Attached files
| file | filename |
|---|---|
| 8-K - PERCEPTRON INC/MI | v165454_8k.htm |
| EX-99.2 - PERCEPTRON INC/MI | v165454_ex99-2.htm |
| EX-10.1 - PERCEPTRON INC/MI | v165454_ex10-1.htm |
Contact:
Jack Lowry
Vice
President of Finance and CFO
734
414-6100
PERCEPTRON
ANNOUNCES FIRST QUARTER RESULTS FOR FISCAL YEAR 2010
AND
ANNOUNCES CHANGES IN SEGMENT REPORTING
Plymouth, Michigan, November 9, 2009
– Perceptron, Inc. (NASDAQ: PRCP) today announced net sales of $10.8
million and a net loss of $813,000 or $0.09 per diluted share, for its first
quarter of fiscal year 2010 that ended September 30, 2009. This
compares with sales of $19.3 million and a net loss of $32,000 or $0.00 per
diluted share, for the quarter ended September 30, 2008.
“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.
47827
Halyard Drive • Plymouth, Michigan 48170 • Phone 734-414-6100 • Fax
734-414-4700
Page
2
November
9, 2009
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.
Page
3
November
9, 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
|
Page
4
November
9, 2009
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
Page
5
November
9, 2009
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
| Q1 | Q1 | Q2 | Q3 | Q4 |
Total
|
Q1 | Q2 | Q3 | Q4 |
Total
|
||||||||||||||||||||||||||||||||||
|
(in
thousands unless noted otherwise)
|
FY10
|
FY09
|
FY09
|
FY09
|
FY09
|
FY09
|
FY08
|
FY08
|
FY08
|
FY08
|
FY08
|
|||||||||||||||||||||||||||||||||
|
Industrial
Business Unit
|
||||||||||||||||||||||||||||||||||||||||||||
|
Net
Sales
|
$ | 8,092 | $ | 11,125 | $ | 11,941 | $ | 8,969 | $ | 6,252 | $ | 38,287 | $ | 11,636 | $ | 14,657 | $ | 14,458 | $ | 13,556 | $ | 54,307 | ||||||||||||||||||||||
|
Operating
Income (Loss)
|
(821 | ) | (1,622 | ) | (52 | ) | (2,549 | ) | (3,338 | ) | (7,561 | ) | (546 | ) | 1,891 | 577 | (871 | ) | 1,051 | |||||||||||||||||||||||||
|
Assets
|
38,675 | 51,086 | 50,471 | 46,308 | 34,355 | 34,355 | 53,891 | 52,866 | 52,744 | 53,753 | 53,753 | |||||||||||||||||||||||||||||||||
|
Accum.
Depreciation & Amortization
|
13,514 | 13,357 | 13,611 | 13,020 | 13,272 | 13,272 | 12,336 | 12,758 | 13,124 | 13,240 | 13,240 | |||||||||||||||||||||||||||||||||
|
Bookings
(in millions)
|
8.0 | 13.0 | 8.8 | 6.2 | 7.2 | 35.2 | 14.9 | 11.5 | 15.8 | 14.5 | 56.7 | |||||||||||||||||||||||||||||||||
|
Backlog
(in millions)
|
15.4 | 20.3 | 17.1 | 14.4 | 15.4 | 15.4 | 19.3 | 16.1 | 17.4 | 18.4 | 18.4 | |||||||||||||||||||||||||||||||||
|
Commercial
Products Business Unit
|
||||||||||||||||||||||||||||||||||||||||||||
|
Net
Sales
|
$ | 2,721 | $ | 8,140 | $ | 7,910 | $ | 4,226 | $ | 2,973 | $ | 23,249 | $ | 6,030 | $ | 4,460 | $ | 3,745 | $ | 3,970 | $ | 18,205 | ||||||||||||||||||||||
|
Operating
Income (Loss)
|
(643 | ) | 1,640 | 1,204 | 187 | (315 | ) | 2,716 | 1,049 | 139 | (595 | ) | 336 | 929 | ||||||||||||||||||||||||||||||
|
Assets
|
24,905 | 21,646 | 22,979 | 23,172 | 31,004 | 31,004 | 14,401 | 15,554 | 19,303 | 21,440 | 21,440 | |||||||||||||||||||||||||||||||||
|
Accum.
Depreciation & Amortization
|
583 | 241 | 324 | 402 | 491 | 491 | 84 | 47 | 67 | 167 | 167 | |||||||||||||||||||||||||||||||||
|
Bookings
(in millions)
|
1.8 | 7.4 | 3.6 | 2.7 | 4.6 | 18.3 | 2.6 | 6.1 | 4.8 | 4.8 | 18.3 | |||||||||||||||||||||||||||||||||
|
Backlog
(in millions)
|
1.1 | 6.2 | 2.0 | 0.4 | 2.0 | 2.0 | 3.5 | 5.2 | 6.3 | 7.0 | 7.0 | |||||||||||||||||||||||||||||||||
|
Total
Company
|
||||||||||||||||||||||||||||||||||||||||||||
|
Net
Sales
|
$ | 10,813 | $ | 19,265 | $ | 19,851 | $ | 13,195 | $ | 9,225 | $ | 61,536 | $ | 17,666 | $ | 19,117 | $ | 18,203 | $ | 17,526 | $ | 72,512 | ||||||||||||||||||||||
|
Operating
Income (Loss)
|
(1,464 | ) | 18 | 1,152 | (2,362 | ) | (3,653 | ) | (4,845 | ) | 503 | 2,030 | (18 | ) | (535 | ) | 1,980 | |||||||||||||||||||||||||||
|
Assets
|
63,580 | 72,732 | 73,450 | 69,480 | 65,359 | 65,359 | 68,292 | 68,420 | 72,047 | 75,193 | 75,193 | |||||||||||||||||||||||||||||||||
|
Accum.
Depreciation & Amortization
|
14,097 | 13,598 | 13,935 | 13,422 | 13,763 | 13,763 | 12,420 | 12,805 | 13,191 | 13,407 | 13,407 | |||||||||||||||||||||||||||||||||
|
Bookings
(in millions)
|
9.8 | 20.4 | 12.4 | 8.9 | 11.8 | 53.5 | 17.5 | 17.6 | 20.6 | 19.3 | 75.0 | |||||||||||||||||||||||||||||||||
|
Backlog
(in millions)
|
16.5 | 26.5 | 19.1 | 14.8 | 17.4 | 17.4 | 22.8 | 21.3 | 23.7 | 25.4 | 25.4 | |||||||||||||||||||||||||||||||||