-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, Wdm+OqKtCOyZbVnf9tR/vT51mSNAMXCyUT0+vaO7g0yzF5FTVElviBaI+AwTPnRL mtQLynlcDZcbXp5i98n1fg== 0000950135-95-001119.txt : 19950511 0000950135-95-001119.hdr.sgml : 19950511 ACCESSION NUMBER: 0000950135-95-001119 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950402 FILED AS OF DATE: 19950510 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: COGNEX CORP CENTRAL INDEX KEY: 0000851205 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 042713778 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-17869 FILM NUMBER: 95536073 BUSINESS ADDRESS: STREET 1: ONE VISION DR CITY: NATICK STATE: MA ZIP: 01760 BUSINESS PHONE: 5086503000 MAIL ADDRESS: STREET 1: ONE VISION DRIVE CITY: NATICK STATE: MA ZIP: 01760 10-Q 1 FORM 10-Q FOR COGNEX CORPORATION 1 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) / X / Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended April 2, 1995 or ------------- / / Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ________ to __________ Commission File Number 0-17869 ------- COGNEX CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) Massachusetts 04-2713778 ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Vision Drive Natick, Massachusetts 01760-2059 (508) 650-3000 ---------------------------------------------------- (Address, including zip code, and telephone number, including area code, of principal executive offices) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- As of April 30, 1995, there were 18,886,661 shares of Common Stock, $.002 par value, of the registrant outstanding. Total number of pages: 11 ================================================================================ 2 INDEX PART I FINANCIAL INFORMATION ITEM 1. Financial Statements Consolidated Statements of Income for the three months ended April 2, 1995 and April 3, 1994 Consolidated Balance Sheets as of April 2, 1995 and December 31, 1994 Consolidated Statement of Stockholders' Equity for the three months ended April 2, 1995 Consolidated Statements of Cash Flows for the three months ended April 2, 1995 and April 3, 1994 Notes to Consolidated Financial Statements ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations PART II OTHER INFORMATION ITEM 1. Legal Proceedings ITEM 2. Changes in Securities ITEM 3. Defaults Upon Senior Securities ITEM 4. Submission of Matters to a Vote of Security Holders ITEM 5. Other Information ITEM 6. Exhibits and Reports on Form 8-K Signatures
3 PART I: FINANCIAL INFORMATION ITEM 1: FINANCIAL STATEMENTS COGNEX CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts)
THREE MONTHS ENDED APRIL 2, APRIL 3, 1995 1994 ------- ------- (UNAUDITED) Revenue............................................... $19,437 $12,838 Cost of revenue....................................... 3,952 2,810 ------- ------- Gross margin.......................................... 15,485 10,028 Research, development and engineering expenses........ 2,716 2,481 Selling, general and administrative expenses.......... 5,071 3,307 ------- ------- Income from operations................................ 7,698 4,240 Interest income....................................... 632 393 ------- ------- Income before provision for income taxes.............. 8,330 4,633 Provision for income taxes............................ 2,457 1,436 ------- ------- Net income............................................ $ 5,873 $ 3,197 ======= ======= Net income per share.................................. $ .29 $ .17 ======= ======= Weighted average common shares outstanding............ 20,392 18,473 ======= =======
The accompanying notes are an integral part of these consolidated financial statements. 1 4 COGNEX CORPORATION CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
APRIL 2, DECEMBER 31, 1995 1994 ----------- ------------ (UNAUDITED) ASSETS Current assets: Cash and cash equivalents................................... $ 36,178 $ 56,326 Investments................................................. 49,480 25,169 Accounts receivable, less reserves of approximately $686 and $684 in 1995 and 1994, respectively........... 11,699 9,151 Inventories................................................. 5,462 4,439 Deferred income taxes....................................... 1,554 1,463 Prepaid expenses and other.................................. 1,574 1,195 -------- -------- Total current assets................................... 105,947 97,743 -------- -------- Property, plant and equipment, net............................. 14,767 14,503 Other assets................................................... 