Financial Data and Key Metrics Changes - Revenue for Q1 was $216 million, representing a 2% year-on-year growth or 5% on a constant currency basis, exceeding the midpoint of guidance [27][30] - Adjusted EBITDA margin increased by nearly 500 basis points year-on-year to 16.8%, well above guidance and consensus [30] - Diluted earnings per share on a GAAP basis were $0.14, up from $0.07 a year ago, while adjusted diluted EPS rose to $0.16 from $0.11 [31] Business Line Data and Key Metrics Changes - Logistics revenue grew double digits year-on-year, marking the fifth consecutive quarter of growth [19] - Automotive revenue declined year-on-year due to weakness across all geographies, reflecting a cautious outlook for the sector [20] - Packaging business remained stable with a modest recovery in healthcare, becoming the third largest market for the company [21] Market Data and Key Metrics Changes - Revenue in the Americas expanded by 20% year-on-year, driven by strength in logistics [28] - Europe saw a 7% decline due to a weaker automotive market, while Greater China was down 9% primarily due to lower consumer electronics revenue [28] - The semiconductor market remains robust, driven by increased investment from major machine builders, although a cautious outlook is maintained due to trade policy uncertainties [23] Company Strategy and Development Direction - The company aims to be the number one provider of AI technology for industrial machine vision applications, enhance customer experience, and expand its served customer base over the next five years [10] - A focus on automation in manufacturing and logistics is expected to drive growth, as the global supply chain shifts to a more regional structure [16] - The upcoming Investor Day will detail the updated long-term financial framework and capital allocation strategy [31] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains mixed with increasing uncertainty driven by geopolitical and tariff-related risks, but no material changes in purchasing activity or order cancellations have been observed [15][84] - The company is cautiously optimistic about logistics growth, while remaining cautious about the automotive sector due to ongoing declines [20][86] - Conversations regarding reshoring and recalibration of global supply chains are increasing, with significant interest from large customers in U.S. manufacturing investments [117] Other Important Information - The company has returned over $100 million to shareholders through share buybacks in Q1, the largest quarterly buyback since Q1 2022 [26] - The tariff situation remains fluid, but the company believes it can mitigate direct cost impacts, resulting in no material impact on earnings per share or adjusted EBITDA margin [34] Q&A Session Summary Question: Insights on OpEx and its impact on profitability - Management noted that the decline in OpEx was influenced by FX effects and emphasized ongoing focus on profitability and cash cost management [43][44] Question: Thoughts on consumer electronics market trends - Management expects modest growth in consumer electronics for the year, with ongoing opportunities in replacing human visual inspectors and adapting to geographic shifts in production [58][60] Question: Details on tariff impacts and supply chain management - The company has minimal exposure to China and is flexible in managing its supply chain, which helps mitigate tariff impacts [62][64] Question: Additional details on logistics growth - The logistics business has shown strong momentum, particularly from large e-commerce players, with a focus on increasing productivity in existing distribution centers [72][74] Question: Comments on customer hesitancy and market volatility - Management has not observed significant customer hesitancy or delayed decision-making, although the automotive sector remains challenging [84][86] Question: Expectations for gross margins moving forward - Management indicated that while mix and FX have impacted margins, they expect profitability to improve, focusing on bottom-line growth [92][93]

Q1 2025 Financial Performance - Revenue reached $216 million, a 2% increase year-over-year, or 5% in constant currency[21, 31] - Adjusted EBITDA margin was 16.8%, up 490 basis points year-over-year[21, 31] - Free cash flow was $38 million[21] - Share repurchases amounted to $102 million[29] - Adjusted diluted EPS increased by $0.05, or 41%, due to the increase in Adjusted EBITDA[32] Q1 2025 End Market Analysis - Logistics accounted for 23% of revenue, showing continued strong growth driven by e-commerce[26] - Automotive represented 22% of revenue, experiencing continued softness as expected due to lower project activity and investment levels[26] - Packaging contributed 21% of revenue and remained stable, with penetration opportunities enabled by sales transformation[26] - Consumer Electronics made up 17% of revenue, with project timing of large customers geared towards Q2 and Q3, expecting modest growth[26] - Semiconductor accounted for 11% of revenue, showing broad-based momentum but with a more cautious outlook due to increasing uncertainty from trade policy[26] Q2 2025 Outlook - Revenue is projected to be between $235 million and $255 million[38] - Adjusted EBITDA margin is expected to be between 18.5% and 21.5%[38]

Exhibit 99.1 Cognex Reports First Quarter 2025 Results; Announces CEO Transition April 30, 2025―NATICK, MA—Cognex Corporation (NASDAQ: CGNX) today reported financial results for the first quarter ended March 30, 2025. First-Quarter Financial and Operating Highlights Cognex today announced that Matt Moschner, Cognex's President and Chief Operating Officer, will succeed Robert J. Willett as Chief Executive Officer on June 27, 2025. Mr. Willett, who became President and Chief Operating Officer in 2010 and Chie ...

