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): May 4, 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 May 4, 2015, Cognex Corporation (the “Company”) issued a news release to report its financial results for the quarter ended April 5, 2015. 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 8.01 Other Events
On May 4, 2015, the Company’s Board of Directors declared a cash dividend of $0.07 per share. The dividend is payable on June 19, 2015 to all shareholders of record as of the close of business on June 5, 2015.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. Description
99.1 News release, dated May 4, 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 |
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|
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Dated: |
May 4, 2015 |
By: /s/ Richard A. Morin |
Richard A. Morin |
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Executive Vice President of Finance and Administration |
||
and Chief Financial Officer |
Exhibit 99.1
Cognex Reports Record First Quarter Revenue, Net Income and EPS
NATICK, Mass.--(BUSINESS WIRE)--May 4, 2015--Cognex Corporation (NASDAQ: CGNX) today announced its results for the first quarter of 2015. In Table 1 below, selected financial data for the quarter ended April 5, 2015 is compared to the first and fourth quarters of 2014. A reconciliation of certain financial measures from GAAP to non-GAAP is shown in Exhibit 2 of this news release.
Table 1 |
|||||||||
Net | |||||||||
Net | Income per | ||||||||
Revenue |
Income |
Diluted Share |
|||||||
Quarterly Comparisons |
|||||||||
Current quarter: Q1-15 | $113,434,000 | $20,502,000 | $0.23 | ||||||
Prior year’s quarter: Q1-14 | $90,929,000 | $18,506,000 | $0.21 | ||||||
Change from Q1-14 to Q1-15 | 25% | 11% | 11% | ||||||
Prior quarter: Q4-14 | $117,183,000 | $26,631,000 | $0.30 | ||||||
Change from Q4-14 to Q1-15 | (3%) | (23%) | (23%) | ||||||
“Cognex started 2015 on a strong note,” said Dr. Robert J. Shillman, Chairman of Cognex. “Revenue grew 25% year-on-year to a record first quarter level, driving the highest first quarter net income and earnings per share in Cognex’s 34-year history.”
“I am pleased with our team’s strong performance in the first quarter,” said Robert J. Willett, Chief Executive Officer of Cognex. “Our outstanding revenue performance is due to past investments we made in new product development and sales channel expansion. We continued to invest heavily in engineering and sales during the first quarter, which is typically the lowest revenue quarter of the year, with the goal of capitalizing on the substantial opportunities we anticipate to occur in Q2 and in subsequent quarters.”
Details of the Quarter
Statement of Operations Highlights – First Quarter of 2015
Balance Sheet Highlights – April 5, 2015
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 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 and shipments, expected areas of growth and opportunity, future product mix, research and development activities, new product introductions, 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 | |||||||||||||||
Apr. 5, | Dec. 31, | Mar. 30, | |||||||||||||
2015 | 2014 | 2014 | |||||||||||||
Revenue | $ | 113,434 | $ | 117,183 | $ | 90,929 | |||||||||
Cost of revenue (1) | 27,954 | 29,819 | 21,084 | ||||||||||||
