cgnx-20210404

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended April 4, 2021 or


☐			Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________

Commission File Number 001-34218

COGNEX CORPORATION


(Exact name of registrant as specified in its charter)


Massachusetts						04-2713778
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One Vision Drive

Natick, Massachusetts 01760-2059

(508) 650-3000


(Address, including zip code, and telephone number, including area code, of principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.002 per share	CGNX	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☒

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

☒

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☒

As of April 4, 2021, there were 176,607,781 shares of Common Stock, $.002 par value per share, of the registrant outstanding.

INDEX


PART I	FINANCIAL INFORMATION	3

Item 1.	Financial Statements (interim periods unaudited)	3
	Consolidated Statements of Operations for the three-month periods ended April 4 , 202 1 and March 29, 2020	3
	Consolidated Statements of Comprehensive Income for the three-month periods ended April 4 , 202 1 and March 29, 2020	4
	Consolidated Balance Sheets as of April 4, 2021 and December 31, 2020	5
	Consolidated Statements of Cash Flows for the three-month periods ended April 4 , 202 1 and March 29, 2020	6
	Consolidated Statements of Shareholders’ Equity for the three-month periods ended April 4 , 202 1 and March 29, 2020	7
	Notes to Consolidated Financial Statements	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27

Item 4.	Controls and Procedures	27

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	28

Item 1A.	Risk Factors	28

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28

Item 3.	Defaults Upon Senior Securities	28

Item 4.	Mine Safety Disclosures	28

Item 5.	Other Information	28

Item 6.	Exhibits	29

	Signatures	30

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)


	Three-months Ended
	April 4, 2021		March 29, 2020
	(unaudited)
Revenue	$	239,027	$	167,235
Cost of revenue	54,045		41,200
Gross margin	184,982		126,035
Research, development, and engineering expenses	34,105		35,946
Selling, general, and administrative expenses	72,424		69,138


Operating income	78,453		20,951
Foreign currency gain (loss)	(1,008)		(3,003)
Investment income	1,554		5,229
Other income (expense)	(168)		(183)
Income before income tax expense	78,831		22,994
Income tax expense	8,983		2,517
Net income	$	69,848	$	20,477

Net income per weighted-average common and common-equivalent share:
Basic	$	0.40	$	0.12
Diluted	$	0.39	$	0.12

Weighted-average common and common-equivalent shares outstanding:
Basic	176,288		172,408
Diluted	179,971		175,602

Cash dividends per common share	$	0.060	$	0.055

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)


	Three-months Ended
	April 4, 2021		March 29, 2020
	(unaudited)
Net income	$	69,848	$	20,477
Other comprehensive income (loss), net of tax:





Available-for-sale investments:
Net unrealized gain (loss), net of tax of ($585) and ($952) in the three-month periods, respectively	(1,958)		(3,861)
Reclassification of credit loss (recovery) on investments into current operations	—		160
Reclassification of net realized (gain) loss on the sale of available-for-sale investments into current operations	—		(1,850)
Net change related to available-for-sale investments	(1,958)		(5,551)

Foreign currency translation adjustments:
Foreign currency translation adjustments	(2,770)		(7,365)
Net change related to foreign currency translation adjustments	(2,770)		(7,365)

Other comprehensive income (loss), net of tax	(4,728)		(

SEC Form 10-Q filed by Cognex Corporation