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NATICK, Mass.--(BUSINESS WIRE)--Nov 3, 2022--
Cognex Corporation (NASDAQ: CGNX) today reported financial results for the third quarter of 2022. Table 1 below shows selected financial data for Q3-22 compared with Q3-21 and Q2-22, and for the nine months of 2022 compared with the same period in 2021.
Table 1 | ||||
(Dollars in thousands, except per share amounts) | ||||
Revenue | Net Income | Net Income | Non-GAAP | |
Quarterly Comparisons |
|
|
|
|
Current quarter: Q3-22 | $209,622 | $33,980 | $0.19 | $0.21 |
Prior year’s quarter: Q3-21 | $284,848 | $78,900 | $0.44 | $0.40 |
Change: Q3-21 to Q3-22 | (26)% | (57)% | (57)% | (48)% |
Prior quarter: Q2-22 | $274,628 | $58,901 | $0.34 | $0.41 |
Change: Q2-22 to Q3-22 | (24)% | (42)% | (44)% | (49)% |
Year-to-Date Comparisons |
|
|
|
|
Nine months ended Oct. 2, 2022 | $766,657 | $160,214 | $0.91 | $1.03 |
Nine months ended Oct. 3, 2021 | $793,033 | $226,346 | $1.26 | $1.19 |
Change from first nine months of 2021 to first nine months of 2022 | (3)% | (29)% | (28)% | (13%) |
*Non-GAAP net income per diluted share excludes a loss from fire, net of tax benefit, for the quarterly periods of Q3-22 and Q2-22 and discrete tax adjustments in all periods presented. A reconciliation from GAAP to Non-GAAP is shown in Exhibit 2 of this news release. |
“We expected the third quarter would be difficult for Cognex,” said Robert J. Willett, Chief Executive Officer of Cognex. “Two challenges in the business―the June fire at our primary contract manufacturer’s site that destroyed a large amount of our component inventory and the slowdown in capacity expansion for e-commerce fulfillment by certain customers—lowered revenue significantly on both a year-on-year and sequential basis.”
Mr. Willett continued, “While we believe that overcapacity in logistics will dampen our results again in Q4, we replenished our inventory positions following the fire more quickly than we anticipated, and we believe that business disruption is behind us. The leadership team and I are grateful for the perseverance demonstrated by Cognoids and our suppliers as we worked through a difficult situation.”
Details of the Quarter
Statement of Operations Highlights – Third Quarter of 2022
Balance Sheet Highlights – October 2, 2022
Financial Outlook – Q4 2022
Non-GAAP Financial Measures
Analyst Conference Call and Simultaneous Webcast
About Cognex Corporation
Cognex Corporation designs, develops, manufactures, and markets a wide range of image-based products, all of which use artificial intelligence (AI) techniques that give them the human-like ability to make decisions on what they see. Cognex products include machine vision systems, machine vision sensors, and barcode readers that are used in factories and distribution centers around the world where they eliminate production and shipping errors.
Cognex is the world's leader in the machine vision industry, having shipped more than 3 million image-based products, representing over $9 billion in cumulative revenue, since the company's founding in 1981. Headquartered in Natick, Massachusetts, USA, Cognex has offices and distributors located throughout the Americas, Europe, and Asia. For details, visit Cognex online at www.cognex.com.
