Best fire Cognex released its first quarter financ

2022-09-21
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Cognex released its first quarter financial report

Natick County, Massachusetts, USA, April 24, 2006 - Cognex (NASDAQ: CGNX) released its first quarter financial report for 2006 today. As of the end of the first quarter of April 2, 2006, the company's revenue was $59.04 million, net profit was $8.8 million, and diluted earnings per share was 18 cents. The following table lists the comparison between the financial data of this quarter and the financial data of the first and fourth quarters of 2005

Cognex's financial report for the quarter included a pre tax stock option compensation expense of $2.956 million, 5 cents per share. Since the first quarter of 2006, Cognex must include the pre tax stock option compensation expenses in its financial statements. In order to facilitate the comparison between this quarter's financial statements and past financial statements, the company's operation report includes two statements, table 1 (internationally recognized standard accounting principles, or GAAP) and table 2 (non internationally recognized standard accounting principles, or non GAAP). The reconciliation for the quarter ended April 2, 2006 is table 3 (GAAP to non GAAP)

the financial report of this quarter also includes the business of DVT company acquired on May 9, 2005, as well as the amortization expenses related to the acquisition (US $1143000 in the first quarter of 2006)

"although we didn't achieve the expected goal, our company's financial report in the first quarter of 2006 was quite good." Dr. Robert J. shillman, chairman and CEO of Cognex, said, "Our net profit accounts for 15% of our revenue (excluding stock options and compensation expenses, it accounts for 19%) , which shows that we have strong profitability. Compared with the same period last year, revenue and profits have increased significantly. However, compared with the previous quarter, revenue continued to decline and did not meet our expected goal. There are two main reasons for this. One is the decrease in the market revenue of surface inspection system, which we expect; Second, the number of orders in the automotive sector is decreasing. "

Dr. Robert J. shillman continued, "the current situation will not change our view. We still firmly believe that Cognex has long-term potential. In fact, we think the shares of Cognex are attractive. In the first quarter, we invested about $25million to repurchase nearly 879000 shares of the company. We will consider the possibility of further repurchases in the future."

specific report of this quarter

summary of operation report - the first quarter of 2006

· compared with the same period last year, the revenue in the first quarter of 2006 increased by 37%, mainly due to the increase in the revenue of the factory automation market (including the additional revenue of about $5.4 million caused by the acquisition of DVT); In addition, the revenue of semiconductor and electronic capital equipment market increased by 60% compared with the downturn a year ago. However, compared with the last large plastic market, which has been for several 10 quarters, the revenue has continued to decline, with a decline rate of 3%. This is mainly because, first, as we expected, the revenue of the surface inspection system market has decreased, and second, the revenue of the automotive industry has decreased

· the gross profit margin in the first quarter of 2006 was 72%, while the gross profit margin in the first quarter and the fourth quarter of 2005 were 68% and 72% respectively. The operating costs of the first quarter of 2006, the first quarter of 2005 and the fourth quarter included the revenue from the sale of scheduled inventory products, which were $252000, $118000 and $287000 respectively. Excluding this amount and the stock option compensation expenditure of $355000 in the first quarter of 2006, the gross profit margin in the first quarter of 2006 was 72%, and the gross profit margin in the first quarter and the fourth quarter of 2005 were 68% and 71% respectively. The increase in gross profit margin compared with the same period last year is due to the high sales of modular vision systems. The continuous rise of gross profit margin is due to the product portfolio; In the first quarter, the sales of modular vision system products accounted for a higher proportion of revenue than the sales of surface inspection system products

· the expenditure on R & D and Engineering Management (R, D E) in the first quarter of 2006 increased by 25% compared with the first quarter of 2005; Compared with the previous quarter, it increased by 14% (excluding $782000 of stock option compensation expenditure in the first quarter of 2006, with growth rates of 13% and 3% respectively). Compared with the same period last year, the increase in expenditure is due to the marginal cost of absorbing its employees after the acquisition of DVT. There are two reasons for the annual growth of expenditure: one is the high cost related to employees (mainly new employees), and the other is the high cost of external services related to new product development

