MAY 25--PPT VISION Inc. (Minneapolis, MN;www.pptvision.com) has announced financial results for the second quarter, ended April 30, 2005. Revenues for the second quarter were $1,567,000 compared to revenues of $2,084,000 for the same period in FY2004. Net loss for the second quarter was $870,000, or $0.29 per share, compared to net loss in the second quarter of FY2004 of $223,000, or $0.08 per share. For the six-month period ended April 30, 2005, the company had revenues of $3,092,000 compared with revenues of $4,060,000 for the first six months of lastfiscal year. The net loss for the six-month period was $1,480,000, or $0.49 per share, in FY2005 compared to a net loss of $569,000, or $0.19 per share in FY2004.
PPT completed a corporate restructuring plan in the second quarter of FY2005 that resulted in a nonrecurring expense of $390,000. These costs relate to the closure of the Michigan office, severance costs, and lease termination and related costs associated with restructuring the headquarters lease. In addition, PPT completed a 1-for-4 reverse stock split effective at the close of the market on March 31, 2005. Accordingly, all per-share amounts have been adjusted to give retroactive effect to this change in the number of outstanding shares.
"This quarter was significant in that we were able to implement a number of actions that will better position us to return to profitability," stated Joseph Christenson, president. "Our recently completed restructuring plan will result in cost savings of approximately $1.2 million annually and establishes a cost structure that is much better aligned with our anticipated revenue levels. In addition, the reverse stock split enabled us to regain compliance with the rules of the NASDAQ Stock Market. With these actions behind us, we can now focus totally on the actions necessary to improve our revenues," continued Christenson.
"The PPT business plan is dedicated to the growth of our IMPACT machine-vision product line, which continues to gain traction in the market place. Our three-part strategy to drive our revenue growth is to focus on customer-driven product development activities, grow our network of distribution and system-integration partners, and develop and market application-specific solutions within our Inspection Builder software environment. As part of our focus on growing our sales channel partners, we have focused a large amount of effort on establishing and supporting sales channel partners in China and are beginning to realize positive results," concluded Christenson.
