UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): July 31, 2017
Cognex Corportation |
(Exact name of registrant as specified in charter) |
Massachusetts |
001-34218 |
04-2713778 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
One Vision Drive, Natick, Massachusetts |
01760-2059 |
(Address of principal executive offices) |
(Zip Code) |
Registrant's telephone number, including area code: (508) 650-3000
N/A |
(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 (see General Instruction A.2. below):
⃞ 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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company |
⃞ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
⃞ |
On July 31, 2017, Cognex Corporation (the “Company”) issued a news release to report its financial results for the quarter ended July 2, 2017. 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 July 31, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.085 per share, payable on September 1, 2017 to all shareholders of record as of the close of business on August 18, 2017.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. Description
99. 1 News release, dated July 31, 2017, 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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Dated: |
July 31, 2017 |
By: /s/ John J. Curran |
John J. Curran |
||
Senior Vice President of Finance |
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and Chief Financial Officer |
Exhibit 99.1
Cognex Reports Record Results for the Second Quarter of 2017
Machine Vision Company Reports Record Quarterly Revenue, Net Income and Earnings per Share from Continuing Operations
NATICK, Mass.--(BUSINESS WIRE)--July 31, 2017--Cognex Corporation (NASDAQ: CGNX) today announced its financial results for the second quarter of 2017 (ended July 2, 2017). Table 1 below shows selected financial data for Q2-17 compared to Q2-16, Q1-17 and the first six months of 2017 compared to the first six months of 2016. 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 |
|||||||
Quarterly Comparisons |
|||||||||
Current quarter: Q2-17 | $172,904 | $56,072 | $0.63 | ||||||
Prior year’s quarter: Q2-16 | $147,274 | $43,014 | $0.50 | ||||||
Change from Q2-16 to Q2-17 | 17% | 30% | 26% | ||||||
Prior quarter: Q1-17 | $134,942 | $45,655 | $0.51 | ||||||
Change from Q1-17 to Q2-17 | 28% | 23% | 24% | ||||||
Year-to-Date Comparisons |
|||||||||
Six months ended July 2, 2017 | $307,846 | $101,727 | $1.14 | ||||||
Six months ended July 3, 2016 | $243,479 | $57,899 | $0.67 | ||||||
Change from first six months of 2016 to first six months of 2017 | 26% | 76% | 70% |
*Table 1 excludes the results of discontinued operations, which relate to the company’s Surface Inspection Systems Division (SISD) that was sold on July 6, 2015.
“Activity at Cognex is at a higher level now than ever before,” said Robert J. Willett, Chief Executive Officer of Cognex. “We are seeing strong demand across a broad range of geographies and markets. It is very gratifying to see that our investments in engineering and sales continue to pay off.”
Details of the Quarter
Statement of Operations Highlights – Second Quarter of 2017
Balance Sheet Highlights – July 2, 2017
Financial Outlook – Third Quarter of 2017
Analyst Conference Call and Simultaneous Webcast
About Cognex Corporation
