[August 03, 2015] |
|
Cognex Reports Record Second Quarter Revenue, Net Income and EPS
Cognex
Corporation (NASDAQ: CGNX) today announced its results for the
second quarter of 2015. In Table 1 below, selected financial data for
the quarter and six months ended July 5, 2015 is compared to the first
quarter of 2015, second quarter of 2014 and the first six months of
2014. A reconciliation of certain financial measures from GAAP to
non-GAAP is shown in Exhibit 2 of this news release.
Table 1*
|
|
|
|
Revenue from Continuing Operations
|
|
Income from Continuing Operations
|
|
Income from Continuing Operations per Diluted
Share
|
Quarterly Comparisons
|
|
|
|
|
|
|
Current quarter: Q2-15
|
|
$143,829,000
|
|
$43,516,000
|
|
$0.49
|
Prior year's quarter: Q2-14
|
|
$92,276,000
|
|
$22,675,000
|
|
$0.25
|
Change from Q2-14 to Q2-15
|
|
56%
|
|
92%
|
|
91%
|
Prior quarter: Q1-15
|
|
$101,373,000
|
|
$19,472,000
|
|
$0.22
|
Change from Q1-15 to Q2-15
|
|
42%
|
|
123%
|
|
122%
|
Year-to-Date Comparisons
|
|
|
|
|
|
|
Six months ended July 5, 2015
|
|
$245,202,000
|
|
$62,988,000
|
|
$0.71
|
Six months ended June 29, 2014
|
|
$173,592,000
|
|
$40,491,000
|
|
$0.45
|
Change from first six months of 2014 to first six months of 2015
|
|
41%
|
|
56%
|
|
56%
|
*Table 1 does not include "Income from Discontinued Operations," which
relates to the company's Surface Inspection Systems Division (SISD) that
was sold on July 6, 2015.
"This was an outstanding quarter for Cognex," said Dr.
Robert J. Shillman, Chairman of Cognex. "We reported the highest Q2
revenue, net income and earnings per share and the second highest for
any quarter in our company's history. Revenue grew significantly on both
a sequential and year-on-year basis, and our operating margin increased
to 36%, compared to 22% in the prior quarter and 28% a year ago."
"Our second quarter performance was impressive," said Robert
J. Willett, Chief Executive Officer of Cognex. "We recognized
significant revenue from large opportunities that drove growth well
above our 20% long-term target for factory automation. And the leverage
that incremental revenue has on our profitability drove higher operating
and net margins for the quarter. We are pleased to see our hard work
deliver such great tangible results."
Mr. Willett continued, "While we are very pleased with our Q2 results
and are excited about Cognex's long-term growth prospects, we are more
cautious about the rest of the year. Based upon what we are hearing from
our customers, we expect to see fewer large orders in the second half of
this year. As a result, our revenue guidance for Q3 2015 is below both
Q2 2015 and Q3 2014, as each of those quarters included substantial
revenue from large projects. Our outlook is further dampened by the
slower spending trends that we are currently experiencing in the
Americas."
Sale of Cognex's Surface Inspection Systems Division
Cognex sold its Surface Inspection Systems Division (SISD) on July 6,
2015 in order to focus all of its efforts on discrete manufacturing
where the company sees stronger long-term growth opportunities. Revenue
from SISD was $11.2 million in Q2 2015. If SISD's results had not been
reported as a discontinued operation pending divestiture, our revenue
for Q2 2015 would have been $155 million, as compared to the guidance
that was given on May 4, 2015 of $152 million to $157 million.
The "Details of the Quarter" discussed below excludes the financial
results of SISD. For a historical perspective, Exhibit 4 includes
Cognex's quarterly Statement of Operations for 2014 with the results of
SISD reported as a discontinued operation.
Details of the Quarter
Statement of Operations Highlights - Second Quarter of 2015
-
Revenue for Q2 2015 increased 56% over Q2 2014 and 42% from Q1 2015.
Growth both year-on-year and sequentially came from Europe and Asia
excluding Japan. A notable contributor to growth was large orders from
the consumer electronics industry. In constant currency, revenue grew
64% year-on-year and 43% sequentially.
