EXHIBIT 99.1
[PERCEPTRON LOGO]
Contact: John J. Garber
Vice President of Finance and CFO
734 414-6100
PERCEPTRON ANNOUNCES THIRD QUARTER RESULTS FOR FISCAL YEAR 2004
PLYMOUTH, MICHIGAN, MAY 11, 2004 -- PERCEPTRON, INC. (NASDAQ: PRCP) today
announced sales of $12.4 million and net income of $508,000, or $0.06 per share,
for the third quarter ended March 31, 2004, compared with sales of $16.0 million
and net income of $809,000, or $0.10 per share, for the quarter ended March 31,
2003. For the nine-month period ended March 31, 2004 the Company reported sales
of $38.2 and net income of $3.1 million or $0.36 per share, compared with sales
of $39.5 million and net income of $2.2 million, or $0.27 per share, for the
same period one year ago.
As expected, sales this quarter remained strong. Higher sales for the quarter
one year ago primarily resulted from the delivery of several AutoGauge systems
to a single European customer to support a large new vehicle tooling program.
Significantly, the Company reported strong new order bookings of $15.0 million
during the third quarter compared with new order bookings of $12.4 million in
the second quarter of fiscal 2004 and $14.0 million for the quarter ended March
31, 2003. The Company's backlog was $19.3 million as of March 31, 2004 compared
with $16.6 million as of December 31, 2003.
The Company's infrastructure costs for the third quarter of fiscal 2004,
comprised of selling, general and administrative expense and engineering,
research and development expenses, were slightly lower than for the same period
one year ago. Operating income for the third quarter of fiscal 2004 of $1.0
million, or 8.1% of sales, was consistent with the level of sales achieved this
quarter. Operating income for the third quarter of fiscal 2003 was $4.6 million,
or 28.8% of sales.
The higher operating income and incremental gross profit for the quarter one
year ago was primarily due to the higher level of sales in the quarter
reflecting the higher than normal revenue in Europe, and higher than normal
customer buy-offs on completed system installations with nominal associated
costs. Manufacturing and installation costs, which are relatively fixed, were
27% of sales this quarter compared to 19% last year when sales were much higher.
This was the primary reason for the reduction in the percentage of gross margin
from 58% last year to the more normal level of 46% in the third quarter of
fiscal 2004.
Other expense for the third quarter of fiscal 2003 included a $2.4 million
pre-tax charge for an arbitration award against Perceptron B.V., a wholly-owned
subsidiary of the Company.
Alfred A. Pease, chairman, president and chief executive officer, commented, "We
were pleased with our operating results and the higher level of new orders
received during the quarter. We expect our fourth quarter results to be
comparable to those achieved during the third quarter. Our balance sheet is
strong with cash increasing by $4.1 million during the quarter to $21.5 million
as of March 31, 2004. Shareholders' equity rose to $49.4 million, or $5.71 per
share, as of March 31, 2004."
Perceptron, Inc. will hold a conference call/webcast chaired by Alfred A. Pease,
chairman, president and chief executive officer today at 10:00 a.m. (EDT).
Investors can access the call at
http://www.firstcallevents.com/service/ajwz406382199gf12.html or by dialing 800
915-4836 (domestic callers) or 973 317-5319 (international callers). 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, May 18, 2004. You can access the rebroadcast by dialing
800 428-6051 (domestic callers) or 973 709-2089 (international callers) and
entering the passcode of 354777.
A replay of the call will also be available in the "Company-News" section of the
Company's website at www.perceptron.com for approximately one year following the
call.
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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 215 employees
worldwide, with facilities in the United States, Germany, Netherlands, France,
Brazil, and Japan. 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 fiscal 2004 and future revenue, order booking levels
and earnings levels. 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 including the risk that the Company's customers postpone new tooling
programs as a result of economic conditions or otherwise, 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 and 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, 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
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 given later in the integration process.
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PERCEPTRON, INC.
SELECTED FINANCIAL DATA
(In Thousands Except Per Share Amounts)
(Unaudited)
CONDENSED INCOME STATEMENTS THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
2004 2003 2004 2003
-------- -------- -------- --------
Net Sales $ 12,359 $ 15,967 $ 38,234 $ 39,495
Cost of Sales 6,639 6,677 20,416 18,699
-------- -------- -------- --------
Gross Profit 5,720 9,290 17,818 20,796
Selling, General and Administrative Expense 2,897 3,095 8,597 8,937
Engineering, Research and Development Expense 1,660 1,597 4,762 4,631
Other Expense 166 - 166 -
-------- -------- -------- --------
Operating Income 997 4,598 4,293 7,228
Interest Income (Expense), net 53 22 193 (46)
Arbitration Charge - (2,370) - (2,370)
Foreign Currency and Other (5) 61 747 (8)
-------- -------- -------- --------
Income Before Income Taxes 1,045 2,311 5,233 4,804
Income Tax Expense 537 1,502 2,168 2,573
-------- -------- -------- --------
Net Income $ 508 $ 809 $ 3,065 $ 2,231
======== ======== ======== ========
Earnings Per Share
Basic $ 0.06 $ 0.10 $ 0.36 $ 0.27
Diluted $ 0.05 $ 0.09 $ 0.33 $ 0.26
Weighted Average Common Shares Outstanding
Basic 8,647 8,309 8,554 8,269
Diluted 9,404 8,689 9,311 8,434
CONDENSED BALANCE SHEETS MARCH 31, JUNE 30,
2004 2003
------- -------
Cash and Cash Equivalents $21,546 $11,101
Other Current Assets 24,107 33,773
Property and Equipment, Net 8,075 8,290
Other Non-Current Assets, Net 6,054 6,250
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Total Assets $59,782 $59,414
======= =======
Current Liabilities $10,384 $14,469
Shareholders' Equity 49,398 44,945
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Total Liabilities and Shareholders' Equity $59,782 $59,414
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