Exhibit 99.1
[PERCEPTRON LOGO]
Contact: John J. Garber
Vice President of Finance and CFO
734 414-6100
PERCEPTRON ANNOUNCES RESULTS FOR THE THIRD QUARTER OF FISCAL YEAR 2005
PLYMOUTH, MICHIGAN, MAY 5, 2005 - PERCEPTRON, INC. (NASDAQ: PRCP) today
announced net sales of $12.9 million and net income of $744,000, or $0.08 per
diluted share, for the third quarter ended March 31, 2005, compared with net
sales of $12.4 million and net income of $508,000, or $0.05 per diluted share,
for the quarter ended March 31, 2004. For the nine-month period ended March 31,
2005 the Company reported net sales of $39.9 million and net income of $3.2
million or $0.34 per diluted share, compared with net sales of $38.2 million and
net income of $3.1 million, or $0.33 per diluted share, for the same period one
year ago.
Sales in North America of $7.5 million were up approximately $1.9 million and
sales in Europe of $5.0 million were down approximately $1.4 million compared to
the third quarter of fiscal 2004. The sales increase in North America reflected
higher sales of AutoGauge(R) systems and the ScanWorks(R) product line while the
sales decrease in Europe was due to lower sales of AutoGauge(R) systems that
were partially offset by the strong Euro that based on conversion rates in
effect this quarter added approximately $300,000 more in sales than the
comparable rates in the third quarter of fiscal 2004 would have yielded.
The gross profit margin this quarter was 51.1% compared with 46.3% in the third
quarter of fiscal 2004. The improvement was primarily due to a favorable product
mix. The continuing benefit from the strong Euro accounted for approximately one
third of the margin improvement.
Selling, general and administrative expenses were $913,000 higher in the current
quarter compared to the third quarter of fiscal 2004 primarily due to a net
increase in the accrual for doubtful accounts of approximately $480,000 related
to the bankruptcy of one customer. Higher costs related to the Michigan single
business tax, salary and benefit increases and the strong Euro also contributed
to the higher level of spending. Research and development expenses of
approximately $1.7 million were comparable to the third quarter of fiscal 2004.
The Company had new order bookings of $16.2 million during the third quarter
compared with new order bookings of $16.9 million in the second quarter of
fiscal 2005 and $15.0 million for the quarter ended March 31, 2004. The
Company's backlog was $18.9 million as of March 31, 2005 compared with $19.3
million as of March 31, 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 expect sales for all of fiscal 2005 to be comparable to
the level reported in fiscal 2004. As an equipment supplier to the major
automakers, unlike a parts supplier, our revenues are affected by the number and
timing of new vehicle programs, not by the number of vehicles produced. As a
result, the automotive industry's current focus on introducing new vehicles more
frequently to satisfy changing customer requirements has positively influenced
the Company's sales growth." Mr. Pease continued, "Our balance sheet remains
strong. We had no debt and cash of $20.9 million as of March 31, 2005.
Shareholders' equity was $54.3 million, or $5.72 per diluted share as of March
31, 2005."
Perceptron, Inc. will hold a conference call/webcast chaired by Alfred A. Pease,
President & CEO today at 10:00 a.m. (EDT). Investors can access the call at
http://phx.corporate-ir.net/playerlink.zhtml?c=110185&s=wm&e=1059714 or by
dialing 800 811-8824 (domestic callers) or 913 981-4903 (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 11:59 p.m. on Thursday, May 12, 2005. You can access the rebroadcast by
dialing 888 203-1112 (domestic callers) or 719 457-0820 (international callers)
and entering the passcode of 4667915. 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.
47827 Halyard Drive - Plymouth, Michigan 48170 - Phone 734-414-6100
- Fax 734-414-4700
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. 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
expand into new markets in Eastern Europe and Asia, 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
ability of the Company to expand into new geographic markets is subject to a
number of uncertainties, including the timing of customer acceptance of the
Company's products and technologies, the impact of changes in local economic
conditions, the ability of the Company to attract the appropriate personnel to
effectively represent, install and service the Company's products in the market
and uncertainties inherent in doing business in foreign markets, especially
those that are less well developed than the Company's traditional markets, such
as the impact of fluctuations in foreign currency exchange rates, foreign
government controls, policies and laws affecting foreign trade and investment,
difference in the level of protection available for the Company's intellectual
property and differences in language and local business and social customs. 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 -
47827 Halyard Drive - Plymouth, Michigan 48170 - Phone 734-414-6100
- Fax 734-414-4700
Page 3 of 3
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,
2005 2004 2005 2004
-------- -------- -------- --------
Net Sales $ 12,879 $ 12,359 $ 39,935 $ 38,234
Cost of Sales 6,299 6,639 19,909 20,416
-------- -------- -------- --------
Gross Profit 6,580 5,720 20,026 17,818
Selling, General and Administrative Expense 3,810 2,897 9,962 8,597
Engineering, Research and Development Expense 1,681 1,660 5,301 4,762
Other Expense - 166 - 166
-------- -------- -------- --------
Operating Income 1,089 997 4,763 4,293
Interest Income, net 138 53 356 193
Foreign Currency and Other (40) (5) 68 747
-------- -------- -------- --------
Income Before Income Taxes 1,187 1,045 5,187 5,233
Income Tax Expense 443 537 2,011 2,168
-------- -------- -------- --------
Net Income $ 744 $ 508 $ 3,176 $ 3,065
======== ======== ======== ========
Earnings Per Share
Basic $ 0.08 $ 0.06 $ 0.36 $ 0.36
Diluted $ 0.08 $ 0.05 $ 0.34 $ 0.33
Weighted Average Common Shares Outstanding
Basic 8,775 8,647 8,751 8,554
Diluted 9,490 9,404 9,430 9,311
CONDENSED BALANCE SHEETS MARCH 31, JUNE 30,
2005 2004
------- -------
Cash and Cash Equivalents $20,872 $19,679
Receivables, net 20,632 22,143
Inventories, net 7,489 5,688
Other Current Assets 1,847 1,831
Property and Equipment, net 7,617 7,714
Other Non-Current Assets, net 4,735 5,869
------- -------
Total Assets $63,192 $62,924
======= =======
Current Liabilities $ 8,888 $12,564
Shareholders' Equity 54,304 50,360
------- -------
Total Liabilities and Shareholders' Equity $63,192 $62,924
======= =======
47827 Halyard Drive - Plymouth, Michigan 48170 - Phone 734-414-6100
- Fax 734-414-4700