565 593 -------- -------- $121,279 $112,839 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable............................................ $ 967 $ 1,284 Accrued expenses............................................ 5,171 5,135 Accrued income taxes........................................ 2,772 1,674 Customer deposits........................................... 615 744 Deferred revenue............................................ 429 394 -------- -------- Total current liabilities.............................. 9,954 9,231 -------- -------- Stockholders' equity: Common stock, $.002 par value - Authorized: 25,000,000 shares, issued: 18,876,488 and 18,751,935 shares in 1995 and 1994, respectively.......... 38 38 Additional paid-in capital.................................. 55,314 53,633 Cumulative translation adjustment........................... 110 (53) Retained earnings........................................... 56,355 50,482 Treasury stock, at cost, 30,878 shares in 1995 and 1994..... (492) (492) -------- -------- Total stockholders' equity............................. 111,325 103,608 -------- -------- $121,279 $112,839 ======== ========
The accompanying notes are an integral part of these consolidated financial statements. 2 5 COGNEX CORPORATION CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Dollars in thousands)
COMMON STOCK TREASURY STOCK ---------------- -------------- NUMBER $.002 ADDITIONAL CUMULATIVE NUMBER TOTAL OF PAR PAID-IN TRANSLATION RETAINED OF STOCKHOLDERS' SHARES VALUE CAPITAL ADJUSTMENT EARNINGS SHARES COST EQUITY ---------- ----- --------- ----------- -------- ------ ----- ----------- Balance at December 31, 1994 ....................... 18,751,935 $38 $53,633 $(53) $50,482 30,878 $(492) $103,608 Issuance of stock under stock option plans ...... 124,553 761 761 Tax benefit from the exercise of stock options .. 920 920 Translation adjustment .......................... 163 163 Net income ...................................... 5,873 5,873 ---------- --- ------- ---- ------- ------ ----- -------- Balance at April 2, 1995 (unaudited) ............... 18,876,488 $38 $55,314 $110 $56,355 30,878 $(492) $111,325 ========== === ======= ==== ======= ====== ===== ========
The accompanying notes are an integral part of these consolidated financial statements. 3 6 COGNEX CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands)
THREE MONTHS ENDED APRIL 2, APRIL 3, 1995 1994 -------- ------- (UNAUDITED) Cash flows from operating activities: Net income ............................................ $ 5,873 $ 3,197 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ...................... 624 360 Tax benefit from the exercise of stock options ..... 920 869 Change in current assets and current liabilities ... (3,367) (1,355) -------- ------- Net cash provided by operating activities ............. 4,050 3,071 -------- ------- Cash flows from investing activities: Purchase of investments ............................... (28,970) (6,086) Maturities of investments ............................. 4,659 5,717 Purchase of property, plant and equipment ............. (801) (6,725) Decrease in other assets .............................. 116 -------- ------- Net cash used in investing activities ................. (24,996) (7,094) -------- ------- Cash flows from financing activities: Issuance of stock under stock option plans ............ 761 807 -------- ------- Net cash provided by financing activities ............. 761 807 -------- ------- Effect of exchange rate changes on cash .................... 37 (43) -------- ------- Net decrease in cash and cash equivalents .................. (20,148) (3,259) Cash and cash equivalents at beginning of period ........... 56,326 21,833 -------- ------- Cash and cash equivalents at end of period ................. $ 36,178 $18,574 ======== =======
The accompanying notes are an integral part of these consolidated financial statements. 4 7 COGNEX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ------------------------------------------ Basis of Presentation --------------------- As permitted by the rules of the Securities and Exchange Commission applicable to quarterly reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by generally accepted accounting principles. Reference should be made to the financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 1994, as filed with the Securities and Exchange Commission on March 27, 1995. In the opinion of the management of Cognex Corporation, the accompanying financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Company's financial position at April 2, 1995 and December 31, 1994, and the results of its operations and changes in stockholders' equity and cash flows for the three months ended April 2, 1995 and April 3, 1994. The results disclosed in the Consolidated Statement of Income for the three months ended April 2, 1995 are not necessarily indicative of the results to be expected for the full year. INVENTORIES - ----------- Inventories consist of the following:
