Cognex reports third quarter results; Machine vision company records charge against third quarter earnings.NATICK Natick (nā`tĭk), town (1990 pop. 30,510), Middlesex co., E Mass., a residential and industrial suburb of Boston, on Lake Cochituate; founded as a Native American village by John Eliot 1651, settled by colonial Americans 1718, inc. 1781. , Mass.--(BUSINESS WIRE)--Oct. 15, 1996--Cognex Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CGNX) today announced revenue for the third quarter ended September September: see month. 29, 1996 of $26,540,000, an 11% decrease from the third quarter of 1995 of $29,784,000. Net income for the third quarter ended September 29, 1996 increased to $3,244,000, or $0.08 per share, compared to a loss of $633,000, or $0.02 per share, for the third quarter of 1995. Excluding an inventory charge in the third quarter of 1996 and a non-recurring charge associated with the Acumen acquisition in the third quarter of 1995, net income would have decreased 35%. Revenue for the nine months ended September 29, 1996 was $96,376,000, an increase of 32% compared with $72,943,000 for the same nine-month period a year ago. For the nine months ended September 29, 1996, Cognex Cog·nex A trademark for the drug tacrine hydrochloride. tacrine hydrochloride Cognex Pharmacologic class: Cholinergic (cholinesterase inhibitor) Therapeutic class: reported net income of $24,207,000, or $0.55 per share, compared to $12,481,000, or $0.30 per share, for the comparable period a year ago. Excluding the inventory charge in the third quarter of 1996 and the Acumen-related, non-recurring charge in the third quarter of 1995, net income would have increased 20%. Results for the quarter and nine months ended September 29, 1996 include an inventory charge of $4,231,000 in "Cost of Goods Sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold ." This charge is due primarily to the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the semiconductor and electronics industries, and reflects anticipated costs of excess inventory levels resulting from reduced production plans caused by the slowdown and product transition plans over the next year. The charge reduced the gross margin for the quarter and nine months ended September 29, 1996 by 16 percentage points and 4 percentage points, respectively, to a gross margin of 54% and 68%, respectively. The charge reduced net income by $2,940,000, or $0.06 per share, for the quarter ended September 29, 1996. "The slowdown in the semiconductor and electronics industries has dramatically impacted our results in the third quarter. The slowdown continues to make it difficult to predict business, and the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. outlook for these industries remains uncertain," said John J. Rogers, Jr., Cognex's Chief Financial Officer. "We have taken cost reduction measures, such as reducing our planned hiring and capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. along with delaying occupancy of our new 50,000 square-foot addition to our headquarters. The long- term outlook for machine vision remains positive and we expect to resume our hiring and spending plans once we see renewed growth." Cognex Corporation Cognex Corporation is an American corporation that manufactures commercial machine vision systems. Cognex is the world leader in its field, holding an array of patents and employing academic experts. designs, develops, manufactures, and markets machine vision systems, or computers that can "see," which are used to automate To turn a set of manual steps into an operation that goes by itself. See automation. a wide range of manufacturing processes where vision is required. Cognex is the world's leader in the machine vision industry, having shipped to date more than 50,000 machine vision systems valued in excess of $441 million. In addition to its headquarters in Natick, Massachusetts Natick (Pronunciation IPA: /ˈneɪtɪk/) is a town in Middlesex County, Massachusetts, United States. Natick is located near the center of the MetroWest region of Massachusetts, with a population of 32,170 at the , the company has remote offices located throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Japan, Europe, and Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. . In addition, Cognex has two wholly-owned subsidiaries: Acumen, based in Portland, Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , which specializes in machine vision systems for automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. product identification, and Isys Controls, based in Alameda, California Alameda is a city in Alameda County, California, United States. It is located on a small island of the same name next to Oakland, California in the San Francisco Bay. An additional part of the city is Bay Farm Island, which is adjacent to the Oakland International Airport. , which specializes in automated, high-speed surface inspection. -0-
COGNEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
Sept. 29, Oct. 1, Sept. 29, Oct. 1,
1996 1995 1996 1995
(unaudited) (unaudited)
Revenue $26,540 $29,784 $96,376 $72,943
Cost of revenue 12,297 6,535 31,094 15,723
Gross margin 14,243 23,249 65,282 57,220
Research, development
and engineering
expenses 4,978 3,495 14,538 9,284
Selling, general and
administrative
expenses 6,352 6,335 19,571 17,216
Charge for acquired
in-process technology 10,189 10,189
Income from operations 2,913 3,230 31,173 20,531
Other income 1,314 598 3,657 1,898
Income before provision
for income taxes 4,227 3,828 34,830 22,429
Provision for
income taxes 983 4,461 10,623 9,948
Net income $3,244 $(633) $24,207 $12,481
Net income per share $ .08 $(.02) $ .55 $ .30
Weighted average
common shares
outstanding 43,203 38,192 43,854 41,576
-0-
COGNEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
ASSETS
Sept. 29, Dec. 31
1996 1995
(unaudited)
Current assets:
Cash and investments $125,815 $90,640
Accounts receivable 16,908 24,312
Inventories 8,251 12,567
Prepaid expenses and
other current assets 11,899 8,274
Total current assets 162,873 135,793
Property, plant and equipment, net 26,260 22,133
Other assets 3,803 4,246
$192,936 $162,172
LIABILITIES AND STOCKHOLDERS' EQUITY
Sept. 29, Dec. 31,
1996 1995
(unaudited)
Current liabilities:
Deferred revenue
and customer deposits $ 3,334 $ 1,172
Accrued expenses and
other current liabilities 11,906 15,219
Total current liabilities 15,240 16,391
Other liabilities 1,646 1,865
Stockholders' equity:
Common stock, $.002 par value -
Authorized: 120,000,000 shares,
issued: 40,845,776 and 39,039,675
shares in 1996 and 1995,
respectively 82 78
Additional paid-in capital 77,140 71,171
Cumulative translation adjustment 47 40
Retained earnings 99,670 73,516
Treasury stock, at cost, 80,918
shares in 1996 and 1995 (889) (889)
Total stockholders' equity 176,050 143,916
$192,936 $162,172
CONTACT: Cognex Corporation Susan Conway Susan Conway Mitchell (b. 13 October 1952, Toronto) is a Canadian actress. Filmography Television series
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