Perceptron Announces Second Quarter Results For Fiscal Year 2003
PLYMOUTH, Mich., Feb. 4 -- Perceptron, Inc. today announced sales of $12.8 million and net
income of $1.1 million, or $0.14 per share, for the second quarter ended
December 31, 2002, compared with sales from continuing operations of $13.1
million and income from continuing operations of $711,000, or $0.09 per share,
for the quarter ended December 31, 2001. For the six month period ended
December 31, 2002 the Company reported sales of $23.5 million and net income
of $1.4 million, or $.17 per share, compared with sales from continuing
operations of $23.6 million and income from continuing operations of $879,000,
or $.11 per share, for the same period one year ago.
Despite the slightly lower level of sales during the second quarter of
this fiscal year compared with the second quarter of the previous fiscal year,
operating income of $1.9 million reported this quarter increased $0.5 million
over the same period one year ago. The improvement was due to incremental
gross profit related to the strengthening Euro that yielded higher gross
margins in Europe, higher than normal revenue related to customer buy-offs on
completed system installations with nominal associated costs, and lower labor
and overhead costs related to prior period restructuring programs.
Selling, general and administrative expenses were somewhat higher than the
second quarter of fiscal 2002 because of accruals related to reinstatements of
the Company's 401K match and employee profit sharing. Engineering, research
and development expenses were lower than last year due to cost reduction
programs implemented in fiscal years 2001 and 2002. Interest expense was
lower than last year primarily due to reduced bank borrowings. Other income
this quarter reflected foreign currency gains related to the strengthening
Euro and Yen compared to last year when the Company reported foreign currency
losses related to these currencies.
The Company had very strong new order bookings of $17.0 million during the
second quarter compared with new order bookings of $11.9 million in the first
quarter of fiscal 2003 and $5.8 million for the same period one year ago. The
high level of new orders included bookings for $13.9 million of AutoGauge
systems of which $10.0 million was placed by European automotive
manufacturers. The Company's backlog was $20.5 million as of December 31,
2002 compared with $16.3 million as of September 30, 2002.
Alfred A. Pease, Chairman, President and Chief Executive Officer,
commented, "We were very pleased with our operating results and the high level
of new orders received during the quarter. While customer delays can affect
the timing of the delivery of our backlog, we currently expect revenues for
each quarter in the second half of fiscal 2003 to remain comparable to those
of the second quarter. Our balance sheet continues to strengthen. As of
December 31, 2002, we had cash of $7.4 million and only $2.5 million of long-
term debt. Shareholders' equity grew to $41.5 million or, $5.03 per share as
of December 31, 2002."
Perceptron, Inc. will hold a conference call/webcast chaired by Alfred A.
Pease, President & CEO today at 10:00 a.m. (EST). Investors can access the
call at http://www.firstcallevents.com/service/ajwz373301166gf12.html . If
you are unable to participate during the live webcast, the call will be
digitally rebroadcast for seven days, beginning at 12:00 p.m. today and
running until 11:59 p.m. on Tuesday, February 11, 2003. You can access the
rebroadcast by dialing 800 428-6051 (domestic callers) or 973 709-2089
(international callers) and entering the passcode of 283690.
About Perceptron
Perceptron produces information-based process improvement solutions for
industry as well as technology components for non-contact measurement and
inspection applications. Automotive and manufacturing companies throughout
the world rely on Perceptron's process management solutions to help them
improve quality, shorten product launch times and reduce overall manufacturing
costs. Headquartered in Plymouth, Michigan, Perceptron has approximately 220
employees worldwide, with facilities in the United States, Germany,
Netherlands, France, Brazil, and Japan. For more information, please visit
http://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 fiscal 2003 and future revenue, and
the impact of the Company's cost reduction initiatives. The Company assumes
no obligation for updating any such forward-looking statements to reflect
actual results, changes in assumptions or changes in other factors affecting
such forward-looking statements. Actual results could differ materially from
those in the forward-looking statements due to a number of uncertainties in
addition to those set forth in the press release, including, but not limited
to, the dependence of the Company's revenue on a number of sizable orders from
a small number of customers, the timing of orders and shipments which can
cause the Company to experience significant fluctuations in its quarterly and
annual revenue and operating results, timely receipt of required supplies and
components which could result in delays in anticipated shipments, general
product demand and market acceptance risks, the ability of the Company to
successfully compete with alternative and similar technologies, the timing and
continuation of the Automotive industry's retooling programs, the ability of
the Company to resolve technical issues inherent in the development of new
products and technologies, the ability of the Company to identify and satisfy
market needs, general product development and commercialization difficulties,
the ability of the Company to attract and retain key personnel, especially
technical personnel, the quality and cost of competitive products already in
existence or developed in the future, the level of interest existing and
potential new customers may have in new products and technologies generally,
rapid or unexpected technological changes, the effect of economic conditions,
particularly economic conditions in the domestic and worldwide Automotive
industry, which has from time to time been subject to cyclical downturns due
to the level of demand for, or supply of, the products produced by companies
in this industry, the level of the damage award in a pending arbitration
matter with a former distributor of the Company, variations in the amount of
cost savings anticipated from the cost reduction initiatives and the impact of
cost reduction initiatives on the Company's revenues, order bookings and
earnings. The Company's expectations regarding future bookings and revenues
are based upon oral discussions with customers and are subject to change based
upon a wide variety of factors, including economic conditions and system
implementation delays. 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 given later in the integration process.
PERCEPTRON, INC.
SELECTED FINANCIAL DATA
(In Thousands Except Per Share Amounts)
(Unaudited)
Condensed Income Statements Three Months Ended Six Months Ended
December 31, December 31,
2002 2001 2002 2001
Net Sales $12,751 $13,123 $23,528 $23,554
Cost of Sales 5,941 6,985 12,022 12,827
Gross Profit 6,810 6,138 11,506 10,727
Selling, General and Administrative
Expense 3,289 3,060 5,842 5,613
Engineering, Research and
Development Expense 1,575 1,636 3,034 3,477
Operating Income 1,946 1,442 2,630 1,637
Interest Expense, net (16) (120) (68) (287)
Foreign Currency and Other 56 (158) (69) (173)
Income Before Income Taxes 1,986 1,164 2,493 1,177
Income Tax Expense 851 453 1,071 298
Income from Continuing Operations 1,135 711 1,422 879
Loss from Discontinued Operations,
Net of taxes of $183 and $697,
respectively (Note 1) - (471) - (1,950)
Net Income (Loss) $1,135 $240 $1,422 $(1,071)
Earnings Per Share From Continuing
Operations
Basic $0.14 $0.09 $0.17 $0.11
Diluted $0.14 $0.09 $0.17 $0.11
Earnings (Loss) Per Share
Basic $0.14 $0.03 $0.17 ($0.13)
Diluted $0.14 $0.03 $0.17 ($0.13)
Weighted Average Common Shares
Outstanding
Basic 8,253 8,185 8,248 8,185
Diluted 8,339 8,186 8,276 8,185
Condensed Balance Sheets December 31, June 30,
2002 2002
Cash and Cash Equivalents $7,390 $8,143
Other Current Assets 30,482 31,123
Property and Equipment, Net 8,377 8,483
Other Non-Current Assets, Net 6,102 6,944
Total Assets $52,351 $54,693
Current Liabilities $8,377 $14,442
Long-term Debt 2,512 1,040
Shareholders' Equity 41,462 39,211
Total Liabilities and
Shareholders' Equity $52,351 $54,693
Note 1: In March 2002, Perceptron sold its Forest Products business unit.
Prior periods have been restated to reflect the operations of the Forest
Products business unit as discontinued.