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): February 15, 2018
Cognex Corporation |
(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.
|
⃞ |
Item 2.02 Results of Operations and Financial Condition
On February 15, 2018, Cognex Corporation (the “Company”) issued a news release to report its financial results for the quarter ended December 31, 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 February 15, 2018, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.045 per share. This dividend is payable on March 16, 2018 to all shareholders of record at the close of business on March 2, 2018.
On February 15, 2018, the Company announced that its Board of Directors has authorized the purchase of up to $150 million of the Company’s common stock in open market transactions. This new authorization is in addition to the $100 million stock repurchase program that was announced by the Company on May 1, 2017, of which approximately $45 million remains available as of the date of this Current Report on Form 8-K. Purchases under the new authorization can commence once the Company completes the existing program, and will be subject to market conditions and other relevant factors. The Company may suspend or discontinue the stock repurchase program at any time.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. Description
99.1 News release, dated February 15, 2018, 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: |
February 15, 2018 |
By: /s/ John J. Curran |
John J. Curran |
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Senior Vice President of Finance |
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and Chief Financial Officer |
Exhibit 99.1
Cognex Reports Record Revenue, Earnings and EPS for 2017
NATICK, Mass.--(BUSINESS WIRE)--February 15, 2018--Cognex Corporation (NASDAQ: CGNX) today announced financial results for the fourth-quarter and full-year of 2017. Table 1 below shows selected financial data for Q4-17 compared with Q4-16 and Q3-17, and the year ended December 31, 2017 compared with the year ended December 31, 2016. All periods presented reflect the two-for-one stock split paid in Q4-17.
In Q4-17, the Tax Cuts and Jobs Act of 2017 resulted in a one-time charge to tax expense of $83 million, or $0.46 per share. This amount includes the estimated U.S. tax on unrepatriated foreign earnings, the revaluation of deferred tax positions to the new lower U.S. tax rate, and the recharacterization of certain income under the law. Excluding the estimated impact of U.S. tax reform and other discrete tax items, Cognex set new fourth quarter records for revenue, net income and earnings per share, all from continuing operations.
Table 1 |
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Revenue |
Income/(loss) |
Income/(loss) |
Non-GAAP |
||||||||||
Quarterly Comparisons |
|||||||||||||
Current quarter: Q4-17 | $180,365,000 | ($26,897,000) | ($0.16) | $0.25 | |||||||||
Prior year’s quarter: Q4-16 | $129,322,000 | $38,253,000 | $0.22 | $0.20 | |||||||||
Change: Q4-16 to Q4-17 | 39% | (170%) | (173%) | 25% | |||||||||
Prior quarter: Q3-17 | $259,739,000 | $102,348,000 | $0.57 | $0.51 | |||||||||
Change: Q3-17 to Q4-17 | (31%) | (126%) | (128%) | (51%) | |||||||||
Annual Comparisons |
|||||||||||||
Year ended 12/31/2017 | $747,950,000 | $177,178,000 | $0.99 | $1.22 | |||||||||
Year ended 12/31/2016 | $520,753,000 | $149,827,000 | $0.86 | $0.79 | |||||||||
Change: 2016 to 2017 | 44% | 18% | 15% | 54% |
*Excludes tax adjustments. A reconciliation from GAAP to Non-GAAP is shown in Exhibit 2 of this news release.
“What a fantastic year for Cognex!” exclaimed Dr. Robert J. Shillman, Founder and Chairman of Cognex. “We set new records for annual revenue, net income and earnings per share, all from continuing operations. Our commitment to our long-term strategy continues to deliver impressive results.”
“Our 2017 achievements reflect the hard work of Cognoids around the world and the entrepreneurial spirit that is an integral part of our corporate culture,” said Robert J. Willett, Chief Executive Officer of Cognex. “We celebrate our success while staying focused on the long term. We believe the markets for our products continue to have significant growth potential as manufacturers look to automate a broadening range of industrial tasks.”
Mr. Willett continued, “Market dynamics were strong in 2017 and that has continued into the first quarter of 2018. Even though Q1 will likely be the lowest revenue quarter of the year, we will invest in new product development, expand our sales force and develop our IT and other infrastructure so that we are ready for the growth we expect in the years to come.”
