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 7, 2015
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 12, 2015, Cognex Corporation (the “Company”) issued a news release to report its financial results for the quarter and year ended December 31, 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 5.02 |
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers |
At a meeting of the Board of Directors of the Company held on February 7, 2015, Robert J. Shillman, Founder, Chairman and Chief Culture Officer of the Company, 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 2015 Annual Meeting of Shareholders (the “Annual Meeting”), and given that the Company has a classified Board of Directors, Dr. Shillman resigned his seat with a two-year remaining term and Patrick A. Alias, another current Director of the Company, resigned his seat with a term ending at the Annual Meeting. Immediately following such resignations, the Board of Directors elected Mr. Alias to fill Dr. Shillman’s vacant seat and Dr. Shillman to fill Mr. Alias’s vacant seat, such that Dr. Shillman will stand for re-election at the Annual Meeting.
Item 9.01 |
Financial Statements and Exhibits |
(d) Exhibits
Exhibit No. Description
99.1 News release, dated February 12, 2015, 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 12, 2015 |
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 Results for 2014
NATICK, Mass.--(BUSINESS WIRE)--February 12, 2015--Cognex Corporation (NASDAQ: CGNX) today announced that the company set new annual records for revenue, net income and earnings per share in 2014. Selected financial data for the quarter and year ended December 31, 2014 is compared to the third quarter of 2014, the fourth quarter of 2013 and the year ended December 31, 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 |
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Revenue |
Net Income |
Net Income per |
|||||||||||
Quarterly Comparisons |
|||||||||||||
Current quarter: Q4-14 | $117,183,000 | $26,631,000 | $0.30 | ||||||||||
Prior year’s quarter: Q4-13 | $95,696,000 | $20,443,000 | $0.23 | ||||||||||
Change from Q4-13 to Q4-14 | 22% | 30% | 31% | ||||||||||
Prior quarter: Q3-14 | $169,356,000 | $50,400,000 | $0.57 | ||||||||||
Change from Q3-14 to Q4-14 | (31%) | (47%) | (47%) | ||||||||||
Year-to-Date Comparisons |
|||||||||||||
Year ended December 31, 2014 | $486,270,000 | $121,485,000 | $1.36 | ||||||||||
Year ended December 31, 2013 | $353,886,000 | $73,573,000 | $0.83 | ||||||||||
Change from 2013 to 2014 | 37% | 65% | 65% |
A notable contributor to the company’s 2014 results was $70 million of revenue from a single customer, of which $65 million was recognized in Q3 2014.
“2014 was a fabulous year for Cognex! We reported the highest annual revenue, net income and earnings per share in our 34-year history,” said Dr. Robert J. Shillman, Chairman of Cognex. “In addition, operating margin expanded to 30% driven by the substantial leverage in our business model. That level is a dramatic increase over the 24% reported for 2013 and was achieved despite the significant investments that we made in sales and engineering during the year.”
“We are proud of our outstanding performance in 2014. It is great to see our ongoing efforts in new product development and sales channel expansion deliver such impressive results,” said Robert J. Willett, Chief Executive Officer of Cognex. “We made significant progress in those areas during 2014 and they give us substantial momentum as we head into 2015.”
Mr. Willett continued, “For Q1, we expect strong revenue growth year-on-year and gross margin in the mid-70% range. We plan to continue to invest in both engineering and sales, which is necessary to deliver on opportunities we see coming later in the year.”
