure strong profitability." 


 
                                                                            
Highlights of Operations                                                    
                                                                            
                                                                            
SALES (in millions)                                                         
                Third Quarter Ending March 31   Nine months Ending March 31 
                  Fiscal    Fiscal               Fiscal    Fiscal           
                   2014      2013     Change      2014      2013    Change  
                --------- --------- ---------  --------- --------- -------- 
Geographic                                                                  
 Region                                                                     
Americas        $     3.0 $     5.5 $    (2.5) $    12.2 $    15.8 $   (3.6)
Europe                9.6       8.0       1.6       20.0      17.3      2.7 
Asia                  4.7       1.3       3.4       10.0       7.0      3.0 
                --------- --------- ---------  --------- --------- -------- 
 Total Sales    $    17.3 $    14.8 $     2.5  $    42.2 $    40.1 $    2.1 
                ========= ========= =========  ========= ========= ======== 

 
Sales of $17.3 million in the current third quarter increased $2.5
million, or 16.9%, over third quarter a year ago. The largest
increase of $3.4 million in Asia was primarily due to increased
Automated Systems sales. European sales were strong at $9.6 million
due to a large number of shipments in the quarter. The strength of
the Euro in the third quarter compared to the same quarter a year ago
increased sales by approximately $470,000. The Company's sales levels
fluctuate from quarter-to-quarter due to requested delivery schedules
from our customers.  


 
                                                                            
BOOKINGS (in millions)                                                      
                                                                            
                 Third Quarter Ending March 31   Nine months Ending March 31
                   Fiscal    Fiscal               Fiscal    Fiscal          
                    2014      2013     Change      2014      2013    Change 
                 --------- --------- ---------  --------- --------- --------
Geographic                                                                  
 Region                                                                     
Americas         $     4.7 $     5.9 $    (1.2) $    14.7 $    12.7 $    2.0
Europe                 5.6       4.4       1.2       20.8      17.3      3.5
Asia                   2.9       4.6      (1.7)      12.5       9.8      2.7
                 --------- --------- ---------  --------- --------- --------
 Total Bookings  $    13.2 $    14.9 $    (1.7) $    48.0 $    39.8 $    8.2
                 ========= ========= =========  ========= ========= ========

 
Bookings for the quarter were $1.7 million lower than the same quarter
a year ago; lower bookings in the Americas and Asia are in line with
expectations given the high level of bookings in those regions in the
second quarter of this fiscal year. On a year-to-date basis, bookings
outpaced last fiscal year-to-date by $8.2 million, primarily driven
by increased orders for Automated Systems products. The level of
bookings fluctuates from quarter-to-quarter and is not necessarily
indicative of the future operating performance of the Company.  


 
                                                                            
BACKLOG (in millions)                                                       
                                                       As of March 31 in    
                                                    Fiscal    Fiscal        
                                                     2014      2013   Change
                                                  --------- --------- ------
Geographic Region                                                           
Americas                                          $    10.8 $     9.0 $  1.8
Europe                                                 13.9       9.9    4.0
Asia                                                   11.6      10.9    0.7
                                                  --------- --------- ------
  Total Backlog                                   $    36.3 $    29.8 $  6.5
                                                  ========= ========= ======

 
Backlog at the end of the quarter was $6.5 million or 21.8%, higher
than a year ago. The increase primarily was due to increased
Automated Systems orders in all geographic regions, with the most
significant increase occurring in Europe. Backlog declined as
expected from a record $40.4 million at December 31, 2013, and the
Company anticipates a further slight reduction in the backlog next
quarter. The level of backlog at any particular point in time is not
necessarily indicative of the future operating performance of the
Company.  
Gross Margin - Gross margin was $8.2 million in the current quarter
and increased by approximately $817,000, or 11.1%, from the third
quarter of last year primarily due to the higher level of sales in
the quarter. Gross margin percentage of 47.1% decreased from 49.7% in
the year-ago third quarter primarily attributable to the Company's
product mix. As anticipated, the gross margin for the first nine
months of the year increased to 41.3%, from 37.2% reported for the
first six months of this fiscal year. The fixed nature of certain
cost of goods sold can affect a variation in gross margin percentages
from quarter-to-quarter.  
Selling, General, and Administrative (SG&A) - SG&A expenses increased
$500,000, or 14.6%, compared to the third quarter of fiscal 2013.
Higher overall salary and related costs, and expenses associated with
recent executive-level hiring contributed to the year-over-year
increase.  
Financial Position - The Company's financial position and liquidity
remained strong at March 31, 2014, with cash and short-term
investments of $33.9 million. The Company has no debt and
shareholders' equity is $6.75 per diluted share. 
Quarterly Investor Call and Webcast 
Perceptron, Inc. will hold its third quarter earnings conference
call/webcast chaired by Jeff Armstrong, President and Chief Executive
Officer, on Wednesday, May 7, 2014, at 10:00 AM (EDT). Investors can
access the call at: 
Webcast http://www.visualwebcaster.com/event.asp?id=99007  
Conference Call 
 888 500-6950 (domestic callers) or
 719 325-2402
(international callers)
 Conference ID 9251988 
If you are unable to participate during the live webcast, a replay of
the call will be digitally available for seven days, beginning at
2:00 PM (EDT) on Wednesday, May 7, 2014. 
Replay 
 888 203-1112 (domestic callers) or
 719 457-0820
(international callers)
 Passcode 9251988 
An audio file of the call will be available on the Company's website
at www.perceptron.com for one year following the call. 
Upcoming Investor Events 
The Company also is scheduled to attend the Robert W. Baird Growth
Stock Conference in Chicago on May 8 and the Sidoti Semi-Annual
Microcap Conference in New York on May 9.  
The Company will host its 2014 Investor Day on May 21 at its
Plymouth, Michigan, headquarters. The day will include demonstrations
of product applications, presentations on how the Company provides
value to customers, and a question and answer session. The Company
will post a schedule of the day's events and related handouts as well
as the link to a live audio webcast (and post-event replay) of the
formal presentations on its website at www.perceptron.com.  
Investors interested in attending the Investor Day may contact
Lambert, Edwards and Associates at 616-233-0500 or email
Investors@perceptron.com for additional information. 
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)                   
                                                                            
