Technology
Cognex Reports Fourth Quarter 2024 Results
Published
1 year agoon
By
NATICK, Mass., Feb. 12, 2025 /PRNewswire/ — Cognex Corporation (NASDAQ: CGNX) today reported financial results for the fourth quarter and full year 2024. Table 1 below shows selected financial data for Q4-24 and the full year 2024 compared with Q4-23 and the full year 2023.
“Cognex delivered strong results in the fourth quarter, with revenue at the high end of our guidance range. Growth was driven by continued momentum in our Logistics and Semiconductor businesses, including accelerated demand late in the quarter. Across most of our other factory automation end markets, demand remains soft but stable, while Automotive remains very weak,” said Robert J. Willett, CEO.
Mr. Willett added, “Cognex continues to define the leading edge of technology in industrial machine vision. Powerful AI models are making our advanced technology easier to use, enabling us to improve our customers’ experience and address many more use cases. We recently launched VisionPro Deep Learning 4.0, Cognex’s first product to utilize next-generation AI Transformer models, and our new AI-driven DataMan series, our most powerful and easiest-to-use ID readers yet.”
In addition to Mr. Willett’s comments, Dennis Fehr, CFO, stated, “Revenue growth coupled with cost discipline and working capital efficiencies led to above-guidance adjusted EBITDA margin, with year-on-year expansion of 580 basis points, and strong free cash flow generation of $49 million. We were pleased to return $57 million in capital to shareholders during the quarter.”
Table 1
(Dollars in millions, except per share amounts)
Current
Quarter
Q4-24
Prior Year
Quarter
Q4-23
Y/Y
Change
Current
Year
2024
Prior
Year
2023
Y/Y
Change
Revenue
$230
$197
+17 %
$915
$838
+9 %
Operating Income
$31
$13
+142 %
$115
$131
-12 %
% of Revenue
13.4 %
6.5 %
+690 bps
12.6 %
15.6 %
(300) bps
Adjusted EBITDA*
$42
$25
+71 %
$156
$155
+1 %
% of Revenue
18.5 %
12.6 %
+580 bps
17.1 %
18.5 %
(140) bps
Net Income per Diluted Share
$0.16
$0.07
+153 %
$0.62
$0.65
-6 %
Adjusted EPS (Diluted)*
$0.20
$0.11
+84 %
$0.74
$0.73
0 %
Note: Numbers shown may not foot due to rounding.
*Adjusted EBITDA and Adjusted EPS (Diluted) include Non-GAAP adjustments. A reconciliation from GAAP to Non-GAAP metrics is provided in this news release.
Details of the Quarter
Statement of Operations Highlights – Fourth Quarter of 2024
Revenue grew by 17% from Q4-23. Excluding the 5 percentage point contribution to revenue growth from Moritex, revenue increased by 12%. The year-on-year increase in revenue excluding Moritex was driven by continued strength in our Logistics and Semiconductor businesses, including accelerated demand late in the quarter. This growth was partially offset by continued weakness in Automotive.Gross margin of 68.7% was flat compared to Q4-23. We recorded $2 million in amortization of intangible assets and other acquisition charges in cost of revenue in Q4-24, primarily related to the Moritex acquisition. Adjusted gross margin was 69.4% for Q4-24 compared to 70.7% for Q4-23. The year-on-year decline was primarily driven by the dilution effect from Moritex as well as negative mix, and, to a lesser extent, pricing.Operating expenses of $127 million increased by 4% from Q4-23. Adjusted operating expenses of $122 million in Q4-24 increased by 3% from Q4-23. The year-on-year increase was driven by Moritex operating expenses, investment in our sales transformation, and incentive compensation, partly offset by lower overall headcount and tight cost management.Net income of $28 million in Q4-24 increased by 152% from Q4-23. Adjusted net income of $35 million in Q4-24 increased by 84% from Q4-23. The year-on-year increase in adjusted net income was driven by revenue growth excluding Moritex, the contribution from Moritex and leverage on our operating expenses.
Details of the Year
Statement of Operations Highlights – Full Year 2024
Revenue grew by 9% in 2024, or 1% excluding Moritex. Our Logistics and Semiconductor businesses exhibited strong growth throughout the year. Factory automation businesses such as Consumer Goods and Food and Beverage stabilized, while Automotive weakened during the year, with a significant decline in the EV battery business.Gross margin was 68.4% for the full year compared to 71.8% in 2023. Adjusted gross margin of 69.3% declined from 72.5% in 2023. The year-on-year decline was due to the addition of Moritex, unfavorable revenue mix, and, to a lesser extent, pricing.Operating expenses increased 9% year-on-year. Adjusted operating expenses increased by 6% year-on-year due to the addition of Moritex and investment in our sales transformation and expansion. This was partially offset by tight cost management, with year-end headcount down 3% year-on-year.Operating margin declined to 12.6% from 15.6% in 2023. Adjusted operating margin was 14.9%, down from 16.4% in 2023. Adjusted EBITDA margin of 17.1% was down from 18.5% in 2023. The step-down was primarily due to the decline in gross margin and investment in our sales transformation.Net income and diluted earnings per share both declined by 6% year-on-year. Adjusted net income and adjusted diluted earnings per share were both flat year-on-year as the contribution from Moritex offset softness in factory automation. Our effective tax rate increased to 19% from 16% in 2023, while our adjusted effective tax rate increased to 17% from 15% in 2023.
