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Perceptron Inc. Reports Operating Results (10-K)

September 27, 2010 | About:
10qk

10qk

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Perceptron Inc. (PRCP) filed Annual Report for the period ended 2010-06-30.

Perceptron Inc. has a market cap of $38.49 million; its shares were traded at around $4.3 with and P/S ratio of 0.74. PRCP is in the portfolios of Jim Simons of Renaissance Technologies LLC, John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

All of the Automated Systems products are based on Perceptrons flexible and powerful Vector software platform. Automated Systems sales in fiscal 2010, 2009, and 2008 represented 57%, 43% and 49% of total sales, respectively.

Technology Components sales in fiscal 2010, 2009, and 2008 represented 14%, 13% and 21% of total sales, respectively.

Commercial Products: The Company designs and manufactures a family of products and accessories designed for professional tradesmen that are distributed and sold through strategic partners under their own brand names. These products leverage the Companys strong technical expertise in electronics, optics, and image processing. Commercial Product sales in fiscal 2010, 2009 and 2008 represented 23%, 38% and 25% of total sales, respectively.

30, 2010, approximately 32% of total net sales were derived from the Companys four largest IBU customers (Volkswagen Group, General Motors, BMW, and Ford Motor). For the fiscal year ended June 30, 2009 approximately 25% of total net sales were derived from the Companys four largest automotive customers (Volkswagen Group, General Motors, Ford Motor, and BMW). For the fiscal year ended June 30, 2008 approximately 26% of total net sales were derived from the Companys four largest automotive customers (General Motors, Volkswagen Group, Chrysler, and BMW). The Company also sells to manufacturing line builders, system integrators or OEMs, who in turn sell to these same automotive companies. For the fiscal year ended June 30, 2010, 2009, and 2008, approximately 10%, 8% and 7%, respectively, of net sales were to manufacturing line builders, system integrators and OEMs for the benefit of the same four automotive companies. These numbers reflect consolidations that have occurred within the Companys four largest automotive customers. During the fiscal year ended June 30, 2010, direct sales to Volkswagen Group accounted for approximately 23% of the Companys total net sales. At June 30, 2010, accounts receivable from Volkswagen Group totaled approximately $2.7 million.

The Companys commercial products are sold to strategic partners who provide the distribution, marketing and promotion of the products through their distribution networks. The Companys commercial products sales in fiscal 2010 were primarily sold to Snap-on and Ridge Tool for distribution through their wholesale and retail distribution networks. During fiscal 2010, the Company entered into supply agreements with three new partners. Sales to one of the new partners, Rothenberger, began in June 2010. Sales to the other two new partners are expected to begin in fiscal 2011. The Companys supply agreement with Ridge Tool expired in fiscal 2010 and was not renewed. During the fiscal year ended June 30, 2010, sales to Snap-on and Ridge Tool were approximately 12% and 10%, respectively, of the Companys total net sales. During fiscal year 2009, sales to Snap-on and Ridge Tool were approximately 20% and 18%, respectively, of the Companys total net sales. During fiscal year 2008, sales to Ridge Tool were 23% of the Companys total net sales. At June 30, 2010, accounts receivable from Snap-on and Ridge Tool totaled approximately $1.5 million and $1.6 million, respectively.

Europe: The Companys European operations contributed approximately 39%, 31%, and 33%, of the Companys net sales during the fiscal years ended June 30, 2010, 2009 and 2008, respectively. The Companys wholly-owned subsidiary, Perceptron Europe B.V. (Perceptron B.V.), formed in The Netherlands, holds a 100% equity interest in Perceptron (Europe) GmbH (Perceptron GmbH). Perceptron GmbH is located in Munich, Germany and is the operational headquarters for the European market. Perceptron GmbH holds a 100% interest in Perceptron E.U.R.L. located in Voisins le Bretonneux, France and a 100% interest in Perceptron Iberica SL located in Barcelona, Spain. At June 30, 2010, the Company employed 56 people in its European operations.

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