                                           Three Months       Nine Months   
Condensed Income Statements                    Ended             Ended      
                                             March 31,         March 31,    
                                           2014     2013     2014     2013  
                                         -------  -------  -------  ------- 
Net Sales                                $17,328  $14,765  $42,219  $40,142 
Cost of Sales                              9,166    7,420   24,794   22,001 
                                         -------  -------  -------  ------- 
 Gross Profit                              8,162    7,345   17,425   18,141 
Operating Expenses                                                          
Selling, General and Administrative                                         
 Expense                                   3,913    3,413   10,987   10,232 
Engineering, Research and Development                                       
 Expense                                   1,630    1,636    4,926    4,786 
                                         -------  -------  -------  ------- 
 Operating Income                          2,619    2,296    1,512    3,123 
Other Income and Expense                                                    
Interest Income, net                          58       50      121      126 
Foreign Currency and Other Income                                           
 (Expense)                                   110     (249)    (139)    (402)
                                         -------  -------  -------  ------- 
Income from Continuing Operations Before                                    
 Income Taxes                              2,787    2,097    1,494    2,847 
Income Tax Expense                          (306)    (761)      (8)    (698)
                                         -------  -------  -------  ------- 
Income from Continuing Operations          2,481    1,336    1,486    2,149 
                                         -------  -------  -------  ------- 
Discontinued Operations                                                     
 Commercial Products Business Unit (net                                     
  of $16 and $29 of tax expense,                                            
  respectively)                                -       31        -       57 
                                         -------  -------  -------  ------- 
                                                                            
Net Income                               $ 2,481  $ 1,367  $ 1,486  $ 2,206 
                                         =======  =======  =======  ======= 
                                                                            
Basic Earnings Per Common Share                                             
 Continuing operations                   $  0.27  $  0.16  $  0.17  $  0.25 
 Discontinued operations                       -        -        -     0.01 
                                         -------  -------  -------  ------- 
 Net Income                              $  0.27  $  0.16  $  0.17  $  0.26 
                                         =======  =======  =======  ======= 
                                                                            
Diluted Earnings Per Common Share                                           
 Continuing operations                   $  0.26  $  0.16  $  0.16  $  0.25 
 Discontinued operations                       -        -        -     0.01 
                                         -------  -------  -------  ------- 
 Net Income                              $  0.26  $  0.16  $  0.16  $  0.26 
                                         =======  =======  =======  ======= 
                                                                            
Weighted Average Common Shares                                              
 Outstanding                                                                
 Basic                                     9,130    8,538    8,928    8,489 
 Diluted                                   9,365    8,647    9,172    8,568 
                                                                            
                                                                            
                                                                            
                              PERCEPTRON, INC.                              
                           SELECTED FINANCIAL DATA                          
                   (In Thousands Except Per Share Amounts)                  
                                                                            
Condensed Balance Sheets                                  March 31, June 30,
                                                             2014     2013  
                                                          --------- --------
Cash and Cash Equivalents                                 $  19,626 $ 13,364
Short-term Investments                                       14,268   13,321
Receivables, net                                             17,499   22,266
Inventories, net                                              7,887    6,783
Other Current Assets                                          3,289    2,810
                                                          --------- --------
  Total Current Assets                                       62,569   58,544
                                                                            
Property and Equipment, net                                   5,502    5,578
Long-term Investments                                           725      725
Deferred Tax Asset                                            9,993    9,298
                                                          --------- --------
  Total Non-Current Assets                                   16,220   15,601
                                                                            
                                                          --------- --------
    Total Assets                                          $  78,789 $ 74,145
                                                          ========= ========
                                                                            
Accounts Payable                                          $   2,172 $  2,561
Deferred Revenue                                              6,654    6,496
Other Current Liabilities                                     6,785    8,193
                                                          --------- --------
  Total Current Liabilities                                  15,611   17,250
Shareholders' Equity                                         63,178   56,895
                                                          --------- --------
  Total Liabilities and Shareholders' Equity              $  78,789 $ 74,145
                                                          ========= ========

  
Contact: 
Keith R. Marchiando
Chief Financial Officer
Investors@perceptron.com 
 
 
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