Details of the Quarter
Statement of Operations Highlights – Fourth Quarter of 2014
Balance Sheet Highlights – December 31, 2014
Financial Outlook for Q1 2015
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, future product mix, product development activities, investments, 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) the loss of a large customer; (2) current and future conditions in the global economy; (3) the reliance on revenue from the consumer electronics or automotive industries; (4) the inability to penetrate new markets; (5) the cyclicality of the semiconductor and electronics industries; (6) the inability to achieve significant international revenue; (7) fluctuations in foreign currency exchange rates and the use of derivative instruments; (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, 2014. 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. 28, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Revenue | $ | 117,183 | $ | 169,356 | $ | 95,696 | $ | 486,270 | $ | 353,886 | ||||||||||||||||||||||||||
Cost of revenue (1) | 29,819 | 44,327 | 22,159 | 121,020 | 84,080 | |||||||||||||||||||||||||||||||
Gross margin | 87,364 | 125,029 | 73,537 | 365,250 | 269,806 | |||||||||||||||||||||||||||||||
Percentage of revenue | 75 | % | 74 | % | 77 | % | 75 | % | 76 | % | ||||||||||||||||||||||||||
Research, development, and engineering expenses (1) | 15,254 | 18,542 | 12,695 | 59,920 | 48,087 | |||||||||||||||||||||||||||||||
Percentage of revenue | 13 | % | 11 | % | 13 | % | 12 | % | 14 | % | ||||||||||||||||||||||||||
Selling, general, and administrative expenses (1) | 41,040 | 47,059 | 36,007 | 161,667 | 135,351 | |||||||||||||||||||||||||||||||
Percentage of revenue | 35 | % | 28 | % | 38 | % | 33 | % | 38 | % | ||||||||||||||||||||||||||
Operating income | 31,070 | 59,428 | 24,835 | 143,663 | 86,368 | |||||||||||||||||||||||||||||||
Percentage of revenue | 27 | % | 35 | % | 26 | % | 30 | % | 24 | % | ||||||||||||||||||||||||||
Foreign currency gain (loss) | 351 | 716 | (343 | ) | 861 | (646 | ) | |||||||||||||||||||||||||||||
Investment and other income | 655 | 978 | 367 | 2,873 | 2,164 | |||||||||||||||||||||||||||||||
Income before income tax expense | 32,076 | 61,122 | 24,859 | 147,397 | 87,886 | |||||||||||||||||||||||||||||||
Income tax expense | 5,445 | 10,722 | 4,416 | 25,912 | 14,313 | |||||||||||||||||||||||||||||||
Net income | $ | 26,631 | $ | 50,400 | $ | 20,443 | $ | 121,485 | $ | 73,573 | ||||||||||||||||||||||||||
Percentage of revenue | 23 | % | 30 | % | 21 | % | 25 | % | 21 | % | ||||||||||||||||||||||||||
Earnings per weighted-average common and common-equivalent share: | ||||||||||||||||||||||||||||||||||||
Basic | $ | 0.31 | $ | 0.58 | $ | 0.23 | $ | 1.40 | $ | 0.85 | ||||||||||||||||||||||||||
Diluted | $ | 0.30 | $ | 0.57 | $ | 0.23 | $ | 1.36 | $ | 0.83 | ||||||||||||||||||||||||||
Weighted-average common and common-equivalent shares outstanding: | ||||||||||||||||||||||||||||||||||||
Basic | 86,811 | 86,963 | 87,096 | 86,858 | 86,946 | |||||||||||||||||||||||||||||||
Diluted | 88,849 | 89,167 | 89,265 | 89,071 | 88,901 | |||||||||||||||||||||||||||||||
Cash dividends per common share | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||||
Cash and investments per common share | $ | 6.32 | $ | 5.71 | $ | 5.24 | $ | 6.32 | $ | 5.24 | ||||||||||||||||||||||||||
Book value per common share | $ | 8.51 | $ | 8.43 | $ | 7.42 | $ | 8.51 | $ | 7.42 | ||||||||||||||||||||||||||
