Science & Technology
Science and Technology
Science and Technology
Tue, November 10, 2009
Mon, November 9, 2009 Perceptron Announces First Quarter Results for Fiscal Year 2010 and Announces Changes in Segment Reporting
PLYMOUTH, MI--(Marketwire - November 9, 2009) - Perceptron, Inc. (
"Although our sales were still soft in the first quarter, sales increased by approximately $1.6 million, or 17.2%, over the sales level of the fourth quarter of fiscal year 2009," said Jack Lowry, Perceptron's Chief Financial Officer. "The cost cutting actions that we took in fiscal 2009 had a significant impact on our first quarter results. We were able to reduce our operating loss by approximately $2.2 million on a sales increase of $1.6 million. Our gross margin percentage improved over both the first and fourth quarters of fiscal 2009 despite still being at a low sales level. Operating expenses declined by approximately $1.4 million compared to the first quarter of fiscal year 2009 and were slightly below the fourth quarter of fiscal 2009. Our net loss was nearly $1.1 million less than in the fourth quarter (down 56%), but $781,000 higher than in the first quarter of fiscal 2009 when sales were at $19.3 million."
The Company also announced that its agreement with Ridge Tool Company ("Ridge") has expired and the Company will not be renewing the agreement. Perceptron expects to continue to have sales to Ridge in fiscal year 2010 from the inventory of products currently in place along with sales of products that will be manufactured for Ridge. Sales of products from existing inventory are expected to be at significantly reduced margins, while sales of products yet to be manufactured are expected to be at regular margins. Perceptron is currently in contract discussions with other potential partners that have expressed an interest in having the Company manufacture commercial products for them and will provide additional information on new customers once agreements are in place.
Segment Reporting Change
Effective July 1, 2009, the Company reorganized its business into two operating segments, the Industrial Business Unit ("IBU") and the Commercial Products Business Unit ("CBU"). The reorganization of the Company's business segments was in response to the growth, increased development and sharpened focus that has occurred in the Company's commercial products since its initial sales were reported in the third quarter of fiscal 2007. The Company's reportable segments are strategic business units that have separate management teams focused on different marketing strategies.
The IBU segment markets its products primarily to industrial companies directly or through manufacturing line builders, system integrators, original equipment manufacturers ("OEMs") and value-added resellers ("VARs"). Products sold by IBU include: AutoGauge®, AutoGuide®, AutoScan® and AutoFit® which are primarily custom configured systems typically purchased for installation in connection with new automotive model retooling programs; value added services that are primarily related to these products; and ScanWorks® and WheelWorks® which are products that target the digitizing, reverse engineering and inspection markets. CBU sells products designed for professional tradesmen in the commercial market and are sold to and distributed through strategic partners. Our previous reporting segments were Automated Systems and Technology Products. ScanWorks® and WheelWorks® were included in the Technology Products segment in the past.
The comparative financial information for the first quarter of fiscal years 2010 and 2009 shown below reflects the new segment structure adopted effective July 1, 2009. Fiscal year 2009 information has been restated to conform to the new reporting segments. Consolidated net sales, bookings and backlog in fiscal year 2009 are unchanged from prior reporting. Quarterly financial information for fiscal years 2009 and 2008 reflecting the Company's new reporting segments is included in a table at the end of this press release.
Sales First Quarter Ending September 30 (all numbers in millions) Fiscal 2010 Fiscal 2009 Change ----------- ----------- ---------- Industrial Business Unit $ 8.1 $ 11.1 ($ 3.0) Commercial Products Business Unit 2.7 8.2 (5.5) ----------- ----------- ---------- Total Sales $ 10.8 $ 19.3 ($ 8.5)
Net sales decreased by 44% from the first quarter of fiscal year 2009, but increased by $1.6 million, or 17%, over sales in the fourth quarter of fiscal year 2009. The significant slowdown in the automotive industry and the broader economy in general had not yet affected the Company's sales in the first quarter last year. IBU's sales decline occurred fairly evenly across most of its products. The CBU sales decline was due to the downturn in the general economy, lower sales of the BK5500 to Snap-on and lower sales of the SeeSnake® micro™ to Ridge in the first quarter this year.
