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): February 8, 2014
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 February 13, 2014, Cognex Corporation (the “Company”) issued a news release to report its financial results for the quarter and year ended December 31, 2013. The release is furnished as Exhibit 99.1 hereto. The information in Item 2.02 of 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 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers |
Robert J. Shillman, Founder, Chairman and Chief Culture Officer of the Company, has previously indicated his desire to stand for re-election by the shareholders of the Company generally on an annual basis. To facilitate Dr. Shillman standing for re-election at the Company’s 2014 Annual Meeting of Shareholders (the “Annual Meeting”), Dr. Shillman, who was serving a term as a director ending in 2016, resigned as a director of the Company on February 8, 2014. Immediately following such resignation, the Board of Directors elected Dr. Shillman to the class of directors with terms expiring at the Annual Meeting and, as a result, Dr. Shillman will stand for re-election as a director at the Annual Meeting. Dr. Shillman does not serve on any committees of the Board.
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
Exhibit No. |
Description |
99.1 | News release, dated February 13, 2014, 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: |
February 13, 2014 |
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 Revenue and Net Income for 2013
NATICK, Mass.--(BUSINESS WIRE)--February 13, 2014--Cognex Corporation (NASDAQ: CGNX) today announced that the company set new annual records for revenue and net income in 2013. Selected financial data for the quarter and year ended December 31, 2013 is compared to the third quarter of 2013, the fourth quarter of 2012 and the year ended December 31, 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
|
|
Net Income per | ||||||||
Revenue |
Net Income |
Diluted Share* |
||||||||
Quarterly Comparisons |
||||||||||
Current quarter: Q4-13 | $95,696,000 | $20,443,000 | $0.23 | |||||||
Prior year’s quarter: Q4-12 | $82,168,000 | $16,244,000 | $0.19 | |||||||
Change from Q4-12 to Q4-13 | 16% | 26% | 23% | |||||||
Prior quarter: Q3-13 | $90,788,000 | $20,727,000 | $0.23 | |||||||
Change from Q3-13 to Q4-13 | 5% | (1%) | 0% | |||||||
Year-to-Date Comparisons |
||||||||||
Year ended December 31, 2013 | $353,886,000 | $73,573,000 | $0.83 | |||||||
Year ended December 31, 2012 | $324,279,000 | $68,098,000 | $0.78 | |||||||
Change from 2012 to 2013 | 9% | 8% | 6% |
*Adjusted for the two-for-one stock split effective September 16, 2013.
“Cognex reported outstanding financial results for 2013 tonight, setting new annual records for revenue, net income and earnings per share,” said Dr. Robert J. Shillman, Chairman of Cognex.
“We are pleased with our strong execution in 2013,” said Robert J. Willett, Chief Executive Officer of Cognex. “Our product development and sales initiatives drove higher revenue from the factory automation market, where we set a new record for annual revenue. Our efforts really began to deliver in the second half of the year, when factory automation revenue growth was in excess of our 20% long-term target, and we reported higher operating margins than in the first half.”
Details of the Quarter
Statement of Operations Highlights – Fourth Quarter of 2013
Balance Sheet Highlights – December 31, 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 975,000 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, customer order rates, expected areas of growth, research and development and sales 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 or consumer electronics 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) 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 our 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 our proprietary technology and intellectual property; (15) our 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 our investments or for acquired intangible assets or goodwill; (19) exposure to additional tax liabilities; (20) information security breaches or business system 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, 2013. 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 | Twelve-months Ended | |||||||||||||||||||||||||
