Machine Vision Company Surpasses $1 Billion of Annual Acquirement for the Starting time Time
NATICK, Mass.–(Business WIRE)–Cognex Corporation (NASDAQ: CGNX) today announced that for the year ended December 31, 2021, the visitor set records for annual acquirement, cyberspace income, and net income per share from continuing operations. The company also set a tape for fourth quarter revenue. Table 1 beneath shows selected financial information for Q4-21 compared with Q4-twenty and Q3-21, and the year concluded December 31, 2021 compared with the year ended December 31, 2020.
|
(Dollars in thousands, except per share amounts) |
||||
|
|
|
Net Income per Diluted
|
Non-GAAP Cyberspace Income per Diluted
|
|
|
|
||||
|
Current quarter: Q4-21 |
$244,065 |
$53,535 |
$0.xxx |
$0.thirty |
|
Prior year’s quarter: Q4-20 |
$223,615 |
$69,345 |
$0.39 |
$0.32 |
|
Change: Q4-20 to Q4-21 |
9% |
(23)% |
(23)% |
(vi)% |
|
Prior quarter: Q3-21 |
$284,848 |
$78,900 |
$0.44 |
$0.forty |
|
Change: Q3-21 to Q4-21 |
(14)% |
(32)% |
(32)% |
(25)% |
|
|
||||
|
Yr ended December 31, 2021 |
$one,037,098 |
$279,881 |
$1.56 |
$i.fifty |
|
Twelvemonth concluded December 31, 2020 |
$811,020 |
$176,186 |
$1.00 |
$1.09 |
|
Change from 2020 to 2021 |
28% |
59% |
56% |
38% |
*Not-GAAP net income per diluted share excludes restructuring and other charges that occurred predominantly in Q2-20, and detached tax adjustments. A reconciliation from GAAP to Non-GAAP is shown in Exhibit ii of this news release.
“We are proud to report our first billion-dollar acquirement year in 2021 and new annual records for net income and earnings per share. These achievements were the result of wide-based demand for Cognex products and the hard piece of work of Cognoids around the world,” said Robert J. Willett, Chief Executive Officeholder of Cognex. “We celebrate our success while staying focused on the long term,” continued Willett. “Nosotros believe the trends driving the adoption of machine vision engineering science are stronger than ever as manufacturers look to automate a broadening range of industrial tasks.”
Summary of the Year
Cognex reported record revenue of $1.037 billion in 2021—representing an increase of 28% over 2020, which was a year defined by meaning disruption in the global economic system post-obit the COVID-19 outbreak (2021 revenue grew by 43% over 2019). The company performed well in multiple end markets, including logistics, which grew by approximately 65% year-on-year and became the company’s largest finish market for the first time in 2021. Cognex also experienced the impact of a business recovery in the broader factory automation market, most noticeably the automotive industry. An exception was consumer electronics, where revenue was modestly lower following a substantial investment year in 2020.
Operating income on a GAAP footing was thirty% of acquirement compared to 21% for 2020. The increase was due to the operating leverage that incremental acquirement has on the company’s profitability and substantial restructuring and other charges in 2020 brought about past the pandemic. The operating leverage in 2021 was partially beginning by elevated costs resulting from global supply chain constraints, a less favorable revenue mix, higher incentive compensation, the affect of foreign currency exchange rates, and additional headcount to back up the company’s growth plans.
Consistent with the visitor’s conventionalities that investing in technology remains key to its long-term success, Cognex invested a record $135 million, or 13% of revenue, in RD&E during 2021. Cognex likewise continued to expand its worldwide sales force and invested in business systems related to its sales process that the company believes will assistance it scale for future growth.
Details of the Quarter
Statement of Operations Highlights – Fourth Quarter of 2021
- Cognex reported tape fourth-quarter acquirement of $244 one thousand thousand for 2021. Revenue increased by 9% from Q4-20 and decreased 14% from Q3-21. As expected, growth in logistics, automotive, and many other markets on a year-on-year basis was partially offset by lower revenue from customers in consumer electronics. The sequential decrease was due to the timing of revenue from consumer electronics and lower sales to customers in logistics from a tape quarter in Q3-21.
- Gross margin was 72% for Q4-21, 75% for Q4-20, and 70% for Q3-21. Cognex experienced higher supply chain costs in Q4-21 compared to both Q4-xx and Q3-21 due to global component shortages. A more than favorable revenue mix in Q4-21 get-go these higher costs on a sequential basis.