Cognex Corporation designs, develops, manufactures and markets a range of products, all of which 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 1.5 million vision-based products, representing over $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 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, the timing for recognition of revenue, expected areas of growth, emerging markets, future product mix, research and development activities, the impact of acquisitions, further stock repurchases, the Company’s new Enterprise Resource Planning (ERP) system, 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 inability to achieve significant international revenue; (6) fluctuations in foreign currency exchange rates and the use of derivative instruments; (7) information security breaches or business system disruptions; (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; and (20) the other risks detailed in Cognex reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2016. 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 |
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Three-months Ended | Six-months Ended | ||||||||||||||||||||||||
July 2, 2017 | April 2, 2017 | July 3, 2016 | July 2, 2017 | July 3, 2016 | |||||||||||||||||||||
Revenue | $ | 172,904 | $ | 134,942 | $ | 147,274 | $ | 307,846 | $ | 243,479 | |||||||||||||||
Cost of revenue (1) | 37,471 | 28,225 | 35,213 |
|
65,696 |
|
56,181 |
||||||||||||||||||
Gross margin | 135,433 | 106,717 | 112,061 |
|
242,150 |
|
187,298 |
||||||||||||||||||
Percentage of revenue | 78 | % | 79 | % | 76 | % |
|
79 |
% |
|
77 |
% | |||||||||||||
Research, development, and engineering expenses (1) | 23,377 | 22,770 | 19,671 |
|
46,147 |
|
40,226 |
||||||||||||||||||
Percentage of revenue | 14 | % | 17 | % | 13 | % |
|
15 |
% |
|
17 |
% | |||||||||||||
Selling, general, and administrative expenses (1) | 52,518 | 46,521 | 42,715 |
|
99,039 |
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81,053 |
||||||||||||||||||
Percentage of revenue | 30 | % | 34 | % | 29 | % |
|
32 |
% |
|
33 |
% | |||||||||||||
Operating income | 59,538 | 37,426 | 49,675 |
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96,964 |
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66,019 |
||||||||||||||||||
Percentage of revenue | 34 | % | 28 | % | 34 | % |
|
31 |
% |
|
27 |
% | |||||||||||||
Foreign currency gain (loss) | (184 | ) | (263 | ) | 330 |
|
(447 |
) |
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230 |
|||||||||||||||
Investment and other income | 1,969 | 2,282 | 1,669 |
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4,251 |
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3,013 |
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Income before income tax expense | 61,323 | 39,445 | 51,674 |
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100,768 |
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69,262 |
||||||||||||||||||
Income tax expense (benefit) | 5,251 | (6,210 | ) | 8,660 |
|
(959 |
) |
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11,363 |
||||||||||||||||
Net income from continuing operations | $ | 56,072 | $ | 45,655 | $ | 43,014 |
$ |
101,727 |
$ |
57,899 |
|||||||||||||||
Percentage of revenue | 32 | % | 34 | % | 29 | % |
|
33 |
% |
|
24 |
% | |||||||||||||
Net loss from discontinued operations | — | — | (255 | ) |
|
— |
|
(255 |
) | ||||||||||||||||
Net income | $ | 56,072 | $ | 45,655 | $ | 42,759 |
$ |
101,727 | $ | 57,644 | |||||||||||||||
Percentage of revenue | 32 | % | 34 | % | 29 | % |
|
33 |
% |
|
24 |
% | |||||||||||||
Basic earnings per weighted-average common and common-equivalent share: | |||||||||||||||||||||||||
Net income from continuing operations | $ | 0.65 | $ | 0.53 | $ | 0.51 | $ | 1.18 | $ | 0.68 | |||||||||||||||
Net loss from discontinued operations | — | — | (0.01 | ) |
|
— |
|
— |
|||||||||||||||||
Net income | $ | 0.65 | $ | 0.53 | $ | 0.50 |
$ |
1.18 | $ | 0.68 | |||||||||||||||
Diluted earnings per weighted-average common and common-equivalent share: | |||||||||||||||||||||||||
Net income from continuing operations | $ | 0.63 | $ | 0.51 | $ | 0.50 | $ | 1.14 | $ | 0.67 | |||||||||||||||
Net loss from discontinued operations | — | — | (0.01 | ) |
|
— |
|
(0.01 |
) | ||||||||||||||||
Net income | $ | 0.63 | $ | 0.51 | $ | 0.49 | $ | 1.14 | $ | 0.66 | |||||||||||||||
