Cognex sees 'steeper than usual seasonal decline' in Q1 revenue

Share this on social media:

Cognex has experienced a steeper than usual seasonal decline from Q4 2018 to the first quarter of 2019, the company said, which it attributed to slowing business conditions.

Revenue in the first quarter of 2019 was $173.5 million, an increase of 2 per cent from Q1-18 but a decline of 10 per cent from Q4-18.

Cognex said that year-on-year revenue was lower from customers in Greater China and in the automotive industry in the Americas, but that this was offset by growth in logistics. The company was also impacted by an unfavourable change in currency exchange rates.

Revenue for Q2-19 is expected to be between $190 million and $200 million, a decline of 8 per cent from Q2-18 primarily because of lower anticipated revenue from consumer electronics, according to Cognex.

The midpoint of the predicted Q2-19 revenue range still represents growth of 12 per cent over Q1-19.

Gross margin dropped from 76 per cent in Q1-18 to 73 per cent for Q1-19, because of unfavourable absorption of manufacturing overhead costs.

The company’s research, development and engineering (RD&E) expenses decreased 3 per cent from Q1-18 and increased 5 per cent from Q4-18. The decrease was partially offset by Cognex’s investment in additional engineers. RD&E increased on a sequential basis because of the timing of application engineering for large opportunities in consumer electronics and higher employee-related costs.

Cognex’s financial position as of 31 March 2019 was $864 million in cash and investments, and no debt.

Related news

Image: Martial Red/shutterstock.com

06 July 2021

The involvement by Sinovation and its founder Dr Kai-Fu Lee strengthens Prophesee's presence in China

Investment in automation equipment is being made in battery production. Credit: Kuka

14 June 2021

The VDMA pointed to a number of green technologies – including plans for the sixth largest solar power plant in the world to be built in Turkey – that are driving growth in automation equipment sales

12 May 2021

Basler saw bookings up 27 per cent, but the company is 'suffering from the global shortage of semiconductor components'

07 May 2021

The company recorded $239m in revenue, which is also a 7 per cent increase over the fourth quarter of 2020

31 March 2021

Basler has announced 2020 sales of €170.5m, up on the previous year of €162.0m. Incoming orders were €181.6m compared to 2019's €166.5m

25 March 2021

The effects of the pandemic were felt by Stemmer Imaging in the 2020 fiscal year, however, with revenue at €105.2m compared to €120.6m in 2019