Balance Sheet and Cash Flow Highlights – December 31, 2024
Cognex’s financial position as of December 31, 2024 continued to be strong, with $587 million in cash and investments and no debt.In Q4-24, Cognex generated $51 million of cash from operating activities and $49 million in free cash flow, a $37 million and $42 million improvement year-on-year, respectively.The company spent $43 million to repurchase its common stock and paid $14 million in dividends to shareholders. Cognex intends to continue to repurchase shares of its common stock pursuant to its existing stock repurchase program, subject to market conditions and other relevant factors.
Financial Outlook – First Quarter of 2025
Cognex expects revenue to be between $200 million and $220 million. At the midpoint, this represents a similar revenue level year-on-year, driven by expected growth in Logistics and Semiconductor, offset by weaker Automotive and a $5 million FX headwind. The expected sequential step-down is driven by the acceleration in demand from customers in Q4 and an anticipated $4 million FX headwind.Adjusted gross margin1 is expected to be in the high 60 percent range.Adjusted EBITDA margin1 is expected to be between 12% and 15%. This represents a 150 basis point increase year-on-year at the midpoint driven by continued tight management of operating expenses.The adjusted effective tax rate1 is expected to be 16%.
1Cognex has provided the forward-looking non-GAAP measures of adjusted gross margin, adjusted EBITDA margin, and adjusted effective tax rate, but cannot, without unreasonable effort, forecast such items to present or provide a reconciliation to corresponding forecasted GAAP measures. These include special items such as restructuring charges, acquisition and integration charges, and amortization of acquisition-related intangible assets, all of which are subject to limitations in predictability of timing, ultimate outcome and numerous conditions outside of Cognex’s control. Additionally, these items are outside of Cognex’s normal business operations and not used by management to assess Cognex’s operating results. Cognex believes these limitations would result in a range of projected values so broad as to not be meaningful to investors. For these reasons, Cognex believes that the probable significance of such information is low. Information with respect to special items for certain historical periods is included in the section entitled “Reconciliation of Selected Items From GAAP to Non-GAAP”.
Analyst Conference Call and Simultaneous Webcast
Cognex will host a conference call on February 13, 2025 at 8:30 a.m. Eastern Standard Time (EST). The telephone number is (877) 704-4573 (or (201) 389-0911 if outside the United States).A real-time audio broadcast of the conference call or an archived recording, together with a slide presentation, will be accessible on the Events & Presentations page of the Cognex Investor website: www.cognex.com/investor.
COGNEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 186,094
$ 202,655
Current investments, amortized cost of $60,725 and $132,799 in 2024 and 2023, respectively, allowance for credit losses of $0 in 2024 and 2023
59,956
129,392
Accounts receivable, allowance for credit losses of $827 and $583 in 2024 and 2023, respectively
143,359
114,164
Unbilled revenue
3,055
2,402
Inventories
157,527
162,285
Prepaid expenses and other current assets
63,376
68,099
Total current assets
613,367
678,997
Non-current investments, amortized cost of $345,033 and $250,790 in 2024 and 2023, respectively, allowance for credit losses of $0 in 2024 and 2023
340,898
244,230
Property, plant, and equipment, net
98,445
105,849
Operating lease assets
67,326
75,115
Goodwill
384,937
393,181
Intangible assets, net
90,684
112,952
Deferred income taxes
392,166
400,400
Other assets
5,027
7,088
Total assets
$ 1,992,850
$ 2,017,812
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 38,046
$ 21,454
Accrued expenses
71,760
72,374
Accrued income taxes
25,685
16,907
Deferred revenue and customer deposits
25,035
31,525
Operating lease liabilities
8,854
9,624
Total current liabilities
169,380
151,884
Non-current operating lease liabilities
61,363
68,977
Deferred income taxes
217,155
246,877
Reserve for income taxes
26,365
26,685
Non-current accrued income taxes
—
18,338
Other liabilities
1,082
299
Total liabilities
475,345
513,060
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value – Authorized: 400 shares in 2024 and 2023, respectively, no shares issued and outstanding
—
—
Common stock, $0.002 par value – Authorized: 300,000 shares in 2024 and 2023, respectively, issued and outstanding: 170,434 and 171,599 shares in 2024 and 2023, respectively
341
343
Additional paid-in capital
1,090,638
1,037,202
Retained earnings
499,303
512,543