Summary of the Year
For 2017, Cognex reported record financial results from continuing operations, even with the impact of U.S. tax reform. Each of the three largest industries contributing to revenue—consumer electronics, automotive and logistics—showed double-digit growth, as did all the company’s major geographic regions. Operating income expanded to 35% of revenue from 31% for 2016, even as the company invested for future growth.
Details of the Quarter
Statement of Operations Highlights – Fourth Quarter of 2017
Balance Sheet Highlights – December 31, 2017
Financial Outlook – Q1 2018
This financial outlook assumes the adoption of a new revenue recognition standard (ASC 606, “Revenue from Contracts with Customers”) that became effective on January 1, 2018. Cognex does not believe this standard will have a material impact on total revenue. For a historical perspective, Exhibit 5 of this news release includes the company’s quarterly Statement of Operations for 2017 adjusted for the impact of the new standard.
Non-GAAP Financial Measures
Analyst Conference Call and Simultaneous Webcast
About Cognex Corporation
Cognex Corporation designs, develops, manufactures and markets a wide range of image-based products, all of which use artificial intelligence (AI) techniques that give them the human-like ability to make decisions on what they see. Cognex products include machine vision systems, machine vision sensors and barcode readers that are used in factories and distribution centers around the world where they eliminate production and shipping errors.
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 offices and distributors located throughout the Americas, Europe and Asia. For details visit Cognex online at 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, anticipated tax rates, estimated impact of U.S. tax reform, future product mix, research and development activities, further stock repurchases, 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 failure to effectively manage our growth; (10) the reliance upon key suppliers to manufacture and deliver critical components for our products; (11) the failure to effectively manage product transitions or accurately forecast customer demand; (12) the inability to design and manufacture high-quality products; (13) the technological obsolescence of current products and the inability to develop new products; (14) the failure to properly manage the distribution of products and services; (15) the inability to protect our proprietary technology and intellectual property; (16) our involvement in time-consuming and costly litigation; (17) the impact of competitive pressures; (18) the challenges in integrating and achieving expected results from acquired businesses; (19) potential impairment charges with respect to our investments or for acquired intangible assets or goodwill; (20) exposure to additional tax liabilities; 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, 2017. 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 |
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Three-months Ended | Twelve-months Ended | ||||||||||||||||||||||||||||
December 31, |
October 1, |
December 31, |
December 31, |
December 31, |
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Revenue | $ | 180,365 | $ | 259,739 | $ | 129,322 | $ | 747,950 | $ | 520,753 | |||||||||||||||||||
Cost of revenue (1) | 40,642 | 62,360 | 26,660 | 168,698 | 115,590 | ||||||||||||||||||||||||
Gross margin | 139,723 | 197,379 | 102,662 | 579,252 | 405,163 | ||||||||||||||||||||||||
Percentage of revenue | 77 | % | 76 | % | 79 | % | 77 | % | 78 | % | |||||||||||||||||||
Research, development, and engineering expenses (1) | 26,980 | 26,078 | 19,440 | 99,205 | 78,269 | ||||||||||||||||||||||||
Percentage of revenue | 15 | % | 10 | % | 15 | % | 13 | % | 15 | % | |||||||||||||||||||
Selling, general, and administrative expenses (1) | 60,635 | 61,054 | 42,985 | 220,728 | 166,110 | ||||||||||||||||||||||||
