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Cognex unveils record second quarter figures

  • By Neil Martin
  • News
Cognex Office

Machine vision giant Cognex (NATICK, Mass., US) has announced an impressive set of second quarter figures, a record for the NASDAQ quoted company.

Its financial results for the second quarter of 2017 (ended 2 July, 2017) shows revenue at $173m for Q2-17, up 17% from Q2-16 and 28% from Q1-17.

Net income for the quarter, for continuing operations, was $56m, compared to the prior year’s quarter Q2-16 of $43m.

Growth year-on-year across a number of industries was partially offset by lower revenue from the consumer electronics industry. On a sequential basis, the largest contributions came from consumer electronics and logistics.

Gross margin was 78% for Q2-17, 76% for Q2-16 and 79% for Q1-17. It increased year-on-year due to cost efficiencies related to higher sales volume and an inventory charge in Q2-16 that did not repeat.

RD&E expenses increased 19% from Q2-16 and 3% from Q1-17. They increased both year-on-year and sequentially due to higher employee-related costs, including the addition of new engineering personnel from the company’s recent acquisitions.

As for the balance sheet, as of 2 July, Cognex had $765m in cash and investments, and no debt.

Founder and Chairman of Cognex Dr Robert J Shillman said: “What a great quarter! The highest quarterly revenue in Cognex’s 36-year history came from growth across the broad factory automation market. Equally important is that we also set a new, and ridiculously high, level of profit.”

Chief Executive Officer of Cognex Robert J Willett said: “Activity at Cognex is at a higher level now than ever before. We are seeing strong demand across a broad range of geographies and markets. It is very gratifying to see that our investments in engineering and sales continue to pay off.”

In terms of future guidance, revenue for Q3-17 is expected to be between $250m and $260m.

In its official statement, the company said regarding its guidance: “This range represents a substantial increase both year-on-year and sequentially due to higher anticipated revenue from the consumer electronics industry. Cognex believes that the majority of larger consumer electronics orders in 2017 will be recognized as revenue in Q3 as compared to 2016, when they were more evenly split between Q2 and Q3.

“Gross margin is expected to be in the mid-to-high 70% range, closer to the midpoint of the range as compared to the higher end reported in Q2-17. Operating expenses are expected to increase by approximately 10% on a sequential basis due to continued investments in growth activities and costs associated with the company’s recent acquisitions.”