Cognex(CGNX) - 2022 Q4 - Annual Report

Revenue Performance - Revenue for the year ended December 31, 2022, totaled $1,006,090,000, representing a decrease of 3% from 2021[69] - Revenue from the logistics industry, the largest market in 2021, decreased by approximately 25% due to the slowing of large e-commerce customer projects[70] - Revenue from customers based in Greater China increased by 14% from the prior year, driven primarily by higher revenue in the consumer electronics industry[73] - The company expects revenue for the first quarter of 2023 to be lower than the revenue reported for the fourth quarter of 2022, primarily due to lower revenue from large e-commerce customers[75] - Revenue for the year ended December 31, 2021, was $1,037,098,000, reflecting a 28% increase from $811,020,000 in 2020[93] Profitability Metrics - Gross margin as a percentage of revenue decreased to 72% in 2022 compared to 73% in 2021, primarily due to higher inventory costs and global supply chain constraints[77] - Operating income decreased to 24% of revenue in 2022 compared to 30% of revenue in 2021, driven by a loss from a fire incident and decreased revenue[66] - Net income per diluted share was $1.23 in 2022 compared to $1.56 in 2021, reflecting a decrease in net income as a percentage of revenue to 21%[66] - Net income for 2022 was $215,525, a decrease of 23% compared to $279,881 in 2021[150] - Total comprehensive income for 2022 was $194,170,000, down from $265,740,000 in 2021[152] Expenses and Costs - Research, development, and engineering expenses increased by $5,761,000, or 4%, from the prior year[77] - Operating expenses increased by $30,950,000, or 7%, from 2021, largely due to the impact of the fire incident[66] - SG&A expenses increased by $2,753,000, or 1%, in 2022, totaling $312,107,000 compared to $309,354,000 in 2021[81] - Stock-based compensation expense increased to $54.505 million in 2022 from $43.774 million in 2021, reflecting a rise of 24.5%[161] Asset and Liability Management - Total current assets increased to $717,699 in 2022 from $639,798 in 2021, indicating a growth of approximately 12%[160] - Total assets decreased to $1,958,140 in 2022 from $2,003,662 in 2021, a decline of about 2.3%[160] - Total liabilities decreased to $519,746 in 2022 from $573,569 in 2021, a reduction of approximately 9.4%[160] - Cash and cash equivalents at the end of 2022 were $181,374 million, a decrease from $186,161 million at the end of 2021[161] Cash Flow and Investments - Net cash provided by operating activities was $243.406 million in 2022, down from $314.065 million in 2021, representing a decline of 22.5%[161] - Purchases of investments in 2022 totaled $233.720 million, significantly lower than $668.053 million in 2021[161] - Net cash used in financing activities was $240.374 million in 2022, compared to $141.623 million in 2021, indicating an increase of 69.5%[161] Shareholder Returns - Total dividends paid were $45,921,000 in 2022, with an increase to $0.070 per share in the fourth quarter of 2022[111] - Cognex Corporation's cash dividends per common share increased to $0.265 in 2022 from $0.245 in 2021, indicating a commitment to returning value to shareholders[156] - The company repurchased 1,677,000 shares at a cost of $117,000,000 in 2022 under the March 2020 stock repurchase program[110] Foreign Currency and Risk Management - Approximately 52% of the Company's sales in 2022 were invoiced in currencies other than the U.S. Dollar, indicating significant exposure to foreign currency fluctuations[135] - The Company has outstanding forward contracts totaling a notional value of $60,000,000 in Euro, $185,000,000 in Mexican Peso, and $55,000,000 in Chinese Renminbi, among others, to hedge against foreign currency risks[133] - The Company utilizes forward contracts with maturities of up to 3 months to manage foreign currency exchange rate risks primarily from foreign-denominated receivables and payables[132] Strategic Acquisitions and Innovations - The acquisition of SAC Sirius Advanced Cybernetics GmbH was completed on December 7, 2022, for an undisclosed amount, aimed at enhancing capabilities in defect detection[91] - Cognex Corporation is a leading global provider of machine vision products and solutions, addressing critical manufacturing and distribution challenges[165] - The company’s vision software, Cognex VisionPro®, offers a suite of patented vision tools for advanced programming, enhancing customer flexibility[172] Financial Reporting and Compliance - The independent auditor expressed an unqualified opinion on the Company's financial statements for the years ended December 31, 2022, 2021, and 2020[141] - Cognex Corporation is classified as a large accelerated filer under SEC regulations[175] - The company has filed all required reports under the Securities Exchange Act of 1934 during the preceding 12 months[175]