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): October 28, 2013
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 October 28, 2013, Cognex Corporation issued a news release to report its financial results for the quarter ended September 29, 2013. 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 October 28, 2013, 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: |
October 28, 2013 |
By: /s/ Richard A. Morin |
Richard A. Morin |
||
Executive Vice President of Finance and Administration |
||
and Chief Financial Officer |
Exhibit 99.1
Cognex Reports Record Quarterly Revenue and Record Quarterly Net Income
NATICK, Mass.--(BUSINESS WIRE)--October 28, 2013--Cognex Corporation (NASDAQ: CGNX) today announced its financial results for the third quarter of 2013. Selected financial data for the quarter and nine months ended September 29, 2013 is compared to the second quarter of 2013, the third quarter of 2012 and the first nine months of 2012 in Table 1 below. A reconciliation of certain financial measures from GAAP to non-GAAP is shown in Exhibit 2 of this news release.
Table 1 |
|||||||||
Revenue |
Net |
Net |
|||||||
Quarterly Comparisons |
|||||||||
Current quarter: Q3-13 | $90,788,000 | $20,727,000 | $0.23 | ||||||
Prior year’s quarter: Q3-12 | $80,076,000 | $17,805,000 | $0.20 | ||||||
Change from Q3-12 to Q3-13 | 13% | 16% | 14% | ||||||
Prior quarter: Q2-13 | $86,510,000 | $16,820,000 | $0.19 | ||||||
Change from Q2-13 to Q3-13 | 5% | 23% | 22% | ||||||
Year-to-Date Comparisons |
|||||||||
Nine months ended Sept. 29, 2013 | $258,190,000 | $53,130,000 | $0.59 | ||||||
Nine months ended Sept. 30, 2012 | $242,111,000 | $51,854,000 | $0.59 | ||||||
Change from first nine months of 2012 to first nine months of 2013 |
7% |
2% |
0% |
||||||
*Adjusted for the two-for-one stock split effective September 16, 2013. |
|||||||||
“What great results we reported tonight for the third quarter of 2013!” exclaimed Dr. Robert J. Shillman, Chairman of Cognex. “We set new quarterly records for both revenue and net income during what is typically a seasonally soft quarter for Cognex. Sales of our machine vision products were particularly strong in the factory automation market; in fact, we set a new quarterly revenue record in that market as well.”
“Cognex had an outstanding quarter in Q3 of 2013,” said Robert J. Willett, Chief Executive Officer of Cognex. “Revenue increased significantly both year-on-year and sequentially as a result of the continued strong execution of our growth plans. We are particularly pleased with the performance of our ID products business.”
Details of the Quarter
Statement of Operations Highlights – Third Quarter of 2013
Balance Sheet Highlights – September 29, 2013
Financial Outlook
Non-GAAP Financial Measures
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 900,000 vision-based products, representing over $3.5 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 online at http://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, expected areas of growth, future product mix, research and development activities, stock repurchases 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 reliance on revenue from the automotive industry; (4) the inability to penetrate new markets; (5) the inability to achieve significant