NATICK, Mass., April 30, 2025 /PRNewswire/ -- Cognex Corporation (NASDAQ: CGNX) today reported financial results for the first quarter ended March 30, 2025.First-Quarter Financial and Operating Highlights Revenue grew 2% year-on-year or 5% on a constant-currency basis Operating expenses declined 7% year-on-year, driven primarily by cost management Operating margin of 12.1%; Adjusted EBITDA margin of 16.8%, above high end of guidance Returned $116 million to shareholders during the quarter, highest amount si ...

Group 1 - Cognex is facing a challenging year with potential disappointing earnings news expected on April 30, but the stock is considered an excellent long-term investment opportunity for growth [1][10] - The company specializes in machine vision and barcode reading technology, which is increasingly essential for automated equipment in manufacturing and logistics [2][3] - Demand for machine vision solutions is expected to rise as they outperform human capabilities in tasks such as inspection and monitoring, especially with the integration of AI tools [3][4] Group 2 - Cognex's key end markets include consumer electronics, automotive, and logistics, with management projecting a 13% annual growth rate for these markets, outpacing the industry's 15% growth [6] - Recent challenges in these markets include a post-lockdown retraction in logistics, high interest rates affecting automotive sales, and reduced consumer spending on electronics [8][9][10] - Despite current market difficulties, machine vision technology is seen as a critical component for reindustrialization in higher-cost labor countries, suggesting a favorable long-term outlook for Cognex [12][14] Group 3 - Valuations for Cognex are historically favorable based on metrics such as free cash flow and EBITDA relative to enterprise value, indicating potential for recovery and growth [12] - Analysts have lowered earnings expectations recently, but if the company rebounds as projected in 2025, it could represent a strong growth stock at a reasonable price [14]

Company Overview - Cognex Corporation is a leading global provider of machine vision products and solutions that enhance efficiency and quality in high-growth industrial markets [3][4] - The company has shipped over 4.5 million image-based products, generating more than $11 billion in cumulative revenue since its founding in 1981 [4] Upcoming Earnings Release - Cognex will release its earnings for the first quarter of 2025 on April 30, 2025, after market close [1] - A conference call to discuss the results will be held on May 1, 2025, at 8:30 a.m. Eastern Daylight Time (EDT) [1] Access to Information - Access to the conference call and a replay will be available on the Cognex Investor Relations website [2] - The live call can be accessed via telephone at (877) 704-4573 or (201) 389-0911 for international callers [2]

Company Overview - Cognex Corporation is a leading global provider of machine vision products and solutions that enhance efficiency and quality in high-growth industrial markets [3][4] - The company has shipped over 4.5 million image-based products, generating more than $11 billion in cumulative revenue since its founding in 1981 [4] Upcoming Events - Dennis Fehr, Senior Vice President of Finance and CFO, will present at the 2025 Cantor Fitzgerald Global Technology Conference on March 12, 2025, at 10:00 a.m. Eastern Daylight Time [1] Technology and Applications - Cognex's technologies address critical manufacturing and distribution challenges by automating tasks such as locating, identifying, inspecting, and measuring discrete items [3] - Machine vision is essential for applications where human vision is insufficient in terms of size, accuracy, or speed, and where significant cost savings or quality improvements can be achieved [3]

