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2022-08-21
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Cognex released its financial report for the third quarter of 2007

Natick County, Massachusetts, USA, November 1, 2007 - Cognex (NASDAQ: CGNX) today released its financial report for the third quarter ended September 30, 2007. In accordance with GAAP, table 1 below details the financial data of Cognex for the third quarter of 2007 and the nine months ended September 30, 2007 (revenue, net profit and earnings per share provide a broader space for rubber and adhesive sealing materials). At the same time, it is compared with the historical data of the third quarter of 2006, the second quarter of 2007, and the first nine months of 2006 (see Figure 2 for the financial data under non GAAP)

"I am very happy to announce that the company's profit in the third quarter of 2007 greatly exceeded the expected value we gave to investors in August. Although the overall revenue was equal, the company's profit in the third quarter doubled that in the second quarter," said Dr. Robert J. shillman, chairman and Chief Executive officer of Cognex, "I think the following factors contributed to the ideal performance in this quarter: the optimized product portfolio increased gross profit, greatly saved expected sales, marketing and other professional expenses, one-time tax incentives, and foreign currency earnings."

Dr. shillman continued: "in addition to the higher than expected profits in this quarter, such as oxide skin, metal debris and so on, I am also pleased to announce to you that the company's investment in sales and marketing at the beginning of the year is gradually receiving results. In the fourth quarter, the company's revenue is likely to increase compared with the previous quarter and the same period last year."

third quarter financial data

summary of operation report - the third quarter of 2007

the revenue in the third quarter of 2007 decreased by 6% compared with the same period last year. Although the sales volume in the factory automation market (mainly in Europe) increased, it still could not make up for the decline in sales volume in semiconductor, electronic equipment, and surface testing. Compared with the previous quarter, revenue was flat because, to a lesser extent, revenue growth in the semiconductor, electronics and factory automation markets filled the losses in surface testing. The increase in revenue from the semiconductor and electronic equipment business was mainly due to the company's adjustment measures - Cognex announced as early as August 15, 2007. In order to correct the early overestimated performance, the company will deduct $1.06 million from its revenue in the second quarter

the gross profit margin in the third quarter of 2007 was 73%, while the gross profit margin in the third quarter of 2006 and the second quarter of 2007 were 73% and 67% respectively. Although the product portfolio led to a decrease in sales, the growth rate of gross profit margin remained flat compared with the same period last year. Moreover, the reason why the gross profit margin in this quarter increased compared with the previous quarter is, on the one hand, because of the product portfolio, on the other hand, because this quarter does not need to pay an additional $2.216 million (before tax) due to inventory backlog as in the previous quarter

the expenditure of product R & D and Engineering Management (R, D, e) in the third quarter of 2007 increased by 9% compared with the third quarter of 2006 and the second quarter of 2007; Compared with the same period last year, this expense has increased, and the extra part is mainly used for new product research and development, including the salary of new employees, external service fees, contract labor fees, and patent related expenses. R & D and Engineering Management (R, D, e) costs rose continuously for two reasons: 1) external service fees and patent related fees rose in the third quarter; 2) Employee bonus due

the sales, general and administrative expenses (s, GA) in the third quarter of 2007 increased by 4% compared with the third quarter of 2006; Compared with the previous quarter, it decreased by 1%. This expense increased year-on-year because the company's global operating costs increased, such as new employee compensation and foreign currency losses. However, due to the reduction of marketing expenses such as seminars and exhibitions, which partially offset the increase in professional expenses and employee bonuses due, this cost decreased compared with the previous quarter

the company made a foreign currency profit of $353000 in the third quarter of 2007, lost $282000 in the second quarter of 2006, and lost $323000 in the second quarter of 2007. Because the recording currency and settlement currency of accounts receivable and accounts payable balances are different, the company finally determines the foreign currency profit and loss through revaluation and settlement

the investment and other income in the third quarter of 2007 was $1.881 million, while those in the third quarter of 2006 and the second quarter of 2007 were $1.518 million and $1.938 million respectively. The continuous rise of investment and other income is due to the growth of rental income and the high return rate of investment balance; However, some cash was used to repurchase ordinary shares, resulting in a reduction in the average investment balance. However, the company recorded a larger proportion of the investment balance into the short-term accounts, resulting in a continuous decline in investment and other income

the effective tax rate was 21% in the third quarter of 2007, 18% in the third quarter of 2006 and 34% in the second quarter of 2007. Excluding the one-time tax preference, the effective tax rate should be 26% in the third and second quarters of 2007 and 23% in the third quarter of 2006. The effective tax rate has increased year after year (excluding one-time tax incentives) because the company made more profits from high tax jurisdictions this quarter than in the third quarter of 2006

