UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
Current
Report
Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date
of Report (Date of Earliest Event Reported): August 1, 2011
COGNEX CORPORATION |
(Exact name of registrant as specified in charter) |
Massachusetts |
001-34218 |
04-2713778 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
One Vision Drive Natick, Massachusetts 01760-2059 |
(Address, including zip code, of principal executive offices) |
(508)
650-3000
(Registrant's telephone number, including area
code)
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02 | Results of Operations and Financial Condition |
On August 1, 2011, Cognex Corporation issued a news release to report its financial results for the second quarter and six months ended July 3, 2011. The release is furnished as Exhibit 99.1 hereto. The information in this Current Report on Form 8-K, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general incorporation language in such filing.
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
Exhibit No. |
Description |
99.1 | News release, dated August 1, 2011, by Cognex Corporation |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
COGNEX CORPORATION |
||
|
||
Dated: |
August 1, 2011 |
By: /s/ Richard A. Morin |
Richard A. Morin |
||
Executive Vice President of Finance and Administration |
||
and Chief Financial Officer |
Exhibit 99.1
Cognex Corporation Reports Fantastic Second Quarter Results
Machine Vision Company Announces Significant Increases in Revenue, Net Income and Earnings per Share
NATICK, Mass.--(BUSINESS WIRE)--August 1, 2011--Cognex Corporation (NASDAQ: CGNX) today announced its financial results for the second quarter of 2011. Revenue, net income, and net income per share for the quarter and six months ended July 3, 2011 are compared to the prior quarter and the second quarter and first six months of 2010 in Table 1 below.
Table 1 |
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Revenue |
Net Income |
Net Income per Diluted Share |
|||||||||||||
Quarterly Comparisons |
|||||||||||||||
Current quarter: Q2-11 | $ | 83,393,000 | $ | 19,097,000 | $ | 0.45 | |||||||||
Prior year’s quarter: Q2-10 | $ | 71,811,000 | $ | 14,927,000 | $ | 0.38 | |||||||||
Change from Q2-10 to Q2-11 | 16 | % | 28 | % | 19 | % | |||||||||
Prior quarter: Q1-11 | $ | 74,394,000 | $ | 13,636,000 | $ | 0.32 | |||||||||
Change from Q1-11 to Q2-11 | 12 | % | 40 | % | 38 | % | |||||||||
Year to Date Comparisons |
|||||||||||||||
Six months ended July 3, 2011 | $ | 157,787,000 | $ | 32,733,000 | $ | 0.77 | |||||||||
Six months ended July 4, 2010 | $ | 130,778,000 | $ | 23,472,000 | $ | 0.59 | |||||||||
Change from first six months of 2010 to first six months of 2011 |
21 |
% |
39 |
% |
30 |
% |
|||||||||
“This was an outstanding quarter for Cognex,” said Dr. Robert J. Shillman, Chairman of Cognex. “We expected to have a good quarter when we gave revenue guidance in May but the actual results surpassed our estimate. Demand was strong in both the Factory Automation and Surface Inspection markets; in fact, we received a record level of orders from each of those markets during the quarter, resulting in record bookings overall. This order strength led to the second highest quarterly revenue in Cognex’s 30-year history. The substantial leverage that incremental revenue has on our profitability drove our gross margin to 77%, operating margin to 29% and net income to 23% of revenue for the quarter.”
“We are very pleased with our performance in the second quarter of 2011,” said Robert J. Willett, Chief Executive Officer of Cognex. “Revenue increased significantly over both the second quarter of last year and the prior quarter as we continued to execute well on our growth initiatives. A key contributor was our business in Asia, particularly China, where we foresee good long-term growth potential for machine vision. And, from an operations standpoint, we delivered strong margin expansion while investing in new product development and in our sales team.”
Details of the Quarter
Statement of Operations Highlights – Second Quarter of 2011
Balance Sheet Highlights – July 3, 2011
Financial Outlook
Non-GAAP Financial Measures
Cognex estimates the tax effect of the items identified in the reconciliation by applying its effective tax rate to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such items is estimated by applying such specific tax rate or tax treatment.
