EXHIBIT 99.1
[PERCEPTRON LOGO]
Contact: John J. Garber
Vice President of Finance and CFO
734 414-6100
PERCEPTRON ANNOUNCES SECOND QUARTER RESULTS FOR FISCAL YEAR 2005
PLYMOUTH, MICHIGAN, FEBRUARY 1, 2005 - PERCEPTRON, INC. (NASDAQ: PRCP) today
announced net sales of $14.8 million and net income of $1.5 million, or $0.16
per diluted share, for the second quarter ended December 31, 2004, compared with
net sales of $13.6 million and net income of $1.5 million, or $0.16 per diluted
share, for the quarter ended December 31, 2003. For the six month period ended
December 31, 2004 the Company reported net sales of $27.1 million and net income
of $2.4 million, or $0.26 per diluted share, compared with net sales of $25.9
million and net income of $2.6 million, or $0.28 per diluted share, for the same
period one year ago.
Sales during the quarter were approximately $1.2 million higher than those of
the second quarter of fiscal 2004. Sales in North America of $9.2 million were
comparable to the second quarter of fiscal 2004. Sales in Europe of $5.3 million
were up approximately $1.1 million. Sales in both regions remained strong
primarily due to the timing of customer delivery requirements, principally for
Automated Systems products. Sales for the quarter also benefited from the strong
Euro that based on conversion rates in effect this quarter added $460,000 more
in sales than the comparable rates in the second quarter of fiscal 2004 would
have yielded.
The gross profit margin this quarter was 50.1% compared with 47.7% in the second
quarter of fiscal 2004. The margin improvement primarily reflected the benefit
from the strong Euro.
Selling, general and administrative expenses were $140,000 higher in the current
quarter compared to the second quarter of fiscal 2004 due to higher costs
related to the strong Euro and salary and benefit increases that were partially
offset by lower legal expenses. Research and development expenses were $252,000
higher than one year ago due principally to increased spending on engineering
contract services and materials to support new products development. Foreign
currency and other income of $40,000 was significantly lower than last year
primarily due to a large foreign currency exchange gain realized last year.
The Company had new order bookings of $16.9 million during the second quarter
compared with new order bookings of $6.7 million in the first quarter of fiscal
2005 and $12.4 million for the quarter ended December 31, 2003. The high level
of new orders this quarter was expected and was principally due to the timing of
our customers' decisions to place orders for Automated Systems products this
quarter rather than the first quarter of fiscal 2005. The Company's backlog was
$15.6 million as of December 31, 2004 compared with $13.5 million as of
September 30, 2004.
Alfred A. Pease, chairman, president and chief executive officer, commented, "We
were pleased with our operating results and the level of new orders received
during the quarter. We continue to expect the Company's sales and bookings for
fiscal 2005 to be comparable to those reported for fiscal year 2004. Our balance
sheet is strong and continues to strengthen. Cash increased by $1.7 million to
$23.5 million during the quarter, and we had no debt. Shareholders' equity was
$54.0 million or, $5.74 per diluted share as of December 31, 2004."
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://phx.corporate-ir.net/playerlink.zhtml?c=110185&s=wm&e=1005941 or by
dialing 800-310-6649 (domestic callers) or 719-457-2693 (international callers).
If you are unable to participate during the live webcast, the call will be
digitally rebroadcast for seven days, beginning at 2:00 p.m. today and running
until 11:00 p.m. on Tuesday, February 8, 2005. You can access the rebroadcast by
dialing 888-203-1112 (domestic callers) or 719-457-0820 (international callers)
and entering the passcode of 3404423.
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.
Page 2 of 3
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 225 employees
worldwide, with operations in the United States, Germany, France, Spain, 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 2005 and future revenue and order booking
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, continued pricing pressures
from the Company's customers, the timing of orders and shipments which can cause
the Company to experience significant fluctuations in its quarterly and annual
revenue, order bookings, backlog 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, number 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. 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. 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 U.S. Dollars and Euros. 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.
- Financial Tables Follow -
Page 3 of 3
PERCEPTRON, INC.
SELECTED FINANCIAL DATA
(In Thousands Except Per Share Amounts)
(Unaudited)
CONDENSED INCOME STATEMENTS THREE MONTHS SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
------- ------- ------- -------
Net Sales $14,812 $13,607 $27,056 $25,875
Cost of Sales 7,394 7,120 13,610 13,777
------- ------- ------- -------
Gross Profit 7,418 6,487 13,446 12,098
Selling, General and Administrative Expense 3,355 3,215 6,152 5,700
Engineering, Research and Development Expense 1,917 1,665 3,620 3,102
------- ------- ------- -------
Operating Income 2,146 1,607 3,674 3,296
Interest Income, net 127 89 218 140
Foreign Currency and Other 40 763 108 752
------- ------- ------- -------
Income Before Income Taxes 2,313 2,459 4,000 4,188
Income Tax Expense 846 929 1,568 1,631
------- ------- ------- -------
Net Income $ 1,467 $ 1,530 $ 2,432 $ 2,557
======= ======= ======= =======
Earnings Per Share
Basic $ 0.17 $ 0.18 $ 0.28 $ 0.30
Diluted $ 0.16 $ 0.16 $ 0.26 $ 0.28
Weighted Average Common Shares Outstanding
Basic 8,749 8,585 8,738 8,507
Diluted 9,413 9,298 9,403 9,265
CONDENSED BALANCE SHEETS DECEMBER 31, JUNE 30,
2004 2004
------- -------
Cash and Cash Equivalents $23,509 $19,679
Receivables, net 19,799 22,143
Inventories, net 6,451 5,688
Other Current Assets 1,774 1,831
Property and Equipment, net 7,834 7,714
Other Non-Current Assets, net 4,797 5,869
------- -------
Total Assets $64,164 $62,924
======= =======
Current Liabilities $10,144 $12,564
Shareholders' Equity 54,020 50,360
------- -------
Total Liabilities and Shareholders' Equity $64,164 $62,924
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