Perceptron Announces Fourth Quarter 1997 and Record Twelve Month Results
17 February 1998
Perceptron Announces Fourth Quarter 1997 and Record Twelve Month Results
PLYMOUTH, Mich., Feb. 17 -- Perceptron, Inc.
today reported sales and earnings for the fourth quarter and year ended
December 31, 1997. For the year 1997, sales reached a record $65.1 million,
compared to 1996 sales of $59.0 million. Net earnings increased to a record
$10.8 million, or $1.28 per diluted share in 1997 compared to $7.2 million or
$0.86 per diluted share in the previous year. 1996 earnings include a non-cash
charge for stock compensation which amounted to $0.27 per diluted share.
Results for the fourth quarter and full years 1996 and 1997 include those of
the companies acquired in 1997: Autospect, Inc., Trident Systems, Inc. and
Nanoose Systems Corp.
For the 1997 fourth quarter, sales amounted to $17.7 million with net
earnings of $3.3 million or $0.40 per diluted share. In the 1996 fourth
quarter, sales were $20.0 million and net earnings were $3.9 million or
$0.46 per diluted share.
As expected and announced previously, fourth quarter results were impacted
by a number of factors including a delay in the release of new Paint
Inspection products, the deferral of two orders in the Forest Products
business unit, and the unexpected strength of the US dollar against European
currencies. In Asia, which accounts for a very small part of the Company's
revenue, the financial condition of a Korean auto manufacturer created an
indefinite delay in an expected order.
New order bookings in the fourth quarter amounted to $21.4 million, with
Paint Inspection products and the Forest Products unit receiving record
orders. The prior year fourth quarter bookings were $24.0 million and
included several extraordinary large automotive orders. Bookings for 1997
reached a record $66.1 million. At the end of 1997, the order backlog stood
at $24.2 million compared to $23.1 million in the prior year.
Alfred A. Pease, chairman, president and chief executive officer, stated,
"Our 1997 results reflect the Company's investments in expanding its market
presence. We continue to expand our product offerings beyond the traditional
end-of-line gauging in the body shop, to include products that provide value
throughout the factory. These offerings now encompass the entire automobile
manufacturing line, including stamping, first-tier component production,
paint, and trim and final assembly, as well as expanded offerings in the
traditional general assembly areas. Because of this shifting focus of our
businesses, reported new order bookings is becoming much less a predictor of
future business than it has been in the past.
"In addition, during 1997 we made significant progress in our efforts to
expand outside the automotive sector, acquiring Trident Systems, Inc. and
Nanoose Systems Corp. These acquisitions have allowed us to reinvent the way
yield optimization is provided to sawmills and have positioned us as a leader
in this developing market. The rapid growth experienced in our Forest
Products business has been fueled by new products introduced during 1997,
including those that address the edging and trimming process centers. We now
serve most of the process areas in softwood and hardwood mills."
Mr. Pease continued, "We recognize that 1998 will be an important
investment year for Perceptron as significant new product introductions and
development efforts go forward to position us for sustainable sales and
earnings growth. Our plans reflect management's commitment to leverage our
technologies into new markets and to develop new solutions for process
improvement. With new product introductions and an evolving shift in focus
from automotive end-of-line gauging to solutions that service process centers
factory-wide, we expect first quarter results to be below those of a year ago,
and as new product introductions take hold, for a marked improvement in the
second half of the year."
With no debt, cash and marketable securities increasing to $16.4 million,
shareholder's equity climbing to $57.9 million and a return on average
shareholder's equity of 20.7% for 1997, the Company's financial position and
cash generation remains strong.
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 1998 and future revenue and earnings
levels, the timing of new product releases and the expansion of the Company
into new markets. 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, 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 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 STATEMENT
(Audited)
(In $000's except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1997 1996 1997 1996
Net sales $17,657 $ 20,027 $65,102 $58,975
Cost of sales 6,728 8,240 25,077 23,608
Gross profit 10,929 11,787 40,025 35,367
Selling, general
and administrative
expense 4,001 4,457 15,963 15,369
Engineering, research
and development expense2,200 2,045 8,944 7,294
Non-cash stock
compensation expense 0 0 0 3,202
Income from operations 4,728 5,285 15,118 9,502
Interest income, net 229 165 891 743
Income before provision
for income taxes 4,957 5,450 16,009 10,245
Provision for income
taxes 1,611 1,560 5,203 3,095
Net income $3,346 $3,890 $10,806 7,150
Earnings per share:
Basic $.41 $.49 $1.34 $.93
Diluted $.40 $.46 $1.28 $.86
Weighted average common
shares outstanding:
Basic 8,192,445 7,861,102 8,064,589 7,661,153
Diluted 8,392,332 8,441,944 8,412,354 8,309,043
CONDENSED BALANCE SHEET
(Audited)
(in $000's)
December 31, December 31,
1997 1996
Cash and marketable
securities $16,448 $14,924
Other current assets 39,919 34,529
Property and equipment, net 10,624 9,651
Other non-current assets, net 1,651 2,352
Total assets $68,642 $61,456
Total liabilities $10,763 $15,009
Shareholders' equity 57,879 46,447
Total liabilities
and shareholders'
equity $68,642 $61,456
SOURCE Perceptron, Inc.