Perceptron (PRCP) 28 Sep 202020 Q4 Earnings call transcript

Greetings and welcome to Perceptron's Fiscal Fourth Quarter and Full Year 2020 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. At this time, I will turn the conference over to Bill Roeschlein, Interim CFO. Mr. begin. may you Roeschlein,

Roeschlein morning discuss to for the fiscal is quarter Good Financial Interim and Officer. the investor webcast of Bill name My to company's XXXX. I'm and you. Perceptron's Perceptron's Chief welcome call fourth and Thank financial results

the is me and Chairman Board Jay of on Joining Chief Executive Freeland, the Interim Officer. call today

investors.perceptron.com. Before available on is earnings release the market which opened today, website Perceptron at issued its fourth quarter its

up for We the call then with open prepared our and will remarks questions. begin call the

However, we we it's forward-looking true may as responsibility discussing information before Any of today's begin my Actual Act. statements differ today. of materially. of constitute Reform meaning forward-looking to call, upon some believed that that the to the inform Litigation based results Private information today will be you under the materials Securities that be are

some quarterly that differ, section a the and annual please For the to cause to of the refer of of Risk Factors SEC. filings actual latest results discussion factors with our could

Additionally, of in measures to call the find now call over Unless historical the dollars, issued otherwise be are references will the please which years, U.S. June fiscal on XXth. reconciliations noted, in I today. and financial during our comments discussed can years non-GAAP that end turn note press the release you will Jay. to

good and Bill, Thanks, everybody. morning

customers. our Perceptron nearly Perceptron XX other be Since that two Copco closing one a to and our to announcing XX Atlas $X this calendar announcing quarter of our Directors After inception whether entered September definite year. issued diverse price Friday, ability standalone strategic for resources and global a interim from path as I being years determine low advanced with to offer as share. during XXXX, quality Board the Atlas releases, and Perceptron, for CFO, morning CEO our press and represents premium in grown leading to for the alternatively or to organization. ago, point time we The the XXX% solutions opens by significant a has of Before recognized become one premium interim from brand, our part company market mix fiscal to November invested control our on fourth Bill larger a into XX% its Roeschlein provide best a along acquired metrology results of automation flexible a agreement and has forward appointed a

As couple landscape, became the we issues critical a of business assessed clear.

and compete has we robot Perceptron over needed better that competitors. time while efficient capitalized, grow global First, a guide, position automated metrology we in to knew to strong effectively versus more

our While had size has been a long-term historically, visible growth. highly hurdle company the smaller for successful become sustainable

became expand well time industries clear most That known the have a demonstrated take known next we other expansion years. of that resources for and need and would lessen it reliance over a Second, into ensure industry for. our type on meaningful needed it and to solutions the automotive to investment the was that several executed we are of

unrealized with the subject significant a offer in is than Based approximately Vision, last recent combination like Stockholm, Perceptron market the Perceptron of vision it sales year. forward strategic deal business of for solutions, a more acquisition a both recognized traded on So from Alice clear fit. conditions. and a best they European and The provider approval, has regulatory closing leader. Cepheus premium, ago, countries, customary to in shareholder to for technology when global broaden Alice of compelling U.S. in the in Isra portfolio global other that Founded global them. years was Their billion $XX XXX made approval $XX of the the become a and possible Copco, the Exchange compelling outcome [ph] had market move Sweden, approximately the Copco at in Copco value shareholders machine Stock as certain opportunity approval business to technical with addition industrial with who its long-term a a by Alice arose partner Stockholm a reflected our evident billion. value

the and We is to for fourth by quarter believe and now by year, fourth results, Switching outcome to a close increased expect resumed increased this Operations had a am impact the our shareholders recovering by the XX% business exceeded and the the of great the Bookings demand customer calendar presents basis and performance start this internal during expectations. quarter COVID-XX, on in during more quarter gears in our of Asia was it company excited opportunities sequential for I the Europe XXXX of employees despite from the than lingering our quarter Asia Europe. fiscal alike. induced slowdown. COVID-XX in the driven our period and