Industry Overview - The Zacks Electronics – Testing Equipment industry is facing challenges due to a difficult global macroeconomic environment, end-market volatility, unfavorable foreign exchange rates, and increasing geopolitical tensions [1] - The automotive sector is sluggish, primarily due to declining investments in electric vehicles, which is a significant headwind for industry participants [1] - The factory automation market remains weak, and conservative capital expenditure trends in consumer electronics are also a concern [1] Growth Opportunities - Companies like Cognex (CGNX) and Itron (ITRI) are capitalizing on growth opportunities related to 5G, automation, and Industry 4.0 [1] - The adoption of software-enabled testing instruments and devices is increasing, providing a positive outlook for the industry [1] - The rising utilization of precision motion-control solutions and automatic test systems in various markets, including aerospace and medical, is a positive trend [3] Pharmaceutical Market - The industry is benefiting from the increasing use of electrical instruments and software in clinical and medical science research, particularly in the pharmaceutical market [4] - Agilent is gaining traction in life science research, driven by the growing utilization of electronic testing equipment [4] - There is a rising demand for RF test equipment from medical device manufacturers, contributing to industry growth [4] 5G Deployment - The deployment of 5G technology presents near-term growth prospects for industry players [5] - There is an uptick in demand for 5G test solutions, which is essential for 5G deployment [5] - The trend of migrating infrastructure workloads to the cloud is boosting demand for high-speed Internet services, benefiting electronic companies associated with 5G [5] Macroeconomic Challenges - The challenging macroeconomic environment is causing enterprises to hesitate in signing multi-year deals, which negatively impacts industry participants [6] Industry Performance - The Zacks Electronics – Testing Equipment industry currently holds a Zacks Industry Rank of 201, placing it in the bottom 19% of over 250 Zacks industries [7] - The industry has underperformed the S&P 500 and its sector over the past year, declining by 0.8% compared to the S&P 500's increase of 18.4% [11] - The industry's forward 12-month price-to-earnings (P/E) ratio is 23.59X, higher than the S&P 500's 22.1X but lower than the sector's 25.78X [12] Company Highlights - Itron is benefiting from trends in electrification, gas safety, energy transition, and water efficiency, with increasing demand for smart water meters and electric solutions [14] - Cognex is focusing on integrating Artificial Intelligence (AI) into its machine vision products, launching innovative products like the AI-enabled 3D smart camera [18] - Itron's shares have declined 6.3% year-to-date, with a consensus estimate for 2025 earnings revised downward to $4.84 per share, indicating a year-over-year decline of 13.88% [16] - Cognex's shares have declined 8.5% year-to-date, with a consensus estimate for 2025 earnings revised downward to 88 cents per share, indicating year-over-year growth of 18.92% [19]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $230 million, a 17% year-on-year increase, with a 12% increase excluding Moritex [31][32] - Full year 2024 revenue was $915 million, growing 9% year-on-year or 1% excluding Moritex [39][41] - Adjusted gross margin for Q4 was 69.4%, down 130 basis points from 70.7% a year ago [34] - Adjusted diluted EPS for Q4 was $0.20, up from $0.11 year-on-year [37] - Free cash flow for Q4 totaled $49 million, compared to $7 million in Q4 of 2023 [38] Business Line Data and Key Metrics Changes - Logistics revenue grew 20% in 2024, driven by e-commerce leaders and regional providers [23] - Automotive revenue decreased by 14% year-on-year due to reduced EV battery investment [24][25] - Consumer electronics revenue fell 5% year-on-year, with limited design changes impacting demand [26] - Semiconductor business showed significant year-on-year growth, driven by high bandwidth memory chip investments [28] Market Data and Key Metrics Changes - Year-on-year revenue growth in Q4 was strongest in Greater China, driven by project timing in consumer electronics [34] - The Americas saw double-digit growth, while Europe experienced a slight decline due to weaker automotive spending [33] - Overall, the factory automation market was characterized as soft but stable, with automotive being the weakest segment [10][11] Company Strategy and Development Direction - The company aims to infuse AI into more products and tools, transform the sales force, and integrate Moritex [6][9] - New product launches include the AI-enabled 3D smart camera and the DataMan 380 barcode reader [7][9] - The sales transformation strategy has led to over 3,000 new customers acquired in 2024 [20][21] - The company is focusing on expanding into less cyclical markets, such as medical and packaging, to reduce volatility [110][112] Management's Comments on Operating Environment and Future Outlook - Management noted that the automotive market remains challenging, with expectations of continued weakness in 2025 [54] - There is cautious optimism regarding the consumer electronics market, with potential innovations expected to drive future growth [58] - The logistics market is expected to continue growing, supported by increased capacity and technology investments [71] - Management expressed confidence in the long-term value of the sales transformation strategy [21][90] Other Important Information - The company ended 2024 with $587 million in cash and investments and no debt [42] - The first quarter revenue guidance is between $200 million and $220 million, reflecting mixed macro conditions [43] - The company plans to hold an Investor Day on June 9th and 10th [46] Q&A Session Summary Question: Outlook for automotive market - Management acknowledged that 2024 was a tough year for automotive, with expectations of continued weakness but not as severe as in 2024 [50][54] Question: Consumer electronics product changes - Management indicated that while consumer electronics revenue fell, there are reasons for long-term confidence in growth due to upcoming innovations [56][58] Question: Insights on logistics market strength - Management reported strong growth across logistics, with significant investments and technology adoption driving demand [71][72] Question: M&A appetite and strategy - Management confirmed a continued interest in quality M&A opportunities, particularly following the successful Moritex acquisition [115][116] Question: Pricing challenges in China - Management highlighted ongoing pricing pressures in China due to competition but emphasized a strategy to maintain market share [126][128]

Cognex Q4-2024 Financial Results February 12, 2025 1 © 2025 Cognex Corporation Forward Looking Statements Certain statements made in this report, as well as oral statements made by the Company from time to time, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Readers can identify these forward-looking statements by our use of the words "expects," "anticipates," "estimates," "potential," "believes," "proje ...