Gross margin | 85,480 | 87,364 | 69,845 | ||||||||||||
Percentage of revenue | 75 | % | 75 | % | 77 | % | |||||||||
Research, development, and engineering expenses (1) | 18,076 | 15,254 | 12,502 | ||||||||||||
Percentage of revenue | 16 | % | 13 | % | 14 | % | |||||||||
Selling, general, and administrative expenses (1) | 43,487 | 41,040 | 34,900 | ||||||||||||
Percentage of revenue | 38 | % | 35 | % | 38 | % | |||||||||
Operating income | 23,917 | 31,070 | 22,443 | ||||||||||||
Percentage of revenue | 21 | % | 27 | % | 25 | % | |||||||||
Foreign currency gain (loss) | 405 | 351 | (110 | ) | |||||||||||
Investment and other income | 540 | 655 | 514 | ||||||||||||
Income before income tax expense | 24,862 | 32,076 | 22,847 | ||||||||||||
Income tax expense | 4,360 | 5,445 | 4,341 | ||||||||||||
Net income | $ | 20,502 | $ | 26,631 | $ | 18,506 | |||||||||
Percentage of revenue | 18 | % | 23 | % | 20 | % | |||||||||
Earnings per weighted-average common and common-equivalent share: | |||||||||||||||
Basic | $ | 0.24 | $ | 0.31 | $ | 0.21 | |||||||||
Diluted | $ | 0.23 | $ | 0.30 | $ | 0.21 | |||||||||
Weighted-average common and common-equivalent shares outstanding: | |||||||||||||||
Basic | 86,764 | 86,811 | 86,879 | ||||||||||||
Diluted | 88,749 | 88,849 | 89,259 | ||||||||||||
Cash dividends per common share | $ | - | $ | - | $ | - | |||||||||
Cash and investments per common share | $ | 6.30 | $ | 6.32 | $ | 5.34 | |||||||||
Book value per common share | $ | 8.80 | $ | 8.51 | $ | 7.61 | |||||||||
(1) Amounts include stock option expense, as follows: |
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Cost of revenue | $ | 493 | $ | 271 | $ | 348 | |||||||||
Research, development, and engineering | 1,848 | 932 | 1,056 | ||||||||||||
Selling, general, and administrative | 4,605 | 2,697 | 2,600 | ||||||||||||
Total stock option expense | $ | 6,946 | $ | 3,900 | $ | 4,004 | |||||||||
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 | |||||||||||||||
Apr. 5, | Dec. 31, | Mar. 30, | |||||||||||||
2015 | 2014 | 2014 | |||||||||||||
Adjustment for stock option expense | |||||||||||||||
Operating income (GAAP) | $ | 23,917 | $ | 31,070 | $ | 22,443 | |||||||||
Stock option expense | 6,946 | 3,900 | 4,004 | ||||||||||||
Operating income (Non-GAAP) | $ | 30,863 | $ | 34,970 | $ | 26,447 | |||||||||
Percentage of revenue (Non-GAAP) | 27 | % | 30 | % | 29 | % | |||||||||
Net income (GAAP) | $ | 20,502 | $ | 26,631 | $ | 18,506 | |||||||||
Stock option expense | 6,946 | 3,900 | 4,004 | ||||||||||||
Tax effect on stock options | (2,337 | ) | (1,307 | ) | (1,306 | ) | |||||||||
Net income (Non-GAAP) | $ | 25,111 | $ | 29,224 | $ | 21,204 | |||||||||
Percentage of revenue (Non-GAAP) | 22 | % | 25 | % | 23 | % | |||||||||
Net income per diluted share (GAAP) | $ | 0.23 | $ | 0.30 | $ | 0.21 | |||||||||
Stock option expense per diluted share | 0.08 | 0.04 | 0.04 | ||||||||||||
Tax effect on stock options | (0.03 | ) | (0.01 | ) | (0.01 | ) | |||||||||
Net income per diluted share excluding stock option expense (Non-GAAP) | $ | 0.28 | $ | 0.33 | $ | 0.24 | |||||||||
Exclusion of tax adjustments | |||||||||||||||
Income before income tax expense (GAAP) | $ | 24,862 | $ | 32,076 | $ | 22,847 | |||||||||
Income tax expense (GAAP) | $ | 4,360 | $ | 5,445 | $ | 4,341 | |||||||||
Effective tax rate (GAAP) |
18 | % | 17 | % | 19 | % | |||||||||