Bookings First Quarter Ending September 30 (all numbers in millions) Fiscal 2010 Fiscal 2009 Change ----------- ----------- ---------- Industrial Business Unit $ 8.0 $ 13.0 ($ 5.0) Commercial Products Business Unit 1.8 7.4 (5.6) ----------- ----------- ---------- Total Bookings $ 9.8 $ 20.4 ($ 10.6) Note: new order bookings fluctuate from quarter to quarter and are not necessarily indicative of the future operating performance of the Company.
Overall, bookings decreased significantly compared to the first quarter of fiscal year 2009 due to the significant declines in the automotive industry and the broader economy that have occurred since that time. The bookings decline within IBU was primarily due to declines in orders for AutoGuide®, AutoGauge®, and WheelWorks®. The decline in CBU bookings was primarily related to a decline in orders for the SeeSnake® micro™ and the microEXPLORER™ from Ridge this year and higher order volumes for the BK5500 from Snap-on last year when Snap-on was initially filling the distribution channel with the product.
Quarter-over-quarter bookings in IBU increased for the second straight quarter however, from $6.2 million in the third quarter of fiscal 2009, to $7.2 million in the fourth quarter, and to $8.0 million in the first quarter of fiscal 2010. The increase over the fourth quarter of fiscal 2009 was primarily due to higher orders for services.
Backlog First Quarter Ending September 30 (all numbers in millions) Fiscal 2010 Fiscal 2009 Change ----------- ----------- ---------- Industrial Business Unit $ 15.4 $ 20.3 ($ 4.9) Commercial Products Business Unit 1.1 6.2 (5.1) ----------- ----------- ---------- Total Backlog $ 16.5 $ 26.5 ($ 10.0) Note: the level of backlog at any particular point in time is not necessarily indicative of the future operating performance of the Company.
The Company's backlog on September 30, 2009 decreased by 37.7% compared to the backlog on September 30, 2008. The $26.5 million backlog at September 30, 2008 was the second highest quarter ending backlog the Company has had in the past seven years. Compared to more recent periods, the $16.5 million backlog at September 30, 2009 is $1.7 million above the backlog at March 31, 2009 but $0.9 million below the backlog at June 30, 2009.
The backlog for IBU was flat with the backlog at June 30, 2009, but represents an increase of $1.0 million from the backlog at March 31, 2009. The backlog for CBU was down $5.1 million from the backlog at September 30, 2008 and down $0.9 million from June 30, 2009 reflecting the fact that CBU is off of backorder status.
The gross profit margin percentage this quarter was 36.3% compared to 35.3% in the first quarter of fiscal 2009. The improvement resulted principally from the cost reductions implemented by the Company in fiscal year 2009. The improvement occurred despite the fact that revenue was down by 44%, or $8.5 million from the same quarter a year ago.
Selling, general, and administrative expenses decreased by $819,000, or 18.3%, compared to the first quarter of fiscal 2009. The decrease primarily occurred in Europe and North America due to the cost reductions implemented earlier this calendar year. The most significant reductions occurred in salary, salary-related costs, and contract services.
Engineering, Research and Development expenses decreased by $572,000, or 24.9% compared to the same quarter one year ago. The decrease primarily occurred due to lower salary costs, salary-related costs, contract services, and travel costs.
Perceptron's balance sheet continues to be strong. As of September 30, 2009 the Company had $21.9 million in cash and short-term investments, no debt, and shareholders' equity of $55.7 million, or $6.26 per diluted share.
Harry T. Rittenour, President and Chief Executive Officer, commented, "While the first quarter of fiscal year 2010 was, as we expected, a difficult one, our financial results improved over the fourth quarter of fiscal 2009. On a sales increase of $1.6 million we reduced our operating loss by $2.2 million. The cost reduction actions we took earlier this calendar year played a significant role in reducing our loss from operations. During the quarter we also saw some positive signs indicating that business conditions for our customers are improving. In particular, bookings in our Industrial Business Unit improved over the fourth quarter of fiscal 2009. We also experienced higher levels of sales activity in North America and in Asia that suggest improving conditions in the automotive industry.