(1) | Amounts include stock option expense, as follows: | |||||||||||||||||||||||||||||||||||
Cost of revenue | $ | 271 | $ | 273 | $ | 217 | $ | 1,204 | $ | 924 | ||||||||||||||||||||||||||
Research, development, and engineering | 932 | 856 | 576 | 3,832 | 2,585 | |||||||||||||||||||||||||||||||
Selling, general, and administrative | 2,697 | 2,169 | 1,528 | 10,122 | 7,111 | |||||||||||||||||||||||||||||||
Total stock option expense | $ | 3,900 | $ | 3,298 | $ | 2,321 | $ | 15,158 | $ | 10,620 | ||||||||||||||||||||||||||
Exhibit 2 |
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COGNEX CORPORATION |
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Reconciliation of Selected Items from GAAP to Non-GAAP (Unaudited) |
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Dollars in thousands, except per share amounts |
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Three-months Ended | Twelve-months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 28, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Adjustment for stock option expense | ||||||||||||||||||||||||||||||||||||
Operating income (GAAP) | $ | 31,070 | $ | 59,428 | $ | 24,835 | $ | 143,663 | $ | 86,368 | ||||||||||||||||||||||||||
Stock option expense | 3,900 | 3,298 | 2,321 | 15,158 | 10,620 | |||||||||||||||||||||||||||||||
Operating income (Non-GAAP) | $ | 34,970 | $ | 62,726 | $ | 27,156 | $ | 158,821 | $ | 96,988 | ||||||||||||||||||||||||||
Percentage of revenue (Non-GAAP) | 30 | % | 37 | % | 28 | % | 33 | % | 27 | % | ||||||||||||||||||||||||||
Net income (GAAP) | $ | 26,631 | $ | 50,400 | $ | 20,443 | $ | 121,485 | $ | 73,573 | ||||||||||||||||||||||||||
Stock option expense | 3,900 | 3,298 | 2,321 | 15,158 | 10,620 | |||||||||||||||||||||||||||||||
Tax effect on stock options | (1,307 | ) | (1,098 | ) | (756 | ) | (4,977 | ) | (3,482 | ) | ||||||||||||||||||||||||||
Net income (Non-GAAP) | $ | 29,224 | $ | 52,600 | $ | 22,008 | $ | 131,666 | $ | 80,711 | ||||||||||||||||||||||||||
Percentage of revenue (Non-GAAP) | 25 | % | 31 | % | 23 | % | 27 | % | 23 | % | ||||||||||||||||||||||||||
Net income per diluted share (GAAP) | $ | 0.30 | $ | 0.57 | $ | 0.23 | $ | 1.36 | $ | 0.83 | ||||||||||||||||||||||||||
Stock option expense per diluted share | 0.04 | 0.03 | 0.03 | 0.18 | 0.12 | |||||||||||||||||||||||||||||||
Tax effect on stock options | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.06 | ) | (0.05 | ) | ||||||||||||||||||||||||||
Net income per diluted share excluding stock option expense (Non-GAAP) | $ | 0.33 | $ | 0.59 | $ | 0.25 | $ | 1.48 | $ | 0.90 | ||||||||||||||||||||||||||
Exclusion of tax adjustments | ||||||||||||||||||||||||||||||||||||
Income before income tax expense (GAAP) | $ | 32,076 | $ | 61,122 | $ | 24,859 | $ | 147,397 | $ | 87,886 | ||||||||||||||||||||||||||
Income tax expense (GAAP) | $ | 5,445 | $ | 10,722 | $ | 4,416 | $ | 25,912 | $ | 14,313 | ||||||||||||||||||||||||||
Effective tax rate (GAAP) | 17 | % | 18 | % | 18 | % | 18 | % | 16 | % | ||||||||||||||||||||||||||
Tax adjustments: | ||||||||||||||||||||||||||||||||||||
True up of annual tax rate | - | - | (307 | ) | - | - | ||||||||||||||||||||||||||||||
Discrete tax events | (757 | ) | (891 | ) | - | (2,201 | ) | (2,078 | ) | |||||||||||||||||||||||||||
(757 | ) | (891 | ) | (307 | ) | (2,201 | ) | (2,078 | ) | |||||||||||||||||||||||||||
Income tax expense excluding tax adjustments (Non-GAAP) | $ | 6,202 | $ | 11,613 | $ | 4,723 | $ | 28,113 | $ | 16,391 | ||||||||||||||||||||||||||