Dec. 31, | Sept. 29, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
2013 |
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Revenue | $ | 95,696 | $ | 90,788 | $ | 82,168 |
$ |
353,886 |
$ | 324,279 | ||||||||||||||||
Cost of revenue (1) | 22,159 | 21,348 | 20,382 | 84,080 | 79,495 | |||||||||||||||||||||
Gross margin | 73,537 | 69,440 | 61,786 | 269,806 | 244,784 | |||||||||||||||||||||
Percentage of revenue |
77 | % | 76 | % | 75 | % | 76 | % | 75 | % | ||||||||||||||||
Research, development, and engineering expenses (1) | 12,695 | 12,184 | 10,886 | 48,087 | 41,549 | |||||||||||||||||||||
Percentage of revenue | 13 | % | 13 | % | 13 | % | 14 | % | 13 | % | ||||||||||||||||
Selling, general, and administrative expenses (1) | 36,007 | 33,877 | 30,387 | 135,351 | 119,828 | |||||||||||||||||||||
Percentage of revenue | 38 | % | 37 | % | 37 | % | 38 | % | 37 | % | ||||||||||||||||
Operating income | 24,835 | 23,379 | 20,513 | 86,368 | 83,407 | |||||||||||||||||||||
Percentage of revenue | 26 | % | 26 | % | 25 | % | 24 | % | 26 | % | ||||||||||||||||
Foreign currency gain (loss) | (343 | ) | (442 | ) | 197 | (646 | ) | (880 | ) | |||||||||||||||||
Investment and other income | 367 | 771 | 734 | 2,164 | 4,103 | |||||||||||||||||||||
Income before income tax expense | 24,859 | 23,708 | 21,444 | 87,886 | 86,630 | |||||||||||||||||||||
Income tax expense | 4,416 | 2,981 | 5,200 | 14,313 | 18,532 | |||||||||||||||||||||
Net income | $ | 20,443 | $ | 20,727 | $ | 16,244 | $ | 73,573 | $ | 68,098 | ||||||||||||||||
Percentage of revenue | 21 | % | 23 | % | 20 | % | 21 | % | 21 | % | ||||||||||||||||
Earnings per weighted-average common and common-equivalent share (2): | ||||||||||||||||||||||||||
Basic | $ | 0.23 | $ | 0.24 | $ | 0.19 | $ | 0.85 | $ | 0.79 | ||||||||||||||||
Diluted | $ | 0.23 | $ | 0.23 | $ | 0.19 | $ | 0.83 | $ | 0.78 | ||||||||||||||||
Weighted-average common and common-equivalent shares outstanding (2): | ||||||||||||||||||||||||||
Basic | 87,096 | 87,339 | 85,996 | 86,946 | 85,666 | |||||||||||||||||||||
Diluted | 89,265 | 89,359 | 87,458 | 88,901 | 87,280 | |||||||||||||||||||||
Cash dividends per common share (2) | $ | - | $ | - | $ | 0.61 | $ | - | $ | 0.77 | ||||||||||||||||
Cash and investments per common share (2) | $ | 5.24 | $ | 5.08 | $ | 4.51 | $ | 5.24 | $ | 4.51 | ||||||||||||||||
Book value per common share (2) | $ | 7.42 | $ | 7.31 | $ | 6.65 | $ | 7.42 | $ | 6.65 | ||||||||||||||||
(1) Amounts include stock option expense, as follows: |
||||||||||||||||||||||||||
Cost of revenue |
$ | 217 | $ | 193 | $ | 134 | $ | 924 | $ | 742 | ||||||||||||||||
Research, development, and engineering |
576 | 546 | 414 | 2,585 | 2,149 | |||||||||||||||||||||
Selling, general, and administrative |
1,528 | 1,481 | 1,177 | 7,111 | 5,629 | |||||||||||||||||||||
Total stock option expense |
$ | 2,321 | $ | 2,220 | $ | 1,725 | $ | 10,620 | $ | 8,520 | ||||||||||||||||
(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. |
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Exhibit 2 |
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COGNEX CORPORATION |
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Reconciliation of Selected Items from GAAP to Non-GAAP |
|||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||
Dollars in thousands, except per share amounts |
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|
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Three-months Ended |
Twelve-months Ended | ||||||||||||||||||||||||||
Dec. 31, | Sept. 29, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||||
2013 | 2013 | 2012 |
2013 |
2012 | |||||||||||||||||||||||
Adjustment for stock option expense |
|||||||||||||||||||||||||||
Operating income (GAAP) |
$ | 24,835 | $ | 23,379 | $ | 20,513 | $ | 86,368 | $ | 83,407 | |||||||||||||||||
Stock option expense | 2,321 | 2,220 | 1,725 | 10,620 | 8,520 | ||||||||||||||||||||||
Operating income (Non-GAAP) | $ | 27,156 | $ | 25,599 | $ | 22,238 | $ | 96,988 | $ | 91,927 | |||||||||||||||||
Percentage of revenue (Non-GAAP) | 28 | % | 28 | % | 27 | % | 27 | % | 28 | % | |||||||||||||||||
Net income (GAAP) |
$ | 20,443 | $ | 20,727 | $ | 16,244 | $ | 73,573 | $ | 68,098 | |||||||||||||||||
Stock option expense | 2,321 | 2,220 | 1,725 | 10,620 | 8,520 | ||||||||||||||||||||||
