Cognex(US:CGNX)2024-10-30 20:33Financial Performance - Revenue for Q3-24 was $235 million, a 19% increase year-on-year from $197 million in Q3-23, but a 2% decrease from $239 million in Q2-24[3] - Adjusted EBITDA for Q3-24 was $41 million, representing a 20% increase from $34 million in Q3-23, but a 13% decrease from $48 million in Q2-24[3] - Net income for Q3-24 was $30 million, up 56% from $19 million in Q3-23, but down 18% from $36 million in Q2-24[9] - Operating expenses for Q3-24 were $128 million, a 14% increase from Q3-23, but slightly down from Q2-24[8] - Net income for the three months ended September 29, 2024, was $29,591 thousand, which is 12.6% of revenue, compared to 9.6% in the prior year[18] - Adjusted EBITDA for the nine months ended September 29, 2024, was $113,955, with an adjusted EBITDA margin of 16.6%[29] Tax and Cash Flow - The effective tax rate for Q3-24 was 19%, down from 30% in Q3-23, with an adjusted effective tax rate of 18% in both periods[9] - Cognex generated $56 million in cash from operating activities in Q3-24, a $15 million improvement year-on-year[10] - The company had $607 million in cash and investments with no debt as of September 29, 2024[10] - Cash dividends per common share increased to $0.075 from $0.070 in the previous quarter[19] Future Outlook - Cognex expects Q4-24 revenue to be between $210 million and $230 million, reflecting a sequential decrease due to Consumer Electronics seasonality[12] - Adjusted gross margin for Q4-24 is expected to be in the high 60% range, impacted by mix and competitive pricing[13] - Adjusted EBITDA margin for Q4-24 is projected to be between 14% and 17%, indicating a 3 percentage point year-on-year increase at the midpoint[14] Operational Metrics - Revenue for the three months ended September 29, 2024, was $234,742 thousand, representing a 19.0% increase from $197,241 thousand for the same period in 2023[18] - Gross margin for the three months ended September 29, 2024, was $159,399 thousand, with a gross margin percentage of 67.9%, down from 72.4% in the prior year[18] - Research, development, and engineering expenses increased to $35,210 thousand, accounting for 15.0% of revenue, compared to 16.5% in the same quarter last year[18] - Selling, general, and administrative expenses rose to $92,625 thousand, representing 39.5% of revenue, up from 41.7% in the previous year[18] - Operating income for the three months ended September 29, 2024, was $31,564 thousand, or 13.4% of revenue, compared to 15.5% in the same quarter of 2023[18] Non-GAAP Measures - Cognex updated its non-GAAP measures to exclude acquisition and integration costs and amortization of acquisition-related intangible assets starting in Q4 2023[26] - The company believes that non-GAAP financial measures provide a clearer comparison of results over multiple periods, aiding in budgeting and forecasting[27] Risks and Challenges - The company faces risks including competitive pressures, economic fluctuations, and challenges in integrating acquired businesses[36] - Cognex is committed to addressing cybersecurity risks and ensuring compliance with data privacy regulations[36] - The company’s future outlook includes navigating international sales risks and managing supply chain disruptions[36] - The company encourages stakeholders to review detailed risk factors in its Annual Report and Quarterly Reports filed with the SEC[36] Company Overview - Cognex Corporation has shipped over 4.5 million image-based products, generating more than $11 billion in cumulative revenue since its founding in 1981[38] - The company focuses on machine vision technologies that enhance efficiency and quality in manufacturing and distribution across various industrial markets[37] - Cognex's solutions automate the manufacturing and distribution of items such as mobile phones and electric vehicle batteries, addressing challenges where human vision is inadequate[37] - The company operates globally with offices and distributors across the Americas, Europe, and Asia[38] - Cognex emphasizes the importance of machine vision in achieving substantial cost savings and quality improvements in production processes[37] - The company has a strong focus on innovation and the development of new technologies to maintain its leadership in the machine vision industry[37]