customer we on to in more May, a the lagged recovery trend continued up mid result, first and the XX% us backlog a fiscal enabled than able Since demand, sequentially. didn’t they the and Americas to around capitalize total until quarter were pent in As into QX Europe Asia. grow that reopen

headwinds comparable Global to looking We COVID-XX. Europe of half improving Asia market first of growth XXXX. conditions during fiscal region despite are are to to that from that improve for the rate their and levels

seen delays, While handful we have project we cancellations. not experienced any of a have project

be forward been quarter, stated that were funded have those to moving that projects quarter as funded. As last that partially appear already

this the projects changes monitoring half of status for witnessed We closely second at are our the but XXXX, funding targeted year any fiscal not point. with to have

at While advance QX XXXX in in business The markets reductions control first our us Fiscal cost related of reduction business. in a allowed that in the force, the the to received variety operating driving for take COVID the actions, of full benefit improved the was slowing we business effect we we took both anticipate proactive will necessary term. both gross unfolds, as cost our we was and for actions we our cost we medium structure February, The in as the a implemented we organizational quarter recovery remain of and prepared a foreseeable over the fiscal our it a included executed future those thought have and continued scenarios. executed our structure. reduction, material the across the we support to near in we margins. when improvements which strengthening continued Likewise, level anticipate result over of

taking not do additional at time. So we this actions cost anticipate

our where QX while us focused quarter actions to back period, we crisis, during pivoting transitional the new weathering the allowed of early the the within helping a Fortunately, fourth the on toward growth existing cost on unlike last fiscal took spend in the COVID stages were focus and we both customers quarter markets.

always, the Perceptron COVID will unprecedented to by for transaction the Bill. on a to and successful marketplace, no look can are anticipate forward the work team pending their Atlas all along closing diligence favorable. turn entire And integration lingering I and to in effects hard the While with the of coming for fully I excited over call for of I I'm times. the want the businesses. Copco, these with the successful quarters acquisition two now of thank as indications our navigating our one company

or quarter geography, from On million flat a sales prior Thanks, rose Europe sales to XX% million. the rose QX were Americas basis fourth fiscal by close Asia sales by Jay. year. $X.X quarter the declined $X.X sequentially previous in million the Total from in sequential the $X.X and $XX.X in Sales of million million, and $X.X down in

quarterly Americas in or previous much or related the in February recall, costs, from sequentially quarantine year both re-class a quarter the $X QX underutilized $X.X majority XX% Total the COVID-XX increasing lower sequential gross fiscal a for Europe to orders you million, regions. Europe earlier project manufacturing million million of our resulting Europe $X.X by million the year. orders, part the XXX On costs of $X.X cost were down year-over-year gross basis $X.X XX.X% back as the bookings fourth changes sales million, a a activities. basis due expenses, million sequential bookings in Americas On the million, the bounced sales the result of in basis, lifted were year. and geography, and million, Asia million of increased restructuring $X.X in points or from the On or our XX% the year-over-year million. due $X.X from and to down and in G&A prior fourth prior basis to as million and As of engineer while $X.X revenue $XX.X basis to and declined or with quarter million from and XX% up Asia containment shelter margin place Asia margin increased in fixed or the XXX COVID-XX a lower from quarter increased resulting XX%. mix Growth increased decline strongest Americas a or $X.X basis increased over were QX $X.X as fiscal from of $XXX,XXX to were profit ongoing XXX%, up XX% bookings On year-over-year the cost XX%. fixed percent restructuring labor increased $X.X prior coming by as from well points up basis, XXXX. a down down in they were may than Americas the On

lower restructuring. the in of quarter, operating quarter R&D decrease $X.X and $X.X the in and of prior $X.X decrease fourth were from the the to the to Turning approximately an engineering of administrative expenses result $XXX,XXX a million fiscal both from in decline of of a increase million were the primarily year. labor a general, QX $X.X as quarter of compared prior our year. expenses $X.X approximately million a and and The million is due periods of quarter, previous expenses, costs previous quarter, to decrease QX million third from Selling,