-
Gross margin was 79% for Q2 2015 as compared to 80% in Q2 2014 and 78%
in Q1 2015. The decline year-on-year was due to higher new product
introduction costs. The increase on a sequential basis was due to
manufacturing efficiencies achieved from the higher revenue level.
-
Research, Development & Engineering (RD&E) expenses increased 8% from
Q1 2015. The increase was due to Cognex's investment in engineering
resources and outside services for new product development and
potential high-volume opportunities. Also contributing to the increase
was a higher bonus accrual, which was related to the higher operating
income reported for the second quarter. Partially offsetting the
increase was lower stock option expense. In constant currency, RD&E
increased 8% sequentially.
-
Selling, General & Administrative (SG&A) expenses increased 8% from Q1
2015. The increase was due to costs related to the resolution of all
outstanding patent litigation between Cognex and Microscan Systems,
Inc. Also higher were internal equipment related to new products
launched during the quarter, professional fees, travel, marketing
expenses and the bonus accrual. Partially offsetting the increase was
lower stock option expense. In constant currency, SG&A increased 9%
sequentially.
-
The tax rate was 17% in Q2 2015, 15% in Q2 2014 and 16% in Q1 2015.
Excluding discrete tax items, the rate was 17% in both Q2 2015 and Q2
2014 and 18% in Q1 2015 (tax adjustments are summarized in Exhibit 2).
The tax rate, excluding tax adjustments, decreased on a sequential
basis due to the expectation that more of the company's profits in
2015 will be earned and taxed in lower tax jurisdictions than
previously anticipated.
Balance Sheet Highlights - July 5, 2015
-
Cognex's financial position as of July 5, 2015, was very strong, with
no debt and $519 million in cash and investments. In the second
quarter of 2015, Cognex paid out $6.1 million in dividends to
shareholders and also spent $35.8 million to repurchase 720,000 shares
of its common stock at an average price of $49.79 per share. These
shares were repurchased to help offset the potential dilution from
employee stock options awards, which the company believes are
instrumental in its ability to recruit, retain and motivate
high-caliber employees. The company intends to continue to repurchase
shares of its common stock in the third quarter of 2015, subject to
market conditions and other relevant factors.
-
Unbilled revenue of $51.6 million as of July 5, 2015 represents
revenue that Cognex expects to invoice largely in Q3 2015 and collect
by the end of the year.
-
Inventory increased by $10 million, or 35%, from the end of 2014 due
to strategic purchases and in preparation for planned new product
introductions.
-
Reported as "Held for Sale" were the assets and liabilities of
Cognex's discontinued operations.
Financial Outlook - Q3 2015
-
Cognex expects revenue for Q3 2015 to be between $106 million and $109
million. This range represents a decline from both Q2 2015 and Q3 2014
due to large customer deployments in those prior periods that are not
expected to repeat in Q3 2015. Cognex also expects that the current
lower spending trends in the Americas will continue.
-
Gross margin is expected to be in the mid-70% range, lower than the
gross margin reported for Q2 2015 due to a higher level of
lower-margin maintenance and support services.
-
Operating expenses are expected to decrease by approximately 5% on a
sequential basis.
-
The effective tax rate is expected to be 17.5% before discrete tax
items.
-
Cognex expects to report a pre-tax gain of $125 million in Q3 2015
related to the sale of the company's Surface Inspection Systems
Division.
Non-GAAP Financial Measures
-
Exhibit 2 of this news release includes a reconciliation of certain
financial measures from GAAP to non-GAAP. Cognex believes these
non-GAAP financial measures are helpful because they allow investors
to more accurately compare Cognex results over multiple periods using
the same methodology that management employs in its budgeting process
and in its review of Cognex's operating results. In particular,
non-GAAP presentations exclude the following: (1) stock option expense
for the purpose of calculating non-GAAP adjusted operating income,
non-GAAP adjusted net income and non-GAAP adjusted net income per
share (because these expenses have no current effect on cash or the
future uses of cash, and they fluctuate as a result of changes in
Cognex's stock price), and (2) certain one-time discrete events, such
as tax adjustments. Cognex also uses results on a constant-currency
basis as one measure to evaluate performance. Constant-currency
information compares results between periods as if the exchange rates
had remained constant period-over-period. Cognex does not intend for
non-GAAP financial measures to be considered in isolation, nor as a
substitute for financial information provided in accordance with GAAP.
