UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
Current
Report
Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date
of Report (Date of Earliest Event Reported): November 2, 2015
COGNEX CORPORATION |
(Exact name of registrant as specified in charter) |
Massachusetts |
001-34218 |
04-2713778 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
One Vision Drive Natick, Massachusetts 01760-2059 |
(Address, including zip code, of principal executive offices) |
(508)
650-3000
(Registrant's telephone number, including area
code)
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02 | Results of Operations and Financial Condition |
On November 2, 2015, Cognex Corporation (the “Company”) issued a news release to report its financial results for the quarter ended October 4, 2015. The release is furnished as Exhibit 99.1 hereto. The information in Item 2.02 of this Current Report on Form 8-K, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general incorporation language in such filing.
Item 8.01 | Other Events |
On November 2, 2015, the Company announced that its Board of Directors declared a cash dividend of $0.07 per share. The dividend is payable on December 18, 2015 to all shareholders of record as of the close of business on December 4, 2015.
On November 2, 2015, the Company announced that its Board of Directors has authorized the purchase of up to $100 million of the Company’s common stock in open market transactions. This new authorization is in addition to the $100 million stock purchase program that was announced by the Company on August 3, 2015, of which $16 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 purchase program at any time.
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
Exhibit No. |
Description |
|
99.1 | News release, dated November 2, 2015, by Cognex Corporation |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
COGNEX CORPORATION |
||
|
||
Dated: |
November 2, 2015 |
By: /s/ Richard A. Morin |
Richard A. Morin |
||
Executive Vice President of Finance and Administration |
||
and Chief Financial Officer |
Exhibit 99.1
Cognex Reports Third Quarter Results
NATICK, Mass.--(BUSINESS WIRE)--November 2, 2015--Cognex Corporation (NASDAQ: CGNX) today announced its results for the third quarter of 2015. In Table 1 below, selected financial data for the quarter and nine months ended October 4, 2015 is compared to the second quarter of 2015, third quarter of 2014 and the first nine 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 |
Income from |
Income from |
||||
Quarterly Comparisons |
||||||
Current quarter: Q3-15 | $107,587,000 | $25,822,000 | $0.29 | |||
Prior year’s quarter: Q3-14 | $154,356,000 | $47,681,000 | $0.53 | |||
Change from Q3-14 to Q3-15 | (30%) | (46%) | (45%) | |||
Prior quarter: Q2-15 | $143,829,000 | $43,516,000 | $0.49 | |||
Change from Q2-15 to Q3-15 | (25%) | (41%) | (41%) | |||
Year-to-Date Comparisons |
||||||
Nine months ended Oct. 4, 2015 | $352,789,000 | $88,810,000 | $1.00 | |||
Nine months ended Sept. 28, 2014 | $327,948,000 | $88,171,000 | $0.99 | |||
Change from first nine months of 2014 to first nine months of 2015 |
8% |
1% |
1% |
*Table 1 does not include the financial results of the company’s Surface Inspection Systems Division (SISD), which was sold on July 6, 2015, or the related after-tax gain reported from the transaction.
“Our results for Q3 2015 were quite good,” said Dr. Robert J. Shillman, Chairman of Cognex. “We reported our third best quarterly revenue, net income and earnings per share in our company’s 34-year history, all from continuing operations. Normally, I would say that I am ‘very pleased’ with these results, but I’m not because of the negative comparisons, poor both year-on-year and sequentially due to the fact that those were our best and second best quarters.”
Robert J. Willett, Chief Executive Officer of Cognex, said, “At Cognex we have a saying, ‘Good is not good enough; excellence is expected.’ Although Q3 was good, it was not good enough. During the quarter, we experienced a slowdown in demand from customers in Asia and in the automotive industry, globally. As a result, we are more cautious about our revenue outlook in the near term.”
