04/29/2019 | Press release | Archived content
NATICK, Mass.--(BUSINESS WIRE)-- Cognex Corporation (NASDAQ: CGNX) today announced financial results for the first quarter of 2019. Table 1 below shows selected financial data for Q1-19 compared with Q1-18 and Q4-18.
Table 1 |
||||||||||||
(Dollars in thousands, except per share amounts) |
||||||||||||
Revenue |
Net Income |
Net Income |
Non-GAAP |
|||||||||
Quarterly Comparisons |
||||||||||||
Current quarter: Q1-19 | $173,484 | $33,104 | $0.19 | $0.17 | ||||||||
Prior year's quarter: Q1-18 | $169,567 | $37,217 | $0.21 | $0.18 | ||||||||
Change: Q1-18 to Q1-19 | 2% | (11%) | (10%) | (6%) | ||||||||
Prior quarter: Q4-18 | $193,286 | $45,418 | $0.26 | $0.26 | ||||||||
Change: Q4-18 to Q1-19 | (10%) | (27%) | (27%) | (35%) | ||||||||
*Non-GAAP net income per diluted share excludes tax adjustments. A reconciliation from GAAP to Non-GAAP is shown in Exhibit 2 of this news release.
"Our Q1 results were in line with our guidance and we set a new first-quarter revenue record," said Dr. Robert J. Shillman, Founder and Chairman of Cognex. "However, slower business conditions have dampened our expectations for growth in the near term. Nevertheless, our products are a key element of factory automation and logistics, which we believe are both growth markets, and we remain optimistic about Cognex's future over the long term."
"We continue to be encouraged by the increasing adoption of Cognex products in newer markets including logistics, which is now a more meaningful part of our revenue," said Robert J. Willett, Chief Executive Officer of Cognex. "Overall, however, we expect to see a slight decline in revenue for 2019, primarily as a result of significantly lower revenue from consumer electronics amid an industry slowdown."
"Our history shows that growth for Cognex is not linear; we've had ups and downs in the past driven by various external factors. This current slowdown will be temporary and does not change our positive view of the long-term potential for Cognex," concluded Mr. Willett.
Details of the Quarter
Statement of Operations Highlights - First Quarter of 2019
Balance Sheet Highlights - March 31, 2019
Financial Outlook - Q2 2019
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 2 million image-based products, representing over $6 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 forward-looking statements, which include statements regarding business and market trends, future financial performance, customer order rates and the timing of related revenue, expected areas of growth, emerging and growth markets, future product mix, research and development activities, investments, strategic plans, and stock repurchases, 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 loss of a large customer; (2) current and future conditions in the global economy, including the imposition of tariffs or export controls; (3) the reliance on revenue from the consumer electronics or automotive industries; (4) the inability to penetrate new markets; (5) the inability to achieve significant international revenue; (6) fluctuations in foreign currency exchange rates and the use of derivative instruments; (7) information security breaches or business system disruptions; (8) the inability to attract and retain skilled employees; (9) the failure to effectively manage our growth; (10) the reliance upon key suppliers to manufacture and deliver critical components for our products; (11) the failure to effectively manage product transitions or accurately forecast customer demand; (12) the inability to design and manufacture high-quality products; (13) the technological obsolescence of current products and the inability to develop new products; (14) the failure to properly manage the distribution of products and services; (15) the inability to protect our proprietary technology and intellectual property; (16) our involvement in time-consuming and costly litigation; (17) the impact of competitive pressures; (18) the impact of competitive pressures; (19) the challenges in integrating and achieving expected results from acquired businesses; (20) potential impairment charges with respect to our investments or for acquired intangible assets or goodwill; (21) exposure to additional tax liabilities; and (22) the other risks detailed in Cognex reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2018. 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 |
|||||||||
Three-months Ended | |||||||||
March 31, |
December 31, |
April 1, |
|||||||
Revenue | $ | 173,484 | $ | 193,286 | $ | 169,567 | |||
Cost of revenue (1) | 46,284 | 52,825 | 40,198 | ||||||
Gross margin | 127,200 | 140,461 | 129,369 | ||||||
Percentage of revenue | 73 | % | 73 | % | 76 | % | |||
Research, development, and engineering expenses (1) | 30,242 | 28,781 | 31,076 | ||||||
Percentage of revenue | 17 | % | 15 | % | 18 | % | |||
Selling, general, and administrative expenses (1) | 66,811 | 66,433 | 63,697 | ||||||
Percentage of revenue | 39 | % | 34 | % | 38 | % | |||
Operating income | 30,147 | 45,247 | 34,596 | ||||||
Percentage of revenue |
17 |
% |
23 | % | 20 | % | |||