Accumulated other comprehensive loss, net of tax
(72,777)
(45,336)
Total shareholders’ equity
1,517,505
1,504,752
Total liabilities and shareholders’ equity
$ 1,992,850
$ 2,017,812
COGNEX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three-months Ended
Twelve-months Ended
December 31,
2024
September 29,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Revenue
$ 229,684
$ 234,742
$ 196,670
$ 914,515
$ 837,547
Cost of revenue (1)
71,825
75,343
61,626
288,721
236,306
Gross profit
157,859
159,399
135,044
625,794
601,241
Percentage of revenue
68.7 %
67.9 %
68.7 %
68.4 %
71.8 %
Research, development, and engineering expenses (1)
32,538
35,210
34,693
139,815
139,400
Percentage of revenue
14.2 %
15.0 %
17.6 %
15.3 %
16.6 %
Selling, general, and administrative expenses (1)
94,481
92,625
90,372
370,914
339,139
Percentage of revenue
41.1 %
39.5 %
46.0 %
40.6 %
40.5 %
Loss (recovery) from fire
—
—
(2,750)
—
(8,000)
Operating income
30,840
31,564
12,729
115,065
130,702
Percentage of revenue
13.4 %
13.4 %
6.5 %
12.6 %
15.6 %
Foreign currency gain (loss)
445
1,221
(129)
1,531
(10,039)
Investment income
4,174
3,561
1,520
13,971
14,093
Other income (expense)
341
209
234
922
592
Income before income tax expense
35,800
36,555
14,354
131,489
135,348
Income tax expense
7,454
6,964
3,125
25,318
22,114
Net income
$ 28,346
$ 29,591
$ 11,229
$ 106,171
$ 113,234
Percentage of revenue
12.3 %
12.6 %
5.7 %
11.6 %
13.5 %
Net income per weighted-average common and common-equivalent share:
Basic
$ 0.17
$ 0.17
$ 0.07
$ 0.62
$ 0.66
Diluted
$ 0.16
$ 0.17
$ 0.07
$ 0.62
$ 0.65
Weighted-average common and common-equivalent shares outstanding:
Basic
171,282
171,519
171,771
171,438
172,249
Diluted
172,508
172,753
172,571
172,611
173,399
Cash dividends per common share
$ 0.080
$ 0.075
$ 0.075
$ 0.305
$ 0.286
(1) Amounts include stock-based compensation expense, as follows:
Cost of revenue
$ 506
$ 442
$ 482
$ 1,966
$ 1,979
Research, development, and engineering
2,992
3,707
3,823
14,628
16,480
Selling, general, and administrative
9,578
8,952
8,945
35,849
36,309
Total stock-based compensation expense
$ 13,076
$ 13,101
$ 13,250
$ 52,443
$ 54,768
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, including adjusted gross margin, adjusted operating expense, adjusted operating income, adjusted EBITDA, adjusted net income, adjusted earnings per share of common stock, diluted, adjusted effective tax rate, and free cash flow. Cognex defines its non-GAAP metrics as follows:
Adjusted gross margin: Gross margin adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events, such as loss or recovery related to a fire.Adjusted operating expense: Operating expense adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events, such as loss or recovery related to a fire.Adjusted operating income: Operating income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events, such as loss or recovery related to a fire.Adjusted EBITDA: Operating income adjusted for amortization of acquisition-related intangible assets and depreciation, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events, such as loss or recovery related to a fire.Adjusted net income: Net income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs, discrete tax items, and one-time discrete events, such as loss or recovery related to a fire or a foreign currency (gain) loss on a forward contract to hedge the Moritex purchase price.Adjusted earnings per share of common stock, diluted: Adjusted net income divided by diluted weighted average common and common-equivalent shares.Adjusted effective tax rate: Effective tax rate adjusted for discrete tax items and the net impact of the other non-GAAP adjustments.Free cash flow: Cash provided by operating activities less cash for capital expenditures.
Cognex may disclose results on a constant-currency basis as one measure to evaluate its performance and compare results between periods as if the exchange rates had remained constant period-over-period.
Cognex believes these non-GAAP financial measures are helpful because they allow investors to more accurately compare results over multiple periods using the same methodology that management employs in its budgeting process, in its review of operating results, and for forecasting and planning for future periods. Cognex’s definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Furthermore, these measures have certain limitations in that they do not include the impact of certain non-recurring expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
Please see the section “Reconciliation of Selected Items from GAAP to Non-GAAP” below for more detailed information regarding non-GAAP financial measures herein, including the items reflected in our adjusted financial metrics and a description of these adjustments.