"With our mutual decision not to renew the agreement with Ridge we are focusing our efforts on our on-going contract discussions with other potential partners that have expressed an interest in our commercial products," added Mr. Rittenour. "While the timing of new sales agreements is uncertain, we will provide additional information on new customers once we have agreements in place. We continue to be in active development of new products and accessories with Snap-on. We anticipate that sales of our commercial products will be considerably lower in the second quarter than in the first quarter but sales are expected to grow in the third and fourth quarters of this fiscal year. Overall, we anticipate sales of commercial products in fiscal year 2010 will be below fiscal year 2009 levels."
Mr. Rittenour concluded, "We are encouraged by the increased sales activities we have seen in the past quarter and that continue today in our Industrial Business Unit. For example, we were pleased to recently receive another significant order in China for an AutoGauge® system. Our level of quoting activity in North America is increasing, but it remains to be seen whether and when these will turn into orders. We are optimistic that the worst of the business conditions affecting our Industrial Business Unit are behind us."
Perceptron, Inc. will hold a conference call/webcast chaired by Harry T. Rittenour, President and CEO, on November 10, 2009 at 10:00 a.m. (EST). Investors can access the webcast or conference call at:
Webcast [ http://www.visualwebcaster.com/event.asp?id=63729 ] Conference Call 877-548-7913 (for domestic callers) or 719-325-4845 (for international callers) Conference ID 1087949
For investors who are unable to participate during the live webcast, the call will be digitally rebroadcast for seven days, beginning at 2:00 PM on Tuesday, November 10, 2009 and running until 11:59 PM on Tuesday, November 17, 2009. The rebroadcast can be accessed by calling 888 203-1112 (for domestic callers) or 719 457-0820 (for international callers). The pass-code is 1087949. 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
Perceptron develops, produces, and sells non-contact measurement and inspection solutions for industrial and commercial applications. The Company's IBU products provide solutions for manufacturing process control as well as sensor and software technologies for non-contact measurement 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. IBU also offers Value Added Services such as training and customer support services. Perceptron's CBU develops and manufactures a variety of handheld visual inspection devices and add-on accessories that are sold to and marketed through strategic partners. Headquartered in Plymouth, Michigan, Perceptron has approximately 220 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 2010 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" 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 2009. 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 Industrial Business Unit segment 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 Industrial Business Unit segment products have shorter lead times than other components and are required later in the process, orders for the Company's Industrial Business Unit segment products tend to be issued later in the integration process. The Company's Commercial Business Unit segment products are subject to the timing of firm orders from its customers, which may change on a monthly basis. In addition, because the Company's Commercial Business Unit segment products require short lead times from firm order to delivery, the Company may purchase long lead time components before firm orders are in hand. 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 U.S. Dollars and Euros. 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.
- First quarter fiscal year 2010 Financial Statements and historical information under the Company's new reporting segments follow -