- Inquiry, Evolution, & Engineering (RD&E) expenses increased by 3% from both Q4-20 and Q3-21. The increase in RD&E spending year-on-year was due to the visitor’s investment in applied science resources. The increase on a sequential ground was due to the timing of product development activities.
- Selling, General & Authoritative (SG&A) expenses increased by 12% from Q4-twenty and 8% from Q3-21. SG&A spending increased yr-on-year and sequentially due to expenses related to acquirement growth in 2021 and additional sales headcount, including higher sales commissions and travel costs. Higher spending on marketing programs also contributed to the increase over Q4-twenty.
-
The effective revenue enhancement rate was an expense of 8% in Q4-21, a benefit of 7% in Q4-20, and an expense of 11% in Q3-21. The effective revenue enhancement rate was 8% in Q4-21, 14% in Q4-20, and 18% in Q3-21 excluding the discrete revenue enhancement adjustments summarized in Exhibit 2.
The decrease on both a year-on-year and sequential footing was due to a true-upwardly of the 2021 almanac tax rate in Q4-21 to xvi% from 18%.
Rest Canvass Highlights – December 31, 2021
-
Cognex’s financial position every bit of December 31, 2021
continued to exist potent, with $907 million in greenbacks and investments and no debt. In 2021, Cognex generated $314 million in cash from operations and $63 million in cyberspace proceeds from the exercise of stock options. In add-on, the visitor spent $162 million to repurchase its common stock and paid $43 million in dividends to shareholders. Cognex intends to proceed to repurchase shares of its common stock pursuant to its existing stock repurchase program, subject to marketplace conditions and other relevant factors.
- Inventories at December 31, 2021 increased by $52 million, or 86%, from the end of 2020 to support customers and the company’s higher business organisation level and to replenish strategic inventory balances.
Financial Outlook – Q1 2022
- Cognex believes revenue in Q1-22 will be betwixt $265 million and $285 one thousand thousand, which at the mid-bespeak represents low double-digit growth over Q4-21. As of the date of this release, the company has been experiencing strong demand from the logistics marketplace and improvements in delivery lead times.
- Gross margin for Q1-22 is expected to be in the low-70% range, which is similar to the level reported in Q4-21.
- Operating expenses are expected to be relatively apartment with Q4-21.
- The constructive tax rate is expected to be 17%, excluding discrete revenue enhancement items.
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 not-GAAP financial measures are helpful because they let 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’south operating results. Not-GAAP presentations exclude certain one-time detached events, such as discrete tax adjustments (considering these costs are outside of Cognex’s normal business operations and not used past management to assess Cognex’s operating results). Additionally, the company excludes restructuring charges, intangible nugget impairment charges, and excess and obsolete inventory charges considering these charges effect from discrete activities, such as specific restructuring deportment or acquisitions, that management frequently excludes in evaluating Cognex’southward operating results. Cognex does not intend for non-GAAP financial measures to be considered in isolation, or as a substitute for financial information provided in accord with GAAP.
- Nosotros estimate the tax effect of items identified in the reconciliation past applying the effective tax rate to the pre-tax amount. However, if a specific tax charge per unit or taxation handling is required because of the nature of the item and/or the tax jurisdiction where the item was recorded, we estimate the taxation issue by applying the relevant specific tax charge per unit or taxation treatment, rather than the effective tax rate.
Analyst Briefing Call and Simultaneous Webcast
- Cognex will host a conference telephone call today at 5:00 p.1000. Eastern Standard Fourth dimension (EST). The telephone number is (877) 704-4573 (or (201) 389-0911 if exterior the Us). A replay will begin at 8:00 p.m. EST today and will be available until 11:59 p.one thousand. EST on Sun, February twenty, 2022. The telephone number for the replay is (877) 660-6853 (or (201) 612-7415 if outside the United States). The admission code for both the live call and the replay is 13725807.
- A existent-time audio broadcast of the conference call or an archived recording will exist accessible on the Events & Presentations folio of the Cognex Investor website: https://www.cognex.com/Investor.
About Cognex Corporation
Cognex Corporation designs, develops, manufactures, and markets a wide range of epitome-based products, all of which use artificial intelligence (AI) techniques that give them the human-like power to brand decisions on what they see. Cognex products include machine vision systems, motorcar vision sensors, and barcode readers that are used in factories and distribution centers around the world where they eliminate production and shipping errors.