COGNEX CORPORATION
RECONCILIATION OF SELECTED ITEMS FROM GAAP TO NON-GAAP
Dollars in thousands, except per share amounts (Unaudited)
Three-months Ended
Twelve-months Ended
December 31,
2024
September 29,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Gross profit (GAAP)
$ 157,859
$ 159,399
$ 135,044
$ 625,794
$ 601,241
Acquisition and integration costs
213
281
2,882
2,295
2,882
Amortization of acquisition-related intangible assets
1,360
1,640
1,126
5,817
2,975
Reorganization charges
18
—
—
18
—
Adjusted gross profit
$ 159,450
$ 161,320
$ 139,052
$ 633,924
$ 607,098
GAAP gross margin
68.7 %
67.9 %
68.7 %
68.4 %
71.8 %
Adjusted gross margin
69.4 %
68.7 %
70.7 %
69.3 %
72.5 %
Operating expense (GAAP)
$ 127,019
$ 127,835
$ 122,315
$ 510,729
$ 470,539
(Loss) recovery from fire
—
—
2,750
—
8,000
Acquisition and integration costs
(761)
(962)
(5,101)
(4,229)
(7,080)
Amortization of acquisition-related intangible assets
(1,132)
(1,746)
(1,053)
(5,601)
(1,635)
Reorganization charges
(2,972)
—
—
(2,972)
—
Adjusted operating expense
$ 122,154
$ 125,127
$ 118,911
$ 497,927
$ 469,824
Operating income (GAAP)
$ 30,840
$ 31,564
$ 12,729
$ 115,065
$ 130,702
Loss (recovery) from fire
—
—
(2,750)
—
(8,000)
Acquisition and integration costs
974
1,243
7,983
6,524
9,962
Amortization of acquisition-related intangible assets
2,492
3,386
2,179
11,418
4,610
Reorganization charges
2,990
—
—
2,990
—
Adjusted operating income
$ 37,296
$ 36,193
$ 20,141
$ 135,997
$ 137,274
GAAP operating margin
13.4 %
13.4 %
6.5 %
12.6 %
15.6 %
Adjusted operating margin
16.2 %
15.4 %
10.2 %
14.9 %
16.4 %
Depreciation (adjusted for amounts included in Acquisition and integration costs)
5,139
5,027
4,713
20,393
17,270
Adjusted EBITDA
$ 42,435
$ 41,220
$ 24,854
$ 156,390
$ 154,544
Adjusted EBITDA margin
18.5 %
17.6 %
12.6 %
17.1 %
18.5 %
Net income (GAAP)
$ 28,346
$ 29,591
$ 11,229
$ 106,171
$ 113,234
Loss (recovery) from fire
—
—
(2,750)
—
(8,000)
Acquisition and integration costs
974
1,243
7,983
6,524
9,962
Amortization of acquisition-related intangible assets
2,492
3,386
2,179
11,418
4,610
Foreign currency (gain) loss on forward contract
—
—
—
—
8,456
Reorganization charges
2,990
—
—
2,990
—
Discrete tax (benefit) expense
2,220
889
1,498
5,731
2,338
Tax impact of reconciling items
(2,008)
(1,176)
(1,134)
(5,571)
(3,207)
Adjusted net income
$ 35,014
$ 33,933
$ 19,006
$ 127,263
$ 127,393
Earnings per share of common stock, diluted (GAAP)
$ 0.16
$ 0.17
$ 0.07
$ 0.62
$ 0.65
Loss (recovery) from fire
—
—
(0.02)
—
(0.05)
Acquisition and integration costs
0.01
0.01
0.05
0.04
0.06
Amortization of acquisition-related intangible assets
0.01
0.02
0.01
0.07
0.03
Foreign currency (gain) loss on forward contract
—
—
—
—
0.05
Reorganization charges
0.02
—
—
0.02
—
Discrete tax (benefit) expense
0.01
0.01
0.01
0.03
0.01
Tax impact of reconciling items
(0.01)
(0.01)
(0.01)
(0.03)
(0.02)
Adjusted earnings per share of common stock, diluted
$ 0.20
$ 0.20
$ 0.11
$ 0.74
$ 0.73
Effective tax rate (GAAP)
20.8 %
19.1 %
21.8 %
19.3 %
16.3 %
Discrete tax benefit (expense)
(6.2) %
(2.4) %
(10.4) %
(4.4) %
(1.7) %
Net impact of other reconciling items
2.5 %
1.0 %
1.4 %
1.6 %
0.7 %
Adjusted effective tax rate
17.1 %
17.6 %
12.7 %
16.5 %
15.3 %
Cash provided by operating activities (GAAP)
$ 51,404
$ 56,271
$ 14,491
$ 149,081
$ 112,916
Capital expenditures
(2,073)
(4,399)
(7,015)
(15,043)
(23,077)
Free cash flow
$ 49,331
$ 51,872
$ 7,476
$ 134,038
$ 89,839
Description of adjustments:
In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides various non-GAAP measures that incorporate adjustments for the impacts of special items. Adjustments incorporated in the preparation of these non-GAAP measures for the periods presented include the items described below:
Depreciation:
The company incurs expense related to its normal use of property, plant and equipment.
Loss (recovery) from fire:
On June 7, 2022, the Company’s primary contract manufacturer experienced a fire at its plant in Indonesia. During the twelve-month period ended December 31, 2023, the Company recorded recoveries related to the fire of $8,000,000 consisting of $2,500,000 for proceeds received from the Company’s insurance carrier in relation to a business interruption claim and $5,500,000 for proceeds received as part of a financial settlement for lost inventory and other losses incurred as a result of the fire. Management does not anticipate additional recoveries.
Acquisition and integration costs:
The Company has incurred charges related to the purchase and integration of acquired businesses. During the twelve-month period ended December 31, 2024, these costs were primarily related to the ongoing integration of Moritex Corporation.
Amortization of acquisition-related intangible assets:
The Company excludes the amortization of acquired intangible assets from non-GAAP expense and income measures. These items are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions, and include the amortization of customer relationships, completed technologies, and trademarks that originated from prior acquisitions. The largest driver of intangible asset amortization was the acquisition of Moritex Corporation.
Reorganization charges:
The Company has incurred charges related to the reorganization of its employees. During the twelve-month period ended December 31, 2024, these costs consisted primarily of severance.
Discrete tax (benefit) expense:
Items unrelated to current period ordinary income or (loss) that generally relate to changes in tax laws, adjustments to prior period’s actual liability determined upon filing tax returns, adjustments to previously recorded reserves for uncertain tax positions, and establishments and adjustments of valuation allowances.We estimate the tax effect of items identified in the reconciliation by applying the statutory tax rate to the pre-tax amount.
