Perceptron (PRCP) Guides In-line for Q3 Revenues; Announces Cost Cutting Initiatives
Perceptron, Inc. (NASDAQ: PRCP) expects to report quarterly revenue of approximately $19.9 million and to be profitable for the second fiscal quarter of 2009. (Consensus is $20.50 million)
The release of second quarter financial results is expected on February 9, 2009. The Company also announced that it has implemented a significant cost reduction plan for its Automated Systems business.
"Our cost reduction actions are focused primarily on our Automated Systems business. We have not made cuts in our commercial products plans. In fact, we have added two new positions to further our growth in commercial products. Most of our cost reductions occurred in North America. Overall we reduced personnel, benefits, contract services and other costs for a total of approximately $4.7 million on an annualized basis most of which will become effective by the beginning of the fourth quarter of fiscal 2009. While we made no cuts in Asia, we plan to leave open positions unfilled. We continue to believe that Asia will resume as a growth area for us. We have also continued our commitment for Automated Systems growth in India. We expect our new office in Chennai, India will open within the next month. Most importantly, we believe our cost reduction actions will result in profitability in our Automated Systems business in fiscal year 2010. While we expect to see partial cost savings in the third quarter from our cost cutting actions, we also expect to record a charge of approximately $1.0 million in the third quarter for severance and other related costs." [SM]
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