Certain statements made in this news release, which do not relate solely to historical matters, are forward-looking statements. These statements can be identified by use of the words “expects,” “anticipates,” “estimates,” “believes,” “projects,” “intends,” “plans,” “will,” “may,” “shall,” “could,” “should,” and similar words and other statements of a similar sense. These statements are based on our current estimates and expectations as to prospective events and circumstances, which may or may not be in our control and as to which there can be no firm assurances given. These forward-looking statements, which include statements regarding business and market trends, future financial performance and financial targets, the expected impact of the fire at our primary contract manufacturer's warehouse on our assets, business and results of operations and related insurance recoveries, customer demand and order rates and timing of related revenue, managing supply shortages, delivery lead times, future product mix, research and development activities, sales and marketing activities, new product offerings and product development activities, capital expenditures, investments, liquidity, dividends and stock repurchases, strategic and growth plans, and estimated tax benefits and expenses and other tax matters, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include: (1) the reliance on key suppliers such as our primary contract manufacturer to manufacture and deliver quality products; (2) delays in the delivery of our products, the failure to meet delivery schedules, and resulting customer dissatisfaction or loss of sales; (3) the inability to obtain, or the delay in obtaining, components for our products at reasonable prices; (4) the failure to effectively manage product transitions or accurately forecast customer demand; (5) the inability to manage disruptions to our distribution centers or to our key suppliers; (6) the inability to design and manufacture high-quality products; (7) the impact, duration, and severity of the COVID-19 pandemic, including the availability and effectiveness of vaccines as well as government lockdowns; (8) the loss of, or curtailment of purchases by, large customers in the logistics or consumer electronics industries; (9) information security breaches; (10) the inability to protect our proprietary technology and intellectual property; (11) the inability to attract and retain skilled employees and maintain our unique corporate culture; (12) the technological obsolescence of current products and the inability to develop new products; (13) the failure to properly manage the distribution of products and services, including the management of lead times and delivery dates; (14) the impact of competitive pressures; (15) the challenges in integrating and achieving expected results from acquired businesses; (16) potential disruptions in our business systems; (17) potential impairment charges with respect to our investments or acquired intangible assets; (18) exposure to additional tax liabilities; (19) fluctuations in foreign currency exchange rates and the use of derivative instruments; (20) unfavorable global economic conditions, including increases in interest rates and high inflation rates; (21) business disruptions from natural or man-made disasters, such as fire, or public health issues; (22) economic, political, and other risks associated with international sales and operations, including the impact of the war in Ukraine; and (23) our involvement in time-consuming and costly litigation; and the other risks detailed in Cognex reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2021 and Form 10-Q for the fiscalquarter ended October 2, 2022.You should not place undue reliance upon any such forward-looking statements, which speak only as of the date made. Cognex disclaims any obligation to update forward-looking statements after the date of such statements.