Details of the Quarter
Statement of Operations Highlights – Third Quarter of 2015
Balance Sheet Highlights – October 4, 2015
Financial Outlook – Q4 2015
Non-GAAP Financial Measures
Analyst Conference Call and Simultaneous Webcast
About Cognex Corporation
Cognex Corporation designs, develops, manufactures and markets a range of products that incorporate sophisticated machine vision technology that gives them the ability to “see.” Cognex products include barcode readers, machine vision sensors and machine vision systems that are used in factories, warehouses and distribution centers around the world to guide, gauge, inspect, identify and assure the quality of items during the manufacturing and distribution process. Cognex is the world's leader in the machine vision industry, having shipped more than 1 million vision-based products, representing over $4 billion in cumulative revenue, since the company's founding in 1981. Headquartered in Natick, Massachusetts, USA, Cognex has regional offices and distributors located throughout the Americas, Europe and Asia. For details visit Cognex online at http://www.cognex.com.
Certain statements made in this news release, which do not relate solely to historical matters, are forward-looking statements. These statements can be identified by use of the words “expects,” “anticipates,” “estimates,” “believes,” “projects,” “intends,” “plans,” “will,” “may,” “shall,” “could,” “should,” and similar words and other statements of a similar sense. These forward-looking statements, which include statements regarding business and market trends, future financial performance, customer order rates, expected areas of growth and opportunity, future product and customer mix, research and development activities, collections, 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 |
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COGNEX CORPORATION | ||||||||||||||||||||
Statements of Operations | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Dollars in thousands, except per share amounts | ||||||||||||||||||||
Three-months Ended | Nine-months Ended | |||||||||||||||||||
October 4, | July 5, | September 28, | October 4, | September 28, | ||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Revenue | $ | 107,587 | $ | 143,829 | $ | 154,356 | $ | 352,789 | $ | 327,948 | ||||||||||
Cost of revenue (1) | 26,319 | 30,508 | 37,712 | 79,171 | 72,455 | |||||||||||||||
Gross margin | 81,268 | 113,321 | 116,644 | 273,618 | 255,493 | |||||||||||||||
Percentage of revenue | 76 | % | 79 | % | 76 | % | 78 | % | 78 | % | ||||||||||
Research, development, and engineering expenses (1) | 16,977 | 18,302 | 17,532 | 52,265 | 41,625 | |||||||||||||||
Percentage of revenue | 16 | % | 13 | % | 11 | % | 15 | % | 13 | % | ||||||||||
Selling, general, and administrative expenses (1) | 35,806 | 43,241 | 43,773 | 118,980 | 111,103 | |||||||||||||||
Percentage of revenue | 33 | % | 30 | % | 28 | % | 34 | % | 34 | % | ||||||||||
Operating income | 28,485 | 51,778 | 55,339 | 102,373 | 102,765 | |||||||||||||||
Percentage of revenue | 26 | % | 36 | % | 36 | % | 29 | % | 31 | % | ||||||||||
Foreign currency gain (loss) | (40 | ) | (39 | ) | 794 | 580 | 610 | |||||||||||||
Investment and other income | 818 | 902 | 978 | 2,260 | 2,218 | |||||||||||||||
Income from continuing operations before income tax expense | 29,263 | 52,641 | 57,111 | 105,213 | 105,593 | |||||||||||||||
Income tax expense on continuing operations | 3,441 | 9,125 | 9,430 | 16,403 | 17,422 | |||||||||||||||
Income from continuing operations, net | 25,822 | 43,516 | 47,681 | 88,810 | 88,171 | |||||||||||||||