-
The tax effect of items identified in the reconciliation is estimated
by applying the effective tax rate to the pre-tax amount. However, if
a specific tax rate or tax treatment is required because of the nature
of the item and/or the tax jurisdiction where the item was recorded,
the tax effect is estimated by applying the relevant specific tax rate
or tax treatment, rather than the effective tax rate.
Analyst Conference Call and Simultaneous Webcast
-
Cognex will host a conference call today at 5:00 p.m. Eastern Time
(ET). The telephone number is (866) 256-9239 (or (703) 639-1213 if
outside the United States). A replay will begin at 8:00 p.m. ET today
and will run continuously until 11:59 p.m. ET on Thursday, August 6,
2015. The telephone number for the replay is (888) 266-2081 (or (703)
925-2533 if outside the United States). The access code for both the
live call and the replay is 1657881.
-
Internet users can listen to a real-time audio broadcast of the
conference call or an archived recording on the Cognex Investor
Relations website: http://www.cognex.com/Investor.
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, shipments and collections,
expected areas of growth and opportunity, target long-term growth rates,
future product mix, new product introductions, future 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 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
|
COGNEX CORPORATION
|
Statements of Operations
|
(Unaudited)
|
Dollars in thousands, except per share amounts
|
|
|
|
|
Three-months Ended
|
|
Six-months Ended
|
|
|
July 5,
|
|
April 5,
|
|
June 29,
|
|
July 5,
|
|
June 29,
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
143,829
|
|
|
$
|
101,373
|
|
|
$
|
92,276
|
|
|
$
|
245,202
|
|
|
$
|
173,592
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (1)
|
|
|
30,508
|
|
|
|
22,344
|
|
|
|
18,190
|
|
|
|
52,852
|
|
|
|
34,743
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
113,321
|
|
|
|
79,029
|
|
|
|
74,086
|
|
|
|
192,350
|
|
|
|
138,849
|
|
Percentage of revenue
|
|
|
79
|
%
|
|
|
78
|
%
|
|
|
80
|
%
|
|
|
78
|
%
|
|
|
80
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Research, development, and engineering expenses (1)
|
|
|
18,302
|
|
|
|
16,986
|
|
|
|
12,524
|
|
|
|
35,288
|
|
|
|
24,093
|
|
Percentage of revenue
|
|
|
13
|
%
|
|
|
17
|
%
|
|
|
14
|
%
|
|
|
14
|
%
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses (1)
|
|
|
43,241
|
|
|
|
39,933
|
|
|
|
35,538
|
|
|
|
83,174
|
|
|
|
67,330
|
|
Percentage of revenue
|
|
|
30
|
%
|
|
|
39
|
%
|
|
|
39
|
%
|
|
|
34
|
%
|
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
51,778
|
|
|
|
22,110
|
|
|
|
26,024
|
|
|
|
73,888
|
|
|
|
47,426
|
|
Percentage of revenue
|
|
|
36
|
%
|
|
|
22
|
%
|
|
|
28
|
%
|
|
|
30
|
%
|
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency gain (loss)
|
|
|
(39
|
)
|
|
|
659
|
|
|
|
(74
|
)
|
|
|
620
|
|
|
|
(184
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Investment and other income
|
|
|
902
|
|
|
|
540
|
|
|
|
726
|
|
|
|
1,442
|
|
|
|
1,240
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income tax expense
