Perceptron Announce Double-Digit Decline in New Order Bookings

Perceptron has announced second quarter and six month results for its 2019 fiscal year (period ended December 31, 2018).

Second Quarter Results

  • Second quarter consolidated net sales were $21.6 million, an increase of 5.9% compared to the second quarter in fiscal year 2018
  • Consolidated gross profit was $7.9 million, an increase of 6.8% compared to the prior year period, while gross margin was 36.6%
  • Second quarter reported operating income totaled $1.4 million and recurring operating income totaled $0.8 million
  • Net income for the second quarter of fiscal 2019 was $1.5 million compared to $0.4 million in the prior year’s second quarter
  • Bookings totaled $20.5 million; Europe and Asia regions achieved record bookings levels in the second quarter of fiscal 2019
  • Backlog was $38.1 million
  • Cash and short-term investments totaled $8.0 million at December 31, 2018

Half Year Results

  • Consolidated net sales increased 8.3% to $43.0 million
  • Consolidated gross profit increased $1.1 million to $16.2 million, representing a 7.3% increase over the prior year period
  • Consolidated gross margin was 37.7%
  • Year-to-date reported operating income totaled $2.9 million and recurring operating income was $2.3 million.
  • Net income increased by $0.5 million, or 26.3%, to $2.4 million for year-to-date fiscal 2019
  • Bookings decreased 13.4% to $37.4 million for year-to-date fiscal 2019, however, bookings in both the Company’s Europe and Asia regions were strong in the first half of fiscal 2019
Three Months Ended December 31, Six Months Ended December 31,
BOOKINGS (in millions) 2018 2017 Change 2018 2017 Change
Geographic Region
Americas $ 3.0 $ 6.9 $ (3.9 ) $ 6.6 $ 16.5 $ (9.9 )
Europe 12.0 8.0 4.0 21.3 17.4 3.9
Asia 5.5 5.1 0.4 9.5 9.3 0.2
Total Bookings $ 20.5 $ 20.0 $ 0.5 $ 37.4 $ 43.2 $ (5.8 )

David Watza, President and CEO of Perceptron, commented, “We are pleased to announce strong top-line growth for the second quarter of fiscal 2019, which reflects our ongoing R&D and engineering investments, as well as new product developments recently launched for our core automotive business and its adjacencies. Our continuous improvement and efficiency efforts are also paying dividends with resulting increases to revenue and improved margins.Revenue for the fiscal third quarter is expected to be in the range of $17.0 million to $20.0 million”

“Given a flat macro environment emerging in 2019 coupled with foreign currency exchange headwinds, the Company tempers its guidance for full year 2019 revenue growth to be relatively flat compared with the prior year. Continued early success with new product launches, despite moderating global growth, reinforces our confidence in achieving our long-term growth targets.”

“We are confident in our strategic plan as we continue to experience strength in key automotive customer demand metrics, as evidenced by our fifth consecutive quarter of sales over $20.0 million. We continue to have confidence in executing our strategic improvement plan for our core automotive business, as our implemented advancements and pursuit of an expanded footprint should set the stage for increased penetration and market share capitalization, as well as additional opportunities in the future,” Watza added.

“While the Americas have remained a bit soft, we are encouraged by the roll outs of new models and global platforms and continue to see strong demand for our current and new products and solutions in Europe and Asia as both those regions again set booking records in the second quarter of fiscal 2019.  Our recent success and continued investment in new products, as well as positive customer feedback, provide the Company with increasing confidence in our longer-term aspirations of obtaining high-single digit revenue growth and resulting double-digit earnings growth,” Watza concluded.

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