Percentage of revenue | 24 | % | 30 | % | 31 | % | 25 | % | 27 | % | ||||||||||
Income from discontinued operations, net (1) | 78,290 | 198 | 2,719 | 79,518 | 6,683 | |||||||||||||||
Net income | $ | 104,112 | $ | 43,714 | $ | 50,400 | $ | 168,328 | $ | 94,854 | ||||||||||
Basic earnings per weighted-average common and common-equivalent share: | ||||||||||||||||||||
Income from continuing operations | $ | 0.30 | $ | 0.50 | $ | 0.55 | $ | 1.02 | $ | 1.01 | ||||||||||
Income from discontinued operations | 0.91 | - | 0.03 | 0.92 | 0.08 | |||||||||||||||
Net income | $ | 1.21 | $ | 0.50 | $ | 0.58 | $ | 1.94 | $ | 1.09 | ||||||||||
Diluted earnings per weighted-average common and common-equivalent share: | ||||||||||||||||||||
Income from continuing operations | $ | 0.29 | $ | 0.49 | $ | 0.53 | $ | 1.00 | $ | 0.99 | ||||||||||
Income from discontinued operations | 0.90 | - | 0.04 | 0.90 | 0.07 | |||||||||||||||
Net income | $ | 1.19 | $ | 0.49 | $ | 0.57 | $ | 1.90 | $ | 1.06 | ||||||||||
Weighted-average common and common-equivalent shares outstanding: | ||||||||||||||||||||
Basic | 86,303 | 87,199 | 86,963 | 86,756 | 86,875 | |||||||||||||||
Diluted | 87,776 | 89,185 | 89,167 | 88,559 | 89,145 | |||||||||||||||
Cash dividends per common share | $ | 0.07 | $ | 0.07 | $ | - | $ | 0.14 | $ | - | ||||||||||
Cash and investments per common share | $ | 6.99 | $ | 5.96 | $ | 5.71 | $ | 6.99 | $ | 5.71 | ||||||||||
Book value per common share | $ | 9.58 | $ | 9.11 | $ | 8.43 | $ | 9.58 | $ | 8.43 | ||||||||||
(1) Amounts include stock option expense, as follows: |
||||||||||||||||||||
Cost of revenue | $ | 351 | $ | 349 | $ | 253 | $ | 1,167 | $ | 866 | ||||||||||
Research, development, and engineering | 1,130 | 1,153 | 836 | 4,097 | 2,803 | |||||||||||||||
Selling, general, and administrative | 2,906 | 2,985 | 1,978 | 10,273 | 6,803 | |||||||||||||||
Discontinued operations | 1,106 | 144 | 231 | 1,533 | 786 | |||||||||||||||
Total stock option expense | $ | 5,493 | $ | 4,631 | $ | 3,298 | $ | 17,070 | $ | 11,258 | ||||||||||
Exhibit 2 |
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COGNEX CORPORATION | ||||||||||||||||||||
Reconciliation of Selected Items from GAAP to Non-GAAP | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Dollars in thousands | ||||||||||||||||||||
Three-months Ended | Nine-months Ended | |||||||||||||||||||
October 4, | July 5, | September 28, | October 4, | September 28, | ||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Adjustment for stock option expense | ||||||||||||||||||||
Operating income (GAAP) | $ | 28,485 | $ | 51,778 | $ | 55,339 | $ | 102,373 | $ | 102,765 | ||||||||||
Stock option expense related to continuing operations | 4,387 | 4,487 |
|
3,067 | 15,537 | 10,472 | ||||||||||||||
Operating income (Non-GAAP) | $ | 32,872 | $ | 56,265 | $ | 58,406 | $ | 117,910 | $ | 113,237 | ||||||||||
Percentage of revenue (Non-GAAP) | 31 | % | 39 | % | 38 | % | 33 | % | 35 | % | ||||||||||
Exclusion of tax adjustments | ||||||||||||||||||||
Income from continuing operations before income tax expense (GAAP) | $ | 29,263 | $ | 52,641 | $ | 57,111 | $ | 105,213 | $ | 105,593 | ||||||||||
Income tax expense (GAAP) | $ | 3,441 | $ | 9,125 | $ | 9,430 | $ | 16,403 | $ | 17,422 | ||||||||||
Effective tax rate (GAAP) | 12 | % | 17 | % | 16 | % | 15 | % | 16 | % | ||||||||||
Tax adjustments: | ||||||||||||||||||||
Discrete tax events | (1,604 | ) | (47 | ) | (869 | ) | (2,015 | ) | (1,287 | ) | ||||||||||