Tax effect on stock options | (756 | ) | (721 | ) | (560 | ) | (3,482 | ) | (2,772 | ) | |||||||||||||||||
Net income (Non-GAAP) | $ | 22,008 | $ | 22,226 | $ | 17,409 | $ | 80,711 | $ | 73,846 | |||||||||||||||||
Percentage of revenue (Non-GAAP) |
23 | % | 24 | % | 21 | % | 23 | % | 23 | % | |||||||||||||||||
Net income per diluted share (GAAP) (1) |
$ | 0.23 | $ | 0.23 | $ | 0.19 | $ | 0.83 | $ | 0.78 | |||||||||||||||||
Stock option expense per diluted share |
0.03 | 0.03 | 0.01 | 0.12 | 0.10 | ||||||||||||||||||||||
Tax effect on stock options | (0.01 | ) | (0.01 | ) | - | (0.05 | ) | (0.03 | ) | ||||||||||||||||||
Net income per diluted share excluding stock option expense (Non-GAAP) | $ | 0.25 | $ | 0.25 | $ | 0.20 | $ | 0.90 | $ | 0.85 | |||||||||||||||||
(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. |
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Exclusion of tax adjustments |
|||||||||||||||||||||||||||
Income before income tax expense (GAAP) |
$ | 24,859 | $ | 23,708 | $ | 21,444 | $ | 87,886 | $ | 86,630 | |||||||||||||||||
Income tax expense (GAAP) | $ | 4,416 | $ | 2,981 | $ | 5,200 | $ | 14,313 | $ | 18,532 | |||||||||||||||||
Effective tax rate (GAAP) | 18 | % | 13 | % | 24 | % | 16 | % | 21 | % | |||||||||||||||||
Tax adjustments: | |||||||||||||||||||||||||||
True up of annual tax rate | (307 | ) | - | 595 | - | - | |||||||||||||||||||||
Discrete tax events | - | (1,523 | ) | 101 | (2,078 | ) | (256 | ) | |||||||||||||||||||
(307 | ) | (1,523 | ) | 696 | (2,078 | ) | (256 | ) | |||||||||||||||||||
Income tax expense excluding tax adjustments (Non-GAAP) | $ | 4,723 | $ | 4,504 | $ | 4,504 | $ | 16,391 | $ | 18,788 | |||||||||||||||||
Effective tax rate (Non-GAAP) | 19 | % | 19 | % | 21 | % | 19 | % | 21 | % | |||||||||||||||||
Exhibit 3 |
|||||||||
COGNEX CORPORATION | |||||||||
Balance Sheets | |||||||||
(Unaudited) | |||||||||
In thousands | |||||||||
December 31, |
December 31, | ||||||||
2013 |
2012 | ||||||||
Assets |
|||||||||
Cash and investments | $ | 455,121 | $ | 388,520 | |||||
Accounts receivable | 53,015 | 42,387 | |||||||
Inventories | 25,694 | 26,182 | |||||||
Property, plant, and equipment | 37,136 | 34,820 | |||||||
Goodwill and intangible assets | 96,412 | 96,459 | |||||||
Other assets | 42,321 | 39,237 | |||||||
Total assets | $ | 709,699 | $ | 627,605 | |||||
Liabilities and Shareholders' Equity | |||||||||
Accounts payable and accrued liabilities | $ | 43,818 | $ | 36,405 | |||||
Income taxes | 6,028 | 6,225 | |||||||
Deferred revenue and customer deposits | 15,941 | 12,690 | |||||||
Shareholders' equity | 643,912 | 572,285 | |||||||
Total liabilities and shareholders' equity | $ | 709,699 | $ | 627,605 | |||||
Exhibit 4 |
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COGNEX CORPORATION | |||||||||||||||||||||||||||
Additional Information Schedule | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Dollars in thousands | |||||||||||||||||||||||||||
Three-months Ended | Twelve-months Ended | ||||||||||||||||||||||||||
Dec. 31, | Sept. 29, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Revenue | $ | 95,696 | $ | 90,788 | $ | 82,168 | $ | 353,886 | $ | 324,279 | |||||||||||||||||
Revenue by division: | |||||||||||||||||||||||||||
Modular Vision Systems Division | 89 | % | 86 | % | 82 | % | 87 | % | 84 | % | |||||||||||||||||
Surface Inspection Systems Division | 11 | % | 14 | % | 18 | % | 13 | % | 16 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
Revenue by geography: | |||||||||||||||||||||||||||
Americas | 42 | % | 37 | % | 38 | % | 37 | % | 36 | % | |||||||||||||||||
Europe | 32 | % | 31 | % | 32 | % | 31 | % | 31 | % | |||||||||||||||||
Asia | 17 | % | 22 | % | 18 | % | 21 | % | 20 | % | |||||||||||||||||
Japan | 9 | % | 10 | % | 12 | % | 11 | % | 13 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
Revenue by market: | |||||||||||||||||||||||||||
Factory automation | 84 | % | 80 | % | 76 | % | 80 | % | 75 | % | |||||||||||||||||
Web and surface inspection | 11 | % | 14 | % | 18 | % | 13 | % | 16 | % | |||||||||||||||||
Semiconductor and electronics capital equipment | 5 | % | 6 | % | 6 | % | 7 | % | 9 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
CONTACT:
Cognex Corporation
Susan Conway, 508-650-3353
Director
of Investor Relations
susan.conway@cognex.com