(In thousands) APRIL 2, DECEMBER 31, 1995 1994 ----------- ----------- (UNAUDITED) Raw materials $3,198 $2,476 Work-in-process 1,621 1,604 Finished goods 643 359 ------ ------ $5,462 $4,439 ====== ======
PROPERTY, PLANT AND EQUIPMENT - ----------------------------- Property, plant and equipment consist of the following:
(In thousands) APRIL 2, DECEMBER 31, 1995 1994 ----------- ------------ (UNAUDITED) Land $ 800 $ 800 Building 7,841 7,836 Building improvements 1,173 1,107 Construction in progress 22 Computer hardware and software 9,531 8,772 Furniture and fixtures 1,367 1,298 Leasehold improvements 294 250 ------- ------- 21,028 20,063 Less: accumulated depreciation and amortization (6,261) (5,560) ------- ------- $14,767 $14,503 ======= =======
5 8 COGNEX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NET INCOME PER SHARE - -------------------- Net income per share is calculated based on the weighted average number of common and dilutive common equivalent shares outstanding during the period. Primary and fully diluted net income per share are not materially different for each of the periods presented. Dilutive common equivalent shares consist of stock options, calculated using the treasury stock method. 6 9 ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Revenue for the three-month period ended April 2, 1995 increased 51% to $19,437,000 from $12,838,000 for the three-month period ended April 3, 1994. Contributing to the revenue increase, each of the Company's major geographic areas, the United States, Japan, and Europe, grew in excess of 40% from the first quarter of 1994 to the first quarter of 1995. The most substantial increase came from Japan, where revenue increased $3,321,000 or 62% over the comparable period in 1994. International revenue amounted to $11,132,000 for the three-month period in 1995 compared to $7,077,000 for the same period in 1994, an increase of 57%. Domestic revenue increased $2,544,000 or 44% for the three-month period in 1995 over the comparable period in 1994. The increase in worldwide revenue is due primarily to the growth in sales to existing customers, that is, those customers that have been with the Company for three or more years. Sales to existing customers represented 85% of revenue for the three-month period ended April 2, 1995 and increased 57% over the comparable period in 1994. Sales of the Cognex 2000 Series vision system decreased to 8% of revenue for the three-month period ended April 2, 1995 from 15% of revenue for the three-month period ended April 3, 1994. Sales of the Cognex 3000 Series vision system increased $1,229,000 over the comparable period in 1994 and remained relatively flat as a percentage of revenue. Sales of the Cognex 4000 Series vision system represented 41% of revenue for the three-month period in 1995 compared to 39% of revenue for the same period in 1994, an increase of $2,943,000 or 59%. Sales of the Cognex 5000 Series vision system increased $1,668,000 and represented 26% of revenue for both three-month periods. Gross margin for the three-month period ended April 2, 1995 increased to $15,485,000 or 80% of revenue from $10,028,000 or 78% of revenue for the three-month period ended April 3, 1994. The two point increase in the gross margin percentage is primarily due to favorable manufacturing variances and increased revenue from the Company's Customer Satisfaction group. Research, development and engineering expenses increased to $2,716,000 for the three-month period ended April 2, 1995 from $2,481,000 for the three- month period ended April 3, 1994. Expenses as a percentage of revenue were 14% for the three-month period in 1995 compared to 19% for the comparable period in 1994. The increase in aggregate costs is due primarily to higher personnel costs to support the Company's investment in the research and development of new and existing products. The decrease in expenses as a percentage of