Perceptron to Settle Litigation with 3CEMS
20 July 2017 - 6:45AM
Perceptron, Inc. (NASDAQ:PRCP), a leading global provider of 3D
automated metrology solutions and coordinate measuring machines,
today announced it has entered into an agreement to settle the
civil suit filed by 3CEMS, a Cayman Islands and People’s Republic
of China corporation, in January 2015. The settlement will result
in a one-time, $0.11 per share charge to the Company’s fiscal
fourth quarter and full year 2017 results.
“We believe this settlement is in the best interest of
Perceptron and its shareholders,” said David Watza, President and
CEO. “While we were firmly committed to our defense of the
claims raised in the suit, we want to eliminate the uncertainty
associated with the ongoing litigation and agreed to settle in
order to avoid substantial legal expenses. As a result of
these negotiations, the amount of the settlement is substantially
lower than the plaintiff’s claimed amount.”
Under the terms of the agreement, the Company will pay 3CEMS
$1.0 million over the course of the next 10 months in return for
dismissal and release of all claims. Perceptron will record a
reserve for the settlement payments, which will result in a pre-tax
charge of $1.0 million ($1.0 million, net of tax) in the fiscal
fourth quarter of 2017. As part of the agreed settlement, the
Company denied that it had liability to 3CEMS for the claims raised
in this matter.
About PerceptronPerceptron develops, produces
and sells a comprehensive range of automated industrial metrology
products and solutions to manufacturing organizations for
dimensional gauging, dimensional inspection and 3D scanning.
Products include 3D machine vision solutions, robot guidance,
coordinate measuring machines, laser scanning, and advanced
analysis software. Global automotive, aerospace and other
manufacturing companies rely on Perceptron's metrology solutions to
assist in managing their complex manufacturing processes to improve
quality, shorten product launch times and reduce costs.
Headquartered in Plymouth, Michigan, USA, Perceptron has subsidiary
operations in Brazil, China, Czech Republic, France, Germany,
India, Italy, Japan, Singapore, Slovakia, Spain and the United
Kingdom. For more information, please visit www.perceptron.com.
Safe Harbor StatementCertain statements in this
press release may be "forward-looking statements" within the
meaning of the Securities Exchange Act of 1934, including the
Company's expectation relating to the ability to successfully
develop and introduce new products and expand into new customers
and markets. When we use words such as "will," "should,"
"believes," "expects," "anticipates," "estimates," "prospects" or
similar expressions, we are making forward-looking statements. We
claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995 for all of our forward-looking statements. While we
believe that our forward- looking statements are reasonable, you
should not place undue reliance on any such forward-looking
statements, which speak only as of the date made. Because these
forward-looking statements are based on estimates and assumptions
that are subject to significant business, economic and competitive
uncertainties, many of which are beyond our control or are subject
to change, actual results could be materially different. Factors
that might cause such a difference include, without limitation, the
receipt of court approval for the settlement, and the Company's
projected revenues and net income depends upon the Company's
ability to successfully develop and introduce new products. Except
as required by applicable law, we do not undertake, and expressly
disclaim, any obligation to publicly update or alter our statements
whether as a result of new information, events or circumstances
occurring after the date of this report or otherwise.
Contact:
Investor Relations
investors@perceptron.com
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