Perceptron Report 18% Decline in New Order Bookings

Perceptron, Inc. has announced fourth quarter and fiscal year results for its 2019 fiscal year (period ended June 30, 2019).

Fourth Quarter Fiscal 2019 Results:

  • Fourth quarter consolidated net sales were $18.2 million, a 16.7% sequential increase over third quarter fiscal year 2019 and decrease of 22.9% from the fourth quarter of fiscal year 2018.
  • Bookings totaled $20.9 million as a result of increased order activity in the Americas and Asia regions.
  • Consolidated gross profit was $5.9 million, and gross margin was 32.4%.
  • Fourth quarter reported operating loss totaled $8.6 million, primarily caused by a $7.4 million non-cash charge for goodwill and intangible asset impairment.  Excluding this non-cash charge and other special items, the operating loss was $1.0 million.
  • The non-cash charge of $7.4 million reduced the goodwill balance of the CMM reporting unit by $6.0 million and the net intangible asset balances of the same unit by $1.4 million.
  • Net loss for the fourth quarter of fiscal 2019 was $8.4 million.
  • Backlog rose to $38.4 million.
  • Cash and short-term investments totaled $6.0 million at June 30, 2019 with no debt on the balance sheet.

Full Year Fiscal 2019 Results:

  • Consolidated net sales decreased 9.3% to $76.8 million.
  • Consolidated gross profit decreased by $4.8 million to $27.2 million.
  • Consolidated gross margin was 35.4%.
  • Year-to-date reported operating loss totaled $6.8 million, including the $7.4 million non-cash charge for goodwill and asset impairment for the CMM reporting unit.  Excluding this non-cash charge and other special items, operating income was $0.2 million.
  • Net loss was $6.8 million for fiscal year 2019.
  • Bookings totaled $71.5 million for fiscal year 2019; a 18% decline in bookings from 2018 levels ($87.2 million). North America reported a 45.7% decline in new order bookings from $35.0 million in 2018 to 19.0 million in 2019.

David Watza, President and CEO of Perceptron, commented, “Despite continued challenging macro conditions for our major industrial customers during the quarter, we remain optimistic for the future as bookings increased more than 10 percent over the prior year fourth quarter on a constant currency basis. The increase in bookings was driven, in large part, by our Americas and Asia regions. As some customers adjust to consumer demand trends toward electric and autonomous vehicles, we believe we are well positioned to benefit from these changes in the longer term due to our continued product development efforts. Our optimism is supported by recently announced orders for electric vehicle production, our first AutoGauge®ACF order which was in the white-goods industry and a 13-system order from a prominent North American OEM. We continue to see broad, significant interest in our technology across all regions, both from current and prospective customers.” 

“While we did not achieve our objectives during the prior fiscal year, we enter fiscal 2020 energized and committed to returning to growth in bookings and revenue. Our investments to update and expand our suite of metrology solutions over the past several years have further positioned us to meet customers’ demand with top-of-the-line solutions. We continue to see strong evidence that our established development path will generate new business opportunities within our existing customer relationships and help us grow into adjacent markets.”

Jay Freeland, Chairman of the Board, added, “We are confident in the core value of this business, which has been reflected in the recently announced new product orders both inside and outside of automotive, and the long-term growth potential of Perceptron remains strong as we continue to make progress in key regions of the world.”

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