Perceptron (PRCP) Tops Q2 EPS by 10c, Revenues Beat; Q3 Revenue Guidance Below Consensus and 'Tempers Guidance for FY19 Revenue Growth'

Perceptron (NASDAQ: PRCP) reported Q2 EPS of $0.16, $0.10 better than the analyst estimate of $0.06. Revenue for the quarter came in at $21.6 million versus the consensus estimate of $19.51 million.

Second quarter fiscal 2019 results compared to second quarter fiscal 2018:

• Second quarter consolidated net sales were $21.6 million, an increase of 5.9% compared to the second quarter in fiscal year 2018
• Consolidated gross profit was $7.9 million, an increase of 6.8% compared to the prior year period, while gross margin was 36.6%
• Second quarter reported operating income totaled $1.4 million and recurring operating income totaled $0.8 million as we reversed an accrual of $0.6 million related to the settlement of a trade secrets case
• Net income for the second quarter of fiscal 2019 was $1.5 million, up 275%, compared to net income of $0.4 million in the prior year’s second quarter
• Second quarter diluted earnings per share was $0.16, compared to $0.04 per share in the second fiscal quarter one year ago
• Bookings totaled $20.5 million; Europe and Asia regions achieved record bookings levels in the second quarter of fiscal 2019
• Backlog was $38.1 million
• Cash and short-term investments totaled $8.0 million at 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.

GUIDANCE:

Perceptron sees Q3 2019 revenue of $17-20 million, versus the consensus of $22.53 million.

For earnings history and earnings-related data on Perceptron (PRCP) click here.

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