Perceptron Announces Third Quarter 1997 and Nine Month Results
31 October 1997
Perceptron Announces Third Quarter 1997 and Nine Month Results
Highlights
-- Earnings for the third quarter reach $.33 per share, compared to
$.18 per share in 1996.
-- Orders for the quarter increase 51% from same period in prior year,
backlog at $20.4 million at end of quarter.
-- For the nine months, sales increase 22% to $47.4 million.
-- Earnings per share increases to $.88 for nine months compared to
$.39 in prior year.
-- New $2.7 million order received in Mexico for major auto company.
-- Two additional first-tier supplier orders received.
-- Order received for South American lumber mill.
Financial Summary Table
(in $000's except per share data)
Three Months Ended Nine Months Ended
9/30/97 9/30/96 % Change 9/30/97 9/30/96 % Change
Net Sales $ 16,255 $ 15,008 8% $ 47,445 $ 38,948 22%
Gross profit 10,005 9,390 7% 29,094 23,580 23%
Non-cash stock
compensation
expense -- 466 -- -- 3,202 --
Pre-tax income 4,117 2,664 55% 11,052 4,795 130%
Net income 2,779 1,541 80% 7,460 3,260 129%
Net income
per share $.33 $.18 83% $.88 $.39 126%
Weighted average
shares 8,473 8,376 1% 8,491 8,297 2%
PLYMOUTH, Mich., Oct. 31 -- Perceptron, Inc.
today announced third quarter and nine month sales and earnings results. For
the third quarter of 1997, sales of the consolidated businesses increased to a
record $16.3 million, up from $15.0 million in the third quarter of 1996.
Orders received in the 1997 third quarter rose 51% to $15.6 million compared
to $10.4 million in the 1996 third quarter. Net earnings for the quarter
increased to a record $2.8 million, or $.33 per share, up from $1.5 million,
or $.18 per share, in the prior year period. The third quarter of 1996
included a non-cash charge to earnings for non-cash stock compensation,
amounting to $.04 per share.
For the nine month period ending September 30, 1997, sales were
$47.4 million, an increase of 22% from the $38.9 million for the comparable
1996 period. The order backlog at the end of nine months stood at
$20.4 million. Net earnings for the period of $7.5 million, or $.88 per
share, in 1997 compare to $3.3 million, or $.39 per share, for the first nine
months of 1996. Results for the 1996 nine month period include a non-cash
charge for stock compensation which amounted to $.27 per share. Results for
1997 and the 1996 third quarter and nine months include those of the recently
acquired companies, Autospect, Trident Systems and Nanoose Systems.
During the quarter, a significant new $2.7 million order was received for
the Mexican operation of a major auto company. Two new orders from first-tier
suppliers were received in addition to the two orders previously announced,
bringing the first-tier total for the quarter to over $1 million. Also, as
previously announced, the company received the first major order for its newly
established Brazilian unit, and a major order from a large European automotive
company. For the new Forest Products businesses, a large order for optimizing
the entire mill was received from a South American lumber mill.
Alfred A. Pease, Chairman and CEO, stated, "We are pleased with our
results for the quarter, and our long term outlook is very bright. Our
automotive businesses remain strong. Recent orders from first-tier suppliers
and from Brazil evidence the success that we are having in our efforts to
expand our automotive markets. We are excited about revenue prospects for the
next year from new products introduced in 1997, from our Paint Inspection
business acquired nine months ago, and from our Forest Products businesses
acquired six months ago.
"Even though we anticipate record results for the year, developments in
certain segments of our business may have a modest impact on our revenues for
the fourth quarter. In the Forest Products sector, two large orders that were
anticipated to be received and delivered in the fourth quarter of 1997 are now
expected to be delivered in 1998. Our growth prospects in 1998 for the forest
product businesses remain very strong.
"Prospects for our Paint Inspection business are strong now that we have
overcome technical challenges associated with products released in 1997.
Consequently, some orders expected to be received and delivered in 1997 are
now expected to be delivered in 1998. Finally, the Company's Asian operation,
though a relatively small percentage of the overall business, has been
impacted by the financial condition of a large Korean auto maker.
"Once again, our business fundamentals remain very strong and we are
excited about the future."
Perceptron designs, manufactures and markets information-based process
measurement and guidance solutions for industry. Perceptron's systems are
recognized in a number of industries and market segments as important tools
for improvement of both quality and efficiency. Perceptron markets its
products worldwide through its offices in Michigan, Georgia, Canada, Germany,
Brazil, The Netherlands, Korea, and Japan.
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 earnings in 1997. Actual
results could differ materially, from those in the forward-looking statements
due to a number of uncertainties, 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, the need for the Company to receive orders for shipment in
1997, customer delays in expected shipment dates of 1997 orders, timely
receipt of required supplies and components which could result in delays in
anticipated shipments during 1997 and thereafter, 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 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, and the effect of economic conditions.
PERCEPTRON, INC.
SELECTED FINANCIAL DATA
CONDENSED INCOME STATEMENTS
(Unaudited)
(In $000's except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Net sales $16,255 $15,008 $47,445 $38,948
Cost of sales 6,250 5,618 18,351 15,368
Gross profit 10,005 9,390 29,094 23,580
Selling, general and
administrative expense 3,890 4,523 11,959 10,912
Engineering, research
and development
expense 2,229 1,982 6,744 5,249
Non-cash stock
compensation expense 0 466 0 3,202
Income from operations 3,886 2,419 10,391 4,217
Interest income, net 231 245 661 578
Income before provision
for income taxes 4,117 2,664 11,052 4,795
Provision for
income taxes 1,338 1,123 3,592 1,535
Net income $2,779 $1,541 $7,460 $3,260
Net income per weighted
average common share $.33 $.18 $.88 $.39
Weighted average common
and common
equivalent shares 8,472,991 8,376,440 8,490,919 8,297,290
CONDENSED BALANCE SHEETS
(Unaudited)
(In $000's)
September 30, December 31,
1997 1996
Cash and cash equivalents $19,146 $14,924
Other current assets 33,725 34,529
Property and equipment, net 10,254 9,651
Other non-current assets, net 1,773 2,352
Total assets $64,898 $61,456
Total liabilities $10,826 $15,009
Shareholders' equity 54,072 46,447
Total liabilities and
shareholders' equity $64,898 $61,456
SOURCE Perceptron, Inc.