Certain statements made in this report, as well as oral statements made by the Company from time to time, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Readers can identify these forward-looking statements by our use of the words “expects,” “anticipates,” “estimates,” “potential,” “believes,” “projects,” “intends,” “plans,” “will,” “may,” “shall,” “could,” “should,” “opportunity,” “goal” and similar words and other statements of a similar sense. These statements are based on our current estimates and expectations as to prospective events and circumstances, which may or may not be in our control and as to which there can be no firm assurances given. These forward-looking statements, which include statements regarding business and market trends, future financial performance and financial targets, customer demand and order rates and timing of related revenue, future product or revenue mix, research and development activities, sales and marketing activities, new product offerings, innovation and product development activities, customer acceptance of our products, capital expenditures, cost and working capital management activities, investments, liquidity, dividends and stock repurchases, strategic and growth plans and opportunities, acquisitions, and estimated tax benefits and expenses and other tax matters, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include: (1) the technological obsolescence of current products and the inability to develop new products; (2) the impact of competitive pressures; (3) the inability to attract and retain skilled employees, effectively plan for succession, and maintain our unique corporate culture; (4) the failure to properly manage the distribution of products and services; (5) economic, political, and other risks associated with international sales and operations, including the impact of trade disputes on the economic climate in China; (6) the challenges in integrating and achieving expected results from acquired businesses; (7) uncertainty surrounding our future capital needs; (8) information security breaches; (9) the failure to comply with laws or regulations relating to data privacy or data protection; (10) the inability to protect our proprietary technology and intellectual property; (11) the failure to manufacture and deliver products in a timely manner; (12) the inability to obtain, or the delay in obtaining, components for our products at reasonable prices; (13) the inability to design and manufacture high-quality products; (14) the loss of, or curtailment of purchases by, large customers in the logistics, consumer electronics, or automotive industries; (15) challenges in accurately forecasting our financial results due to seasonal and cyclical variations in customer purchasing patterns; (16) potential impairment charges with respect to our investments or acquired intangible assets; (17) exposure to additional tax liabilities, increases and fluctuations in our effective tax rate, and other tax matters; (18) fluctuations in foreign currency exchange rates and the use of derivative instruments; (19) unfavorable global economic conditions, including increases in interest rates and elevated inflation rates; (20) business disruptions from natural or man-made disasters, public health crises, or other events outside our control; (21) exposure to potential liabilities, increased costs, reputational harm, and other adverse effects associated with expectations relating to environmental, social, and governance considerations; (22) stock price volatility; and (23) our involvement in time-consuming and costly litigation or activist shareholder activities. The foregoing list should not be construed as exhaustive and we encourage readers to refer to the detailed discussion of risk factors included in Part I – Item 1A of our Annual Report on Form 10-K. The Company cautions 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 to subsequently revise forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date such statements are made.
About Cognex Corporation
Cognex Corporation (“the Company” or “Cognex”) invents and commercializes technologies that address some of the most critical manufacturing and distribution challenges. We are a leading global provider of machine vision products and solutions that improve efficiency and quality in high-growth-potential businesses across attractive industrial end markets. Our solutions blend physical products and software to capture and analyze visual information, allowing for the automation of manufacturing and distribution tasks for customers worldwide. Machine vision products are used to automate the manufacturing or distribution and tracking of discrete items, such as mobile phones, electric vehicle batteries and e-commerce packages, by locating, identifying, inspecting, and measuring them. Machine vision is important for applications in which human vision is inadequate to meet requirements for size, accuracy, or speed, or in instances where substantial cost savings or quality improvements are maintained.
Cognex is the world’s leader in the machine vision industry, having shipped more than 4.5 million image-based products, representing over $11 billion in cumulative revenue, since the company’s founding in 1981. Headquartered in Natick, Massachusetts, USA, Cognex has offices and distributors located throughout the Americas, Europe, and Asia. For details, visit Cognex online at www.cognex.com.
Investor Contacts:
Nathan McCurren – Head of Investor Relations and Treasurer
Jordan Bertier – Sr. Manager, Investor Relations
Cognex Corporation
ir@cognex.com
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SOURCE Cognex Corporation
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Technology
BTQ Technologies’ QSSN Selected as Core Security Infrastructure for South Korea’s First Bank-Led KRW Stablecoin Proof-of-Concept
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10 hours agoon
May 6, 2026By
BTQ provides strategic advisory support and QSSN as core PQC security infrastructure for the iM Bank initiative on the Kaia mainnet, advancing post-quantum migration across global financial infrastructure
BTQ has been selected as the core post-quantum cryptography security technology provider for South Korea’s first bank-led KRW stablecoin proof-of-concept, delivering its Quantum Secure Stablecoin Settlement Network (“QSSN”) for the initiative.
BTQ is providing strategic advisory support and helping coordinate implementation across the partnership with iM Bank and Finger, supporting the integration of post-quantum protections into regulated digital money infrastructure.
Built on the Kaia mainnet, the proof-of-concept is connected to the blockchain ecosystems originally developed by Kakao and LINE, linking the initiative to two of the largest messaging and digital platform ecosystems in Korea and Japan.