Cognex is the world’due south leader in the machine vision manufacture, having shipped more than iii million image-based products, representing over $9 billion in cumulative revenue, since the company’south founding in 1981. Headquartered in Natick, Massachusetts, Usa, Cognex has offices and distributors located throughout the Americas, Europe, and Asia. For details, visit Cognex online at www.cognex.com.
Certain statements made in this news release, which do not chronicle solely to historical matters, are forwards-looking statements. These statements can exist identified by apply 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 statements are based on our current estimates and expectations as to prospective events and circumstances, which may or may not be in our control and as to which in that location can be no firm assurances given. These forward-looking statements, which include statements regarding concern and market trends, future fiscal performance, the expected bear upon of the COVID-19 pandemic on our assets, business and results of operations, client demand and club rates and timing of related revenue, managing supply shortages, delivery lead times, time to come production mix, research and development activities, sales and marketing activities, new product offerings, capital expenditures, investments, liquidity, dividends and stock repurchases, strategic and growth plans, and estimated tax benefits and expenses and other tax matters, 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 reliance on fundamental suppliers to manufacture and deliver quality products; (2) the inability to obtain components for our products; (3) the failure to effectively manage product transitions or accurately forecast customer need; (iv) the ability to manage disruptions to our distribution centers; (5) the disability to blueprint and industry loftier-quality products; (6) the impact, duration, and severity of the COVID-19 pandemic, including the availability and effectiveness of vaccines; (seven) the loss of, or curtailment of purchases by, big customers in the logistics industry; (8) information security breaches; (9) the inability to protect our proprietary technology and intellectual property; (x) the inability to attract and retain skilled employees and maintain our unique corporate culture; (xi) the technological obsolescence of current products and the disability to develop new products; (12) the failure to properly manage the distribution of products and services; (thirteen) the bear upon of competitive pressures; (14) the challenges in integrating and achieving expected results from acquired businesses; (15) potential disruptions in our business concern systems; (xvi) potential impairment charges with respect to our investments or acquired intangible avails; (17) exposure to additional taxation liabilities; (18) fluctuations in foreign currency substitution rates and the use of derivative instruments; (nineteen) unfavorable global economic weather; (20) business organization disruptions from natural or homo-made disasters or public health bug; (21) economical, political, and other risks associated with international sales and operations; and (22) our interest in time-consuming and plush litigation; and the other risks detailed in Cognex reports filed with the SEC, including its Course ten-Chiliad for the fiscal year ended December 31, 2021. You should not place undue reliance upon whatsoever such forward-looking statements, which speak merely as of the engagement made. Cognex disclaims whatever obligation to update frontwards-looking statements after the date of such statements.
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|
||||||||||||||||||||
|