Weighted-average common and common-equivalent shares outstanding: | |||||||||||||||||||||||||
Basic | 86,639 | 86,323 | 85,107 |
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86,480 |
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85,024 |
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Diluted | 89,614 | 89,177 | 86,806 |
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89,452 |
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86,713 |
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Cash dividends per common share | $ | 0.085 | $ | 0.075 | $ | 0.075 | $ | 0.160 | $ | 0.145 | |||||||||||||||
Cash and investments per common share | $ | 8.84 | $ | 9.02 | $ | 7.72 | $ | 8.84 | $ | 7.72 | |||||||||||||||
Book value per common share | $ | 12.15 | $ | 11.67 | $ | 10.42 | $ | 12.15 | $ | 10.42 | |||||||||||||||
(1) Amounts include stock option expense, as follows: | |||||||||||||||||||||||||
Cost of revenue | $ | 454 | $ | 430 | $ | 229 | $ | 884 | $ | 522 | |||||||||||||||
Research, development, and engineering | 2,715 | 2,610 | 1,397 |
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5,325 |
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3,576 |
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Selling, general, and administrative | 4,677 | 4,443 | 2,831 |
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9,120 |
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7,163 |
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Total stock option expense | $ | 7,846 | $ | 7,483 | $ | 4,457 | $ | 15,329 | $ | 11,261 |
Exhibit 2 |
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COGNEX CORPORATION |
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Three-months Ended | Six-months Ended | ||||||||||||||||||||||||
July 2, |
April 2, |
July 3, |
July 2, |
July 3, |
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Adjustment for stock option expense and tax benefit for stock option exercises | |||||||||||||||||||||||||
Operating income (GAAP) | $ | 59,538 | $ | 37,426 | $ | 49,675 | $ | 96,964 | $ | 66,019 | |||||||||||||||
Stock option expense | 7,846 | 7,483 | 4,457 | 15,329 | 11,261 | ||||||||||||||||||||
Operating income (Non-GAAP) | $ | 67,384 | $ | 44,909 | $ | 54,132 | $ | 112,293 | $ | 77,280 | |||||||||||||||
Percentage of revenue (Non-GAAP) | 39 | % | 33 | % | 37 | % | 36 | % | 32 | % | |||||||||||||||
Net income from continuing operations (GAAP) | $ | 56,072 | $ | 45,655 | $ | 43,014 | $ | 101,727 | $ | 57,899 | |||||||||||||||
Stock option expense | 7,846 | 7,483 | 4,457 | 15,329 | 11,261 | ||||||||||||||||||||
Tax effect on stock option expense | (2,583 | ) | (2,439 | ) | (1,459 | ) | (5,022 | ) | (3,687 | ) | |||||||||||||||
Discrete tax benefit related to employee stock option exercises | (5,787 | ) | (13,167 | ) | (745 | ) | (18,954 | ) |
|
(1,208 | ) | ||||||||||||||
Net income from continuing operations (Non-GAAP) | $ | 55,548 | $ | 37,532 | $ | 45,267 | $ | 93,080 | $ | 64,265 | |||||||||||||||
Percentage of revenue (Non-GAAP) | 32 | % | 28 | % | 31 | % | 30 | % | 26 | % | |||||||||||||||
Net income from continuing operations per diluted weighted-average common and common-equivalent share (GAAP) | $ | 0.63 | $ | 0.51 | $ | 0.50 | $ | 1.14 | $ | 0.67 | |||||||||||||||
Share impact of non-GAAP adjustments identified above | (0.01 | ) | (0.09 | ) | 0.02 | (0.10 | ) | 0.07 | |||||||||||||||||
Net income from continuing operations per diluted weighted-average common and common-equivalent share (Non-GAAP) | $ | 0.62 | $ | 0.42 | $ | 0.52 | $ | 1.04 | $ | 0.74 | |||||||||||||||
Diluted weighted-average common and common-equivalent shares outstanding (GAAP) | 89,614 | 89,177 | 86,806 | 89,452 | 86,713 | ||||||||||||||||||||
Exclusion of tax adjustments | |||||||||||||||||||||||||
Income before income tax expense (GAAP) | $ | 61,323 | $ | 39,445 | $ | 51,674 | $ | 100,768 | $ | 69,262 | |||||||||||||||