Analyst Conference Call and Simultaneous Webcast
About Cognex Corporation
Cognex Corporation designs, develops, manufactures and markets a range of products that incorporate sophisticated machine vision technology that gives them the ability to “see.” Cognex products include barcode readers, machine vision sensors and machine vision systems that are used in factories, warehouses and distribution centers around the world to guide, gauge, inspect, identify and assure the quality of items during the manufacturing and distribution process. Cognex is the world's leader in the machine vision industry, having shipped more than 600,000 vision-based products, representing over $3 billion in cumulative revenue, since the company's founding in 1981. Headquartered in Natick, Massachusetts, USA, Cognex has regional offices and distributors located throughout North America, Japan, Europe, Asia and Latin America. For details, visit Cognex on-line at http://www.cognex.com.
Certain statements made in this press 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. These forward-looking statements, which include statements regarding business and market trends, future financial performance, customer demand and order rates, market opportunities, growth initiatives and strategic plans, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include: (1) current and future conditions in the global economy; (2) the cyclicality of the semiconductor and electronics industries; (3) the inability to penetrate new markets; (4) the inability to achieve significant international revenue; (5) fluctuations in foreign currency exchange rates; (6) the loss of a large customer; (7) the inability to attract and retain skilled employees; (8) the reliance upon key suppliers to manufacture and deliver critical components for Cognex products; (9) the failure to effectively manage product transitions or accurately forecast customer demand; (10) the inability to design and manufacture high-quality products; (11) the technological obsolescence of current products and the inability to develop new products; (12) the failure to properly manage the distribution of products and services; (13) the inability to protect Cognex proprietary technology and intellectual property; (14) involvement in time-consuming and costly litigation; (15) the impact of competitive pressures; (16) the challenges in integrating and achieving expected results from acquired businesses; (17) potential impairment charges with respect to Cognex’s investments or for acquired intangible assets or goodwill; (18) exposure to additional tax liabilities; and (19) the other risks detailed in Cognex reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2010. 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 |
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COGNEX CORPORATION | |||||||||||||||||||||||||
Statements of Operations | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Dollars in thousands, except per share amounts | |||||||||||||||||||||||||
Three-months Ended | Six-months Ended | ||||||||||||||||||||||||
Jul. 3, | Apr. 3, | Jul. 4, | Jul. 3, | Jul. 4, | |||||||||||||||||||||
2011 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
Revenue | $ | 83,393 | $ | 74,394 | $ | 71,811 | $ | 157,787 | $ | 130,778 | |||||||||||||||
Cost of revenue (1) | 19,379 | 18,383 | 18,717 | 37,762 | 34,658 | ||||||||||||||||||||
Gross margin | 64,014 | 56,011 | 53,094 | 120,025 | 96,120 | ||||||||||||||||||||