COGNEX CORPORATION Statements of Operations (Unaudited) Dollars in thousands, except per share amounts |
||||||||||||||||||||
|
3-months Ended |
Twelve-months Concluded |
|||||||||||||||||||
|
December. 31, 2021 |
Oct. three, 2021 |
Dec. 31, 2020 |
Dec. 31, 2021 |
Dec. 31, 2020 |
||||||||||||||||
|
Revenue |
$ |
244,065 |
$ |
284,848 |
$ |
223,615 |
$ |
1,037,098 |
$ |
811,020 |
||||||||||
|
Cost of revenue (1) |
69,082 |
85,712 |
55,160 |
277,271 |
206,421 |
|||||||||||||||
|
Gross margin |
174,983 |
199,136 |
168,455 |
759,827 |
604,599 |
|||||||||||||||
|
Percentage of revenue |
|
|
lxx |
% |
75 |
% |
|
|
75 |
% |
||||||||||
|
Research, evolution, and engineering expenses (one) |
35,489 |
34,476 |
34,399 |
135,372 |
130,982 |
|||||||||||||||
|
Percent of revenue |
|
|
12 |
% |
15 |
% |
|
|
16 |
% |
||||||||||
|
Selling, general, and authoritative expenses (one) |
82,974 |
77,113 |
74,096 |
309,354 |
267,593 |
|||||||||||||||
|
Percentage of revenue |
|
|
27 |
% |
33 |
% |
|
|
33 |
% |
||||||||||
|
Restructuring charges |
— |
— |
875 |
— |
15,924 |
|||||||||||||||
|
Intangible asset impairment charges |
— |
— |
— |
— |
19,571 |
|||||||||||||||
|
Operating income |
56,520 |
87,547 |
59,085 |
315,101 |
170,529 |
|||||||||||||||
|
Percentage of revenue |
|
|
31 |
% |
26 |
% |
|
|
21 |
% |
||||||||||
|
Foreign currency proceeds (loss) |
(37 |
) |
(586 |
) |
4,007 |
(ii,270 |
) |
3,697 |
||||||||||||
|
Investment and other income |
one,464 |
1,623 |
one,828 |
half-dozen,069 |
12,685 |
|||||||||||||||
|
Income earlier income tax expense (benefit) |
57,947 |
88,584 |
64,920 |
318,900 |
186,911 |
|||||||||||||||
|
Income tax expense (benefit) |
four,412 |
ix,684 |
(4,425 |
) |
39,019 |
x,725 |
||||||||||||||
|
Net income |
$ |
53,535 |
$ |
78,900 |
$ |
69,345 |
$ |
279,881 |
$ |
176,186 |
||||||||||
|
Percentage of revenue |
|
|
28 |
% |
31 |
% |
|
|
22 |
% |
||||||||||
|
Net income per weighted-average common and common-equivalent share: |
||||||||||||||||||||
|
Bones |
$ |
0.30 |
$ |
0.45 |
$ |
0.xl |
$ |
one.59 |
$ |
1.02 |
||||||||||
|
Diluted |
$ |
0.30 |
$ |
0.44 |
$ |
0.39 |
$ |
1.56 |
$ |
1.00 |
||||||||||
|
Weighted-average common and common-equivalent shares outstanding: |
||||||||||||||||||||
|
Bones |
176,123 |
176,812 |
175,220 |
176,463 |
173,489 |
|||||||||||||||
|
Diluted |
179,322 |
180,342 |
178,590 |
179,916 |
176,592 |
|||||||||||||||
|
Greenbacks dividends per common share |
$ |
0.065 |
$ |
0.060 |
$ |
ii.060 |
$ |
0.245 |
$ |
2.225 |
||||||||||
|
Greenbacks and investments per common share |
$ |
5.17 |
$ |
5.57 |
$ |
4.37 |
$ |
5.17 |
$ |
4.37 |
||||||||||
|
Book value per mutual share |
$ |
eight.xv |
$ |
eight.44 |
$ |
7.eighteen |
$ |
viii.15 |
$ |
7.18 |
||||||||||
|
(1) Amounts include stock-based compensation expense, equally follows: |
||||||||||||||||||||
|
Toll of revenue |
$ |
380 |
$ |
366 |
$ |
324 |
$ |
1,345 |
$ |
i,365 |
||||||||||
|
Research, development, and technology |
3,377 |
3,091 |
2,805 |
13,535 |
thirteen,387 |
|||||||||||||||
|
Selling, general, and authoritative |
6,664 |
seven,157 |
7,456 |
28,894 |
27,909 |
|||||||||||||||
|
Full stock-based compensation expense |
$ |
10,421 |
$ |
10,614 |
$ |
10,585 |
$ |
43,774 |
$ |
42,661 |
||||||||||
|
Showroom 2 |
|||||||||||||||||||||
|
COGNEX CORPORATION Reconciliation of Selected Items from GAAP to Non-GAAP (Unaudited) Dollars in thousands, except per share amounts |
|||||||||||||||||||||
|
Three-months Ended |
Twelve-months Ended |
||||||||||||||||||||
|
Dec. 31, 2021 |
Oct. 3, 2021 |
Dec. 31, 2020 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||||||||||||||
|
Discrete tax adjustments reconciliation |
|||||||||||||||||||||
|
Income earlier income tax expense (benefit) (GAAP) |
$ |
57,947 |
$ |
88,584 |
$ |