Income tax expense excluding tax adjustments (Non-GAAP) | $ | 5,045 | $ | 9,172 | $ | 10,299 | $ | 18,418 | $ | 18,709 | ||||||||||
Effective tax rate (Non-GAAP) | 17 | % | 17 | % | 18 | % | 18 | % | 18 | % | ||||||||||
Income from continuing operations excluding tax adjustments (Non-GAAP) | $ | 24,218 | $ | 43,469 | $ | 46,812 | $ | 86,795 | $ | 86,884 | ||||||||||
Percentage of revenue (Non-GAAP) | 23 | % | 30 | % | 30 | % | 25 | % | 26 | % | ||||||||||
Currency impact on revenue and expenses | ||||||||||||||||||||
Change | Impact of | Change | ||||||||||||||||||
from Q3 2014 | Currency | from Q3 2014 | ||||||||||||||||||
(GAAP) | in Q3 2015 | (Non-GAAP) | ||||||||||||||||||
Revenue | -30 | % | -3 | % | -27 | % | ||||||||||||||
Research, development, and engineering expenses | -3 | % | -4 | % | 1 | % | ||||||||||||||
Selling, general, and administrative expenses | -18 | % | -6 | % | -12 | % | ||||||||||||||
Change | Impact of | Change | ||||||||||||||||||
from Q2 2015 | Currency | from Q2 2015 | ||||||||||||||||||
(GAAP) | in Q3 2015 |
|
(Non-GAAP) | |||||||||||||||||
Revenue | -25 | % | 0 | % | -25 | % | ||||||||||||||
Research, development, and engineering expenses | -7 | % | 0 | % | -7 | % | ||||||||||||||
Selling, general, and administrative expenses | -17 | % | 0 | % | -17 | % | ||||||||||||||
Exhibit 3 |
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COGNEX CORPORATION | ||||||
Balance Sheets | ||||||
(Unaudited) | ||||||
Dollars in thousands | ||||||
October 4, | December 31, | |||||
2015 | 2014 | |||||
Assets | ||||||
Cash and investments | $ | 592,651 | $ | 546,995 | ||
Accounts receivable | 71,012 | 40,053 | ||||
Inventories | 39,841 | 29,223 | ||||
Property, plant, and equipment | 51,105 | 45,963 | ||||
Goodwill and intangible assets | 88,809 | 87,058 | ||||
Held for sale assets | - | 29,814 | ||||
Other assets | 43,982 | 42,628 | ||||
Total assets | $ | 887,400 | $ | 821,734 | ||
Liabilities and Shareholders' Equity | ||||||
Accounts payable and accrued liabilities | $ | 42,897 | $ | 52,837 | ||
Income taxes | 13,547 | 5,671 | ||||
Deferred revenue and customer deposits | 15,311 | 14,598 | ||||
Held for sale liabilities | - | 12,191 | ||||
Other liabilities | 2,852 | - | ||||
Shareholders' equity | 812,793 | 736,437 | ||||
Total liabilities and shareholders' equity | $ | 887,400 | $ | 821,734 | ||
Exhibit 4 |
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COGNEX CORPORATION | ||||||||||||||||||||
Additional Information Schedule | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Dollars in thousands, except per share amounts | ||||||||||||||||||||
Three-months Ended | Nine-months Ended | |||||||||||||||||||
October 4, | July 5, | September 28, | October 4, | September 28, | ||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Revenue | $ | 107,587 | $ | 143,829 | $ | 154,356 | $ | 352,789 | $ | 327,948 | ||||||||||
Revenue by geography: | ||||||||||||||||||||
Europe | 41 | % | 56 | % | 62 | % | 47 | % | 48 | % | ||||||||||
Americas | 32 | % | 24 | % | 21 | % | 29 | % | 30 | % | ||||||||||
Asia | 21 | % | 15 | % | 11 | % | 18 | % | 14 | % | ||||||||||
Japan | 6 | % | 5 | % | 6 | % | 6 | % | 8 | % | ||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
Revenue by market: | ||||||||||||||||||||
Factory automation | 95 | % | 95 | % | 95 | % | 95 | % | 93 | % | ||||||||||
Semiconductor and electronics capital equipment | 5 | % | 5 | % | 5 | % | 5 | % | 7 | % | ||||||||||
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 |
CONTACT:
Cognex Corporation
Susan Conway, 508-650-3353
Senior
Director of Investor Relations
susan.conway@cognex.com