|
|
|
52,641
|
|
|
|
23,309
|
|
|
|
26,676
|
|
|
|
75,950
|
|
|
|
48,482
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
9,125
|
|
|
|
3,837
|
|
|
|
4,001
|
|
|
|
12,962
|
|
|
|
7,991
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
43,516
|
|
|
|
19,472
|
|
|
|
22,675
|
|
|
|
62,988
|
|
|
|
40,491
|
|
Percentage of revenue
|
|
|
30
|
%
|
|
|
19
|
%
|
|
|
25
|
%
|
|
|
26
|
%
|
|
|
23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations (1)
|
|
|
198
|
|
|
|
1,030
|
|
|
|
3,273
|
|
|
|
1,228
|
|
|
|
3,963
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
43,714
|
|
|
$
|
20,502
|
|
|
$
|
25,948
|
|
|
$
|
64,216
|
|
|
$
|
44,454
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per weighted-average common and common-equivalent
share:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.50
|
|
|
$
|
0.22
|
|
|
$
|
0.26
|
|
|
$
|
0.72
|
|
|
$
|
0.47
|
|
Income from discontinued operations
|
|
|
-
|
|
|
|
0.02
|
|
|
|
0.04
|
|
|
|
0.02
|
|
|
|
0.04
|
|
Net income
|
|
$
|
0.50
|
|
|
$
|
0.24
|
|
|
$
|
0.30
|
|
|
$
|
0.74
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per weighted-average common and common-equivalent
share:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.49
|
|
|
$
|
0.22
|
|
|
$
|
0.25
|
|
|
$
|
0.71
|
|
|
$
|
0.45
|
|
Income from discontinued operations
|
|
|
-
|
|
|
|
0.01
|
|
|
|
0.04
|
|
|
|
0.01
|
|
|
|
0.05
|
|
Net income
|
|
$
|
0.49
|
|
|
$
|
0.23
|
|
|
$
|
0.29
|
|
|
$
|
0.72
|
|
|
$
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common and common-equivalent shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
87,199
|
|
|
|
86,764
|
|
|
|
86,782
|
|
|
|
86,977
|
|
|
|
86,830
|
|
Diluted
|
|
|
89,185
|
|
|
|
88,749
|
|
|
|
88,965
|
|
|
|
88,951
|
|
|
|
89,112
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per common share
|
|
$
|
0.07
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.07
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and investments per common share
|
|
$
|
5.96
|
|
|
$
|
6.30
|
|
|
$
|
5.39
|
|
|
$
|
5.96
|
|
|
$
|
5.39
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share
|
|
$
|
9.11
|
|
|
$
|
8.80
|
|
|
$
|
7.87
|
|
|
$
|
9.11
|
|
|
$
|
7.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts include stock option expense, as follows:
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
$
|
349
|
|
|
$
|
467
|
|
|
$
|
286
|
|
|
$
|
816
|
|
|
$
|
613
|
|
Research, development, and engineering
|
|
|
1,153
|
|
|
|
1,814
|
|
|
|
949
|
|
|
|
2,967
|
|
|
|
1,967
|
|
Selling, general, and administrative
|
|
|
2,985
|
|
|
|
4,382
|
|
|
|
2,473
|
|
|
|
7,367
|
|
|
|
4,825
|
|
Discontinued operations
|
|
|
144
|
|
|
|
283
|
|
|
|
248
|
|
|
|
427
|
|
|
|
555
|
|
Total stock option expense
|
|
$
|
4,631
|
|
|
$
|
6,946
|
|
|
$
|
3,956
|
|
|
$
|
11,577
|
|
|
$
|
7,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 2
|
COGNEX CORPORATION
|
Reconciliation of Selected Items from GAAP to Non-GAAP
|
(Unaudited)
|
Dollars in thousands, except per share amounts
|
|
|
|
|
Three-months Ended
|
|
Six-months Ended
