PLYMOUTH, MI--(Marketwired - Jun 19, 2013) - Perceptron, Inc. (NASDAQ: PRCP) today announced that Primus Financial Products, LLC ("Primus"), redeemed the remaining outstanding shares of its Floating Rate Cumulative Preferred Stock Series I and Series II ("Preferred Stock") at the full value of $1,000 per share. Perceptron held 2,600 shares of the Preferred Stock and received $2.6 million. These securities have been held as long-term investments, and were written down to their current carrying value of approximately $1.47 million in fiscal year 2009. The redemption will result in an increase of approximately $1.0 million in net income in the fourth quarter of Perceptron's 2013 fiscal year, and represents an expected increase of approximately $0.12 in basic earnings per share.
"This is excellent news for Perceptron and its shareholders," said Harry Rittenour, Perceptron's President and CEO. "As many of our shareholders know, we originally invested in Primus' Auction Rate Securities and have held this investment since 2007 when the auctions on the securities began to fail during the credit crisis. Several years ago Primus converted the Auction Rate Securities to preferred shares. We have continuously monitored Primus' financial situation since that time and elected not to sell the shares at a discount. We are very pleased that our patience and judgment have been rewarded."
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 the impact of the redemption of a long-term investment held by the Company on its fiscal year 2013 earnings. 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. 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.