Percentage of revenue | 33 | % | 24 | % | 33 | % | 29 | % | 32 | % | |||||||||||||||||||
Operating income | 52,108 | 110,247 | 40,237 | 259,319 | 160,784 | ||||||||||||||||||||||||
Percentage of revenue | 29 | % | 42 | % | 31 | % | 35 |
% |
31 | % | |||||||||||||||||||
Foreign currency gain (loss) | (1,027 | ) | (127 | ) | 478 | (1,601 | ) | 101 | |||||||||||||||||||||
Investment and other income | 2,923 | 2,030 | 2,476 | 9,204 | 7,910 | ||||||||||||||||||||||||
Income before income tax expense | 54,004 | 112,150 | 43,191 | 266,922 | 168,795 | ||||||||||||||||||||||||
Income tax expense | 80,901 | 9,802 | 4,938 | 89,744 | 18,968 | ||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | (26,897 | ) | $ | 102,348 | $ | 38,253 | $ | 177,178 | $ | 149,827 | ||||||||||||||||||
Percentage of revenue | (15 | )% | 39 | % | 30 | % | 24 |
% |
29 | % | |||||||||||||||||||
Net loss from discontinued operations | — | — | — | — | (255 | ) | |||||||||||||||||||||||
Net income (loss) | $ | (26,897 | ) | $ | 102,348 | $ | 38,253 | $ | 177,178 | $ | 149,572 | ||||||||||||||||||
Percentage of revenue | (15 | )% | 39 | % | 30 | % | 24 |
% |
29 | % | |||||||||||||||||||
Basic earnings per weighted-average common and common-equivalent share (2): | |||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | (0.16 | ) | $ | 0.59 | $ | 0.22 | $ | 1.02 | $ | 0.88 | ||||||||||||||||||
Net loss from discontinued operations | — | — | — | — | — | ||||||||||||||||||||||||
Net income (loss) | $ | (0.16 | ) | $ | 0.59 | $ | 0.22 | $ | 1.02 | $ | 0.88 | ||||||||||||||||||
Diluted earnings per weighted-average common and common-equivalent share (2): | |||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | (0.16 | ) | $ | 0.57 | $ | 0.22 | $ | 0.99 | $ | 0.86 | ||||||||||||||||||
Net loss from discontinued operations | — | — | — | — | — | ||||||||||||||||||||||||
Net income (loss) | $ | (0.16 | ) | $ | 0.57 | $ | 0.22 | $ | 0.99 | $ | 0.86 | ||||||||||||||||||
Weighted-average common and common-equivalent shares outstanding (2): | |||||||||||||||||||||||||||||
Basic | 173,397 | 173,234 | 171,722 | 173,287 | 170,676 | ||||||||||||||||||||||||
Diluted | 173,397 | 179,354 | 176,502 | 179,551 | 174,144 | ||||||||||||||||||||||||
Cash dividends per common share (2) | $ | 0.0450 | $ | 0.0425 | $ | 0.0375 | $ | 0.1675 | $ | 0.1475 | |||||||||||||||||||
Cash and investments per common share (2) | $ | 4.77 | $ | 4.45 | $ | 4.34 | $ | 4.77 | $ | 4.34 | |||||||||||||||||||
Book value per common share (2) | $ | 6.31 | $ | 6.55 | $ | 5.60 | $ | 6.31 | $ | 5.60 | |||||||||||||||||||
(1) Amounts include stock option expense, as follows: | |||||||||||||||||||||||||||||
Cost of revenue | $ | 477 | $ | 520 | $ | 257 | $ | 1,881 | $ | 1,052 | |||||||||||||||||||
Research, development, and engineering | 2,932 | 2,765 | 1,329 | 11,022 | 6,271 | ||||||||||||||||||||||||
Selling, general, and administrative | 5,178 | 4,741 | 3,089 | 19,039 | 13,235 | ||||||||||||||||||||||||
Total stock option expense | $ | 8,587 | $ | 8,026 | $ | 4,675 | $ | 31,942 | $ | 20,558 | |||||||||||||||||||
(2) Prior periods 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 the fourth quarter of 2017. |
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 |
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Three-months Ended | Twelve-months Ended | |||||||||||||||||||||||||||||
December 31, |
October 1, |
December 31, |
December 31, |
December 31, |
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Adjustment for stock option expense and tax benefit for stock option exercises | ||||||||||||||||||||||||||||||
Operating income (GAAP) | $ | 52,108 | $ | 110,247 | $ | 40,237 | $ | 259,319 | $ | 160,784 | ||||||||||||||||||||
Stock option expense | 8,587 | 8,026 | 4,675 | 31,942 | 20,558 | |||||||||||||||||||||||||
Operating income (Non-GAAP) | $ | 60,695 | $ | 118,273 | $ | 44,912 | $ | 291,261 | $ | 181,342 | ||||||||||||||||||||
Percentage of revenue (Non-GAAP) | 34 | % | 46 | % | 35 | % | 39 | % | 35 | % | ||||||||||||||||||||