|
|
|
July 5,
|
|
April 5,
|
|
June 29,
|
|
July 5,
|
|
June 29,
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
Adjustment for stock option expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (GAAP)
|
|
$
|
51,778
|
|
|
$
|
22,110
|
|
|
$
|
26,024
|
|
|
$
|
73,888
|
|
|
$
|
47,426
|
|
Stock option expense related to continuing operations
|
|
|
4,487
|
|
|
|
6,663
|
|
|
|
3,708
|
|
|
|
11,150
|
|
|
|
7,405
|
|
Operating income (Non-GAAP)
|
|
$
|
56,265
|
|
|
$
|
28,773
|
|
|
$
|
29,732
|
|
|
$
|
85,038
|
|
|
$
|
54,831
|
|
Percentage of revenue (Non-GAAP)
|
|
|
39
|
%
|
|
|
28
|
%
|
|
|
32
|
%
|
|
|
35
|
%
|
|
|
32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations (GAAP)
|
|
$
|
43,516
|
|
|
$
|
19,472
|
|
|
$
|
22,675
|
|
|
$
|
62,988
|
|
|
$
|
40,491
|
|
Stock option expense related to continuing operations
|
|
|
4,487
|
|
|
|
6,663
|
|
|
|
3,708
|
|
|
|
11,150
|
|
|
|
7,405
|
|
Tax effect on stock options
|
|
|
(1,503
|
)
|
|
|
(2,241
|
)
|
|
|
(990
|
)
|
|
|
(3,744
|
)
|
|
|
(2,193
|
)
|
Income from continuing operations (Non-GAAP)
|
|
$
|
46,500
|
|
|
$
|
23,894
|
|
|
$
|
25,393
|
|
|
$
|
70,394
|
|
|
$
|
45,703
|
|
Percentage of revenue (Non-GAAP)
|
|
|
32
|
%
|
|
|
24
|
%
|
|
|
28
|
%
|
|
|
29
|
%
|
|
|
26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations per diluted share (GAAP)
|
|
$
|
0.49
|
|
|
$
|
0.22
|
|
|
$
|
0.25
|
|
|
$
|
0.71
|
|
|
$
|
0.45
|
|
Stock option expense per diluted share
|
|
|
0.05
|
|
|
|
0.08
|
|
|
|
0.04
|
|
|
|
0.13
|
|
|
|
0.08
|
|
Tax effect on stock options
|
|
|
(0.02
|
)
|
|
|
(0.03
|
)
|
|
|
(0.01
|
)
|
|
|
(0.05
|
)
|
|
|
(0.02
|
)
|
Income from continuing operations per diluted share excluding
stock option expense (Non-GAAP)
|
|
$
|
0.52
|
|
|
$
|
0.27
|
|
|
$
|
0.29
|
|
|
$
|
0.79
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclusion of tax adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income tax expense (GAAP)
|
|
$
|
52,641
|
|
|
$
|
23,309
|
|
|
$
|
26,676
|
|
|
$
|
75,950
|
|
|
$
|
48,482
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (GAAP)
|
|
$
|
9,125
|
|
|
$
|
3,837
|
|
|
$
|
4,001
|
|
|
$
|
12,962
|
|
|
$
|
7,991
|
|
Effective tax rate (GAAP)
|
|
|
17
|
%
|
|
|
16
|
%
|
|
|
15
|
%
|
|
|
17
|
%
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Tax adjustments:
|
|
|
|
|
|
|
|
|
|
|
True up of annual tax rate
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Discrete tax events
|
|
|
(47
|
)
|
|
|
(364
|
)
|
|
|
(418
|
)
|
|
|
(411
|
)
|
|
|
(418
|
)
|
|
|
|
(47
|
)
|
|
|
(364
|
)
|
|
|
(418
|
)
|
|
|
(411
|
)
|
|
|
(418
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense excluding tax adjustments (Non-GAAP)
|
|
$
|
9,172
|
|
|
$
|
4,201
|
|
|
$
|
4,419
|
|
|
$
|
13,373
|
|
|
$
|
8,409
|
|
Effective tax rate (Non-GAAP)
|
|
|
17
|
%
|
|
|
18
|
%
|
|
|
17
|
%
|
|
|
18
|
%
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations excluding tax adjustments
(Non-GAAP)
|
|
$
|
43,469
|
|
|
$
|
19,108
|
|
|
$
|
22,257
|
|
|
$
|
62,577
|
|
|
$
|
40,073
|
|
Percentage of revenue (Non-GAAP)
|
|
|
30
|
%
|
|
|
19
|
%
|
|
|
24
|
%
