JANUARY 3--PPT VISION (Minneapolis, MN; www.pptvision.com) has announced financial results for the fourth quarter and fiscal year ended October 31, 2005. Net revenues for the fourth quarter were $1,239,000, which represents a 41% decrease from revenue levels in the fourth quarter of last fiscal year. The company's net loss from continuing operations for the quarter was $601,000, or $0.20 per share, as compared with a loss from continuing operations of $219,000 or $0.07 per share for the same period in fiscal 2004. For the year, net revenues decreased 35% to $5.65 million, compared with $8.67 million for the previous year.
The company reported a net loss from continuing operations for FY2005 of $2.32 million, or $0.77 per share, compared to a loss from continuing operations of $1.07 million, or $0.36 per share, for FY2004. These results represent the 2-D business operations of the company only. The company completed the sale of its 3-D business in October of 2004 and in accordance with generally accepted accounting principles, has restated its financial results to present the 3-D business as a discontinued business operation. Accordingly, all 3-D related revenue and expenses have been removed from continuing operations and presented in a separate line in the statement of operations entitled "Loss from discontinued operations" for all periods presented.
The company had no gain or loss from its discontinued operations for the fourth quarter of 2005 compared with a loss from discontinued operations of $842,000, or $0.28 per share, for the same period in FY2004. The company reported a net loss from discontinued operations for FY2005 of $55,000 or $0.02 per share, compared to a loss from discontinued operations of $805,000 or $0.27 per share, for FY2004.
"While the overall decline in our revenues in FY2005 compared to FY2004 is a disappointment, it is important to note that this decline is almost wholly attributable to a decline in sales of our older Passport/Scout product lines which have been phased out. Additionally, as we have previously disclosed, approximately $2.0 million of this decline in Passport/Scout sales in attributable to the loss of one OEM account in Japan, which decided not to migrate to our new IMPACT product.
With respect to our newer IMPACT product line, which PPT is now 100% focused on, both unit volume and dollar sales increased in FY05, a trend we expect to continue," stated Joe Christenson, president of PPT Vision. "Also, it is important to note our Q4 gross profit margin was lower than normal because it includes a one time charge of $150,000 for old Passport/Scout inventory. We expect gross margins to increase as sales increase and fixed manufacturing overhead is more fully absorbed," continued Christenson.
"FY2005 was a transition year for PPT as we exited the 3-D business, completed a cost-reduction program in Q2, phased out an older product line and transitioned to our newer IMPACT product line, and shifted from a direct selling model to a distribution selling model. The transition to a new, more competitive product line and to a new distribution channel is taking more time than we would have liked. However, we are making good progress with these transitions. We believe that the use of machine-vision-based intelligent cameras as a fundamental component in the process of factory automation will continue to grow and that PPT Vision is well positioned to be a beneficiary of this trend. Thus, we continue to focus on delivering future growth and profitability for our shareholders in the fastest manner possible by supporting and building up our distribution channels with very customer-driven product development," concluded Christenson.