Perceptron Report 24.8% Decline in New Order Bookings

Perceptron has announced third quarter and nine month results for its 2019 fiscal year (period ended March 31, 2019).

Third quarter fiscal 2019 results:

  • Third quarter consolidated net sales were $15.6 million, a decrease of 27.1% from the third quarter of fiscal year 2018
  • Consolidated gross profit was $5.1 million and gross margin was 32.7%
  • Net loss for the third quarter of fiscal 2019 was $1.1 million
  • New order bookings totaled $13.2 million
  • Backlog was $35.7 million

Year-to-date fiscal 2019 results:

  • Consolidated net sales decreased 4.1% to $58.6 million
  • Consolidated gross margin was 36.3%
  • Net income was $1.4 million for year-to-date fiscal 2019
  • Bookings decreased 24.8% to $50.6 million for year-to-date fiscal 2019

David Watza, President and CEO of Perceptron, commented, “The market for our Americas region continued to be challenging this quarter as some of our larger OEM customers delayed certain purchasing decisions to accommodate dramatic strategic changes in their product plans.  These customers are adjusting to consumer demand trends toward electric and autonomous vehicles and we believe we have positioned Perceptron to benefit from these changes in the longer term. We have already received some of these orders that were delayed and have not lost any customers.  While I am disappointed in these results, I believe the core value of this business and our ability to accelerate growth remain in place. The Company is well positioned for the future due to our ongoing investments in new product innovation and development.  We remain very confident in our ability to supply our customers their metrology solutions in the coming quarters and years.”

“As a result of the recent demand challenges, we implemented a plan to reduce fixed and variable costs.  These changes are designed to right size the business to more closely match our near-term revenue, with the intent of making us leaner and improve profitability and cash flow without impacting our long-term growth initiatives.”

“We have been pleased with the activity and demand we’re experiencing in our Europe and Asia regions in the face of uncertainties caused by trade disputes.  Underlying customer activities in the early part of our fourth quarter have shown improvements, and we believe that bookings will return to higher levels in the near term.”

“We continue to implement our product plan for our core automotive business, which was highlighted by the new gap and flush solution announced during the quarter. Our unique AutoFit and AccuSite solutions instill confidence for increased automotive market penetration in each of our key geographies, as well as additional product offerings in the future.  We believe that our investments to update and expand our suite of metrology solutions over the past several years have further enhanced our market position, with top-of-the-line solutions designed to meet customer requirements, Watza added.

Our confidence in the long-term growth potential of Perceptron remains strong.  We believe there are significant upside and value creation opportunities ahead for Perceptron and will continue to aggressively execute the Company’s strategic plan, with the goal of maximizing value for Perceptron shareholders.  To that end, the Board has formed a Strategic Planning Committee to assist management in identifying and evaluating new business development opportunities to significantly grow the business,” Watza concluded.

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