PERCEPTRON, INC. SELECTED FINANCIAL DATA (In Thousands Except Per Share Amounts) (Unaudited) Condensed Income Statements Three Months Ended September 30, 2009 2008 ----------- ----------- Net Sales $ 10,813 $ 19,265 Cost of Sales 6,884 12,463 ----------- ----------- Gross Profit 3,929 6,802 Selling, General and Administrative Expense 3,664 4,483 Engineering, Research and Development Expense 1,729 2,301 ----------- ----------- Operating Income (Loss) (1,464) 18 Interest Income, net 57 233 Foreign Currency and Other Income (Expense) 210 (62) ----------- ----------- Income (Loss) Before Income Taxes (1,197) 189 Income Tax Benefit (Expense) 384 (221) ----------- ----------- Net Income (Loss) $ (813) $ (32) =========== =========== Earnings (Loss) Per Share Basic ($ 0.09) ($ 0.00) Diluted ($ 0.09) ($ 0.00) Weighted Average Common Shares Outstanding Basic 8,888 8,848 Diluted 8,888 8,848 Condensed Balance Sheets September 30, June 30, 2009 2009 ----------- ----------- Cash and Cash Equivalents $ 17,445 $ 22,654 Short-term Investments 4,475 1,241 Receivables, net 9,424 9,628 Inventories, net 10,180 10,005 Other Current Assets 4,837 5,199 ----------- ----------- Total Current Assets 46,361 48,727 Property and Equipment, net 6,373 6,537 Long-term Investments 2,192 2,192 Deferred Tax Asset 8,654 7,903 ----------- ----------- Total Non-Current Assets 17,219 16,632 ----------- ----------- Total Assets $ 63,580 $ 65,359 =========== =========== Current Liabilities $ 7,140 $ 8,894 Long-term Liabilities 765 765 Shareholders' Equity 55,675 55,700 ----------- ----------- Total Liabilities and Shareholders' Equity $ 63,580 $ 65,359 =========== =========== Perceptron, Inc. Revised Reporting Segments Effective July 1, 2009 Historical Information (in thousands unless Q1 Q1 Q2 Q3 Q4 Total noted otherwise) FY10 FY09 FY09 FY09 FY09 FY09 ------- ------- ------- ------- ------- ------- Industrial Business Unit Net Sales $ 8,092 $11,125 $11,941 $ 8,969 $ 6,252 $38,287 Operating Income (Loss) (821) (1,622) (52) (2,549) (3,338) (7,561) Assets 38,675 51,086 50,471 46,308 34,355 34,355 Accum. Depreciation & Amortization 13,514 13,357 13,611 13,020 13,272 13,272 Bookings (in millions) 8.0 13.0 8.8 6.2 7.2 35.2 Backlog (in millions) 15.4 20.3 17.1 14.4 15.4 15.4 Commercial Business Unit Net Sales $ 2,721 $ 8,140 $ 7,910 $ 4,226 $ 2,973 $23,249 Operating Income (Loss) (643) 1,640 1,204 187 (315) 2,716 Assets 24,905 21,646 22,979 23,172 31,004 31,004 Accum. Depreciation & Amortization 583 241 324 402 491 491 Bookings (in millions) 1.8 7.4 3.6 2.7 4.6 18.3 Backlog (in millions) 1.1 6.2 2.0 0.4 2.0 2.0 Total Company Net Sales $10,813 $19,265 $19,851 $13,195 $ 9,225 $61,536 Operating Income (Loss) (1,464) 18 1,152 (2,362) (3,653) (4,845) Assets 63,580 72,732 73,450 69,480 65,359 65,359 Accum. Depreciation & Amortization 14,097 13,598 13,935 13,422 13,763 13,763 Bookings (in millions 9.8 20.4 12.4 8.9 11.8 53.5 Backlog (in millions) 16.5 26.5 19.1 14.8 17.4 17.4 (in thousands unless Q1 Q2 Q3 Q4 Total noted otherwise) FY08 FY08 FY08 FY08 FY08 ------- ------- ------- ------- ------- Industrial Business Unit Net Sales $11,636 $14,657 $14,458 $13,556 $54,307 Operating Income (Loss) (546) 1,891 577 (871) 1,051 Assets 53,891 52,866 52,744 53,753 53,753 Accum. Depreciation & Amortization 12,336 12,758 13,124 13,240 13,240 Bookings (in millions) 14.9 11.5 15.8 14.5 56.7 Backlog (in millions) 19.3 16.1 17.4 18.4 18.4 Commercial Business Unit Net Sales $ 6,030 $ 4,460 $ 3,745 $ 3,970 $18,205 Operating Income (Loss) 1,049 139 (595) 336 929 Assets 14,401 15,554 19,303 21,440 21,440 Accum. Depreciation & Amortization 84 47 67 167 167 Bookings (in millions) 2.6 6.1 4.8 4.8 18.3 Backlog (in millions) 3.5 5.2 6.3 7.0 7.0 Total Company Net Sales $17,666 $19,117 $18,203 $17,526 $72,512 Operating Income (Loss) 503 2,030 (18) (535) 1,980 Assets 68,292 68,420 72,047 75,193 75,193 Accum. Depreciation & Amortization 12,420 12,805 13,191 13,407 13,407 Bookings (in millions) 17.5 17.6 20.6 19.3 75.0 Backlog (in millions) 22.8 21.3 23.7 25.4 25.4