Exhibit 1 | ||||||||||||||||||||
COGNEX CORPORATION | ||||||||||||||||||||
Statements of Operations | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Dollars in thousands, except per share amounts | ||||||||||||||||||||
| Three-months Ended |
| Nine-months Ended | |||||||||||||||||
| October 2, |
| July 3, |
| October 3, |
| October 2, |
| October 3, | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Revenue | $ | 209,622 |
|
| $ | 274,628 |
|
| $ | 284,848 |
|
| $ | 766,657 |
|
| $ | 793,033 |
| |
Cost of revenue (1) |
| 57,383 |
|
|
| 78,143 |
|
|
| 85,712 |
|
|
| 214,316 |
|
|
| 208,189 |
| |
Gross margin |
| 152,239 |
|
|
| 196,485 |
|
|
| 199,136 |
|
|
| 552,341 |
|
|
| 584,844 |
| |
Percentage of revenue |
| 73 | % |
|
| 72 | % |
|
| 70 | % |
|
| 72 | % |
|
| 74 | % | |
Research, development, and engineering expenses (1) |
| 33,954 |
|
|
| 33,991 |
|
|
| 34,476 |
|
|
| 103,999 |
|
|
| 99,883 |
| |
Percentage of revenue |
| 16 | % |
|
| 12 | % |
|
| 12 | % |
|
| 14 | % |
|
| 13 | % | |
Selling, general, and administrative expenses (1) |
| 75,371 |
|
|
| 79,950 |
|
|
| 77,113 |
|
|
| 236,156 |
|
|
| 226,380 |
| |
Percentage of revenue |
| 36 | % |
|
| 29 | % |
|
| 27 | % |
|
| 31 | % |
|
| 29 | % | |
Loss from fire |
| 2,891 |
|
|
| 17,403 |
|
|
| — |
|
|
| 20,294 |
|
|
| — |
| |
Operating income |
| 40,023 |
|
|
| 65,141 |
|
|
| 87,547 |
|
|
| 191,892 |
|
|
| 258,581 |
| |
Percentage of revenue |
| 19 | % |
|
| 24 | % |
|
| 31 | % |
|
| 25 | % |
|
| 33 | % | |
Foreign currency gain (loss) |
| (1,880 | ) |
|
| (2,043 | ) |
|
| (586 | ) |
|
| (4,367 | ) |
|
| (2,233 | ) | |
Investment and other income |
| 1,202 |
|
|
| 1,317 |
|
|
| 1,623 |
|
|
| 3,939 |
|
|
| 4,605 |
| |
Income before income tax expense |
| 39,345 |
|
|
| 64,415 |
|
|
| 88,584 |
|
|
| 191,464 |
|
|
| 260,953 |
| |
Income tax expense |
| 5,365 |
|
|
| 5,514 |
|
|
| 9,684 |
|
|
| 31,250 |
|
|
| 34,607 |
| |
Net income | $ | 33,980 |
|
| $ | 58,901 |
|
| $ | 78,900 |
|
| $ | 160,214 |
|
| $ | 226,346 |
| |
Percentage of revenue |
| 16 | % |
|
| 21 | % |
|
| 28 | % |
|
| 21 | % |
|
| 29 | % | |
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income per weighted-average common and common-equivalent share: |
|
|
|
|
|
|
|
|
| |||||||||||
Basic | $ | 0.20 |
|
| $ | 0.34 |
|
| $ | 0.45 |
|
| $ | 0.92 |
|
| $ | 1.28 |
| |
Diluted | $ | 0.19 |
|
| $ | 0.34 |
|
| $ | 0.44 |
|
| $ | 0.91 |
|
| $ | 1.26 |
| |
|
|
|
|
|
|
|
|
|
| |||||||||||
Weighted-average common and common-equivalent shares outstanding: |
|
|
|
|
|
|
|
|
| |||||||||||
Basic |
| 173,256 |
|
|
| 173,507 |
|
|
| 176,812 |
|
|
| 173,640 |
|
|
| 176,572 |
| |
Diluted |
| 174,327 |
|
|
| 174,993 |
|
|
| 180,342 |
|
|
| 175,233 |
|
|
| 180,109 |
| |
|
|
|
|
|
|
|
|
|
| |||||||||||
Cash dividends per common share | $ | 0.065 |
|
| $ | 0.065 |
|
| $ | 0.060 |
|
| $ | 0.195 |
|
| $ | 0.180 |
| |
Cash and investments per common share | $ | 4.73 |
|
| $ | 4.54 |
|
| $ | 5.57 |
|
| $ | 4.73 |
|
| $ | 5.57 |
| |
Book value per common share | $ | 8.03 |
|
| $ | 8.02 |
|
| $ | 8.44 |
|
| $ | 8.03 |
|