· the sales, general and administrative expenses (s, GA) in the first quarter of 2006 increased by 36% compared with the first quarter of 2005; Compared with the previous quarter, it increased by 8% (excluding $1.819 million of stock option compensation expenditure in the first quarter of 2006, with growth rates of 25% and 0% respectively). Compared with the same period last year, the increase in expenses is mainly due to the marginal cost brought by the acquisition of DVT company and the company's investment in product sales and marketing

· the company lost 145000 US dollars in foreign currency in the first quarter of 2006, earned 99000 US dollars in foreign currency in the first quarter of 2005, and lost 286000 US dollars in foreign currency in the fourth quarter of 2005. The company believes that due to the different bookkeeping currencies and settlement currencies of accounts receivable and accounts payable balances, the company determines the profit and loss of foreign currencies through revaluation and settlement

· investment and other income in the first quarter of 2006 was $1.566 million, and in the first quarter and fourth quarter of 2005 were $1.47 million and $1.531 million respectively. This increase in investment and other income comes from higher returns

· the effective tax rate in the first quarter of 2006 was 27%, which was an increase from 26% in the first quarter and the fourth quarter of 2005. Because the company expects more profits in 2006 to be generated from regions with higher tax rates

summary of balance sheet - April 2, 2006

· as of April 2, 2006, the financial situation of Cognex was good and stable, with cash and investment of more than $303million and no liabilities. Since the end of 2005, cash and investments have decreased by $9million. In the first quarter of 2006, Cognex achieved positive cash flow of about $15million, distributed dividends of nearly $3.8 million to shareholders, and repurchased about 879000 ordinary shares worth more than $25million on the open market

· the number of days of accounts receivable (DSO) in the first quarter of 2006 was 63 days, which was within the target range of the company's high-temperature plastic ultrason e performance of modern genesis G70 new headlamp compact design

· as of April 2, 2006, the inventory of the company has increased by about 320 compared with the end of 2005, especially for components with similar heat resistance requirements, 10000 US dollars, or 17%. The inventory turnover rate is 3.2 times per year. The increase in inventory was due to the company moving part of its production business from Massachusetts to Ireland. At the same time, the company's increase in inventory is also to better support vendors

business trends and financial outlook

· product orders in the first quarter of 2006 were higher than those in the fourth quarter of 2005, due to a large number of orders from the current semiconductor and electronic capital equipment and surface inspection system market. Therefore, Cognex predicts that the revenue in the second quarter of 2006 will be between $62million and $64million, and the gross profit margin will be between 70% and 75%, including $400000 of pre tax stock option compensation expenses. Operating expenses (R & D, engineering management, sales, general and administrative expenses) in the second quarter, including $2.8 million of pre tax stock option compensation, are expected to continue to grow by 5%. The effective tax rate is expected to be 27%. To sum up, diluted earnings per share are expected to be between 20 cents and 22 cents (excluding $3.2 million in stock option compensation expenses, diluted earnings per share will be between 25 cents and 27 cents)

about the financial measurement that does not comply with GAAP

this draft and its attachments contain some financial indicators that do not comply with GAAP calculation, because Cognex believes that these indicators help individuals obtain data more accurately and compare them with the data of multiple periods. However, these financial indicators cannot be considered in isolation, nor can they replace the financial information obtained by following GAAP

about Cognex

Cognex designs, develops, manufactures and sells machine vision systems, that is, computers with "vision". The vision sensors of Cognex are widely used in factories all over the world to help realize the automation of product production and ensure the excellent quality of products. As a leading machine vision company in the world, Cognex has sold more than 300000 sets of machine vision systems since its establishment in 1981, with a cumulative profit of more than 2billion US dollars. Cognex is headquartered in Natick County, Massachusetts, with regional offices and distribution offices in North America, Japan, Europe, Asia and South America. Please visit Cognex:

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