I don't follow Cognex, but noted their earnings today and what apeared to be a warning, but reading their statement, the warning seems to be out of context. Anyway, the stock dipped to 18 and came back to even around 20. They had a really great quarter.
The point is, I believe as much as there is risk about Asia trouble, there really is a misunderstanding going on. Just look at the variety of projections for equipment for 98 and you'll see a range of 0 to 18% growth. I suppose it's always like that, but there really is a problem with visibility.
I think if I only had to worry about ESI's memory repair, I'd feel comfortable. I worry moe that the progress in passives and drilling will slow. I agree, the Dynamotion business will probably bring good things, but you always have to wonder what will be found when the company is bought and ESI really igs in and see's exactly what they've got.
Anyway, here's the report from Cognex.
Cognex Corporation Reports Record Revenue And Earnings For The Fourth Quarter And Full Year Of 1997
NATICK, Mass.--(BUSINESS WIRE)--Jan. 27, 1998--Cognex Corporation (NASDAQ:CGNX - news) today announced record revenue for the year ended December 31, 1997 of $155,340,000, a 26% increase over 1996's revenue of $122,843,000. Cognex also reported record net income for the year ended December 31, 1997 of $40,536,000, or $0.91 per diluted share, a 33% increase over the $30,369,000, or $0.69 per diluted share, reported in 1996.
Reported results for 1997 include a non-recurring pre-tax charge of $3,115,000 from the write-off of acquired in-process technology related to the acquisition of Mayan Automation, Inc., a Montreal, Canada developer of low-cost machine vision systems for surface inspection. Reported results for 1996 include an inventory pre-tax charge of $4,231,000 in ''Cost of Goods Sold.'' Excluding both the Mayan-related, non-recurring charge in the third quarter of 1997, and the inventory charge in the third quarter of 1996, net income for 1997 increased by 28% to a record $42,702,000, or $0.96 per diluted share, compared to $33,309,000, or $0.76 per diluted share, for 1996.
For the fourth quarter of 1997, Cognex reported record results, with the highest revenue and net income reported in a single quarter in the company's history. Revenue for the quarter increased 78% to $46,990,000 from $26,467,000 for the same period a year ago. Net income for 1997's fourth quarter increased by 123% to $13,732,000, or $0.31 per diluted share, compared with net income of $6,162,000, or $0.14 per diluted share, for the fourth quarter of 1996.
''1997 was a very exciting year for Cognex,'' said Dr. Robert J. Shillman, Cognex's President, Chief Executive Officer, and Chairman. ''We are extremely pleased with our financial results. Our business remained strong throughout the fourth quarter and, although there is much uncertainty about the economic and financial issues currently affecting Asia, we have not experienced any impact on our business. We anticipate setting new financial records in 1998; however, our ability to do so could be affected by worldwide economic conditions that may develop as a result of the current financial crisis in Asia.''
Cognex Corporation designs, develops, manufactures, and markets machine vision systems, or computers that can ''see.'' Cognex is the world's leader in the machine vision industry, having shipped to date more than 70,000 machine vision systems. Cognex's Modular Vision Systems Division, headquartered in Natick, Massachusetts, specializes in machine vision systems which are used for automating the manufacture of a wide range of discrete items and for assuring their quality. Cognex's Surface Inspection Systems Division, headquartered in Alameda, California, specializes in machine vision systems which are used for inspecting the surfaces of products manufactured in a continuous fashion, such as metals, paper, and plastics. In addition to its corporate headquarters in Natick, Massachusetts, Cognex also has regional offices located throughout North America, Japan, Europe, and Southeast Asia. Visit Cognex on-line at cognex.com.
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Certain matters discussed in this press release are forward-looking statements. These statements are based on the company's current expectations and estimates as to prospective events and circumstances which may or may not be within the company's control and as to which there can be no firm assurances given. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. The company wishes to caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Further discussions of risk factors are also available in the company's most recent SEC filings. |