Net income (loss) from continuing operations (GAAP) | $ | (26,897 | ) | $ | 102,348 | $ | 38,253 | $ | 177,178 | $ | 149,827 | |||||||||||||||||||
Stock option expense | 8,587 | 8,026 | 4,675 | 31,942 | 20,558 | |||||||||||||||||||||||||
Tax effect on stock option expense | (2,812 | ) | (2,639 | ) | (1,540 | ) | (10,473 | ) | (6,747 | ) | ||||||||||||||||||||
Discrete tax benefit related to employee stock option exercises | (10,995 | ) | (8,620 | ) | (4,643 | ) | (38,569 | ) | (11,889 | ) | ||||||||||||||||||||
Net income (loss) from continuing operations (Non-GAAP) | $ | (32,117 | ) | $ | 99,115 | $ | 36,745 | $ | 160,078 | $ | 151,749 | |||||||||||||||||||
Percentage of revenue (Non-GAAP) | (18 | )% | 38 | % | 28 | % | 21 | % | 29 | % | ||||||||||||||||||||
Net income (loss) from continuing operations per diluted weighted-average common and common-equivalent share (GAAP) (1) | $ | (0.16 | ) | $ | 0.57 | $ | 0.22 | $ | 0.99 | $ | 0.86 | |||||||||||||||||||
Share impact of non-GAAP adjustments identified above (1) | (0.03 | ) | (0.02 | ) | (0.01 | ) | (0.10 | ) | 0.01 | |||||||||||||||||||||
Net income (loss) from continuing operations per diluted weighted-average common and common-equivalent share (Non-GAAP) (1) | $ | (0.19 | ) | $ | 0.55 | $ | 0.21 | $ | 0.89 | $ | 0.87 | |||||||||||||||||||
Diluted weighted-average common and common-equivalent shares outstanding (GAAP) (1) | 173,397 | 179,354 | 176,502 | 179,551 | 174,144 | |||||||||||||||||||||||||
Exclusion of tax adjustments | ||||||||||||||||||||||||||||||
Income before income tax expense (GAAP) | $ | 54,004 | $ | 112,150 | $ | 43,191 | $ | 266,922 | $ | 168,795 | ||||||||||||||||||||
Income tax expense (GAAP) | $ | 80,901 | $ | 9,802 | $ | 4,938 | $ | 89,744 | $ | 18,968 | ||||||||||||||||||||
Effective tax rate (GAAP) | 150 | % | 9 | % | 11 | % | 34 | % | 11 | % | ||||||||||||||||||||
Tax adjustments: | ||||||||||||||||||||||||||||||
Implications of the Tax Cuts and Jobs Act of 2017: | ||||||||||||||||||||||||||||||
Transition tax on unrepatriated foreign earnings | $ | 101,379 | — | — | $ | 101,379 | — | |||||||||||||||||||||||
Remeasurement of deferred tax positions | 12,523 | — | — | 12,523 | — | |||||||||||||||||||||||||
Recharacterization of certain income | (31,133 | ) | — | — | (31,133 | ) | — | |||||||||||||||||||||||
Subtotal | $ | 82,769 | — | — | $ | 82,769 | — | |||||||||||||||||||||||
Discrete tax benefit related to employee stock option exercises | (10,995 | ) | (8,620 | ) | (4,643 | ) | (38,569 | ) | (11,889 | ) | ||||||||||||||||||||
Other discrete tax events | (594 | ) | (1,765 | ) | 1,807 | (2,502 | ) | 475 | ||||||||||||||||||||||
Income tax expense excluding tax adjustments (Non-GAAP) | $ | 9,721 | $ | 20,187 | $ | 7,774 | $ | 48,046 | $ | 30,382 | ||||||||||||||||||||
Effective tax rate (Non-GAAP) | 18 | % | 18 | % | 18 | % | 18 | % | 18 | % | ||||||||||||||||||||
Net income from continuing operations excluding tax adjustments (Non-GAAP) | $ | 44,283 | $ | 91,963 | $ | 35,417 | $ | 218,876 | $ | 138,413 | ||||||||||||||||||||
Percentage of revenue (Non-GAAP) | 25 | % | 35 | % | 27 | % | 29 | % | 27 | % | ||||||||||||||||||||
Net income (loss) from continuing operations per diluted weighted-average common and common-equivalent share (GAAP) (1) | $ | (0.16 | ) | $ | 0.57 | $ | 0.22 | $ | 0.99 | $ | 0.86 | |||||||||||||||||||
Share impact of non-GAAP adjustments identified above (1) | 0.41 | (0.06 | ) | (0.02 | ) | 0.23 | (0.07 | ) | ||||||||||||||||||||||
Net income from continuing operations per diluted weighted-average common and common-equivalent share (Non-GAAP) (1) | $ | 0.25 | $ | 0.51 | $ | 0.20 | $ | 1.22 | $ | 0.79 | ||||||||||||||||||||
Diluted weighted-average common and common-equivalent shares outstanding (GAAP) (1) (2) | 180,542 | 179,354 | 176,502 | 179,551 | 174,144 | |||||||||||||||||||||||||
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(1) Prior periods 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 the fourth quarter of 2017.
