Perceptron Inc. Reports Operating Results (10-Q)

Perceptron Inc. (PRCP, Financial) filed Quarterly Report for the period ended 2009-12-31.

Perceptron Inc. has a market cap of $32.93 million; its shares were traded at around $3.7 with and P/S ratio of 0.54. PRCP is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES, John Rogers of ARIEL CAPITAL MANAGEMENT LLC.

Highlight of Business Operations:

In the IBU segment, new vehicle tooling programs represent the most important selling opportunity for the Companys automated systems. The number and timing of new vehicle tooling programs varies in accordance with individual automotive manufacturers plans and is also influenced by the state of the economy. Sales related to services and technology components are on-going and vary from period to period based on customers plans. Sales of ScanWorksâ are primarily to non-automotive customers. IBU sales in the second quarter of fiscal 2010 were still well below historical levels and continued to be affected by the state of the automotive industry and the economy. There are signs, however, that business conditions for the Companys IBU customers are improving. IBU sales in the second quarter improved $1.8 million over the first quarter of fiscal 2010 and sales in the first quarter of fiscal 2010 had improved $1.9 million over sales in the fourth quarter of fiscal 2009. Bookings in the second quarter of fiscal 2010 were the highest achieved in the last four quarters. Second quarter bookings increased $4.0 million or 50% over the first quarter of fiscal 2010 and increased in all three geographic regions with Europe and Asia having the largest percentage increases. Margins have improved as a result of the cost reduction actions taken in the second half of fiscal 2009. IBUs quoting activity has increased and there has been increased interest by our customers in the enhanced functionality that is being incorporated into the AutoGauge® product. There has also been increased business activity in Asia which was the first geographic area to show economic improvement.

Overview - For the second quarter of fiscal 2010, the Company reported a net loss of $414,000, or $0.05 per diluted share, compared to net income of $1.1 million, or $0.12 per diluted share for the second quarter of fiscal 2009. Specific line item results are described below.

Gross Profit - Gross profit was $4.8 million, or 40.9% of sales, in the second quarter of fiscal 2010, as compared to $7.6 million, or 38.5% of sales, in the second quarter of fiscal 2009. The Company achieved a gross profit margin percentage increase of 2.4% even though the quarter comparison showed a 40.8% reduction in sales. The gross margin percentage increase was primarily the result of the cost reduction actions taken by the Company in the second half of fiscal 2009 and the mix of sales between the IBU and the CBU segments. The effect of the stronger Euro in the second quarter of fiscal 2010 compared to 2009 increased gross profit approximately $400,000.

Selling, General and Administrative (SG&A) Expenses - SG&A expenses decreased $511,000 to $4.0 million compared to $4.5 million in the quarter ended December 31, 2008. The decrease was primarily due to lower personnel related costs resulting from the cost reduction actions taken by the Company in the second half of fiscal 2009 and to a lesser extent, lower advertising expenses. The stronger Euro in the fiscal 2010 quarter compared to fiscal 2009 increased costs approximately $120,000.

Engineering, Research and Development (R&D) Expenses - Engineering and R&D expenses were $1.6 million in the quarter ended December 31, 2009 compared to $2.0 million in the second quarter a year ago. The $454,000 decrease was primarily due to lower personnel related costs resulting from the cost reduction actions taken by the Company in the second half of fiscal 2009.

Overview - The Company reported a net loss of $1.2 million, or $0.14 per diluted share, for the first half of fiscal 2010, compared with net income of $1.1 million, or $0.12 per diluted share for the six months ended December 31, 2008. Specific line item results are described below.

Read the The complete Report