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Perceptron Announce Third Quarter Financial Results

Perceptron has announced results for the three months ended March 31, 2020.

Fiscal Third Quarter 2020 Summary 

  • Net sales of $12.7 million
  • Net loss of $(3.9) million
  • Total new  bookings of $10.9 million
  • Total backlog of $31.2 million

Perceptron reported a net loss of $3.9 million in the fiscal third quarter 2020, versus $1.0 million loss in the prior-year period. Third quarter results include the non-cash impairment of goodwill and intangible assets for the company’s CMM reporting unit in the amount of $2.2 million, together with cash severance expenses of $0.6 million related to the company’s previously announced restructuring plan.  Excluding the non-cash impairment charges and non-recurring severance expenses, the Company reported a net loss of $1.1 million.

“Our global operations were adversely impacted by the effects of COVID-19 during the third quarter,” stated Jay Freeland, Chairman and Interim CEO of Perceptron.  “In response to shelter-in-place orders and lower customer activity resulting from the pandemic, we reduced activity at all sites and, in some cases, temporarily closed facilities. As of mid-May, we had resumed production activities at the company’s principal facilities located in the United StatesEurope and China and plan to resume full operational capacity as required by customer demands and as permitted by law,” Freeland added.

“In recent months, we took aggressive action to provide for the continued health and safety of our employees, reduce costs and enhance our liquidity position.  In April, we secured funding under the United States SBA paycheck protection program and Germany’s short-time work program, both of which positioned us to retain members of our workforce during this period of disruption and provide for operational continuity.  As production resumes, we will continue to work with our customers and suppliers to provide for the safe and efficient restart of operations,” Freeland continued.

“While several customers chose to delay orders during the fiscal third quarter, we have experienced no significant cancellations in bookings or backlog,” continued Freeland.  “During the quarter, new bookings were significantly impacted in both the Asia and Americas regions and, to a lesser extent, in Europe.  Although we anticipate a gradual improvement in business activity as quarantine orders are lifted, we expect our fourth quarter financial results to be adversely impacted by the pandemic.  To that end, we have chosen to withdraw our financial guidance until such time that conditions stabilize,” Freeland added.

“Importantly, given existing cash which includes borrowings under our credit facility, together with recent proceeds from government assistance programs, we believe Perceptron has adequate liquidity to sustain its operations during this transitional period,” continued Freeland.

Fiscal Third Quarter 2020 Financial Results

For the three months ended March 31, 2020, the Company generated net sales of $12.7 million, versus $15.6 million in the prior-year period.  Sales in the AmericasEurope and Asia declined 2%, 18% and 44% on a year-over-year basis, respectively, in the period.  Sales of measurement solutions, which represented 90% of total sales in the period, declined 17% in the fiscal third quarter, when compared to the prior-year period.

Total gross profit declined 14% on a year-over-year basis, or $0.7 million, to $4.4 million in the fiscal third quarter.

Total bookings declined 17% on a year-over-year basis to $10.9 million in the fiscal third quarter, as bookings within the Americas and Asia declined 30% and 43%, respectively, in the period and bookings within Europe increased 7% in the period. The COVID-19 pandemic had a significant impact on the company’s bookings in Asia and Americas, with a lesser impact in Europe.

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