(2) For the fourth quarter of
2017, includes potential common stock equivalents of 7,145 that were
excluded in the GAAP net loss per share calculation because they were
anti-dilutive.
Exhibit 3 |
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COGNEX CORPORATION Balance Sheets (Unaudited) Dollars in thousands |
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December 31, 2017 | December 31, 2016 | ||||||||||
Assets | |||||||||||
Cash and investments | $ | 827,984 | $ | 745,170 | |||||||
Accounts receivable | 119,388 | 55,438 | |||||||||
Unbilled revenue | 7,454 | 2,217 | |||||||||
Inventories | 67,923 | 26,984 | |||||||||
Property, plant, and equipment | 78,048 | 53,992 | |||||||||
Goodwill and intangible assets | 126,397 | 103,592 | |||||||||
Other assets | 60,676 | 51,211 | |||||||||
Total assets | $ | 1,287,870 | $ | 1,038,604 | |||||||
Liabilities and Shareholders' Equity | |||||||||||
Accounts payable and accrued expenses | $ | 91,712 | $ | 52,369 | |||||||
Deferred revenue and customer deposits | 9,969 | 8,211 | |||||||||
Income taxes | 84,932 | 10,554 | |||||||||
Other liabilities | 5,904 | 4,871 | |||||||||
Shareholders' equity | 1,095,353 | 962,599 | |||||||||
Total liabilities and shareholders' equity | $ | 1,287,870 | $ | 1,038,604 |
Exhibit 4 |
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COGNEX CORPORATION Additional Information Schedule (Unaudited) Dollars in thousands |
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Three-months Ended | Twelve-months Ended | ||||||||||||||||||||||||||||||
December 31, |
October 1, |
December 31, |
December 31, |
December 31, |
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Revenue | $ | 180,365 | $ | 259,739 | $ | 129,322 | $ | 747,950 | $ | 520,753 | |||||||||||||||||||||
Revenue by geography: | |||||||||||||||||||||||||||||||
Europe | 42 | % | 56 | % | 38 | % | 43 | % | 45 | % | |||||||||||||||||||||
Americas | 32 | % | 20 | % | 32 | % | 28 | % | 30 | % | |||||||||||||||||||||
Greater China | 13 | % | 13 | % | 12 | % | 14 | % | 12 | % | |||||||||||||||||||||
Other Asia | 13 | % | 11 | % | 18 | % | 15 | % | 13 | % | |||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||
Revenue by market: | |||||||||||||||||||||||||||||||
Factory automation | 96 | % | 97 | % | 96 | % | 96 | % | 96 | % | |||||||||||||||||||||
Semiconductor and electronics capital equipment | 4 | % | 3 | % | 4 | % | 4 | % | 4 | % | |||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||
Exhibit 5 |
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COGNEX CORPORATION Restated Statements of Operations under ASC 606 "Revenue from Contracts with Customers" (Unaudited) Dollars in thousands |
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Three-months Ended | ||||||||||||||||||||||||
April 2, |
July 2, |
October 1, |
December 31, |
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Revenue | $ | 139,039 | $ | 178,080 | $ | 266,042 | $ | 182,922 | ||||||||||||||||
Cost of revenue | 32,532 | 42,164 | 68,061 | 44,532 | ||||||||||||||||||||
Gross margin | 106,507 | 135,916 | 197,981 | 138,390 | ||||||||||||||||||||
Percentage of revenue | 77 | % | 76 | % | 74 | % | 76 | % | ||||||||||||||||
Research, development, and engineering expenses | 22,770 | 23,377 | 26,078 | 26,980 | ||||||||||||||||||||
Percentage of revenue | 16 | % | 13 | % | 10 | % | 15 | % | ||||||||||||||||
