Perceptron, Inc. (NASDAQ:PRCP) Q4 2020 Earnings Conference Call - Final Transcript

Sep 28, 2020 • 08:30 am ET

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Perceptron, Inc. (NASDAQ:PRCP) Q4 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Jay W. Freeland

in February, which included a reduction in force, allowed us to take improved control over our cost structure in advance of the COVID related slowing in our business.

Fiscal Q4 was the first quarter that we received the full benefit of those actions, driving material improvements in both our gross and operating margins. The actions we took will remain in effect for the foreseeable future. And as a result, we anticipate continued strengthening of our organizational cost structure. Likewise, when we implemented the reduction, we executed it at the level we thought was necessary to support the business over both the near and medium term. So we do not anticipate taking additional cost actions at this time. Fortunately, unlike fiscal Q3 where we were focused on weathering the early stages of the COVID crisis, the cost actions we took in the last quarter allowed us to spend the fourth quarter helping our customers during the transitional period, while pivoting back toward a focus on growth within both new and existing markets.

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

I will now turn the call over to Bill.

Executive
Bill Roeschlein

Thanks, Jay. Total Sales in the fiscal fourth quarter were $12.6 million close to flat sequentially from the previous quarter and down $5.6 million or 31% from Q4 of the prior year. On a sequential basis by geography, sales in Asia rose $1.1 million, sales in Europe rose $0.3 million and sales in the Americas declined by $1.5 million. As you may recall, quarantine orders related to COVID-19 were lifted much earlier in Asia than they were in the Americas regions. On a year-over-year basis quarterly sales were down $5.6 million, with the majority of the decline coming from the Americas down $2.6 million or 48% and Europe down $2.0 million or 23%.

Total bookings in the fiscal fourth quarter were $17.6 million, up $6.7 million or 61% sequentially from the previous quarter and down $3.2 million or 15% from Q4 of the prior year. On a sequential basis by geography, bookings in Asia bounced back the strongest increasing $4.3 million or 184%, Europe increased $1.4 million or 22% and Americas increased $1 million or 46%. On a year-over-year basis, Asia bookings increased $2.4 million, Europe increased $0.1 million, while the Americas declined by $5.7 million.

Growth profit as a percent of sales for the fiscal fourth quarter were 37.5%, up 270 basis points from the prior year and up 510 basis points from Q4 of the prior year. On a sequential basis, gross margin increased due in part to the reclass of underutilized