| $ | 8.44 |
| |
|
|
|
|
|
|
|
|
|
| |||||||||||
(1) Amounts include stock-based compensation expense, as follows: |
|
|
|
|
|
|
|
|
| |||||||||||
Cost of revenue | $ | 468 |
|
| $ | 482 |
|
| $ | 366 |
|
| $ | 1,513 |
|
| $ | 965 |
| |
Research, development, and engineering |
| 4,209 |
|
|
| 3,851 |
|
|
| 3,091 |
|
|
| 12,508 |
|
|
| 10,158 |
| |
Selling, general, and administrative |
| 8,689 |
|
|
| 8,664 |
|
|
| 7,157 |
|
|
| 27,398 |
|
|
| 22,230 |
| |
Total stock-based compensation expense | $ | 13,366 |
|
| $ | 12,997 |
|
| $ | 10,614 |
|
| $ | 41,419 |
|
| $ | 33,353 |
|
Exhibit 2 | |||||||||||||||||||||
COGNEX CORPORATION | |||||||||||||||||||||
Reconciliation of Selected Items from GAAP to Non-GAAP | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Dollars in thousands, except per share amounts | |||||||||||||||||||||
| Three-months Ended |
|
| Nine-months Ended | |||||||||||||||||
| October 2, |
| July 3, |
| October 3, |
|
| October 2, |
| October 3, | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Per share impact of loss from fire |
|
|
|
|
|
|
| ||||||||||||||
Loss from fire | $ | 2,891 |
|
| $ | 17,403 |
|
| $ | — |
|
|
| $ | 20,294 |
|
| $ | — |
| |
Tax benefit from loss on fire |
| (928 | ) |
|
| (2,440 | ) |
|
| — |
|
|
|
| (3,368 | ) |
|
| — |
| |
Loss from fire, net of tax benefit | $ | 1,963 |
|
| $ | 14,963 |
|
| $ | — |
|
|
| $ | 16,926 |
|
| $ | — |
| |
Per share impact of loss from fire, net of tax benefit |
| 0.01 |
|
|
| 0.09 |
|
|
| — |
|
|
|
| 0.10 |
|
|
| — |
| |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Diluted weighted-average common and common-equivalent shares outstanding (GAAP) |
| 174,327 |
|
|
| 174,993 |
|
|
| 180,342 |
|
|
|
| 175,233 |
|
|
| 180,109 |
| |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Loss from fire and discrete tax adjustments reconciliation |
|
|
|
|
|
|
| ||||||||||||||
Operating income (GAAP) | $ | 40,023 |
|
| $ | 65,141 |
|
| $ | 87,547 |
|
|
| $ | 191,892 |
|
| $ | 258,581 |
| |
Percentage of revenue (GAAP) |
| 19 | % |
|
| 24 | % |
|
| 31 | % |
|
|
| 25 | % |
|
| 33 | % | |
Loss from fire |
| 2,891 |
|
|
| 17,403 |
|
|
| — |
|
|
|
| 20,294 |
|
|
| — |
| |
Operating income (Non-GAAP) | $ | 42,914 |
|
| $ | 82,544 |
|
| $ | 87,547 |
|
|
| $ | 212,186 |
|
| $ | 258,581 |
| |
Percentage of revenue (Non-GAAP) |
| 20 | % |
|
| 30 | % |
|
| 31 | % |
|
|
| 28 | % |
|
| 33 | % | |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income (GAAP) | $ | 33,980 |
|
| $ | 58,901 |
|
| $ | 78,900 |
|
|
| $ | 160,214 |
|
| $ | 226,346 |
| |
Loss from fire, net of tax benefit |
| 1,963 |
|
|
| 14,963 |
|
|
| — |
|
|
|
| 16,926 |
|
|
| — |
| |
Discrete tax (benefit) expense related to stock-based compensation |
| 131 |
|
|
| 59 |
|
|
| (3,250 | ) |
|
|
| 307 |
|
|
| (9,888 | ) | |
Discrete tax (benefit) expense related to tax return filings and other |
| (133 | ) |
|
| (2,411 | ) |
|
| (3,012 | ) |
|
|
| 3,677 |
|
|
| (2,477 | ) | |
Net income (Non-GAAP) | $ | 35,941 |
|
| $ | 71,512 |
|
| $ | 72,638 |
|
|
| $ | 181,124 |
|
| $ | 213,981 |
| |
Percentage of revenue (Non-GAAP) |
| 17 | % |
|
| 26 | % |
|
| 26 | % |
|
|
| 24 | % |
|
| 27 | % | |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income per diluted weighted-average common and common-equivalent share (GAAP) | $ | 0.19 |
|
| $ | 0.34 |
|
| $ | 0.44 |
|
|
| $ | 0.91 |
|
| $ | 1.26 |
| |
Per share impact of Non-GAAP adjustments identified above |
| 0.02 |
|
|
| 0.07 |
|
|
| (0.04 | ) |
|
|
| 0.12 |
|
|
| (0.07 | ) | |
