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 27, 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 October 27, 2014, Cognex Corporation (the “Company”) issued a news release to report its financial results for the quarter ended September 28, 2014. 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 9.01 | Financial Statements and Exhibits |
(d) Exhibits
Exhibit No. |
Description |
99.1 | News release, dated October 27, 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: |
October 27, 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 Best Quarter in the Company’s History
NATICK, Mass.--(BUSINESS WIRE)--October 27, 2014--Cognex Corporation (NASDAQ: CGNX) today announced record revenue, net income and earnings per share for the third quarter of 2014. Selected financial data for the quarter and nine months that ended September 28, 2014 is compared to the second quarter of 2014, the third quarter of 2013 and the first nine months of 2013 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 Income |
Net Income per Diluted Share |
||||||||||
Quarterly Comparisons |
||||||||||||
Current quarter: Q3-14 | $169,356,000 | $50,400,000 | $0.57 | |||||||||
Prior year’s quarter: Q3-13 | $90,788,000 | $20,727,000 | $0.23 | |||||||||
Change from Q3-13 to Q3-14 | 87% | 143% | 144% | |||||||||
Prior quarter: Q2-14 | $108,802,000 | $25,948,000 | $0.29 | |||||||||
Change from Q2-14 to Q3-14 |
56% | 94% | 94% | |||||||||
Year-to-Date Comparisons |
||||||||||||
Nine months ended Sept. 28, 2014 | $369,087,000 | $94,854,000 | $1.06 | |||||||||
Nine months ended Sept. 29, 2013 | $258,190,000 | $53,130,000 | $0.59 | |||||||||
Change from first nine months of 2013 to first nine months of 2014 |
43% |
79% |
79% |
|||||||||
“What a spectacular quarter!” exclaimed Dr. Robert J. Shillman, Chairman of Cognex. “Cognex reported record-breaking financial results with the highest quarterly revenue, net income and earnings per share in our 33-year history. We were also fabulously profitable, as operating margin expanded to 35%, despite the significant investments we made during the quarter. This achievement reflects the substantial leverage that we have in our business model.”
“We are proud of our outstanding performance in the third quarter. Thanks to significant revenue from our largest customer, we were able to turn a very strong quarter into a truly remarkable one,” said Robert J. Willett, Chief Executive Officer of Cognex. “During the quarter we once again saw the benefit of our engineering investments with the introduction of a number of exciting new products. We expect that our continued investment in innovation will fuel future profitable growth. This is a very exciting time to be at Cognex.”
Details of the Quarter
Statement of Operations Highlights – Third Quarter of 2014
Balance Sheet Highlights – September 28, 2014
Financial Outlook for Q4 2014
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 1 million vision-based products, representing over $4 billion in cumulative revenue, since the company's founding in 1981. Headquartered in Natick, Massachusetts, USA, Cognex has regional offices and distributors located throughout the Americas, Europe and Asia. 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, emerging markets, future product mix, research and development activities, investments, 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 | Nine-months Ended | ||||||||||||||||||||||||||
Sept. 28, | Jun. 29, | Sept. 29, | Sept. 28, | Sept. 29, | |||||||||||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Revenue | $ | 169,356 | $ | 108,802 | $ | 90,788 | $ | 369,087 | $ | 258,190 | |||||||||||||||||
Cost of revenue (1) | 44,327 | 25,790 | 21,348 | 91,201 | 61,921 | ||||||||||||||||||||||
Gross margin | 125,029 | 83,012 | 69,440 | 277,886 | 196,269 | ||||||||||||||||||||||