|
|
|
26
|
%
|
|
|
23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency impact on certain revenue and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth
|
|
Impact of
|
|
Growth
|
|
|
|
|
|
|
over Q2 2014
|
|
Currency
|
|
over Q2 2014
|
|
|
|
|
|
|
(GAAP)
|
|
in Q2 2015
|
|
(Non-GAAP)
|
|
|
|
|
Total revenue
|
|
|
56
|
%
|
|
|
-8
|
%
|
|
|
64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Factory automation revenue
|
|
|
63
|
%
|
|
|
-9
|
%
|
|
|
72
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth
|
|
Impact of
|
|
Growth
|
|
|
|
|
|
|
over Q1 2015
|
|
Currency
|
|
over Q1 2015
|
|
|
|
|
|
|
(GAAP)
|
|
in Q2 2015
|
|
(Non-GAAP)
|
|
|
|
|
Total revenue
|
|
|
42
|
%
|
|
|
-1
|
%
|
|
|
43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Factory automation revenue
|
|
|
44
|
%
|
|
|
-2
|
%
|
|
|
46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research, development, and engineering expenses
|
|
|
8
|
%
|
|
|
0
|
%
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses
|
|
|
8
|
%
|
|
|
-1
|
%
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 3
|
COGNEX CORPORATION
|
Balance Sheets
|
(Unaudited)
|
Dollars in thousands
|
|
|
|
|
July 5,
|
|
December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and investments
|
|
$
|
518,907
|
|
$
|
546,995
|
|
|
|
|
|
Accounts receivable
|
|
|
44,728
|
|
|
40,053
|
|
|
|
|
|
Unbilled revenue
|
|
|
51,648
|
|
|
-
|
|
|
|
|
|
Inventories
|
|
|
39,400
|
|
|
29,223
|
|
|
|
|
|
Property, plant, and equipment
|
|
|
49,905
|
|
|
45,963
|
|
|
|
|
|
Goodwill and intangible assets
|
|
|
85,041
|
|
|
87,058
|
|
|
|
|
|
Held for sale assets
|
|
|
38,927
|
|
|
29,814
|
|
|
|
|
|
Other assets
|
|
|
49,650
|
|
|
42,628
|
|
|
|
|
|
Total assets
|
|
$
|
878,206
|
|
$
|
821,734
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
46,478
|
|
$
|
52,837
|
|
|
|
|
|
Income taxes
|
|
|
5,000
|
|
|
5,671
|
|
|
|
|
|
Deferred revenue and customer deposits
|
|
|
18,994
|
|
|
14,598
|
|
|
|
|
|
Held for sale liabilities
|
|
|
14,598
|
|
|
12,191
|
|
|
|
|
|
Shareholders' equity
|
|
|
793,136
|
|
|
736,437
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
878,206
|
|
$
|
821,734
|
|
|
|
|
|
|
|
|
Exhibit 4
|
COGNEX CORPORATION
|
Additional Information Schedule
|
(Unaudited)
|
Dollars in thousands, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-months Ended
|
|
Six-months Ended
|
|
|
July 5,
|
|
April 5,
|
|
June 29,
|
|
July 5,
|
|
June 29,
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
143,829
|
|
|
$
|
101,373
|
|
|
$
|
92,276
|
|
|
$
|
245,202
|
|
|
$
|
173,592
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by geography:
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
56
|
%
|
|
|
40
|
%
|
|
|
34
|
%
|
|
|
50
|
%
|
|
|
34
|
%
|
Americas
|
|
|
24
|
%
|
|
|
34
|
%
|
|
|
36
|
%
|
|
|
28
|
%
|
|
|
38
|
%
|
Asia
|
|
|
15
|
%
|
|
|
19
|
%
|
|
|
20
|
%
|
|
|
16
|
%
|
|
|
18
|
%
|
Japan
|
|
|
5
|
%
|
|
|
7
|
%
|
|
|
10
|
%
|
|
|
6
|
%
|
|
|
10
|
%
|
Total
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by market:
|
|
|
|
|
|
|
|
|
|
|
Factory automation
|
