Already considered by most the largest machine vision company in the industry, Cognexhas reported that in the second quarter of 2017, the company saw record quarterly revenue, net income, and earnings per share from continuing operations.
In Q2, Cognex saw revenue of $172.9 million, which came in above the guidance range of $165 million to $172 million. Revenue grew 17% from Q2 in 2016 and 28% from Q1 in 2017, and a growth year-on-year across a number of industries was partially offset by lower revenue from the lower revenue from the consumer electronics industry. Gross margin was 78% for the quarter—up from 76% in Q2 2016—which increased year-on-year due to cost efficiencies related to higher sales volume and an inventory charge in Q2 2016 that did not repeat, according to the company.
"What a great quarter!" said Dr. Robert J. Shillman, Founder and Chairman of Cognex. "The highest quarterly revenue in Cognex's 36-year history came from growth across the broad factory automation market. Equally important is that we also set a new, and ridiculously high, level of profit."
Perhaps even more exciting than the Q2 numbers, however, is the guidance for the third quarter. Revenue for Q3 is expected to be between $250 million and $260 million, a range that represents a substantial increase both year-on-year and sequentially due to higher anticipated revenue from the consumer electronics industry. Cognex, it is noted in a press release, believes that the majority of larger consumer electronic orders in 2017 will be recognized as revenue in Q3 as compared to 2016, when they were more evenly split between Q2 and Q3.
Gross margin in Q3 is expected to be in the mid-to-high 70% range, while operating expenses are expected to increase by approximately 10% on a sequential basis due to continued investments in growth activities and costs associated with the company’s recent acquisitions, one of which was deep learning software company ViDi Systems.
View the Cognex press release.