VANCOUVER, BC, May 6, 2026 /PRNewswire/ – BTQ Technologies Corp. (“BTQ” or the “Company”) (Nasdaq: BTQ) (CBOE CA: BTQ), a global quantum technology company focused on securing mission-critical networks, today announced that it it has been selected as the core PQC security technology provider through its Quantum Secure Stablecoin Settlement Network (“QSSN”) in a proof-of-concept with its Korean strategic partner, Finger Inc. (“Finger”), and iM Bank, a leading Korean commercial bank, for South Korea’s first bank-led Korean won stablecoin infrastructure incorporating post-quantum cryptography (“PQC”).
The proof-of-concept represents more than a technical pilot. It marks an important step in bringing next-generation quantum security into banking infrastructure within Korea’s regulated financial system. In addition to providing QSSN as the core PQC security framework, BTQ is contributing consulting and strategic coordination across the three-way partnership, helping align the project’s security architecture, implementation approach, and long-term post-quantum migration objectives.
“Post-quantum migration requires more than a cryptographic upgrade. It requires coordination across infrastructure, implementation, and institutional stakeholders,” said Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies. “In this initiative, BTQ is providing both strategic advisory support and QSSN as the post-quantum security architecture, while helping lead coordination across the three-way partnership. We believe this proof-of-concept demonstrates how financial institutions can begin integrating quantum-resilient protections into digital money systems in a practical and operationally viable way.”
South Korea’s First Bank-Led PQC Stablecoin Infrastructure Initiative
BTQ is working alongside iM Bank and Finger on a three-way initiative to validate the issuance and distribution infrastructure for a Korean won stablecoin. In addition to supplying QSSN as the PQC security layer, BTQ is providing consulting support and helping to guide coordination across the partnership as the parties evaluate how to integrate post-quantum protections into bank-led digital asset infrastructure.
The proof-of-concept will validate several key components, including real-time reconciliation between bank reserves and blockchain-issued supply, a global-standard smart contract architecture, connectivity to global infrastructure for overseas distribution, and the integration of a PQC-based dual-signature security structure. By applying BTQ’s PQC signature architecture alongside the existing ECDSA cryptographic framework, the system is designed to preserve operational continuity for financial institutions while proactively addressing future quantum computing threats.
Built on Kaia Mainnet
A notable feature of the proof-of-concept is that it will be implemented on the Kaia mainnet, one of Korea’s leading Layer 1 blockchain networks. Kaia was created through the merger of Klaytn, the blockchain originally developed by Kakao, and Finschia, the blockchain associated with LINE. Kakao and LINE sit at the center of two of the largest messaging and digital platform ecosystems in Korea and Japan, respectively, making Kaia a significant piece of regional digital infrastructure.
Klaytn previously participated in the Bank of Korea’s CBDC pilot ecosystem, and the Bank of Korea has continued to advance CBDC testing through initiatives such as Project Hangang.
By combining BTQ’s PQC technology with blockchain infrastructure tied to the Kakao and LINE ecosystems, the proof-of-concept is intended to establish a model that aligns institutional-grade security, blockchain scalability, and evolving regulatory requirements for digital money infrastructure.
QSSN as the Security Layer
The PQC security foundation for the initiative is BTQ’s Quantum Secure Stablecoin Settlement Network, or QSSN, a quantum-secure network architecture designed for stablecoin, tokenized deposit, payment, and digital asset infrastructure. QSSN is designed to protect critical issuer functions, including stablecoin issuance, burning, transfer authority, upgrade control, and administrative permissions, by integrating PQC-based signatures while maintaining existing user experience and operational workflows.
BTQ has previously announced that QSSN was highlighted in the U.S. Post-Quantum Financial Infrastructure Framework (“PQFIF”) as a model architecture for post-quantum digital money infrastructure. The Company has also positioned QSSN as a standards-oriented initiative advanced through QuINSA and aligned with emerging post-quantum financial infrastructure requirements.
Addressing the Harvest-Now, Decrypt-Later Risk
The timing of the proof-of-concept reflects the growing urgency surrounding the “Harvest-Now, Decrypt-Later” risk, in which attackers may collect encrypted financial data today and decrypt it later once sufficiently advanced quantum capabilities emerge. Global institutions are already accelerating post-quantum migration. The U.S. National Institute of Standards and Technology (“NIST”) has finalized its first set of post-quantum cryptography standards, including ML-DSA, ML-KEM, and SLH-DSA, while major technology companies and financial institutions continue to define their own post-quantum transition timelines.
BTQ’s QSSN addresses this challenge through a dual-signature design that allows existing ECDSA-based infrastructure to operate in parallel with NIST-aligned PQC signatures such as ML-DSA. This approach enables banks and payment infrastructure providers to begin a phased transition toward quantum-safe security without disrupting existing systems.
Expanding BTQ’s Korean Ecosystem
BTQ continues to expand its Korean ecosystem across digital assets, payments, banking infrastructure, and hardware-based security. In October 2025, BTQ announced that Finger had joined Danal as an early participant in BTQ’s QSSN pilot program, with the initiative expected to progress from proof-of-concept toward commercialization under QuINSA-aligned guidelines and broader industry frameworks such as PQFIF.
The commencement of the iM Bank proof-of-concept represents an important commercial signal for BTQ, indicating that demand for post-quantum migration among Korean financial institutions is beginning to move from policy discussion toward infrastructure-level implementation. As Korea advances both quantum technology policy and stablecoin-related regulatory discussions, BTQ believes QSSN is well positioned at the intersection of regulated finance, digital asset infrastructure, and post-quantum security.