Net income per diluted weighted-average common and common-equivalent share (Non-GAAP) | $ | 0.21 |
|
| $ | 0.41 |
|
| $ | 0.40 |
|
|
| $ | 1.03 |
|
| $ | 1.19 |
| |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Diluted weighted-average common and common-equivalent shares outstanding (GAAP) |
| 174,327 |
|
|
| 174,993 |
|
|
| 180,342 |
|
|
|
| 175,233 |
|
|
| 180,109 |
| |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Effective tax rate reconciliation |
|
|
|
|
|
|
| ||||||||||||||
Income before income tax expense (GAAP) | $ | 39,345 |
|
| $ | 64,415 |
|
| $ | 88,584 |
|
|
| $ | 191,464 |
|
| $ | 260,953 |
| |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Income tax expense (GAAP) | $ | 5,365 |
|
| $ | 5,514 |
|
| $ | 9,684 |
|
|
| $ | 31,250 |
|
| $ | 34,607 |
| |
Effective tax rate (GAAP) |
| 14 | % |
|
| 9 | % |
|
| 11 | % |
|
|
| 16 | % |
|
| 13 | % | |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Tax adjustments: |
|
|
|
|
|
|
|
|
|
| |||||||||||
Discrete tax benefit related to loss from fire |
| 928 |
|
|
| 2,440 |
|
|
| — |
|
|
|
| 3,368 |
|
|
| — |
| |
Discrete tax benefit (expense) related to stock-based compensation |
| (131 | ) |
|
| (59 | ) |
|
| 3,250 |
|
|
|
| (307 | ) |
|
| 9,888 |
| |
Discrete tax benefit (expense) related to tax return filings and other |
| 133 |
|
|
| 2,411 |
|
|
| 3,012 |
|
|
|
| (3,677 | ) |
|
| 2,477 |
| |
Total discrete tax adjustments | $ | 930 |
|
| $ | 4,792 |
|
| $ | 6,262 |
|
|
| $ | (616 | ) |
| $ | 12,365 |
| |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Income tax expense (Non-GAAP) | $ | 6,295 |
|
| $ | 10,306 |
|
| $ | 15,946 |
|
|
| $ | 30,634 |
|
| $ | 46,972 |
| |
Effective tax rate (Non-GAAP) |
| 16 | % |
|
| 16 | % |
|
| 18 | % |
|
|
| 16 | % |
|
| 18 | % | |
|
|
|
|
|
|
|
|
|
|
|
Exhibit 3 | ||||||
COGNEX CORPORATION | ||||||
Balance Sheets | ||||||
(Unaudited) | ||||||
Dollars in thousands | ||||||
| October 2, 2022 |
| December 31, 2021 | |||
Assets |
|
|
| |||
Cash and investments | $ | 817,632 |
| $ | 907,364 | |
Accounts receivable |
| 96,292 |
|
| 130,348 | |
Inventories |
| 108,553 |
|
| 113,102 | |
Property, plant, and equipment |
| 79,425 |
|
| 77,546 | |
Operating lease assets |
| 31,514 |
|
| 23,157 | |
Goodwill and intangible assets |
| 246,929 |
|
| 253,601 | |
Deferred tax assets |
| 405,136 |
|
| 418,570 | |
Other assets |
| 114,755 |
|
| 79,974 | |
|
|
|
| |||
Total assets | $ | 1,900,236 |
| $ | 2,003,662 | |
|
|
|
| |||
Liabilities and Shareholders' Equity |
|
|
| |||
Accounts payable and accrued expenses | $ | 86,335 |
| $ | 136,483 | |
Deferred revenue and customer deposits |
| 54,777 |
|
| 35,743 | |
Operating lease liabilities |
| 33,371 |
|
| 25,581 | |
Income taxes |
| 57,267 |
|
| 66,517 | |
Deferred tax liabilities |
| 259,950 |
|
| 293,769 | |
Other liabilities |
| 19,316 |
|
| 15,476 | |
Shareholders' equity |
| 1,389,220 |
|
| 1,430,093 | |
|
|
|
| |||
Total liabilities and shareholders' equity | $ | 1,900,236 |
| $ | 2,003,662 |
View source version on businesswire.com:https://www.businesswire.com/news/home/20221103006184/en/
CONTACT: Susan Conway
Investor Relations
+1 508-650-3353
Susan.conway@cognex.com
KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS
INDUSTRY KEYWORD: ENGINEERING TECHNOLOGY MANUFACTURING OTHER TECHNOLOGY OTHER MANUFACTURING ARTIFICIAL INTELLIGENCE MACHINERY
SOURCE: Cognex Corporation
Copyright Business Wire 2022.
PUB: 11/03/2022 04:06 PM/DISC: 11/03/2022 04:07 PM
http://www.businesswire.com/news/home/20221103006184/en