EXHIBIT 99.1
[PERCEPTRON LOGO]
Contact: John J. Garber
Vice President of Finance and CFO
734 414-6100
PERCEPTRON ANNOUNCES FOURTH QUARTER AND TWELVE-MONTH
RESULTS FOR FISCAL YEAR 2005
PLYMOUTH, MICHIGAN, AUGUST 11, 2005 - PERCEPTRON, INC. (NASDAQ: PRCP) today
announced net sales of $54.9 million and net income of $3.3 million, or $0.35
per diluted share, for the twelve month period ended June 30, 2005, compared
with net sales of $53.4 million and net income of $4.0 million, or $0.43 per
diluted share, for the same period one year ago. For the fourth quarter ended
June 30, 2005, the Company reported net sales of $15.0 million and net income of
$106,000, or $0.01 per diluted share, compared with net sales of $15.2 million
and net income of $922,000, or $0.10 per diluted share, for the quarter ended
June 30, 2004.
The gross profit margin was 47% of sales in fiscal 2005 and 2004. The gross
profit margin of 39% in the fourth quarter of fiscal 2005 decreased compared
with the same period one year ago due to inventory adjustments, higher
manufacturing and installation costs related to the mix of products shipped
during the quarter, an increase in the amount of deferred revenue with nominal
remaining cost to be incurred that will have a positive impact on gross profit
margin in the first half of fiscal 2006, and higher sales of low margin sensors
to the forest products market. The Company expects gross profit margins in
fiscal 2006 to be comparable to those of fiscal 2005 and 2004.
Selling, general and administrative expense was $14.0 million in fiscal 2005,
compared to $12.2 million in fiscal 2004. The increase was primarily due to
higher bad debt, normal Michigan Single Business Tax when compared with a credit
the previous fiscal year, salary and benefit increases, and legal expenses, that
were partially offset by lower employee profit sharing. Selling, general and
administrative expense in the fourth quarter of fiscal 2005 was $410,000 higher
than the fourth quarter of fiscal 2004 primarily due to higher legal, salary and
benefit, and Michigan Single Business Tax expenses that were partially offset by
lower employee profit sharing. Engineering, research and development costs of
$7.2 million in fiscal 2005 were approximately $300,000 higher than fiscal 2004
due to salary and benefit increases, and increased contract services and
engineering material related to new product developments for markets outside
automotive, that were partially offset by lower employee profit sharing.
The increase in interest income for the fourth quarter and full year of fiscal
2005 compared with fiscal 2004 reflected higher average cash balances on-hand
and higher interest rates. Other income in fiscal 2004 was primarily related to
foreign currency gains that did not reoccur in fiscal 2005 because there was
relatively more stability in the US Dollar versus the Euro. Income tax expense
in both fiscal years reflected the effect of the mix of operating profit and
loss among the Company's various operating entities and their countries'
respective tax rates.
The Company had total new order bookings of $53.9 million during fiscal 2005
compared with $54.3 million in fiscal 2004. Total new order bookings during the
fourth quarter were $14.1 million compared with $14.9 million for the fourth
quarter of fiscal 2004. The rate of new orders for both years reflected strong
demand for the Company's products and services that facilitate its customers'
goals to improve quality and reduce cost. The Company's backlog was $18.0
million as of June 30, 2005 compared with $19.1 million as of June 30, 2004.
The Company plans to make important new investments in fiscal 2006, largely in
personnel, for recently introduced products and geographic growth opportunities
in the U.S., Europe, Eastern Europe, and Asia. The Company expects to see
revenue returns from these investments beginning with the second half of fiscal
2006, and net income growth from the investments beginning in fiscal 2007. As a
result of these investments, the Company expects revenues for fiscal 2006 to be
more than 10% higher than those of fiscal 2005, and net income levels to be
comparable to those of fiscal 2005.
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Alfred A. Pease, chairman, president and chief executive officer, commented, "We
are pleased with our performance in fiscal 2005. Net sales increased and we
remained profitable in fiscal 2005 despite the difficulties of some automakers
and their suppliers. We are excited about our new investments and the long term
returns they will bring our Company and its shareholders. Our balance sheet
remains strong. We had $20.4 million of cash, no debt and shareholders' equity
was $54.0 million, or $5.71 per diluted share, as of June 30, 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=1113545 or by
dialing 800 946-0783 (domestic callers) or 719 457-2658 (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, August 18, 2005. You can access the rebroadcast by
dialing 888 203-1112 (domestic callers) or 719 457-0820 (international callers)
and entering the passcode of 5701164. 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.
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 2006 and future revenue, gross profit and net
income levels and the timing of revenue and net income increases from the
Company's plans to make important new investments, largely for personnel, for
new product and geographic growth opportunities in the U.S., Europe, Eastern
Europe, and Asia. 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 dependence
of the Company's net income levels on increasing revenues, 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, continued access to third party components for our
ScanWorks systems, 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 develop and introduce new products, the
ability of the Company to expand into new markets in Eastern Europe and Asia,
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, 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
develop and introduce new products is subject to a number of uncertainties,
including general product demand and market acceptance risks, 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, the ability of the Company to identify satisfactory distribution
networks, the ability of the Company to develop internally or identify
externally high quality cost effective manufacturing capabilities for the
products, general product development and commercialization difficulties, and
the level of interest existing and potential new customers may have in new
products and technologies generally. 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
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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, differences 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. 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
and expand into new geographic markets. 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 -
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PERCEPTRON, INC.
SELECTED FINANCIAL DATA
(In Thousands Except Per Share Amounts)
(Unaudited)
<Table>
<Caption>
CONDENSED INCOME STATEMENTS THREE MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Net Sales $ 14,957 $ 15,159 $ 54,892 $ 53,393
Cost of Sales 9,076 7,877 28,985 28,293
---------- ---------- ---------- ----------
Gross Profit 5,881 7,282 25,907 25,100
Selling, General and Administrative Expense 4,008 3,598 13,970 12,195
Engineering, Research and Development Expense 1,941 2,194 7,242 6,956
Other Expense -- -- -- 319
---------- ---------- ---------- ----------
Operating Income (Loss) (68) 1,490 4,695 5,630
Interest Income, net 136 97 492 290
Foreign Currency and Other Income (Expense) (69) (167) (1) 733
---------- ---------- ---------- ----------
Income (Loss) Before Income Taxes (1) 1,420 5,186 6,653
Income Tax Expense (Benefit) (107) 498 1,904 2,666
---------- ---------- ---------- ----------
Net Income $ 106 $ 922 $ 3,282 $ 3,987
========== ========== ========== ==========
Earnings Per Share
Basic $ 0.01 $ 0.11 $ 0.37 $ 0.46
Diluted $ 0.01 $ 0.10 $ 0.35 $ 0.43
Weighted Average Common Shares Outstanding
Basic 8,810 8,710 8,766 8,593
Diluted 9,458 9,406 9,437 9,327
CONDENSED BALANCE SHEETS JUNE 30, JUNE 30,
2005 2004
---------- ----------
Cash and Cash Equivalents $ 20,374 $ 19,679
Receivables, net 22,305 22,143
Inventories, net 5,884 5,688
Other Current Assets 1,984 1,831
Property and Equipment, Net 7,687 7,714
Other Non-Current Assets, Net 5,156 5,869
---------- ----------
Total Assets $ 63,390 $ 62,924
========== ==========
Current Liabilities $ 9,398 $ 12,564
Shareholders' Equity 53,992 50,360
---------- ----------
Total Liabilities and Shareholders' Equity $ 63,390 $ 62,924
========== ==========
</Table>