Percentage of revenue | 77 | % | 75 | % | 74 | % | 76 | % | 73 | % | |||||||||||||||
Research, development, and engineering expenses (1) | 10,506 | 9,482 | 8,076 | 19,988 | 16,179 | ||||||||||||||||||||
Percentage of revenue | 13 | % | 13 | % | 11 | % | 13 | % | 12 | % | |||||||||||||||
Selling, general, and administrative expenses (1) | 29,466 | 29,161 | 25,738 | 58,627 | 49,360 | ||||||||||||||||||||
Percentage of revenue | 35 | % | 39 | % | 36 | % | 37 | % | 38 | % | |||||||||||||||
Restructuring charges | - | - | 39 | - | 88 | ||||||||||||||||||||
Operating income | 24,042 | 17,368 | 19,241 | 41,410 | 30,493 | ||||||||||||||||||||
Percentage of revenue | 29 | % | 23 | % | 27 | % | 26 | % | 23 | % | |||||||||||||||
Foreign currency gain (loss) | 210 | (59 | ) | (8 | ) | 151 | (173 | ) | |||||||||||||||||
Investment and other income | 549 | 400 | 152 | 949 | 163 | ||||||||||||||||||||
Income before income tax expense | 24,801 | 17,709 | 19,385 | 42,510 | 30,483 | ||||||||||||||||||||
Income tax expense | 5,704 | 4,073 | 4,458 | 9,777 | 7,011 | ||||||||||||||||||||
Net income | $ | 19,097 | $ | 13,636 | $ | 14,927 | $ | 32,733 | $ | 23,472 | |||||||||||||||
Percentage of revenue | 23 | % | 18 | % | 21 | % | 21 | % | 18 | % | |||||||||||||||
Earnings per weighted-average common and common-equivalent share: | |||||||||||||||||||||||||
Basic | $ | 0.46 | $ | 0.33 | $ | 0.38 | $ | 0.79 | $ | 0.59 | |||||||||||||||
Diluted | $ | 0.45 | $ | 0.32 | $ | 0.38 | $ | 0.77 | $ | 0.59 | |||||||||||||||
Weighted-average common and common-equivalent shares outstanding: | |||||||||||||||||||||||||
Basic | 41,842 | 41,336 | 39,683 | 41,586 | 39,675 | ||||||||||||||||||||
Diluted | 42,810 | 42,286 | 39,793 | 42,532 | 39,736 | ||||||||||||||||||||
Cash dividends per common share | $ | 0.09 | $ | 0.08 | $ | 0.06 | $ | 0.17 | $ | 0.11 | |||||||||||||||
Cash and investments per common share | $ | 8.40 | $ | 7.62 | $ | 5.04 | $ | 8.40 | $ | 5.04 | |||||||||||||||
Book value per common share | $ | 12.84 | $ | 12.18 | $ | 9.95 | $ | 12.84 | $ | 9.95 | |||||||||||||||
(1 | ) | Amounts include stock option expense, as follows: | |||||||||||||||||||||||
Cost of revenue | $ | 144 | $ | 235 | $ | 25 | $ | 379 | $ | 84 | |||||||||||||||
Research, development, and engineering | 529 | 809 | 83 | 1,338 | 334 | ||||||||||||||||||||
Selling, general, and administrative | 1,284 | 1,308 | 319 | 2,592 | (24 | ) | |||||||||||||||||||
Total stock option expense | $ | 1,957 | $ | 2,352 | $ | 427 | $ | 4,309 | $ | 394 | |||||||||||||||
Exhibit 2 |
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COGNEX CORPORATION | |||||||||||||||||||||||||
Reconciliation of Selected Items from GAAP to Non-GAAP | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Dollars in thousands, except per share amounts | |||||||||||||||||||||||||
Three-months Ended | Six-months Ended | ||||||||||||||||||||||||
Jul. 3, | Apr. 3, | Jul. 4, | Jul. 3, | Jul. 4, | |||||||||||||||||||||
2011 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
Revenue (GAAP) | $ | 83,393 | $ | 74,394 | $ | 71,811 | $ | 157,787 | $ | 130,778 | |||||||||||||||
Operating income (GAAP) | $ | 24,042 | $ | 17,368 | $ | 19,241 | $ | 41,410 | $ | 30,493 | |||||||||||||||
Stock option expense | 1,957 | 2,352 | 427 | 4,309 | 394 | ||||||||||||||||||||
Operating income excluding stock option expense (Non-GAAP) | $ | 25,999 | $ | 19,720 | $ | 19,668 | $ | 45,719 | $ | 30,887 | |||||||||||||||
Percentage of revenue (Non-GAAP) | 31 | % | 27 | % | 27 | % | 29 | % | 24 | % | |||||||||||||||