revenue is due to the revenue growth outpacing the investment in research and development. Selling, general and administrative expenses increased to $5,071,000 for the three-month period ended April 2, 1995 from $3,307,000 for the three- month period ended April 3, 1994. Expenses as a percentage of revenue remained constant at 26% for both three-month periods. The increase in aggregate costs is primarily due to higher personnel costs, both domestically and internationally, to support the Company's increased revenue and customer base. Interest income increased to $632,000 for the three-month period ended April 2, 1995 from $393,000 for the three-month period ended April 3, 1994. The increase in interest income is due primarily to a larger investment base. The Company's effective tax rate for the three-month period ended April 2, 1995 was 29.5% compared to 31.0% for the three-month period ended April 3, 1994. The decrease in the effective tax rate is primarily due to a reduction in state income taxes and an increased benefit from tax-exempt interest income resulting from a larger investment base. 7 10 LIQUIDITY AND CAPITAL RESOURCES The Company's working capital and other cash requirements during the three-month period ended April 2, 1995 were met through cash flow generated from operations. Working capital at April 2, 1995 was $95,993,000, an increase of $7,481,000 from the working capital balance at December 31, 1994. Cash and investments increased $4,163,000 from December 31, 1994 primarily as a result of cash generated from operations. At April 2, 1995, the Company had no outstanding short-term or long-term debt. The Company has a $1,000,000 unsecured demand line of credit with a bank, which is available through August 15, 1995. There have been no borrowings under the line of credit. Capital requirements consist primarily of expenditures for computer hardware and software equipment. Capital expenditures in the three-month period ended April 2, 1995 were $801,000, all of which were funded out of current operations. The Company believes that the existing cash and investment balances, together with cash generated from operations, will be sufficient to meet the Company's working capital and capital expenditure requirements through 1995. 8 11 PART II: OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS None ITEM 2. CHANGES IN SECURITIES None ITEM 3. DEFAULTS UPON SENIOR SECURITIES None ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None ITEM 5. OTHER INFORMATION None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits Exhibit 11 - Computation of Per Share Earnings Exhibit 27 - Financial Data Schedule (b) Reports on Form 8-K None 9 12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. DATE: May 10, 1995 COGNEX CORPORATION /s/ Robert J. Shillman ---------------------------------- Robert J. Shillman President, Chief Executive Officer, and Chairman (principal executive officer) /s/ John J. Rogers, Jr. ---------------------------------- John J. Rogers, Jr. Vice President, Chief Financial Officer, and Treasurer (principal financial and accounting officer) 10 EX-11 2 COMPUTATION OF PER SHARE EARNINGS 1 EXHIBIT 11 COGNEX CORPORATION COMPUTATION OF PER SHARE EARNINGS Weighted average common and common share equivalents were computed as follows:
APRIL 2, APRIL 3, 1995 1994 ---------- ---------- (UNAUDITED) Weighted average common shares outstanding................... 18,770,492 17,071,847 Weighted average options outstanding......................... 3,898,244 3,845,607 Shares assumed to be purchased............................... (2,276,937) (2,444,748) ---------- ---------- Primary weighted average common and common share equivalents outstanding............................. 20,391,799 18,472,706 Dilutive effect of weighted average options.................. 123,412 11,242 ---------- ---------- Fully diluted weighted average common and common share equivalents outstanding............................. 20,515,211 18,483,948 ========== ==========
11 EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FORM 10-Q OF COGNEX CORPORATION FOR THE QUARTER ENDED APRIL 2, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-Q. 3-MOS DEC-31-1995 JAN-1-1995 APR-2-1995 36,178,000 49,480,000 12,385,000 686,000 5,462,000 105,947,000 21,028,000 6,261,000 121,279,000 9,954,000 0 38,000 0 0 111,287,000 121,279,000 19,437,000 19,437,000 3,952,000 3,952,000 0 0 0 8,330,000 2,457,000 5,873,000 0 0 0 5,873,000 .29 .29
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