About iM Bank
iM Bank is a South Korean commercial bank and a subsidiary of DGB Financial Group. Headquartered in Daegu, iM Bank presents itself as a financial companion for customers and traces its roots to Daegu Bank, which was established in 1967 as Korea’s first regional bank. For more information, please visit https://www.imbank.co.kr/
About Finger Inc. Group
Finger supplies and develops financial IT solutions to provide optimized money management strategies for employees and corporate customers. Providing “Smartphone Financial Services”, “Corporate Cash Management Services” for businesses, “Private Wealth Management Services” for private consumers.
Since the year 2000, Finger has accumulated a number of awards and patents regarding its businesses. Based on its Mobile Enterprise Application Platform(MEAP) Orchestra and its funds management system using screen-scrapping technologies, Finger was the first company in Korea to deliver a smartphone banking banking-service. For more information, please visit http://www.finger.co.kr/
About BTQ
BTQ Technologies Corp. (Nasdaq: BTQ | Cboe CA: BTQ) is a quantum technology company focused on accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio and deep technical expertise, BTQ is advancing a full-stack, neutral-atom quantum computing platform spanning hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.
Connect with BTQ: Website | LinkedIn | X/Twitter
ON BEHALF OF THE BOARD OF DIRECTORS
Olivier Roussy Newton
CEO, Chairman
Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as “anticipate”, “intend”, “expect”, “plan” or “may” and the variations of these words are intended to identify forward-looking statements and information.
The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.
Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company’s research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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SOURCE BTQ Technologies Corp.
Technology
Zimmer Biomet to Present at the BofA Securities 2026 Health Care Conference
Published
10 hours agoon
May 6, 2026By
WARSAW, Ind., May 6, 2026 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that members of the Zimmer Biomet management team will participate in the Bank of America Securities Health Care Conference on Wednesday, May 13, 2026, with a fireside chat at 8:40 a.m. PT (11:40 a.m. ET).
A live audio webcast can be accessed via Zimmer Biomet’s Investor Relations website at https://investor.zimmerbiomet.com. It will be available for replay following the fireside chat.
About Zimmer Biomet
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.
With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation.
For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X at www.x.com/zimmerbiomet.
Contacts:
Media
Investors
Troy Kirkpatrick
David DeMartino
614-284-1926
646-531-6115
troy.kirkpatrick@zimmerbiomet.com
david.demartino@zimmerbiomet.com
Kirsten Fallon
Zach Weiner
781-779-5561
908-591-6955
View original content to download multimedia:https://www.prnewswire.com/news-releases/zimmer-biomet-to-present-at-the-bofa-securities-2026-health-care-conference-302763299.html
SOURCE Zimmer Biomet Holdings, Inc.
Technology
NextLadder Ventures Announces Co-Founder Leadership Team, Investment Focus Areas For Over $1 Billion Initiative Empowering Americans with Personalized, Tech-Enabled Support Tools
Published
10 hours agoon
May 6, 2026By
New senior hires from Google and The Collaborative Fund to lead product strategy and venture investing
Fund unveils first investment focus areas to catalyze new ‘Navigation Technology’ market, equipping Americans with cutting-edge tools to achieve economic security, opportunity and empowerment
ST. LOUIS, May 6, 2026 /PRNewswire/ — NextLadder Ventures, a new fund backed by more than $1 billion in capital, today announced its priority investment areas for building a new market for “Navigation Technology” (NavTech) — tools that provide Americans with personalized solutions to navigate life’s challenges and achieve greater economic mobility — and announced its co-founding team, including two new senior hires.
The fund’s active focus areas are based on extensive research identifying the key experiences and high-stakes decision points that have an outsized impact on American families’ economic mobility. Launched investment areas include financial health, career navigation, and benefits and social services access, with further exploration underway around housing, legal aid, justice and re-entry, and mental and physical health.
The organization is also today welcoming two senior leaders: Lauren Loktev is joining NextLadder as Managing Director of Investments and Brigitte Hoyer Gosselink as Managing Director of Product. Loktev was most recently a partner at the Collaborative Fund, where she backed several breakout companies in early child development, education, and sustainability. Gosselink comes to NextLadder from Google, where she led the company’s AI and social impact portfolio. They join a growing team which has deep expertise at the intersection of economic mobility, technology, public policy, and philanthropy.
NextLadder’s Focus Areas for Investment
Today, the fund is kicking off a plan to deploy $1 billion over the next seven years to accelerate the design, development, and deployment of accessible NavTech tools that aim to help families more successfully navigate the major life experiences that determine whether they get ahead or fall behind. As NextLadder’s inaugural frontier AI lab partner, Anthropic is supporting the build-out of the organization’s AI-native capabilities and is offering technical assistance to NextLadder’s portfolio organizations.
As an increasing proportion of Americans across income levels find themselves overextended and overwhelmed, NavTech tools are designed to help individuals and families understand their options, connect to information and resources, and take action to recover from a setback or take advantage of an opportunity and reclaim their economic futures.