international revenue, including in Asia; (6) fluctuations in foreign currency exchange rates; (7) the loss of a large customer; (8) the inability to attract and retain skilled employees; (9) the reliance upon key suppliers to manufacture and deliver critical components for Cognex products; (10) the failure to effectively manage product transitions or accurately forecast customer demand; (11) the inability to design and manufacture high-quality products; (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; (14) the inability to protect Cognex proprietary technology and intellectual property; (15) involvement in time-consuming and costly litigation; (16) the impact of competitive pressures; (17) the challenges in integrating and achieving expected results from acquired businesses; (18) potential impairment charges with respect to Cognex’s investments or for acquired intangible assets or goodwill; (19) exposure to additional tax liabilities; (20) information security breaches or business systems disruptions; and (21) the other risks detailed in Cognex reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2012. 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 | |||||||||||||||||||
Sept. 29, | Jun. 30, | Sept. 30, | Sept. 29, | Sept. 30, | ||||||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Revenue | $ | 90,788 | $ | 86,510 | $ | 80,076 | $ | 258,190 | $ | 242,111 | ||||||||||
Cost of revenue (1) | 21,348 | 21,150 | 19,506 | 61,921 | 59,113 | |||||||||||||||
Gross margin | 69,440 | 65,360 | 60,570 | 196,269 | 182,998 | |||||||||||||||
Percentage of revenue | 76 | % | 76 | % | 76 | % | 76 | % | 76 | % | ||||||||||
Research, development, and engineering expenses (1) | 12,184 | 11,887 | 10,002 | 35,392 | 30,663 | |||||||||||||||
Percentage of revenue | 13 | % | 14 | % | 12 | % | 14 | % | 13 | % | ||||||||||
Selling, general, and administrative expenses (1) | 33,877 | 33,300 | 28,765 | 99,344 | 89,441 | |||||||||||||||
Percentage of revenue | 37 | % | 38 | % | 36 | % | 38 | % | 37 | % | ||||||||||
Operating income | 23,379 | 20,173 | 21,803 | 61,533 | 62,894 | |||||||||||||||
Percentage of revenue | 26 | % | 23 | % | 27 | % | 24 | % | 26 | % | ||||||||||
Foreign currency gain (loss) | (442 | ) | 76 | (409 | ) | (303 | ) | (1,077 | ) | |||||||||||
Investment and other income | 771 | 517 | 692 | 1,797 | 3,369 | |||||||||||||||
Income before income tax expense | 23,708 | 20,766 | 22,086 | 63,027 | 65,186 | |||||||||||||||
Income tax expense | 2,981 | 3,946 | 4,281 | 9,897 | 13,332 | |||||||||||||||
Net income | $ | 20,727 | $ | 16,820 | $ | 17,805 | $ | 53,130 | $ | 51,854 | ||||||||||
Percentage of revenue | 23 | % | 19 | % | 22 | % | 21 | % | 21 | % | ||||||||||
Earnings per weighted-average common and common-equivalent share (2): | ||||||||||||||||||||
Basic | $ | 0.24 | $ | 0.19 | $ | 0.21 | $ | 0.61 | $ | 0.61 | ||||||||||
Diluted | $ | 0.23 | $ | 0.19 | $ | 0.20 | $ | 0.59 | $ | 0.59 | ||||||||||
Weighted-average common and common-equivalent shares outstanding (2): | ||||||||||||||||||||
Basic | 87,339 | 87,044 | 85,824 | 87,578 | 85,554 | |||||||||||||||
Diluted | 89,359 | 88,714 | 87,258 | 89,450 | 87,220 | |||||||||||||||
Cash dividends per common share (2) | $ | - | $ | - | $ | 0.055 | $ | - | $ | 0.160 | ||||||||||
