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Jul 02, 2023
Cognex Q2 2023 Earnings Report
Cognex's second quarter revenue was at the top end of expectations, gross margin aligned with guidance, and operating expenses were favorable, leading to a strong sequential increase in operating margin.
Key Takeaways
Cognex reported a 12% decrease in revenue compared to Q2 2022, driven by softness in e-commerce logistics and weaker demand from factory automation customers. However, gross margin improved to 74%, and operating expenses were managed effectively.
Revenue decreased by 12% year-over-year, or 10% in constant currency.
Gross margin increased to 74% compared to 72% in the prior year.
Operating expenses increased by 4% year-over-year due to Emerging Customer initiative investments.
The effective tax rate was 15% in Q2 2023.
Cognex
Cognex
Forward Guidance
Cognex expects Q3 2023 revenue to be between $180 million and $200 million, with gross margin in the low-70% range and operating expenses decreasing by low-single digits sequentially. The Non-GAAP effective tax rate is expected to be 16%.
Positive Outlook
- Revenue expected between $180 million and $200 million.
- Operating expenses are expected to decrease by low-single digits on a sequential basis.
- Emerging Customer investment continues to ramp up.
- Company remains diligent about managing discretionary costs.
- Non-GAAP effective tax rate expected to be 16%.
Challenges Ahead
- Revenue is expected to decrease on a sequential basis.
- Manufacturing investment is further softening.
- Gross margin is expected to decrease from 74% in Q2 2023.
- Decrease in gross margin driven primarily by operating deleverage.
- Decrease in gross margin driven primarily by less favorable revenue mix.