Foreign currency gain (loss) | (248 | ) | (356 | ) | (134 | ) | |||
Investment and other income | 5,832 | 3,858 | 3,517 | ||||||
Income before income tax expense | 35,731 | 48,749 | 37,979 | ||||||
Income tax expense | 2,627 | 3,331 | 762 | ||||||
Net income | $ | 33,104 | $ | 45,418 | $ | 37,217 | |||
Percentage of revenue | 19 | % | 23 | % | 22 | % | |||
Net income per weighted-average common and common-equivalent share: | |||||||||
Basic | $ | 0.19 | $ | 0.26 | $ | 0.21 | |||
Diluted | $ | 0.19 | $ | 0.26 | $ | 0.21 | |||
Weighted-average common and common-equivalent shares outstanding: | |||||||||
Basic | 171,098 | 171,501 | 173,280 | ||||||
Diluted | 175,607 | 175,527 | 179,641 | ||||||
Cash dividends per common share | $ | 0.050 | $ | 0.050 | $ | 0.045 | |||
Cash and investments per common share | $ | 5.03 | $ | 4.67 | $ | 4.65 | |||
Book value per common share | $ | 6.93 | $ | 6.65 | $ | 6.23 | |||
(1) Amounts include stock option expense, as follows: | |||||||||
Cost of revenue | $ | 451 | $ | 549 | $ | 797 | |||
Research, development, and engineering | 4,467 | 3,412 | 4,815 | ||||||
Selling, general, and administrative | 7,363 | 5,790 | 7,582 | ||||||
Total stock option expense | $ | 12,281 | $ | 9,751 | $ | 13,194 | |||
Exhibit 2
COGNEX CORPORATION |
||||||||||||
Three-months Ended | ||||||||||||
March 31, |
December 31, |
April 1, |
||||||||||
Adjustment for stock option expense and tax benefit for stock option exercises | ||||||||||||
Operating income (GAAP) | $ | 30,147 | $ | 45,247 | $ | 34,596 | ||||||
Stock option expense | 12,281 | 9,751 | 13,194 | |||||||||
Operating income (Non-GAAP) | $ | 42,428 | $ | 54,998 | $ | 47,790 | ||||||
Percentage of revenue (Non-GAAP) |
24 |
% |
28 | % | 28 | % | ||||||
Net income (GAAP) | $ | 33,104 | $ | 45,418 | $ | 37,217 | ||||||
Stock option expense | 12,281 | 9,751 | 13,194 | |||||||||
Tax effect on stock option expense | (2,222 | ) | (1,709 | ) | (2,347 | ) | ||||||
Discrete tax benefit related to employee stock option exercises | (2,730 | ) | (88 | ) | (4,935 | ) | ||||||
Net income (Non-GAAP) | $ | 40,433 | $ | 53,372 | $ | 43,129 | ||||||
Percentage of revenue (Non-GAAP) | 23 | % | 28 | % | 25 | % | ||||||
Net income per diluted weighted-average common and common-equivalent share (GAAP) | $ | 0.19 | $ | 0.26 | $ | 0.21 | ||||||
Share impact of non-GAAP adjustments identified above | 0.04 | 0.04 | 0.03 | |||||||||
Net income per diluted weighted-average common and common-equivalent share (Non-GAAP) | $ | 0.23 | $ | 0.30 | $ | 0.24 | ||||||
Diluted weighted-average common and common-equivalent shares outstanding (GAAP) | 175,607 | 175,527 | 179,641 | |||||||||
Exclusion of tax adjustments | ||||||||||||
Income before income tax expense (GAAP) | $ | 35,731 | $ | 48,749 | $ | 37,979 | ||||||
Income tax expense (GAAP) | $ | 2,627 | $ | 3,331 | $ | 762 | ||||||
Effective tax rate (GAAP) | 7 | % | 7 | % | 2 | % | ||||||
Tax adjustments: | ||||||||||||
Discrete tax benefit related to employee stock option exercises | (2,730 | ) | (88 | ) | (4,935 | ) | ||||||
Discrete tax benefit related to Tax Act | - | (89 | ) | - | ||||||||
Other discrete tax events | (3 | ) | (190 | ) | - | |||||||
Income tax expense excluding tax adjustments (Non-GAAP) | $ | 5,360 | $ | 3,698 | $ | 5,697 | ||||||
Effective tax rate (Non-GAAP) | 15% | 8 | % | 15 | % | |||||||
Net income excluding tax adjustments (Non-GAAP) | $ | 30,371 | $ | 45,051 | $ | 32,282 | ||||||
Percentage of revenue (Non-GAAP) |
18 |
% |
23 | % | 19 | % | ||||||
Net income per diluted weighted-average common and common-equivalent share (GAAP) | $ | 0.19 | $ | 0.26 | $ | 0.21 | ||||||
Share impact of non-GAAP adjustments identified above | (0.02 | ) | - | (0.03 | ) | |||||||
Net income per diluted weighted-average common and common-equivalent share (Non-GAAP) | $ | 0.17 | $ | 0.26 | $ | 0.18 | ||||||
Diluted weighted-average common and common-equivalent shares outstanding (GAAP) | 175,607 | 175,527 | 179,641 | |||||||||
Exhibit 3
COGNEX CORPORATION |
|||||
March 31, 2019 | December 31, 2018 | ||||
Assets | |||||
Cash and investments | $ | 863,687 | $ | 797,599 | |
Accounts receivable | 106,424 | 119,172 | |||
Unbilled revenue | 10,202 | 8,312 | |||
Inventories | 79,208 | 83,282 | |||
Property, plant, and equipment | 91,273 | 91,396 | |||
Operating lease assets | 17,354 | - | |||
Goodwill and intangible assets | 122,552 | 123,321 | |||
Other assets | 63,072 | 66,585 | |||
Total assets | $ | 1,353,772 | $ | 1,289,667 | |
Liabilities and Shareholders' Equity | |||||
Accounts payable and accrued expenses | $ | 69,477 | $ | 76,450 | |
Operating lease liabilities | 17,336 | - | |||
Deferred revenue and customer deposits | 16,625 | 9,845 | |||
Income taxes | 60,421 | 64,243 | |||
Other liabilities | 1,054 | 3,866 | |||
Shareholders' equity | 1,188,859 | 1,135,263 | |||
Total liabilities and shareholders' equity | $ | 1,353,772 | $ | 1,289,667 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190429005780/en/
Susan Conway
Senior Director of Investor Relations
Cognex Corporation
Phone: (508) 650-3353
Email: [email protected]
Source: Cognex Corporation