Net Income (GAAP) | $ | 19,097 | $ | 13,636 | $ | 14,927 | $ | 32,733 | $ | 23,472 | |||||||||||||||
Stock option expense net of tax | $ | 1,303 | $ | 1,561 | $ | 283 | $ | 2,864 | $ | 270 | |||||||||||||||
Net income excluding stock option expense (Non-GAAP) | $ | 20,400 | $ | 15,197 | $ | 15,210 | $ | 35,597 | $ | 23,742 | |||||||||||||||
Percentage of revenue (Non-GAAP) | 24 | % | 20 | % | 21 | % | 23 | % | 18 | % | |||||||||||||||
Net income per diluted share (GAAP) | $ | 0.45 | $ | 0.32 | $ | 0.38 | $ | 0.77 | $ | 0.59 | |||||||||||||||
Stock option expense per diluted share, net of tax | $ | 0.03 | $ | 0.04 | $ | - | $ | 0.07 | $ | 0.01 | |||||||||||||||
Net income per diluted share excluding stock option expense (Non-GAAP) | $ | 0.48 | $ | 0.36 | $ | 0.38 | $ | 0.84 | $ | 0.60 | |||||||||||||||
Exhibit 3 |
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COGNEX CORPORATION | |||||||||||
Balance Sheets | |||||||||||
(Unaudited) | |||||||||||
In thousands | |||||||||||
July 3, | December 31, | ||||||||||
2011 | 2010 | ||||||||||
Assets | |||||||||||
Cash and investments | $ | 353,388 | $ | 283,081 | |||||||
Accounts receivable | 42,480 | 45,901 | |||||||||
Inventories | 27,004 | 22,717 | |||||||||
Property, plant, and equipment | 30,590 | 29,596 | |||||||||
Goodwill and intangible assets | 103,701 | 105,334 | |||||||||
Other assets | 45,494 | 46,475 | |||||||||
Total assets | $ | 602,657 | $ | 533,104 | |||||||
Liabilities and Shareholders' Equity | |||||||||||
Accounts payable and accrued liabilities | $ | 34,863 | $ | 36,499 | |||||||
Income taxes | 14,420 | 13,132 | |||||||||
Deferred revenue and customer deposits | 13,089 | 10,162 | |||||||||
Shareholders' equity | 540,285 | 473,311 | |||||||||
Total liabilities and shareholders' equity | $ | 602,657 | $ | 533,104 | |||||||
Exhibit 4 |
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COGNEX CORPORATION | ||||||||||||||||||||||||
Additional Information Schedule | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Dollars in thousands | ||||||||||||||||||||||||
Three-months Ended | Six-months Ended | |||||||||||||||||||||||
Jul. 3, | Apr. 3, | Jul. 4, | Jul. 3, | Jul. 4, | ||||||||||||||||||||
2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||
Revenue | $ | 83,393 | $ | 74,394 | $ | 71,811 | $ | 157,787 | $ | 130,778 | ||||||||||||||
Revenue by division: | ||||||||||||||||||||||||
Modular Vision Systems Division | 87 | % | 87 | % | 85 | % | 87 | % | 86 | % | ||||||||||||||
Surface Inspection Systems Division | 13 | % | 13 | % | 15 | % | 13 | % | 14 | % | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||
Revenue by geography: | ||||||||||||||||||||||||
Americas | 33 | % | 36 | % | 32 | % | 34 | % | 34 | % | ||||||||||||||
Europe | 33 | % | 32 | % | 30 | % | 33 | % | 30 | % | ||||||||||||||
Asia | 19 | % | 17 | % | 17 | % | 18 | % | 15 | % | ||||||||||||||
Japan | 15 | % | 15 | % | 21 | % | 15 | % | 21 | % | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||
Revenue by market: | ||||||||||||||||||||||||
Factory automation | 74 | % | 70 | % | 69 | % | 72 | % | 70 | % | ||||||||||||||
Semiconductor and electronics capital equipment | 13 | % | 17 | % | 16 | % | 15 | % | 16 | % | ||||||||||||||
Web and surface inspection | 13 | % | 13 | % | 15 | % | 13 | % | 14 | % | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
CONTACT:
Cognex Corporation
Susan Conway, 508-650-3353
Director
of Investor Relations
susan.conway@cognex.com