Income tax expense (benefit) (GAAP) | $ | 5,251 | $ | (6,210 | ) | $ | 8,660 | $ | (959 | ) | $ | 11,363 | |||||||||||||
Effective tax rate (GAAP) | 9 | % | (16 | )% | 17 | % | (1 | )% | 16 | % | |||||||||||||||
Tax adjustments: | |||||||||||||||||||||||||
Discrete tax benefit related to employee stock option exercises | (5,787 | ) | (13,167 | ) | (745 | ) | (18,954 | ) | (1,208 | ) | |||||||||||||||
Other discrete tax events | — | (143 | ) | 104 | (143 | ) | 104 | ||||||||||||||||||
Income tax expense excluding tax adjustments (Non-GAAP) | $ | 11,038 | $ | 7,100 | $ | 9,301 | $ | 18,138 | $ | 12,467 | |||||||||||||||
Effective tax rate (Non-GAAP) | 18 | % | 18 | % | 18 | % | 18 | % | 18 | % | |||||||||||||||
Net income from continuing operations excluding tax adjustments (Non-GAAP) | $ | 50,285 | $ | 32,345 | $ | 42,373 | $ | 82,630 | $ | 56,795 | |||||||||||||||
Percentage of revenue (Non-GAAP) | 29 | % | 24 | % | 29 | % | 27 | % | 23 | % | |||||||||||||||
Net income from continuing operations per diluted weighted-average common and common-equivalent share (GAAP) | $ | 0.63 | $ | 0.51 | $ | 0.50 | $ | 1.14 | $ | 0.67 | |||||||||||||||
Share impact of non-GAAP adjustments identified above | (0.07 | ) | (0.15 | ) | (0.01 | ) | (0.22 | ) | (0.02 | ) | |||||||||||||||
Net income from continuing operations per diluted weighted-average common and common-equivalent share (Non-GAAP) | $ | 0.56 | $ | 0.36 | $ | 0.49 | $ | 0.92 | $ | 0.65 | |||||||||||||||
Diluted weighted-average common and common-equivalent shares outstanding (GAAP) | 89,614 | 89,177 | 86,806 | 89,452 | 86,713 | ||||||||||||||||||||
Exhibit 3 |
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COGNEX CORPORATION |
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July 2, 2017 | December 31, 2016 | ||||||||
Assets | |||||||||
Cash and investments | $ | 765,326 | $ | 745,170 | |||||
Accounts receivable | 78,593 | 55,438 | |||||||
Unbilled revenue | 5,939 | 2,217 | |||||||
Inventories | 36,491 | 26,984 | |||||||
Property, plant, and equipment | 61,196 | 53,992 | |||||||
Goodwill and intangible assets | 130,315 | 103,592 | |||||||
Other assets | 83,138 | 51,211 | |||||||
Total assets | $ | 1,160,998 | $ | 1,038,604 | |||||
Liabilities and Shareholders' Equity | |||||||||
Accounts payable and accrued liabilities | $ | 65,436 | $ | 52,369 | |||||
Deferred revenue and customer deposits | 18,011 | 8,211 | |||||||
Income taxes | 16,294 | 10,554 | |||||||
Other liabilities | 9,281 | 4,871 | |||||||
Shareholders' equity | 1,051,976 | 962,599 | |||||||
Total liabilities and shareholders' equity | $ | 1,160,998 | $ | 1,038,604 | |||||
Exhibit 4 |
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COGNEX CORPORATION |
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Three-months Ended | Six-months Ended | ||||||||||||||||||||||||
July 2, 2017 | April 2, 2017 | July 3, 2016 | July 2, 2017 | July 3, 2016 | |||||||||||||||||||||
Revenue | $ | 172,904 | $ | 134,942 | $ | 147,274 | $ | 307,846 | $ | 243,479 | |||||||||||||||
Revenue by geography: | |||||||||||||||||||||||||
Europe | 36 | % | 31 | % | 48 | % | 34 | % | 43 | % | |||||||||||||||
Americas | 33 | % | 31 | % | 28 | % | 32 | % | 32 | % | |||||||||||||||
Greater China | 14 | % | 16 | % | 13 | % | 15 | % | 13 | % | |||||||||||||||
Other Asia | 17 | % | 22 | % | 11 | % | 19 | % | 12 | % | |||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||
Revenue by market: | |||||||||||||||||||||||||
Factory automation | 96 | % | 95 | % | 96 | % | 95 | % | 95 | % | |||||||||||||||
Semiconductor and electronics capital equipment | 4 | % | 5 | % | 4 | % | 5 | % | 5 | % | |||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
CONTACT:
Cognex Corporation
Susan Conway, 508-650-3353
Senior Director of Investor Relations
susan.conway@cognex.com