Selling, general, and administrative expenses | 46,521 | 52,518 | 61,054 | 60,635 | ||||||||||||||||||||
Percentage of revenue | 33 | % | 29 | % | 23 | % | 33 | % | ||||||||||||||||
Operating income | 37,216 | 60,021 | 110,849 | 50,775 | ||||||||||||||||||||
Percentage of revenue | 27 | % | 34 | % | 42 | % | 28 | % | ||||||||||||||||
Foreign currency gain (loss) | (263 | ) | (184 | ) | (127 | ) | (1,027 | ) | ||||||||||||||||
Investment and other income | 2,282 | 1,969 | 2,030 | 2,923 | ||||||||||||||||||||
Income before income tax expense | 39,235 | 61,806 | 112,752 | 52,671 | ||||||||||||||||||||
Income tax expense (benefit) | (6,236 | ) | 5,311 | 10,259 | 80,418 | |||||||||||||||||||
Net income (loss) | $ | 45,471 | $ | 56,495 | $ | 102,493 | $ | (27,747 | ) | |||||||||||||||
Percentage of revenue | 33 | % | 32 | % | 39 | % | (15 | )% | ||||||||||||||||
Earnings per weighted-average common and common-equivalent share (1): | ||||||||||||||||||||||||
Basic | $ | 0.26 | $ | 0.33 | $ | 0.59 | $ | (0.16 | ) | |||||||||||||||
Diluted | $ | 0.25 | $ | 0.32 | $ | 0.57 | $ | (0.16 | ) | |||||||||||||||
Weighted-average common and common-equivalent shares outstanding (1): | ||||||||||||||||||||||||
Basic | 172,646 | 173,278 | 173,234 | 173,397 | ||||||||||||||||||||
Diluted | 178,354 | 179,228 | 179,354 | 173,397 | ||||||||||||||||||||
(1) Prior periods 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 the fourth quarter of 2017.
Adjustments to certain
financial data as a result of the implementation of ASC 606 "Revenue
from Contracts with Customers" on Jan. 1, 2018.
Three-months Ended | ||||||||||||||||||||||||
April 2, |
July 2, |
October 1, |
December 31, |
|||||||||||||||||||||
Revenue as reported | $ | 134,942 | $ | 172,904 | $ | 259,739 | $ | 180,365 | ||||||||||||||||
Adjustments to revenue | 4,097 | 5,176 | 6,303 | 2,557 | ||||||||||||||||||||
Revenue as restated | $ | 139,039 | $ | 178,080 | $ | 266,042 | $ | 182,922 | ||||||||||||||||
Cost of revenue as reported | 28,225 | 37,471 | 62,360 | 40,642 | ||||||||||||||||||||
Adjustments to cost of revenue | 4,307 | 4,693 | 5,701 | 3,890 | ||||||||||||||||||||
Cost of revenue as restated | $ | 32,532 | $ | 42,164 | $ | 68,061 | $ | 44,532 | ||||||||||||||||
Gross margin as reported | $ | 106,717 | $ | 135,433 | $ | 197,379 | $ | 139,723 | ||||||||||||||||
Adjustments to gross margin | (210 | ) | 483 | 602 | (1,333 | ) | ||||||||||||||||||
Gross margin as restated | $ | 106,507 | 135,916 | $ | 197,981 | $ | 138,390 | |||||||||||||||||
Gross margin percentage as reported | 79 | % | 78 | % | 76 | % | 77 | % | ||||||||||||||||
Adjustments to gross margin percentage | (2 | )% | (2 | )% | (2 | )% | (1 | )% | ||||||||||||||||
Gross margin percentage as restated | 77 | % | 76 | % | 74 | % | 76 | % | ||||||||||||||||
Operating income as reported | $ | 37,426 | $ | 59,538 | $ | 110,247 | $ | 52,108 | ||||||||||||||||
Adjustments to operating income | (210 | ) | 483 | 602 | (1,333 | ) | ||||||||||||||||||
Operating income as restated | $ | 37,216 | $ | 60,021 | $ | 110,849 | $ | 50,775 | ||||||||||||||||
Operating margin as reported | 28 | % | 34 | % | 42 | % | 29 | % | ||||||||||||||||
Adjustments to operating margin | (1 | )% | — | % | — | % | (1 | )% | ||||||||||||||||
Operating margin as restated | 27 | % | 34 | % | 42 | % | 28 | % |
CONTACT:
Cognex Corporation
Susan Conway, 508-650-3353
Senior
Director of Investor Relations
susan.conway@cognex.com