64,920 |
$ |
318,900 |
$ |
186,911 |
|||||||||||
|
Income taxation expense (benefit) (GAAP) |
$ |
iv,412 |
$ |
ix,684 |
$ |
(4,425 |
) |
$ |
39,019 |
$ |
10,725 |
||||||||||
|
Effective taxation charge per unit (GAAP) |
|
|
11 |
% |
(7 |
)% |
|
|
6 |
% |
|||||||||||
|
Discrete taxation benefit related to stock-based compensation |
one,148 |
3,250 |
ii,342 |
11,036 |
12,788 |
||||||||||||||||
|
Discrete taxation benefit (expense) related to tax return filings and other |
(one,173 |
) |
three,012 |
eleven,441 |
i,304 |
7,803 |
|||||||||||||||
|
Total discrete tax adjustments |
$ |
(25 |
) |
$ |
six,262 |
$ |
13,783 |
$ |
12,340 |
$ |
20,591 |
||||||||||
|
Income tax expense (Non-GAAP) |
$ |
4,387 |
$ |
15,946 |
$ |
nine,358 |
$ |
51,359 |
$ |
31,316 |
|||||||||||
|
Constructive taxation rate (Non-GAAP) |
|
|
xviii |
% |
xiv |
% |
|
|
17 |
% |
|||||||||||
|
Three-months Ended |
Twelve-months Ended |
||||||||||||||||||||
|
Dec. 31, 2021 |
Oct. 3, 2021 |
Dec. 31, 2020 |
Dec. 31, 2021 |
December. 31, 2020 |
|||||||||||||||||
|
Restructuring and other charges and discrete revenue enhancement adjustments reconciliation |
|||||||||||||||||||||
|
Net income (GAAP) |
$ |
53,535 |
$ |
78,900 |
$ |
69,345 |
$ |
279,881 |
$ |
176,186 |
|||||||||||
|
Excess and obsolete inventory charges |
453 |
303 |
522 |
2,573 |
nine,908 |
||||||||||||||||
|
Restructuring charges |
— |
— |
875 |
— |
15,924 |
||||||||||||||||
|
Intangible asset harm charges |
— |
— |
— |
— |
19,571 |
||||||||||||||||
|
Tax result on restructuring and other charges |
(36 |
) |
(55 |
) |
(196 |
) |
(412 |
) |
(seven,719 |
) |
|||||||||||
|
Discrete tax adjustments |
25 |
(vi,262 |
) |
(13,783 |
) |
(12,340 |
) |
(20,591 |
) |
||||||||||||
|
Net income (Non-GAAP) |
$ |
53,977 |
$ |
72,886 |
$ |
56,763 |
$ |
269,702 |
$ |
193,279 |
|||||||||||
|
Percentage of revenue (Non-GAAP) |
|
|
26 |
% |
25 |
% |
|
|
24 |
% |
|||||||||||
|
Internet income per diluted weighted-average common and common-equivalent share (GAAP) |
$ |
0.30 |
$ |
0.44 |
$ |
0.39 |
$ |
i.56 |
$ |
1.00 |
|||||||||||
|
Per share impact of non-GAAP adjustments identified higher up |
— |
(0.04 |
) |
(0.07 |
) |
(0.06 |
) |
0.09 |
|||||||||||||
|
Cyberspace income per diluted weighted-boilerplate common and common-equivalent share (Non-GAAP) |
$ |
0.30 |
$ |
0.40 |
$ |
0.32 |
$ |
i.50 |
$ |
i.09 |
|||||||||||
|
Diluted weighted-average common and mutual-equivalent shares outstanding |
179,322 |
180,342 |
178,590 |
179,916 |
176,592 |
||||||||||||||||
|
Exhibit 3 |
||||||
|
COGNEX CORPORATION Balance Sheets (Unaudited) Dollars in thousands |
||||||
|
December 31, 2021 |
December 31, 2020 |
|||||
|
Assets |
||||||
|
Cash and investments |
$ |
907,364 |
$ |
767,438 |
||
|
Accounts receivable |
130,348 |
125,696 |
||||
|
Inventories |
113,102 |
60,830 |
||||
|
Property, found, and equipment |
77,546 |
79,173 |
||||
|
Operating lease assets |
23,157 |
22,582 |
||||
|
Goodwill and intangible assets |
253,601 |
259,633 |
||||
|
Deferred tax assets |
418,570 |
434,704 |
||||
|
Other assets |
79,974 |
fifty,646 |
||||
|
Total assets |
$ |
2,003,662 |
$ |
1,800,702 |
||
|
Liabilities and Shareholders’ Disinterestedness |
||||||
|
Accounts payable and accrued expenses |
$ |
136,483 |
$ |
93,534 |
||
|
Deferred revenue and customer deposits |
35,743 |
21,274 |
||||
|
Operating lease liabilities |
25,581 |
26,230 |
||||
|
Income taxes |
66,517 |
72,551 |
||||
|
Deferred tax liabilities |
293,769 |
314,952 |
||||
|
Other liabilities |
15,476 |
ix,959 |
||||
|
Shareholders’ equity |
1,430,093 |
one,262,202 |
||||
|
Total liabilities and shareholders’ equity |
$ |
2,003,662 |
$ |
ane,800,702 |
||
Contacts
Source: https://www.dailyhostnews.com/cognex-reports-record-results-for-fiscal-year-2021