Percentage of revenue | 74 | % | 76 | % | 76 | % | 75 | % | 76 | % | |||||||||||||||||
Research, development, and engineering expenses (1) | 18,542 | 13,622 | 12,184 | 44,666 | 35,392 | ||||||||||||||||||||||
Percentage of revenue | 11 | % | 13 | % | 13 | % | 12 | % | 14 | % | |||||||||||||||||
Selling, general, and administrative expenses (1) | 47,059 | 38,668 | 33,877 | 120,627 | 99,344 | ||||||||||||||||||||||
Percentage of revenue | 28 | % | 36 | % | 37 | % | 33 | % | 38 | % | |||||||||||||||||
Operating income | 59,428 | 30,722 | 23,379 | 112,593 | 61,533 | ||||||||||||||||||||||
Percentage of revenue | 35 | % | 28 | % | 26 | % | 31 | % | 24 | % | |||||||||||||||||
Foreign currency gain (loss) | 716 | (96 | ) | (442 | ) | 510 | (303 | ) | |||||||||||||||||||
Investment and other income | 978 | 726 | 771 | 2,218 | 1,797 | ||||||||||||||||||||||
Income before income tax expense | 61,122 | 31,352 | 23,708 | 115,321 | 63,027 | ||||||||||||||||||||||
Income tax expense | 10,722 | 5,404 | 2,981 | 20,467 | 9,897 | ||||||||||||||||||||||
Net income | $ | 50,400 | $ | 25,948 | $ | 20,727 | $ | 94,854 | $ | 53,130 | |||||||||||||||||
Percentage of revenue | 30 | % | 24 | % | 23 | % | 26 | % | 21 | % | |||||||||||||||||
Earnings per weighted-average common and common-equivalent share: | |||||||||||||||||||||||||||
Basic | $ | 0.58 | $ | 0.30 | $ | 0.24 | $ | 1.09 | $ | 0.61 | |||||||||||||||||
Diluted | $ | 0.57 | $ | 0.29 | $ | 0.23 | $ | 1.06 | $ | 0.59 | |||||||||||||||||
Weighted-average common and common-equivalent shares outstanding: | |||||||||||||||||||||||||||
Basic | 86,963 | 86,782 | 87,339 | 86,875 | 87,578 | ||||||||||||||||||||||
Diluted | 89,167 | 88,965 | 89,359 | 89,145 | 89,450 | ||||||||||||||||||||||
Cash dividends per common share | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
Cash and investments per common share | $ | 5.71 | $ | 5.39 | $ | 5.08 | $ | 5.71 | $ | 5.08 | |||||||||||||||||
Book value per common share | $ | 8.43 | $ | 7.87 | $ | 7.31 | $ | 8.43 | $ | 7.31 | |||||||||||||||||
(1)Amounts include stock option expense, as follows: | |||||||||||||||||||||||||||
Cost of revenue | $ | 273 | $ | 312 | $ | 193 | $ | 933 | $ | 707 | |||||||||||||||||
Research, development, and engineering | 856 | 988 | 546 | 2,900 | 2,009 | ||||||||||||||||||||||
Selling, general, and administrative | 2,169 | 2,656 | 1,481 | 7,425 | 5,583 | ||||||||||||||||||||||
Total stock option expense | $ | 3,298 | $ | 3,956 | $ | 2,220 | $ | 11,258 | $ | 8,299 | |||||||||||||||||
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 | Nine-months Ended | ||||||||||||||||||||||||||
Sept. 28, | Jun. 29, | Sept. 29, | Sept. 28, | Sept. 29, | |||||||||||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Adjustment for stock option expense | |||||||||||||||||||||||||||
Operating income (GAAP) | $ | 59,428 | $ | 30,722 | $ | 23,379 | $ | 112,593 | $ | 61,533 | |||||||||||||||||
Stock option expense | 3,298 | 3,956 | 2,220 | 11,258 | 8,299 | ||||||||||||||||||||||
Operating income (Non-GAAP) | $ | 62,726 | $ | 34,678 | $ | 25,599 | $ | 123,851 | $ | 69,832 | |||||||||||||||||
Percentage of revenue (Non-GAAP) | 37 | % | 32 | % | 28 | % | 34 | % | 27 | % | |||||||||||||||||
Net income (GAAP) | $ | 50,400 | $ | 25,948 | $ | 20,727 | $ | 94,854 | $ | 53,130 | |||||||||||||||||
Stock option expense | 3,298 | 3,956 | 2,220 | 11,258 |
8,299 |
||||||||||||||||||||||
Tax effect on stock options | (1,098 | ) | (1,266 | ) | (721 | ) | (3,670 | ) | (2,725 | ) | |||||||||||||||||
Net income (Non-GAAP) | $ | 52,600 | $ | 28,638 | $ | 22,226 | $ | 102,442 | $ | 58,704 | |||||||||||||||||
Percentage of revenue (Non-GAAP) | 31 | % | 26 | % | 24 | % | 28 | % | 23 | % | |||||||||||||||||
Net income per diluted share (GAAP) | $ | 0.57 | $ | 0.29 | $ | 0.23 | $ | 1.06 | $ | 0.59 | |||||||||||||||||
Stock option expense per diluted share | 0.03 | 0.04 | 0.03 | 0.13 | 0.10 | ||||||||||||||||||||||