Effective tax rate (Non-GAAP) | 19 | % | 19 | % | 19 | % | 19 | % | 19 | % | ||||||||||||||||||||||||||
Currency impact on certain revenue and expenses | ||||||||||||||||||||||||||||||||||||
Growth | Impact of | Growth | ||||||||||||||||||||||||||||||||||
over Q4 2013 | Currency | over Q4 2013 | ||||||||||||||||||||||||||||||||||
(GAAP) | in Q4 2014 | (Non-GAAP) | ||||||||||||||||||||||||||||||||||
Factory automation revenue | 16 | % | -4 | % | 20 | % | ||||||||||||||||||||||||||||||
Factory automation revenue from Japan | -27 | % | -10 | % | -17 | % | ||||||||||||||||||||||||||||||
Exhibit 3 |
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COGNEX CORPORATION | |||||||||||||||
Balance Sheets | |||||||||||||||
(Unaudited) | |||||||||||||||
In thousands | |||||||||||||||
December 31, | December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Assets | |||||||||||||||
Cash and investments | $ | 546,995 | $ | 455,121 | |||||||||||
Accounts receivable | 50,938 | 53,015 | |||||||||||||
Inventories | 35,536 | 25,694 | |||||||||||||
Property, plant, and equipment | 47,907 | 37,136 | |||||||||||||
Goodwill and intangible assets | 92,388 | 96,412 | |||||||||||||
Other assets | 47,970 | 42,321 | |||||||||||||
Total assets | $ | 821,734 | $ | 709,699 | |||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||
Accounts payable and accrued liabilities | $ | 59,063 | $ | 43,818 | |||||||||||
Income taxes | 5,671 | 6,028 | |||||||||||||
Deferred revenue and customer deposits | 20,563 | 15,941 | |||||||||||||
Shareholders' equity | 736,437 | 643,912 | |||||||||||||
Total liabilities and shareholders' equity | $ | 821,734 | $ | 709,699 | |||||||||||
Exhibit 4 |
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COGNEX CORPORATION | ||||||||||||||||||||||||||||||||||||||
Additional Information Schedule | ||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||
Dollars in thousands | ||||||||||||||||||||||||||||||||||||||
Three-months Ended | Twelve-months Ended | |||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 28, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Revenue | $ | 117,183 | $ | 169,356 | $ | 95,696 | $ | 486,270 | $ | 353,886 | ||||||||||||||||||||||||||||
Revenue by division: | ||||||||||||||||||||||||||||||||||||||
Modular Vision Systems Division | 84 | % | 91 | % | 89 | % | 88 | % | 87 | % | ||||||||||||||||||||||||||||
Surface Inspection Systems Division | 16 | % | 9 | % | 11 | % | 12 | % | 13 | % | ||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||
Revenue by geography: | ||||||||||||||||||||||||||||||||||||||
Europe (1) | 36 | % | 57 | % | 32 | % | 42 | % | 31 | % | ||||||||||||||||||||||||||||
Americas | 40 | % | 23 | % | 42 | % | 34 | % | 37 | % | ||||||||||||||||||||||||||||
Asia | 16 | % | 12 | % | 17 | % | 15 | % | 21 | % | ||||||||||||||||||||||||||||
Japan | 8 | % | 8 | % | 9 | % | 9 | % | 11 | % | ||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||
Revenue by market: | ||||||||||||||||||||||||||||||||||||||
Factory automation | 80 | % | 86 | % | 84 | % | 82 | % | 80 | % | ||||||||||||||||||||||||||||
Surface inspection | 16 | % | 9 | % | 11 | % | 12 | % | 13 | % | ||||||||||||||||||||||||||||
Semiconductor and electronics capital equipment | 4 | % | 5 | % | 5 | % | 6 | % | 7 | % | ||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||
(1 | ) | In 2014, the Company's Europe region included $70 million of revenue from a single customer. |
CONTACT:
Cognex Corporation
Susan Conway, (508) 650-3353
Director
of Investor Relations
susan.conway@cognex.com