in the third quarter of 2007, the company enjoyed a tax preference of US $421000 due to the difference between the actual tax rebate and the estimated expenses in 2006. However, due to the impact of the Japanese tax audit in the third quarter of 2006, the revised tax actually declared increased by $438000 in the second quarter. In the third quarter of 2006, it enjoyed a tax preference of $567000. First, the non preferential settlement of Japanese tax audit; second, the statutory limitation of a specific fiscal year had been exceeded at that time; On the other hand, after referring to the actual tax rebate amount declared in 2005, the company adjusted the estimated amount accordingly

summary of balance sheet - September 30, 2007

as of September 30, 2007, the financial situation of connexion was very good, with cash and investment of more than $265 million, stock market capitalization of $6.13, and no liabilities. In the first nine months of 2007, Cognex achieved positive cash flow of about $35million, distributed shareholder dividends of more than $11million, and publicly repurchased nearly 1.43 million ordinary shares at a cost of more than $32.6 million

the number of days of accounts receivable (DSO) in the third quarter of 2007 was 64 days, which was within the company's target range

as of September 30, 2007, the company's inventory fell by 2 percentage points compared with the end of 2006, about $535000; The inventory turnover rate is 1.8 times per year. Affected by foreign currency gains and losses, inventories increased by nearly $1.4 million in the first nine months of 2007, of which about $1 million in the third quarter

financial outlook

Cognex expects its revenue to be between $5900 and $62million in the fourth quarter of 2007. Consumers are increasingly concerned about environmental protection. The gross profit margin (including $300000 of stock option compensation expenses) will be between 70% and 75%. Operating expenses (product R & D, engineering management, and sales, general and administrative expenses) in the third quarter are expected to continue to grow by 5% - 10% (including $2.4 million in stock option compensation expenses). The effective tax rate is estimated to be 26%. It is expected that the diluted earnings per share in the fourth quarter will be between 17 cents and 23 cents

according to the non GAAP financial evaluation

draft Figure 2 contains the reconciliation of GAAP and non GAAP financial data. Cognex believes that non GAAP statements are very useful to investors, because through it, investors can not only evaluate and compare the company's multi cycle performance more accurately, but also evaluate the effectiveness of the company's management methods for reviewing operating performance. Cognex also included stock option expenses in the GAAP statements of R & D and Engineering Management (R, D, e) and sales, general and administrative expenses (s, G, a). However, these expenses are not included in the management expenses in order to calculate the gross profit margin, operating profit, net profit and earnings per share adjusted according to non GAAP, so as to measure the performance of Cognex. These data are related to the company's financial budget and resource allocation, because these expenses will not directly affect the current and future cash use, but will change accordingly with the changes in the stock price of Cognex. Cognex excludes the impact of similar events such as one-time tax incentives on normal costs and tax allowances. The company will not consider these financial data under non GAAP in isolation, nor will it replace the financial information under GAAP

analysts' meeting and online audio broadcast

Cognex will hold a meeting at 16:30 p.m. Eastern time on November 1, 2007 to discuss the financial results and future financial plans for the third quarter of 2007. Interested parties can dial for free: American users +, international users +. The meeting will also be audio replayed from 19:30 p.m. on November 1 to 23:59 p.m. on Sunday, November 4. Interested parties can dial for free: American users +; International users +; Passwords are:

Internet users can access the address to listen to the live audio broadcast and recording of the conference network of Cognex

about Cognex

Cognex designs, develops, produces and sells machine vision sensors and vision systems, making machines also have 'intelligent vision'. Cognex's vision sensors have been widely used in major factories around the world to help achieve product automation and provide quality assurance. As a leading manufacturer in the global machine vision industry, since its establishment in 1981, Cognex has sold more than 350000 sets of machine vision systems, with a cumulative revenue of more than $2billion. In addition to Natick headquarters in Massachusetts, the company has also set up branches in North America, Japan, Europe, Asia and Latin America. For more details, please visit the company website:

forward looking statements

this draft contains forward-looking statements, that is, statements or statements of non historical facts. The forward-looking statement of monthly increase in sales of new energy vehicles is usually expressed by words such as "expect", "expect", "estimate", "believe", "project", "intend", "plan", "will", "may", "should", "will" and similar words. Forward looking statements are statements related to industry development trends, the company's sales and market initiative strategies, performance growth, and the company's financial plans. However, due to the known and unknown risks and uncertainties involved, the actual results may be materially different from the forward-looking statements. These risks and uncertainties include: (1) the global economic environment that affects the investment trend of various industries; (2) Market cyclicality of semiconductor and electronic industry; (3) Dependence on exclusive suppliers who produce and provide key components; (4) Not having the ability to design and produce high-quality products; (5) The current product production technology has been eliminated and does not have the research and development ability of new products; (6) Patented technology and intellectual property rights cannot be guaranteed; (7) The challenges faced by the implementation of the merger and acquisition plan with expected earnings; (8) Poor management of product transformation or wrong prediction of customer demand; (9) In the recruitment and retention of excellent employees

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