SYS-CON MEDIA Authors: Elizabeth White, Liz McMillan, Pat Romanski, Esmeralda Swartz, Kevin Jackson

News Feed Item

Perceptron Announces Full Year Fiscal 2014 Financial Results

Record Full Year Bookings

PLYMOUTH, MI -- (Marketwired) -- 08/20/14 -- Perceptron, Inc. (NASDAQ: PRCP) today announced results for the fourth quarter and full year of its fiscal year ended June 30, 2014.


Financial Highlights (in millions, except per share data)

                              Fourth Quarter Ending   Full Year Ending June
                                     June 30                   30
                              Fiscal  Fiscal          Fiscal  Fiscal
                               2014    2013  Change    2014    2013  Change
                             ------- ------- ------  ------- ------- ------

Net Sales                    $  17.4 $  20.7 $ (3.3) $  59.6 $  60.9 $ (1.3)
Income from Continuing
 Operations                      0.9     4.0   (3.1)     2.4     6.1   (3.7)

Diluted Earnings per Share   $  0.10 $  0.46 $(0.36) $  0.26 $  0.71 $(0.45)

Jeff Armstrong, President and CEO, observed, "Our 2014 results showed strength in several key areas. In particular, we achieved record full year bookings of $68.5 million that included regional records in both Asia and Europe. Sales highlights included regaining a major North American automotive customer, growth with a major Japanese OEM and development of a new European customer that is a large player in the agricultural equipment industry. As a result of the record bookings, backlog was $39.3 million at June 30, an $8.9 million increase from the $30.4 million at the end of fiscal year 2013."

Armstrong noted, "Both the fourth quarter and full year of fiscal 2014 were profitable periods for Perceptron, illustrating the strength of the base on which we are building. During the 2014 fourth quarter, however, several customers delayed system installations, pushing some revenue into fiscal 2015 and constraining margins due to fixed costs. Profitability was also impeded by additional operating costs, primarily related to the management changes made over the course of the year, higher costs associated with additional Sarbanes Oxley compliance requirements and investments we are making to implement our new strategic plan."

Armstrong stressed, "Perceptron is a strong global company with great technology, competitive advantages, world class customers and a talented, committed workforce. In the end, 2014 was a transitional year for the company as we built our new management team, and put in place a strategic plan designed to expand revenues and increase shareholder value over the longer term. We expect solid contributions over the next several years from each of the four elements of the plan: continuing to expand profitability in our core markets, pursuing prudent diversification, extending our technological leadership, and maintaining fiscal discipline to ensure strong profitability.

"In the shorter term, given our record bookings, present backlog, and new strategy, we are very confident that fiscal 2015 will show revenue growth. We believe this higher revenue will drive improvement in profitability in 2015 over the levels we are reporting for 2014," Armstrong added.


Highlights of Operations

BOOKINGS (in millions)
                              Fourth quarter Ending  Fiscal year Ending June
                                     June 30                    30
                              Fiscal  Fiscal          Fiscal  Fiscal
                               2014    2013  Change    2014    2013   Change
                             ------- ------- ------  ------- ------- -------
Geographic Region
Americas                     $   5.6 $   5.6 $  0.0  $  20.4 $  18.2 $   2.2
Europe                          11.2    12.0   (0.8)    31.9    29.3     2.6
Asia                             3.6     3.8   (0.2)    16.2    13.6     2.6
                             ------- ------- ------  ------- ------- -------
  Total Bookings             $  20.4 $  21.4 $ (1.0) $  68.5 $  61.1 $   7.4
                             ======= ======= ======  ======= ======= =======

Fourth quarter 2014 bookings were the second highest quarterly bookings in the Company's history. The amount was $1.0 million lower than the same period last year, which remains the record quarterly booking amount. For the full 2014 fiscal year, bookings totaled $68.5 million, up $7.4 million from the prior year, and set a Company record for bookings in a full fiscal year. The increase primarily was driven by increased orders for Automated Systems products and orders from an important customer who has not purchased new systems for several years. The level of bookings fluctuates from quarter-to-quarter and is not necessarily indicative of the future operating performance of the Company.


BACKLOG (in millions)
                                                   As of June 30 in
                                         Fiscal 2014 Fiscal 2013    Change
                                         ----------- ----------- -----------
Geographic Region
Americas                                 $      10.3 $       8.2 $       2.1
Europe                                          17.3        13.1         4.2
Asia                                            11.7         9.1         2.6
                                         ----------- ----------- -----------
  Total Backlog                          $      39.3 $      30.4 $       8.9
                                         =========== =========== ===========

Backlog at the end of the quarter was significantly higher than a year ago; an increase of $8.9 million, or 29.3 percent. The increase primarily was due to higher Automated Systems orders in all geographic regions, with the most significant increase occurring in Europe. The level of backlog at any particular point in time is not necessarily indicative of the future operating performance of the Company.