Cash and investments per common share (2) | $ | 5.08 | $ | 4.90 | $ | 4.84 | $ | 5.08 | $ | 4.84 | ||||||||||
Book value per common share (2) | $ | 7.31 | $ | 7.07 | $ | 7.05 | $ | 7.31 | $ | 7.05 | ||||||||||
(1) Amounts include stock option expense, as follows: |
||||||||||||||||||||
Cost of revenue | $ | 193 | $ | 224 | $ | 125 | $ | 707 | $ | 608 | ||||||||||
Research, development, and engineering | 546 | 650 | 385 | 2,009 | 1,735 | |||||||||||||||
Selling, general, and administrative | 1,481 | 1,907 | 982 | 5,583 | 4,452 | |||||||||||||||
Total stock option expense | $ | 2,220 | $ | 2,781 | $ | 1,492 | $ | 8,299 | $ | 6,795 | ||||||||||
(2) Prior period share and per share amounts have been adjusted to reflect the 2-for-1 stock split of the Company's common stock that occurred in Q3 of 2013. |
||||||||||||||||||||
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 | ||||||||||||||||||||||
Sept. 29, | Jun. 30, | Sept. 30, | Sept. 29, | Sept. 30, | |||||||||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Adjustment for stock option expense | |||||||||||||||||||||||
Operating income (GAAP) | $ | 23,379 | $ | 20,173 | $ | 21,803 | $ | 61,533 | $ | 62,894 | |||||||||||||
Stock option expense | 2,220 | 2,781 | 1,492 | 8,299 | 6,795 | ||||||||||||||||||
Operating income (Non-GAAP) | $ | 25,599 | $ | 22,954 | $ | 23,295 | $ | 69,832 | $ | 69,689 | |||||||||||||
Percentage of revenue (Non-GAAP) | 28 | % | 27 | % | 29 | % | 27 | % | 29 | % | |||||||||||||
Net income (GAAP) | $ | 20,727 | $ | 16,820 | $ | 17,805 | $ | 53,130 | $ | 51,854 | |||||||||||||
Stock option expense | 2,220 | 2,781 | 1,492 | 8,299 | 6,795 | ||||||||||||||||||
Tax effect on stock options | (721 | ) | (910 | ) | (479 | ) | (2,725 | ) | (2,212 | ) | |||||||||||||
Net income (Non-GAAP) | $ | 22,226 | $ | 18,691 | $ | 18,818 | $ | 58,704 | $ | 56,437 | |||||||||||||
Percentage of revenue (Non-GAAP) | 24 | % | 22 | % | 24 | % | 23 | % | 23 | % | |||||||||||||
Net income per diluted share (GAAP) (1) | $ | 0.23 | $ | 0.19 | $ | 0.20 | $ | 0.59 | $ | 0.59 | |||||||||||||
Stock option expense per diluted share | 0.03 | 0.03 | 0.03 | $ | 0.10 | 0.08 | |||||||||||||||||
Tax effect on stock options | (0.01 | ) | (0.01 | ) | (0.01 | ) | $ | (0.03 | ) | (0.02 | ) | ||||||||||||
Net income per diluted share excluding stock option expense (Non-GAAP) | $ | 0.25 | $ | 0.21 | $ | 0.22 | $ | 0.66 | $ | 0.65 | |||||||||||||
(1) | Prior period per share amounts have been adjusted to reflect the 2-for-1 stock split of the Company's common stock that occurred in Q3 of 2013. | ||||||||||||||||||||||
Exclusion of tax adjustments | |||||||||||||||||||||||
Income before income tax expense (GAAP) | $ | 23,708 | $ | 20,766 | $ | 22,086 | $ | 63,027 | $ | 65,186 | |||||||||||||
Income tax expense (GAAP) | $ | 2,981 | $ | 3,946 | $ | 4,281 | $ | 9,897 | $ | 13,332 | |||||||||||||
Effective tax rate (GAAP) | 13 | % | 19 | % | 19 | % | 16 | % | 20 | % | |||||||||||||
Tax adjustments: | |||||||||||||||||||||||
Discrete tax events | (1,523 | ) | - | (357 | ) | (2,078 | ) | (357 | ) | ||||||||||||||
(1,523 | ) | - | (357 | ) | (2,078 | ) | (357 | ) | |||||||||||||||
Income tax expense excluding tax adjustments (Non-GAAP) | $ | 4,504 | $ | 3,946 | $ | 4,638 | $ | 11,975 | $ | 13,689 | |||||||||||||
