World News: 21:15 GMT Monday 11th February 2019. [Perceptron, Inc. via Globe Newswire via SPi World News]
PLYMOUTH, Mich., Feb. 11, 2019 (GLOBE NEWSWIRE) -- , a leading global provider of 3D automated metrology solutions and coordinate measuring machines, today announced second quarter and six month results for its 2019 fiscal year (period ended December 31, 2018).
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.
“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.
Perceptron generated second quarter net sales for fiscal 2019 in the amount of $21.6 million, increasing $1.2 million, or 5.9%, versus the same quarter in the prior year and reflecting strength in the Company’s Europe and Asia regions. Excluding unfavorable currency impacts, net sales would have increased $1.9 million or 9.3% as compared to the prior year’s second quarter. The Europe region improvement was due to increases in In-Line and Near-Line Measurement Solutions, which was bolstered by new product sales, and 3D Scanning Solutions, partially offset by a decrease in Off-Line Measurement Solutions. The year-over-year improvement in the Asia region was due to increases in Off-Line Measurement Solutions and 3D Scanning Solutions partially offset by decreases in In-Line and Near-Line Measurement Solutions as well as Value Added Services. The decrease in the Americas region was due to softness across all product lines.
In the second quarter of fiscal 2019, gross profit as a percentage of sales was up 30 basis points compared to the prior year period, primarily due to the mix of the Company’s revenue and lower warranty costs as well as the timing of certain expenses in cost of goods sold under the prior accounting rules in the second quarter of fiscal 2018.
During the second quarter of fiscal 2019, SG&A, Engineering and R&D expenses were up $0.8 million, primarily as a result of planned strategic investments in several engineering, research and development initiatives, increased employee-related costs, an increase related to specialized supplies utilized in development of our products and an increase in our allowance for doubtful accounts.
Second quarter bookings were $20.5 million, an increase of 2.5% compared to the second quarter of fiscal 2018 and included an unfavorable currency impact of $1.1 million. The principal driver of the bookings increase was new products orders in the Company’s Europe region. The increase in booking activity by product line was primarily due to increases in 3D Scanning Solutions, Value Added Services and In-Line and Near-Line Measurement Solutions partially offset by a decrease in Off-Line Measurement Solutions.
Revenue in the second quarter of fiscal 2019 exceeded bookings by $1.1 million, which caused a decrease in backlog to $38.1 million.
Cash and short-term investment balance totals $8.0 million at December 31, 2018, up from $6.7 million at June 30, 2018 but down compared to $9.0 million at December 31, 2017. At December 31, 2018 and June 30, 2018, the Company did not have any bank debt outstanding, down from an outstanding balance of $1.6 million at December 31, 2017.
Perceptron, Inc., will hold its second quarter fiscal 2019 investor conference call/webcast, chaired by David L. Watza, President and CEO, on February 12, 2019, at 10:00 AM (EST). Investors can access the call at:
A replay will be posted to the Company's website after the conference call concludes.
--- Financial Tables Follow ---
While Perceptron’s results under Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”) provide significant insight into our operations and financial position, Perceptron’s management supplements its analysis of the business using “Recurring Operating Income”. This is a non-GAAP financial measure. Management believes that this non-GAAP financial measures, when taken together with the corresponding GAAP measures, provides incremental insight into the underlying factors and trends affecting our performance. However, it should be viewed as supplemental data, rather than as a substitute or an alternative to the comparable GAAP measure. The table below presents reconciliation of the non-GAAP measure to Operating Income.
Globe Newswire: 21:15 GMT Monday 11th February 2019
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