Tax adjustments: | |||||||||||||||
True up of annual tax rate | - | - | - | ||||||||||||
Discrete tax events | (364 | ) | (757 | ) | - | ||||||||||
(364 | ) | (757 | ) | - | |||||||||||
Income tax expense excluding tax adjustments (Non-GAAP) | $ | 4,724 | $ | 6,202 | $ | 4,341 | |||||||||
Effective tax rate (Non-GAAP) | 19 | % | 19 | % | 19 | % | |||||||||
Currency impact on certain revenue and expenses | |||||||||||||||
Growth | Impact of | Growth | |||||||||||||
over Q1 2014 | Currency | over Q1 2014 | |||||||||||||
(GAAP) | in Q1 2015 | (Non-GAAP) | |||||||||||||
Total revenue | 25 | % | -7 | % | 32 | % | |||||||||
Factory automation revenue | 26 | % | -8 | % | 34 | % | |||||||||
Growth | Impact of | Growth | |||||||||||||
over Q4 2014 | Currency | over Q4 2014 | |||||||||||||
(GAAP) | in Q1 2015 | (Non-GAAP) | |||||||||||||
Total revenue | -3 | % | -3 | % | 0 | % | |||||||||
Factory automation revenue | 2 | % | -3 | % | 5 | % | |||||||||
Research, development, and engineering expenses | 19 | % | -2 | % | 21 | % | |||||||||
Selling, general, and administrative expenses | 6 | % | -3 | % | 9 | % | |||||||||
Exhibit 3 |
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COGNEX CORPORATION | ||||||||
Balance Sheets | ||||||||
(Unaudited) | ||||||||
In thousands | ||||||||
April 5, | December 31, | |||||||
2015 | 2014 | |||||||
Assets | ||||||||
Cash and investments | $ | 548,823 | $ | 546,995 | ||||
Accounts receivable | 56,264 | 50,938 | ||||||
Inventories | 48,458 | 35,536 | ||||||
Property, plant, and equipment | 48,692 | 47,907 | ||||||
Goodwill and intangible assets | 91,295 | 92,388 | ||||||
Other assets | 44,813 | 47,970 | ||||||
Total assets | $ | 838,345 | $ | 821,734 | ||||
Liabilities and Shareholders' Equity | ||||||||
Accounts payable and accrued liabilities | $ | 45,535 | $ | 59,063 | ||||
Income taxes | 5,300 | 5,671 | ||||||
Deferred revenue and customer deposits | 20,447 | 20,563 | ||||||
Shareholders' equity | 767,063 | 736,437 | ||||||
Total liabilities and shareholders' equity | $ | 838,345 | $ | 821,734 | ||||
Exhibit 4 |
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COGNEX CORPORATION | |||||||||||||||
Additional Information Schedule | |||||||||||||||
(Unaudited) | |||||||||||||||
Dollars in thousands | |||||||||||||||
Three-months Ended | |||||||||||||||
Apr. 5, | Dec. 31, | Mar. 30, | |||||||||||||
2015 | 2014 | 2014 | |||||||||||||
Revenue | $ | 113,434 | $ | 117,183 | $ | 90,929 | |||||||||
Revenue by division: | |||||||||||||||
Modular Vision Systems Division | 90 | % | 84 | % | 90 | % | |||||||||
Surface Inspection Systems Division | 10 | % | 16 | % | 10 | % | |||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||
Revenue by geography: | |||||||||||||||
Europe | 38 | % | 36 | % | 33 | % | |||||||||
Americas | 34 | % | 40 | % | 42 | % | |||||||||
Asia | 21 | % | 16 | % | 15 | % | |||||||||
Japan | 7 | % | 8 | % | 10 | % | |||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||
Revenue by market: | |||||||||||||||
Factory automation | 84 | % | 80 | % | 83 | % | |||||||||
Surface inspection | 10 | % | 16 | % | 10 | % | |||||||||
Semiconductor and electronics capital equipment | 6 | % | 4 | % | 7 | % | |||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||
CONTACT:
Cognex Corporation
Susan Conway, 508-650-3353
Senior
Director of Investor Relations
susan.conway@cognex.com