Tax effect on stock options | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.04 | ) | (0.03 | ) | |||||||||||||||||
Net income per diluted share excluding stock option expense (Non-GAAP) | $ | 0.59 | $ | 0.32 | $ | 0.25 | $ | 1.15 | $ | 0.66 | |||||||||||||||||
Exclusion of tax adjustments | |||||||||||||||||||||||||||
Income before income tax expense (GAAP) | $ | 61,122 | $ | 31,352 | $ | 23,708 | $ | 115,321 | $ | 63,027 | |||||||||||||||||
Income tax expense (GAAP) | $ | 10,722 | $ | 5,404 | $ | 2,981 | $ | 20,467 | $ | 9,897 | |||||||||||||||||
Effective tax rate (GAAP) | 18 | % | 17 | % | 13 | % | 18 | % | 16 | % | |||||||||||||||||
Tax adjustments: | |||||||||||||||||||||||||||
Discrete tax events | (891 | ) | (553 | ) | (1,523 | ) | (1,444 | ) | (2,078 | ) | |||||||||||||||||
(891 | ) | (553 | ) | (1,523 | ) | (1,444 | ) | (2,078 | ) | ||||||||||||||||||
Income tax expense excluding tax adjustments (Non-GAAP) | $ | 11,613 | $ | 5,957 | $ | 4,504 | $ | 21,911 | $ | 11,975 | |||||||||||||||||
Effective tax rate (Non-GAAP) | 19 | % | 19 | % | 19 | % | 19 | % | 19 | % | |||||||||||||||||
Exhibit 3 |
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COGNEX CORPORATION | ||||||||||
Balance Sheets | ||||||||||
(Unaudited) | ||||||||||
In thousands | ||||||||||
September 28, | December 31, | |||||||||
2014 | 2013 | |||||||||
Assets | ||||||||||
Cash and investments | $ | 497,220 | $ | 455,121 | ||||||
Accounts receivable | 99,949 | 53,015 | ||||||||
Inventories | 31,210 | 25,694 | ||||||||
Property, plant, and equipment | 39,318 | 37,136 | ||||||||
Goodwill and intangible assets | 93,478 | 96,412 | ||||||||
Other assets | 55,227 | 42,321 | ||||||||
Total assets | $ | 816,402 | $ | 709,699 | ||||||
Liabilities and Shareholders' Equity | ||||||||||
Accounts payable and accrued liabilities | $ | 52,805 | $ | 43,818 | ||||||
Income taxes | 5,392 | 6,028 | ||||||||
Deferred revenue and customer deposits | 24,253 | 15,941 | ||||||||
Shareholders' equity | 733,952 | 643,912 | ||||||||
Total liabilities and shareholders' equity | $ | 816,402 | $ | 709,699 | ||||||
Exhibit 4 |
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COGNEX CORPORATION | |||||||||||||||||||||||||||
Additional Information Schedule | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Dollars in thousands | |||||||||||||||||||||||||||
Three-months Ended | Nine-months Ended | ||||||||||||||||||||||||||
Sept. 28, | Jun. 29, | Sept. 29, | Sept. 28, | Sept. 29, | |||||||||||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Revenue |
$ |
169,356 |
$ | 108,802 | $ | 90,788 |
$ |
369,087 |
$ | 258,190 | |||||||||||||||||
Revenue by division: | |||||||||||||||||||||||||||
Modular Vision Systems Division | 91 | % | 85 | % | 86 | % | 89 | % | 86 | % | |||||||||||||||||
Surface Inspection Systems Division | 9 | % | 15 | % | 14 | % | 11 | % | 14 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
Revenue by geography: | |||||||||||||||||||||||||||
Europe (1) | 57 | % | 31 | % | 31 | % | 44 | % | 31 | % | |||||||||||||||||
Americas | 23 | % | 36 | % | 37 | % | 32 | % | 36 | % | |||||||||||||||||
Asia | 12 | % | 22 | % | 22 | % | 15 | % | 22 | % | |||||||||||||||||
Japan | 8 | % | 11 | % | 10 | % | 9 | % | 11 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
Revenue by market: | |||||||||||||||||||||||||||
Factory automation | 86 | % | 77 | % | 80 | % | 83 | % | 78 | % | |||||||||||||||||
Web and surface inspection | 9 | % | 15 | % | 14 | % | 11 | % | 14 | % | |||||||||||||||||
Semiconductor and electronics capital equipment | 5 | % | 8 | % | 6 | % | 6 | % | 8 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
(1) In Q3 2014, the company's Europe region included $65 million of revenue from a single customer.
CONTACT:
Cognex Corporation
Susan Conway, 508-650-3353
Director
of Investor Relations
susan.conway@cognex.com