SOURCE: Perceptron, Inc.

Perceptron, Inc.

November 05, 2014 16:48 ET

Perceptron Announces First-Quarter Fiscal 2015 Financial Results

Results In Line With Preliminary Announcement; Comments on Business Strategy and Full-Year Outlook

PLYMOUTH, MI--(Marketwired - Nov 5, 2014) - Perceptron, Inc. (NASDAQ: PRCP) today announced results for the first quarter of its 2015 fiscal year (quarterly period ended September 30, 2014).

   
 FINANCIAL HIGHLIGHTS (in millions, except per share data)  
   
  First Quarter Ended September 30  
  Fiscal 2015     Fiscal 2014     Change  
 Revenue $ 11.2     $ 12.4     $ (1.2 )
 Net Loss   (2.0 )     (0.6 )     (1.4 )
                       
 Diluted Loss per Share $ (0.22 )   $ (0.07 )   $ (0.15 )
                       

Jeff Armstrong, President and CEO, observed, "As previously announced, first quarter sales came in below the year-ago level primarily driven by customer project delays pushing revenue into the second quarter. We are confident that our second quarter will be very strong and by mid-year our revenue and operating income are anticipated to be tracking toward our full-year forecast of strong growth."

"Our confidence is bolstered by continued strong demand for our products, evidenced by new and existing customers rewarding us with substantial amounts of new business in the quarter. Record bookings in the first quarter resulted in our backlog achieving a new record level of $49.8 million at the end of the quarter. We have seen growth in orders for our turn-key systems, and the major North American customer that we recaptured in fiscal 2014 has placed additional orders during the first quarter."

Armstrong continued, "Further, we are only starting to see the benefits of the strategic plan we laid out in recent months. For example, we introduced our Helix® Advantage Solutions product line in September. Advantage Solutions operate on a streamlined version of our Vector software platform and leverage the technological breakthroughs provided by our best in industry, 3D Helix sensors. These solutions are part of our plan to offer a powerful, yet economical, option for industrial manufacturers that are in the early stages of adopting an automated dimensional gauging and/or assembly strategy. In addition, in the coming months we will launch several new 3D Scanning Solutions products that will offer the best combination of value and technical capability in the reverse engineering and rapid prototype scanner market."

Armstrong concluded, "Perceptron is a strong global company with great technology, competitive advantages, world class customers and a talented, committed workforce. The transformation under our new strategic plan, a plan designed to expand revenues and increase shareholder value over the longer term, has begun, and will continue to play out as we progress through fiscal 2015."

Highlights of Operations

   
 BOOKINGS (in millions)  
   
  First Quarter Ended September 30  
 Geographic Region Fiscal 2015   Fiscal 2014   Change  
  Americas $ 9.9   $ 3.6   $ 6.3  
  Europe   7.0     9.8     (2.8 )
  Asia   4.8     4.4     0.4  
    Total Bookings $ 21.7   $ 17.8   $ 3.9  
                       

First quarter 2015 bookings were the highest quarterly bookings in the Company's history. This record level was mostly driven by an exceptional amount of business booked in the Americas. Americas' bookings were led by several large orders for in-process turn-key gap and flush measurement systems. Additional orders from our automotive supply base customers were accompanied by some accelerated decisions from our OEM customers. 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
 Geographic Region 9/30/2014   6/30/2014   3/31/2014   12/31/2013   9/30/2013
  Americas $ 14.8   $ 10.3   $ 10.8   $ 9.1   $ 7.0
  Europe   21.2     17.3     13.9     17.9     18.2
  Asia   13.8     11.7     11.6     13.4     10.7
    Total Backlog $ 49.8   $ 39.3   $ 36.3   $ 40.4   $ 35.9
                                 

Backlog at the end of the quarter was a new record high; rising $10.5 million from year-end fiscal 2014 and $13.9 million from a year earlier. Although some of the increase in backlog was attributable to the project delays noted above, the majority of the growth was due to the strong booking performance in the quarter. The level of backlog at any particular point in time is not necessarily indicative of the future operating performance of the Company.