Effective tax rate (Non-GAAP) | 19 | % | 19 | % | 21 | % | 19 | % | 21 | % | |||||||||||||
Currency impact on certain revenue | |||||||||||||||||||||||
Growth | Impact of | Growth | |||||||||||||||||||||
over Q2 2013 | Currency | over Q2 2013 | |||||||||||||||||||||
(GAAP) | in Q3 2013 | (Non-GAAP) | |||||||||||||||||||||
Total revenue | 5 | % | 1 | % | 4 | % | |||||||||||||||||
Factory automation revenue |
7 |
% |
1 |
% |
6 |
% | |||||||||||||||||
Factory automation revenue from Europe | 10 | % | 2 | % | 8 | % | |||||||||||||||||
Factory automation revenue from Japan | -5 | % | 1 | % | -6 | % | |||||||||||||||||
Growth | Impact of | Growth | |||||||||||||||||||||
over Q3 2012 | Currency | over Q3 2012 | |||||||||||||||||||||
(GAAP) | in Q3 2013 | (Non-GAAP) | |||||||||||||||||||||
Total revenue | 13 | % | -1 | % | 14 | % | |||||||||||||||||
Factory automation revenue | 18 | % | 1 | % | 17 | % | |||||||||||||||||
Factory automation revenue from Europe | 21 | % | 6 | % | 15 | % | |||||||||||||||||
Factory automation revenue from Japan | -13 | % | -22 | % | 9 | % | |||||||||||||||||
Exhibit 3 |
||||||
COGNEX CORPORATION | ||||||
Balance Sheets | ||||||
(Unaudited) | ||||||
In thousands | ||||||
September 29, | December 31, | |||||
2013 | 2012 | |||||
Assets | ||||||
Cash and investments | $ | 443,738 | $ | 388,520 | ||
Accounts receivable | 48,832 | 42,387 | ||||
Inventories | 27,625 | 26,182 | ||||
Property, plant, and equipment | 35,565 | 34,820 | ||||
Goodwill and intangible assets | 93,579 | 96,459 | ||||
Other assets | 43,411 | 39,237 | ||||
Total assets | $ | 692,750 | $ | 627,605 | ||
Liabilities and Shareholders' Equity | ||||||
Accounts payable and accrued liabilities | $ | 38,824 | $ | 36,405 | ||
Income taxes | 4,480 | 6,225 | ||||
Deferred revenue and customer deposits | 11,722 | 12,690 | ||||
Shareholders' equity | 637,724 | 572,285 | ||||
Total liabilities and shareholders' equity | $ | 692,750 | $ | 627,605 | ||
Exhibit 4 |
|||||||||||||||
COGNEX CORPORATION | |||||||||||||||
Additional Information Schedule | |||||||||||||||
(Unaudited) | |||||||||||||||
Dollars in thousands | |||||||||||||||
Three-months Ended | Nine-months Ended | ||||||||||||||
Sept. 29, | Jun. 30, | Sept. 30, | Sept. 29, | Sept. 30, | |||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||
Revenue | $ | 90,788 | $ | 86,510 | $ | 80,076 | $ | 258,190 | $ | 242,111 | |||||
Revenue by division: | |||||||||||||||
Modular Vision Systems Division | 86% | 86% | 85% | 86% | 85% | ||||||||||
Surface Inspection Systems Division | 14% | 14% | 15% | 14% | 15% | ||||||||||
Total | 100% | 100% | 100% | 100% | 100% | ||||||||||
Revenue by geography: | |||||||||||||||
Americas | 37% | 35% | 36% | 36% | 35% | ||||||||||
Europe | 31% | 31% | 30% | 31% | 31% | ||||||||||
Asia | 22% | 21% | 22% | 22% | 20% | ||||||||||
Japan | 10% | 13% | 12% | 11% | 14% | ||||||||||
Total | 100% | 100% | 100% | 100% | 100% | ||||||||||
Revenue by market: | |||||||||||||||
Factory automation | 80% | 78% | 77% | 78% | 75% | ||||||||||
Web and surface inspection | 14% | 14% | 15% | 14% | 15% | ||||||||||
Semiconductor and electronics capital equipment | 6% | 8% | 8% | 8% | 10% | ||||||||||
Total | 100% | 100% | 100% | 100% | 100% | ||||||||||
CONTACT:
Cognex Corporation
Susan Conway, 508-650-3353
Director
of Investor Relations
susan.conway@cognex.com