|
|
95
|
%
|
|
|
94
|
%
|
|
|
91
|
%
|
|
|
95
|
%
|
|
|
92
|
%
|
Semiconductor and electronics capital equipment
|
|
|
5
|
%
|
|
|
6
|
%
|
|
|
9
|
%
|
|
|
5
|
%
|
|
|
8
|
%
|
Total
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated 2014 Statements of Operations for discontinued
operations:
|
|
Three-months Ended
|
|
Year Ended
|
|
|
March 30,
|
|
June 29,
|
|
September 28,
|
|
December 31,
|
|
December 31,
|
|
|
|
2014
|
|
|
|
2014
|
|
|
|
2014
|
|
|
|
2014
|
|
|
|
2014
|
|
Revenue
|
|
$
|
81,316
|
|
|
$
|
92,276
|
|
|
$
|
154,356
|
|
|
$
|
98,501
|
|
|
$
|
426,449
|
|
Cost of revenue
|
|
|
16,553
|
|
|
|
18,190
|
|
|
|
37,712
|
|
|
|
21,612
|
|
|
|
94,067
|
|
Gross margin
|
|
|
64,763
|
|
|
|
74,086
|
|
|
|
116,644
|
|
|
|
76,889
|
|
|
|
332,382
|
|
Research, development, and engineering expenses
|
|
|
11,569
|
|
|
|
12,524
|
|
|
|
17,532
|
|
|
|
14,206
|
|
|
|
55,831
|
|
Selling, general, and administrative expenses
|
|
|
31,792
|
|
|
|
35,538
|
|
|
|
43,773
|
|
|
|
37,596
|
|
|
|
148,699
|
|
Operating income
|
|
|
21,402
|
|
|
|
26,024
|
|
|
|
55,339
|
|
|
|
25,087
|
|
|
|
127,852
|
|
Foreign currency gain (loss)
|
|
|
(110
|
)
|
|
|
(74
|
)
|
|
|
794
|
|
|
|
421
|
|
|
|
1,031
|
|
Investment and other income
|
|
|
514
|
|
|
|
726
|
|
|
|
978
|
|
|
|
655
|
|
|
|
2,873
|
|
Income from continuing operations before income tax expense
|
|
|
21,806
|
|
|
|
26,676
|
|
|
|
57,111
|
|
|
|
26,163
|
|
|
|
131,756
|
|
Income tax expense
|
|
|
3,990
|
|
|
|
4,001
|
|
|
|
9,430
|
|
|
|
3,494
|
|
|
|
20,915
|
|
Income from continuing operations
|
|
|
17,816
|
|
|
|
22,675
|
|
|
|
47,681
|
|
|
|
22,669
|
|
|
|
110,841
|
|
Income from discontinued operations
|
|
|
690
|
|
|
|
3,273
|
|
|
|
2,719
|
|
|
|
3,962
|
|
|
|
10,644
|
|
Net income
|
|
$
|
18,506
|
|
|
$
|
25,948
|
|
|
$
|
50,400
|
|
|
$
|
26,631
|
|
|
$
|
121,485
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per weighted-average common and common-equivalent
share:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.21
|
|
|
$
|
0.26
|
|
|
$
|
0.55
|
|
|
$
|
0.26
|
|
|
$
|
1.28
|
|
Income from discontinued operations
|
|
|
0.00
|
|
|
|
0.04
|
|
|
|
0.03
|
|
|
|
0.05
|
|
|
|
0.12
|
|
Net income
|
|
$
|
0.21
|
|
|
$
|
0.30
|
|
|
$
|
0.58
|
|
|
$
|
0.31
|
|
|
$
|
1.40
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per weighted-average common and common-equivalent
share:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.20
|
|
|
$
|
0.25
|
|
|
$
|
0.53
|
|
|
$
|
0.26
|
|
|
$
|
1.24
|
|
Income from discontinued operations
|
|
|
0.01
|
|
|
|
0.04
|
|
|
|
0.04
|
|
|
|
0.04
|
|
|
|
0.12
|
|
Net income
|
|
$
|
0.21
|
|
|
$
|
0.29
|
|
|
$
|
0.57
|
|
|
$
|
0.30
|
|
|
$
|
1.36
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common and common-equivalent shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
86,879
|
|
|
|
86,782
|
|
|
|
86,963
|
|
|
|
86,811
|
|
|
|
86,858
|
|
Diluted
|
|
|
89,259
|
|
|
|
88,965
|
|
|
|
89,167
|
|
|
|
88,849
|
|
|
|
89,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150803006324/en/
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