SALES (in millions)
                              Fourth quarter Ending    Fiscal year Ending
                                     June 30                 June 30
                              Fiscal  Fiscal          Fiscal  Fiscal
                               2014    2013  Change    2014    2013  Change
                             ------- ------- ------  ------- ------- ------
Geographic Region
Americas                     $   6.1 $   6.4 $ (0.3) $  18.3 $  22.2 $ (3.9)
Europe                           7.8     8.8   (1.0)    27.8    26.1    1.7
Asia                             3.5     5.5   (2.0)    13.5    12.6    0.9
                             ------- ------- ------  ------- ------- ------
  Total Sales                $  17.4 $  20.7 $ (3.3) $  59.6 $  60.9 $ (1.3)
                             ======= ======= ======  ======= ======= ======

Sales in the fourth quarter were $17.4 million, or $3.3 million below the record fourth-quarter of fiscal 2013 with declines in all geographic regions. The net reduction in sales in the quarter included approximately $390,000 from positive effects of currency movements compared to the same quarter a year ago. Full year fiscal 2014 sales were $1.3 million below the prior year, despite the positive effect of currency movements of $1.1 million. The Company's sales levels fluctuate from quarter-to-quarter due to requested delivery schedules from our customers.

GROSS MARGIN

Gross margin was $7.4 million in the current quarter compared with $10.0 million in last year's fourth quarter, and the gross margin percentage was 42.7 percent, compared with 48.1 percent in the year ago fourth quarter. The gross margin percentage for fiscal year 2014 was 41.7 percent, compared with 46.2 percent reported for the prior fiscal year. The decline in both 2014 periods was a reflection of cost increases, higher relative sales from lower margin products, and shifting customer schedules.

SELLING, GENERAL AND ADMINISTRATIVE (SG&A)

Fourth quarter 2014 SG&A expenses were essentially flat compared to the fourth quarter of fiscal 2013. In the quarter, higher overall salary and related costs, expenses associated with recent executive-level hiring, currency effects, and additional costs associated with Sarbanes Oxley compliance efforts were fully offset by lower costs in other SG&A areas. For the full year, SG&A increased approximately $740,000, with $100,000 of the increase attributable to currency effects. The remaining increase of $640,000 was due to increased salary and related costs, expenses associated with recent executive-level hiring, and additional costs associated with Sarbanes Oxley compliance efforts.

The resulting earnings per diluted share for fiscal 2014 were $0.26; or $0.45 lower than the $0.71 per share from continuing operations reported in fiscal 2013. Of the $0.45 earnings per share reduction, $0.12 was attributable to an investment gain recorded in fiscal year 2013. The remaining $0.33 per share reduction was driven by lower gross margins and higher operating costs as described above.

FINANCIAL POSITION

The Company continues to maintain a strong and flexible financial position. We have no debt and total liquidity remained historically high at June 30, 2014, with cash and short-term investments of $33.9 million.

Quarterly Investor Call and Webcast

Perceptron, Inc., will hold its year-end investor conference call/webcast, chaired by Jeff Armstrong, President and CEO, on Thursday, August 21, 2014, at 10:00 AM (EDT). Investors can access the call at:

Webcast http://www.visualwebcaster.com/event.asp?id=100234
Conference Call
888 438-5491 (domestic callers) or
719 785-1753 (international callers)

Conference ID 7333123

An audio replay will be available on the Company's website at www.perceptron.com for one year following the call.

About Perceptron®
Perceptron develops, produces, and sells non-contact 3D machine vision solutions for measurement, inspection, and robot guidance in industrial applications. Manufacturing companies throughout the world rely on Perceptron's hardware and software solutions to help them manage their complex manufacturing processes to improve quality, shorten product launch times and reduce costs. Perceptron also offers Value Added Services such as training and customer support services. Headquartered in Plymouth, Michigan, Perceptron has approximately 250 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 2015, 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," "prospects" 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 2013. 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 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 issued later in the integration process. 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 the U.S. Dollar, Euro, Chinese Yuan and Japanese Yen. 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.



                              PERCEPTRON, INC.
                          SELECTED FINANCIAL DATA
                  (In Thousands Except Per Share Amounts)

Condensed Income Statements       Three Months Ended    Twelve Months Ended
                                       June 30,              June 30,
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
Net Sales                        $  17,393  $  20,744  $  59,612  $  60,886
Cost of Sales                        9,969     10,765     34,763     32,766
                                 ---------  ---------  ---------  ---------
    Gross Profit                     7,424      9,979     24,849     28,120
Operating Expenses
Selling, General and
 Administrative Expense              4,229      4,241     15,216     14,473
Engineering, Research and
 Development Expense                 1,765      1,995      6,691      6,781
                                 ---------  ---------  ---------  ---------
    Operating Income                 1,430      3,743      2,942      6,866
Other Income and Expense
Interest Income, net                    67         47        188        173
Gain on Redemption of Investment         -      1,134          -      1,134
Foreign Currency and Other
 Income/(Expense)                       11       (240)      (128)      (642)
                                 ---------  ---------  ---------  ---------
Income from Continuing
 Operations Before Income Taxes      1,508      4,684      3,002      7,531
Income Tax Expense                    (567)      (703)      (575)    (1,401)
                                 ---------  ---------  ---------  ---------
Income from Continuing
 Operations                            941      3,981      2,427      6,130
                                 ---------  ---------  ---------  ---------
Discontinued Operations
  Commercial Products Business
   Unit (net of $12 and $41 of
   tax expense in fiscal 2013,
   respectively)                         -         23          -         80
                                 ---------  ---------  ---------  ---------