   
 SALES (in millions)  
   
  First Quarter Ended September 30  
 Geographic Region Fiscal 2015   Fiscal 2014   Change  
  Americas $ 5.3   $ 4.8   $ 0.5  
  Europe   3.1     4.7     (1.6 )
  Asia   2.8     2.9     (0.1 )
    Total Sales $ 11.2   $ 12.4   $ (1.2 )
                       

Sales in the first quarter were $11.2 million, or $1.2 million below the year-ago quarter with the increase in sales in the Americas unable to offset declines in other geographic regions. The predominant reason for the softening of sales in the first quarter was the effect of changes in timing driven by our customers' project requirements. The net reduction in sales in the quarter included approximately $52,000 from relative currency movements in foreign markets, which were the source of 55 percent of our total revenue for the quarter. The Company's sales levels fluctuate from quarter-to-quarter due to requested delivery schedules from our customer.

   
 INCOME STATEMENT KEY METRICS (in millions)  
   
  First Quarter Ended September 30  
  Fiscal 2015     Fiscal 2014     Change  
 Gross Profit $ 3.1     $ 4.3     $ (1.2 )
  As a percent of sales   27.7 %     34.7 %     (7.0 ) pct. pts. 
 Operating Income (Loss) $ (2.7 )   $ (0.8 )   $ (1.9 )
                       
 Net Income (Loss) $ (2.0 )   $ (0.6 )   $ (1.4 )
                       

The lower level of revenues as well as higher material costs associated with the mix of products sold reduced gross margins in the first quarter of 2015 by $1.2 million versus the first quarter of fiscal 2014. In addition to the revenue and product mix effects on gross margin, the Company's operating loss also rose on a $700,000 increase in operating expenses compared with the first quarter of fiscal 2014. Roughly $400,000 of the increase in operating expenses was due to year-over-year economic increases for salary costs. As a result, the Company recorded an operating loss in the first quarter of 2015 of $2.7 million. The net loss was $2.0 million, or a loss of 22 cents per diluted share.

FINANCIAL POSITION

The Company continues to maintain a strong and flexible financial position. We have no debt and total liquidity remained strong at September 30, 2014, with cash and short-term investments of $34.4 million.

Quarterly Investor Call and Webcast

Perceptron, Inc., will hold its first-quarter investor conference call/webcast, chaired by Jeff Armstrong, president and CEO, on Thursday, November 6, 2014, at 10:00 AM (EST). Investors can access the call at:

Webcast  http://www.visualwebcaster.com/event.asp?id=100723
Conference Call  888 505-4369 (domestic callers) or
719 325-2323 (international callers)
Conference ID  5057897

A replay will be posted to the Company's website after the conference call concludes.

About Perceptron®
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 250 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 second quarter and full fiscal year 2015, 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", "outlook" 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 2014. 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, Brazilian Real, 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  
  September 30,  
  2014     2013  
Net Sales $ 11,217     $ 12,372  
Cost of Sales   8,110       8,085  
  Gross Profit   3,107       4,287  
Operating Expenses              
Selling, General and Administrative Expense   4,114       3,476  
Engineering, Research and Development Expense   1,701       1,654  
  Operating Loss   (2,708 )     (843 )
Other Income and Expense              
Interest Income, net   78       12  
Foreign Currency and Other Expense   (489 )     (4 )
Loss Before Income Taxes   (3,119 )     (835 )
Income Tax Benefit   1,079       247  
               
Net Loss $ (2,040 )   $ (588 )
               
Loss Per Common Share              
  Basic $ (0.22 )   $ (0.07 )
  Diluted $ (0.22 )   $ (0.07 )
               
Weighted Average Common Shares Outstanding              
  Basic   9,152       8,682  
  Diluted   9,152       8,682  
               
               
               
PERCEPTRON, INC.  
SELECTED FINANCIAL DATA  
(In Thousands)  
   
           
Condensed Balance Sheets September 30,     June 30,  
  2014     2014  
Cash and Cash Equivalents $ 24,884     $ 23,070  
Short-term Investments   9,508       10,822  
Receivables, net   11,555       19,461  
Inventories, net   8,279       7,049  
Other Current Assets   3,367       3,338  
  Total Current Assets   57,593       63,740  
               
Property and Equipment, net   5,571       5,540  
Long-term Investments   777       725  
Other Long-Term Assets   510       -  
Deferred Tax Asset   10,796       10,061  
  Total Non-Current Assets   17,654       16,326  
               
      Total Assets $ 75,247     $ 80,066  
               
Accounts Payable $ 2,539     $ 2,081  
Deferred Revenue   6,763       7,571  
Other Current Liabilities   5,914       7,634  
  Total Current Liabilities   15,216       17,286  
Shareholders' Equity   60,031       62,780  
  Total Liabilities and Shareholders' Equity $ 75,247     $ 80,066  
                 

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