Cognex(US:CGNX)2025-02-12 21:38Financial Performance - Revenue for Q4-24 was $230 million, a 17% increase from Q4-23, with a 12% increase excluding Moritex's contribution[6]. - Net income for Q4-24 was $28 million, a 152% increase from Q4-23, while adjusted net income rose by 84% to $35 million[12]. - Full year 2024 revenue grew by 9% to $915 million, or 1% excluding Moritex, with strong performance in Logistics and Semiconductor sectors[12]. - Cognex expects Q1-25 revenue to be between $200 million and $220 million, indicating stable year-on-year performance[11]. - Revenue for the three months ended December 31, 2024, was $229.684 million, a 16.8% increase from $196.670 million in the same period of 2023[21]. - Adjusted net income for the twelve months ended December 31, 2024, was $127,263 million, up from $127,393 million in 2023, indicating a slight decrease of 0.1%[27]. Profitability Metrics - Adjusted EBITDA margin expanded by 580 basis points year-on-year to 18.5% in Q4-24, driven by revenue growth and cost discipline[3]. - Gross margin for the full year 2024 was 68.4%, down from 71.8% in 2023, primarily due to the Moritex acquisition and unfavorable revenue mix[12]. - Gross profit margin for the three months ended December 31, 2024, was 68.7%, compared to 68.7% in the same period of 2023[21]. - Operating income for the three months ended December 31, 2024, was $30.840 million, with an operating margin of 13.4%[21]. - Adjusted EBITDA for the three months ended December 31, 2024, was $42,435 million, compared to $24,854 million for the same period in 2023, representing a significant increase of 70.7%[27]. - GAAP operating margin remained stable at 13.4% for both the three months ended December 31, 2024, and September 29, 2024[27]. Cash Flow and Shareholder Returns - The company generated $49 million in free cash flow in Q4-24, a $42 million improvement year-on-year[12]. - Cognex returned $57 million to shareholders in Q4-24 through stock repurchases and dividends[3]. - Free cash flow for the twelve months ended December 31, 2024, was $49,331 million, compared to $51,872 million in 2023, reflecting a decrease of 4.7%[28]. - Cash dividends per common share increased to $0.080 for the three months ended December 31, 2024, compared to $0.075 in the previous quarter[21]. Expenses and Costs - Research and development expenses were $32.538 million, representing 14.2% of revenue for the three months ended December 31, 2024[21]. - Selling, general, and administrative expenses were $94.481 million, accounting for 41.1% of revenue for the three months ended December 31, 2024[21]. - The company recorded acquisition and integration costs of $2,882 million for the twelve months ended December 31, 2024, compared to $2,295 million in 2023, an increase of 25.5%[27]. - The effective tax rate (GAAP) for the twelve months ended December 31, 2024, was 20.8%, compared to 19.1% in 2023, indicating an increase of 1.7 percentage points[28]. Company Overview and Strategy - Cognex 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 high-growth industrial markets[37]. - Cognex's solutions automate tasks such as locating, identifying, inspecting, and measuring discrete items, which include mobile phones and electric vehicle batteries[37]. - The company operates globally with offices and distributors across the Americas, Europe, and Asia[38]. - Cognex emphasizes the importance of machine vision in applications where human vision is inadequate for size, accuracy, or speed requirements[37]. - The company has a strong focus on innovation and product development to address critical manufacturing challenges[37]. Risks and Challenges - The company faces risks including technological obsolescence, competitive pressures, and challenges in attracting skilled employees[36]. - Cognex is exposed to economic and political risks associated with international sales, particularly in relation to trade disputes affecting China[36]. - Cognex's future capital needs and potential tax liabilities are areas of uncertainty that could impact financial results[36]. - The company emphasizes the importance of non-GAAP financial measures for evaluating performance and making comparisons over multiple periods[22].