“Life is getting harder, and too many Americans are stuck facing some of the most complex and consequential moments of their lives without much support,” said Ryan Rippel, CEO of NextLadder Ventures. “Every day, millions in this country face fork-in-the-road decisions that have major implications on whether they climb up the economic ladder or fall farther behind. AI has understandably intensified many Americans’ anxieties about their jobs and their security in the economy. But these technologies are now also making it possible to deliver highly personalized, affordable tools to meet the needs of tens of millions of Americans in a way that has never been practically achievable or financially viable before. With NavTech tools, built for the reality of families’ everyday experiences, we can empower Americans to overcome setbacks, navigate life’s toughest financial decisions, and build more secure futures.”
NavTech tools, built with the needs of individuals, families, and trusted community partners at the center of their design, have the potential to ease burdens most acutely faced by 90 million Americans who live in households that have difficulty in paying for usual home expenses, and turbocharge the capacity of the 1.6 million community workers in non-profit or local, state, and federal government roles who serve them. This growing category of digital technologies includes tools that help families access opportunities such as personalized financial advice and legal aid, get connected with available resources and programs, and manage unexpected hurdles like losing a job or facing an eviction – while freeing social workers and service providers to spend more time on people and less time on red tape and paperwork.
The fund’s active investment areas include:
Financial Health: Developing highly personalized, AI-powered financial health tools that can provide tailored, sustained counsel to help users build savings and protect and recover from financial shocks;
Career Navigation: Building tools to support career navigation, manage and support career transitions, and help workers, case managers, and employers identify pathways to living wage work — all designed to help people successfully find the right jobs for them.
Benefits & Social Services Access: Helping eligible Americans seamlessly identify and enroll in all the benefits and social services available to them, particularly those that support career navigation and transitions, help them navigate critical life moments, and achieve stability toward economic opportunity.
NextLadder is exploring additional focus areas, including housing, legal aid, justice and re-entry, caregiving, and mental and physical health. More on the organization’s vision of these focus areas is available HERE.
In addition to backing direct NavTech solutions, NextLadder is investing in the developers, partners, and standards required to build a durable, self-sustaining market. Across all focus areas, the fund is prioritizing efforts to ensure NavTech tools are reliable, protect users’ privacy, and are trusted by the families who depend on them.
NextLadder’s Co-Founder Leadership Team
NextLadder’s five co-founders will be CEO Ryan Rippel, Chief Strategy and Operations Officer Rhett Dornbach-Bender, Chief of Staff Callie Schwartz, and the two new senior hires: Managing Director of Investments Lauren Loktev and Managing Director of Product Brigitte Hoyer Gosselink, rounding out the fund’s expertise in investing, technology, and impact.
“We’re thrilled to welcome Lauren and Brigitte to the NextLadder team,” said Rippel. “Brigitte has spent her career proving that when applied purposefully, AI and technology can deliver meaningful benefits for communities, and she’ll set the bar for what NavTech tools can deliver for American families today and in the years to come. And with her deep experience backing mission-driven founders, Lauren is the perfect leader to build our venture practice from the ground up and accelerate the growth of the NavTech field. With this team in place, we’re positioned to make NavTech tools easier to build, fund, and access so they reach the people who need them most.”
Loktev brings 15 years of venture capital experience investing at the intersection of for-profit and for-good. Most recently at Collaborative Fund, she backed several companies to significant scale and launched Collab+Sesame, a first-of-its-kind thematic seed fund in partnership with Sesame Workshop focused on early childhood education. At NextLadder, she will build and lead the fund’s venture practice, sourcing and scaling investments in the founders building the next generation of NavTech tools.
“We have a once in a generation opportunity to help steer AI solutions toward those who need them most,” said Loktev. “Many amazing, accomplished founders see this too, and they are on a mission to build scalable, transformative businesses in the critical verticals that help people navigate life-changing moments. I couldn’t be more excited to join NextLadder and to support the most inspiring leaders building this market from the ground up. Thanks to our unique, long-term mandate, we can be creative and flexible in investing across stage and check size to partner with the entrepreneurs and leaders we believe will change the world.”
Prior to her role at NextLadder, Gosselink spent over a decade at Google in several roles including Director of AI and Social Impact, directing more than $500 million in funding for organizations applying AI to address challenges including crisis response, education, and economic opportunity. At NextLadder, she will lead AI and product strategy across the fund’s portfolio, backing solutions and setting market-wide standards for how NavTech tools are designed, evaluated, and improved over time.
“If we collectively harness the AI transformation strategically and purposefully, we can transform the way Americans are empowered to access greater economic mobility,” said Gosselink. “We believe that people-centered products, combined with shifts in the market and the services available to families, can fundamentally reshape how millions of Americans navigate critical moments and achieve prosperity on their own terms.”
To request interviews from the NextLadder Ventures leadership team, contact media@nextladder.com.
About NextLadder Ventures
NextLadder Ventures is a time-bound venture with one goal: empower millions of Americans to reach their potential by 2040. Backed by over $1 billion in capital, the organization invests in breakthrough technologies that remove barriers to economic success and put people in control of their futures. NextLadder Ventures is trailblazing a new market for tech-enabled Navigation Technology tools that help people access the resources they need to navigate pivotal moments — offering flexible, risk-tolerant capital to entrepreneurs building these transformative tools today, while creating a pipeline of tech, talent, and capital for the long run.
SOURCE NextLadder Ventures
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