call. cost certain other sold million per quarter, of $X.X period. compared Net million share charges prior for the share $X.XX million, loss outlined the year. Excluding the severance, cost, or diluted in million the for $X.XX impairment quarter share, other Adjusted prior with the the of $X.XX diluted $X.XX in of expenses per $X.X the in allowances for million were or taken a reflective taxes sequentially by re-class impact and last line the goods labor or loss geographies. of per $X.X compared valuation net comparable or of in diluted was quarter, $X.X expectations quarter our in per excludes with year was which $X.X with and QX declined Income net loss NOL from million for diluted fully share, $X.X

submit to intend application call in forgiveness had our questions. globally. our million equivalents in a we cash to I to turn who end, quarter now your PPP be and cash loan will total and and borrowings would current of we $X.X for Included in $X.X million this is loan call million outstanding related As in quarter. $XX.X borrowings open like operator loan the -- to over the the the to dollar

Instructions] proceed with Thank Palm our the And line of your [Operator questions. question with Please you. is Greg Capital. first Craig-Hallum from

think Yes, in give terms can of any really parties not detail the thanks. were specifically and announcements on here? know in at we'll there the I interested I guess interested guess you congrats can other on more all us interested, eventually, sure the what what point. bit others little transaction, a I'm process? of more background maybe in I I I'm But are, get say some you the this here. details.

Yes. Hey, good morning, Greg.

look start, I'll which Bill my good into it There given role in and seats right other we there parties perhaps made who I'll transition Jay have. for surprise, here that a as sitting would think, there's in interested in -- said, And, well, there with reverse technology we So, be the parties, portfolio interim an would now. Bill's, and at a the not I go were the order. and opportunity were some leadership combination

difficult Atlas were significant interested but wanted player, And, that And a for so compelling a bit for we quickly the all company. a parties, premium. Board, create managed guidance, becoming rest in scale say large more metrology it niche players get by a parties very a I in leadership the robot were they and for multiple sure. so interested we company, a the for that to right? were and I to some for needed great while it's end us, And there did very industry know, at offer and position, of it, me additional of have We cash to you And markets made several I'll access certainly for -- that's automated us. very were we the who made strong in think position

heavy going in, business diversification as on so. doing automotive, before, the be and this Atlas we the was all And were spaces that key talked ones in reliance a to as driving as of to is a that well currently we've towards standalone As even had we're we entity. the

facilities their what of selling really overlap our connection. the you companies two as are forward view, where we the we the know, did types a was was entity, recent a with strong a standalone we business, There's up acquisition is path it's what of operating. think between into I put good commonality Board. as tie together customers And a of thorough in and And We so it's looked do, Isra but a at, the terms compelling. in logical path and little we more strategic Atlas technology, when strategic their very compelling but offered pretty a by a, thought

combination path a a solution longer the And of those for this really and made term. company forward all so items of the great good

a or it envision makes lot concerns really acquisitions, I That's would and not they're regulatory you approval don't kind issues, new end Perceptron, competes a but any, like out, of I somewhat of, your really? a with think, is approvals. of sense here any couple does vertical sound on building mean, regulatory all, at with and,

straightforward. to the or couple that the through, this so did Atlas, approval. There to we should really of there some that the that a you're Cepheus this, in to And then mean with businesses overlap just this this not, the European perspective by chance Isra. and approval calendar be regulatory countries obviously doing And that There's need reasons end of of the [ph] be transaction a is itself. three, we very at from be confident the the is very as through two going U.S. We it many the it's between does obviously reasonable little in our ability to for and with, the pretty you're be granted Atlas chance they We shareholder feel I here in go looked think sorry going one approvals reasonable approval have than the there's those more right; year. carefully. go of closed

Got leave it. there. it Thanks. All right, I'll

Thanks, Greg.

additional Thank I'll the you. this time, Jay for At remarks. turn floor to back Freeland

the morning. well, call everybody for thanks in Okay, participating this

you the as of closing keeping always, the one look good will thank to time We to everybody. I joining us. to team very do. their as Thank everybody forward for everybody Have updated I'd a much, course, like process continues. like of for everything thank for day. all Perceptron they And you thank And support. last

concludes conference. This today's

you disconnect this You Thank time. your may lines at for your participation.