Net Income                       $     941  $   4,004  $   2,427  $   6,210
                                 =========  =========  =========  =========

Basic Earnings Per Common Share
    Continuing operations        $    0.10  $    0.46  $    0.27  $    0.72
    Discontinued operations              -          -          -       0.01
                                 ---------  ---------  ---------  ---------
    Net Income                   $    0.10  $    0.46  $    0.27  $    0.73
                                 =========  =========  =========  =========

Diluted Earnings Per Common
 Share
    Continuing operations        $    0.10  $    0.46  $    0.26  $    0.71
    Discontinued operations              -          -          -       0.01
                                 ---------  ---------  ---------  ---------
    Net Income                   $    0.10  $    0.46  $    0.26  $    0.72
                                 =========  =========  =========  =========

Weighted Average Common Shares
 Outstanding
    Basic                            9,148      8,583      8,983      8,512
    Diluted                          9,327      8,682      9,210      8,588





                              PERCEPTRON, INC.
                           SELECTED FINANCIAL DATA
                               (In Thousands)

Condensed Balance Sheets                               June 30,    June 30,
                                                         2014        2013
                                                     ----------- -----------
Cash and Cash Equivalents                            $    23,070 $    13,364
Short-term Investments                                    10,822      13,321
Receivables, net                                          19,461      21,760
Inventories, net                                           7,049       6,783
Other Current Assets                                       3,338       2,810
                                                     ----------- -----------
    Total Current Assets                                  63,740      58,038

Property and Equipment, net                                5,540       5,578
Long-term Investments                                        725         725
Deferred Tax Asset                                        10,061       9,298
                                                     ----------- -----------
    Total Non-Current Assets                              16,326      15,601

                                                     ----------- -----------
      Total Assets                                   $    80,066 $    73,639
                                                     =========== ===========

Accounts Payable                                     $     2,081 $     2,561
Deferred Revenue                                           7,571       5,990
Other Current Liabilities                                  7,634       8,193
                                                     ----------- -----------
    Total Current Liabilities                             17,286      16,744

Shareholders' Equity                                      62,780      56,895
                                                     ----------- -----------
    Total Liabilities and Shareholders' Equity       $    80,066 $    73,639
                                                     =========== ===========

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"SOASTA built the concept of cloud testing in 2008. It's grown from rather meager beginnings to where now we are provisioning hundreds of thousands of servers on a daily basis on behalf of customers around the world to test their applications," explained Tom Lounibos, CEO of SOASTA, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that ActiveState, the leading independent Cloud Foundry and Docker-based PaaS provider, has been named “Silver Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. ActiveState believes that enterprises gain a competitive advantage when they are able to quickly create, deploy and efficiently manage software solutions that immediately create business value, but they face many challenges that ...
“This win means a great deal to us because it is decided by the readers – the people who understand how use of our technology enables new insights that drive the business,” said Matt Davies, senior director, EMEA marketing, Splunk. “Splunk Enterprise enables organizations to improve service levels, reduce operations costs, mitigate security risks, enhance DevOps collaboration, create new product and service offerings and obtain deeper insight into customer behavior. Being named Best Business App...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
SYS-CON Media announced that Cisco, a worldwide leader in IT that helps companies seize the opportunities of tomorrow, has launched a new ad campaign in Cloud Computing Journal. The ad campaign, a webcast titled 'Is Your Data Center Ready for the Application Economy?', focuses on the latest data center networking technologies, including SDN or ACI, and how customers are using SDN and ACI in their organizations to achieve business agility. The Cisco webcast is available on-demand.
Datapipe has acquired GoGrid, a provider of multi-cloud solutions for Big Data deployments. GoGrid’s proprietary orchestration and automation technologies provide 1-Button deployment for Big Data solutions that speed creation and results of new cloud projects. “GoGrid has made it easy for companies to stand up Big Data solutions quickly,” said Robb Allen, CEO, Datapipe. “Datapipe customers will achieve significant value from the speed at which we can now create new Big Data projects in the clou...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what th...
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness,...
Security can create serious friction for DevOps processes. We've come up with an approach to alleviate the friction and provide security value to DevOps teams. In her session at DevOps Summit, Shannon Lietz, Senior Manager of DevSecOps at Intuit, will discuss how DevSecOps got started and how it has evolved. Shannon Lietz has over two decades of experience pursuing next generation security solutions. She is currently the DevSecOps Leader for Intuit where she is responsible for setting and driv...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science f...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. ...
SYS-CON Media announced today that PagerDuty has launched a popular blog feed on DevOps Journal. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done.
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP ...