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Cognex Corporation is a leading global provider of machine vision products and solutions that enhance efficiency and quality across various industries. The company specializes in technologies that automate the manufacturing, distribution, and tracking of discrete items by locating, identifying, inspecting, and measuring them. Cognex sells machine vision systems, sensors, software, and industrial image-based barcode readers, which are utilized in applications where human vision is inadequate due to requirements for size, accuracy, or speed, or where significant cost savings and quality improvements can be achieved.
- Machine Vision Systems and Sensors - Includes deep learning solutions for complex applications and lower-cost vision sensors for simpler tasks like presence/absence inspections.
- Vision Software - Allows customers to use Cognex's software with their own hardware or purchase standalone units that integrate cameras, processors, and software.
- Industrial Image-Based Barcode Readers - Designed for tracking and identification purposes.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Robert J. Willett ExecutiveBoard | President, Chief Executive Officer, and Director | Director of Clean Harbors, Inc. (CLH) | Robert J. Willett joined Cognex in 2008, became CEO in 2011, and has extensive experience in the machine vision industry. | View Report → |
Carl W. Gerst III Executive | Executive Vice President of Vision and ID Products | None | Carl W. Gerst III joined Cognex in 1999 and was promoted to Executive Vice President in October 2020. | |
Dennis Fehr Executive | Senior Vice President of Finance and Chief Financial Officer | Board member of the German International School Society of Washington, D.C. | Dennis Fehr was appointed CFO on May 3, 2024, and leads Cognex's global finance and IT organizations. | |
Joerg Kuechen Executive | Chief Technology Officer | None | Joerg Kuechen joined Cognex in 2003 and was appointed CTO in June 2022. | |
Laura MacDonald Executive | Vice President of Finance and Principal Accounting Officer | None | Laura MacDonald has been with Cognex since 1994 and has held the position of Vice President of Finance since December 2007. | |
Sheila M. DiPalma Executive | Executive Vice President of Employee Services and Chief Culture Officer | None | Sheila M. DiPalma joined Cognex in 1992 and has been instrumental in leading the Employee Services department. | |
Angelos Papadimitriou Board | Director and member of the Audit Committee | Chairman of the Board of Directors at Athena Ventures; Director at Humanitas and Dompé Farmaceutici S.p.A. | Angelos Papadimitriou joined the Cognex Board on February 17, 2023, with extensive leadership experience in industrial automation. | |
Anthony Sun Board | Director and Chairman of the Board | None | Anthony Sun has served as a Director since 1982 and was appointed Chairman of the Board in May 2021, with extensive experience in the high-technology industry. | |
Dianne M. Parrotte Board | Director | None | Dianne M. Parrotte has been a Director since 2018, with extensive experience in human resource and organizational matters. | |
John T.C. Lee Board | Director | President and CEO of MKS Instruments, Inc.; Chair of the Executive Committee of the Massachusetts High Technology Council | John T.C. Lee has been a Director at Cognex since May 4, 2022, and is also the CEO of MKS Instruments. | |
Marjorie T. Sennett Board | Director and member of the Audit Committee | Board of Directors and Chair of the Audit Committee at The diaTribe Foundation | Marjorie T. Sennett joined the Board of Directors and Audit Committee of Cognex on November 3, 2021, with extensive knowledge in corporate finance. | |
Sachin Lawande Board | Director | President and CEO of Visteon Corporation (VC) | Sachin Lawande has been a Director at Cognex since January 1, 2021, and is also the President and CEO of Visteon Corporation. |
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With the ongoing competitive pricing pressures impacting gross margins, particularly in China, how do you plan to balance maintaining market share with protecting profitability, and what strategies are in place to mitigate these margin headwinds?
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Given that the emerging customer initiative will take several quarters before breakeven and reaching a 30% operating margin, what risks might delay or prevent achieving these targets, and how confident are you in the projected timeline?
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In light of uncertainties in the semiconductor capital expenditure trajectory for 2025, how is Cognex preparing to mitigate potential headwinds in the SEMI market, and what is your outlook for growth in this segment?
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Considering tempered expectations for near-term investment in Consumer Electronics and seasonal weakness expected in Q4, how do you anticipate this will affect overall company growth, and what steps are you taking to offset any potential slowdown in this segment?
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With the addition of less experienced sales staff in the emerging customer initiative, how sustainable is this strategy in effectively selling your complex products, and what measures are you implementing to ensure these new salesnoids achieve the desired productivity and sales effectiveness?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Customer #1 | Major revenue contributor in 2022 | All | 11% of total revenue in 2022. Accounts receivable <10% of total as of 12/31/2022. |
Customer #2 | Major revenue contributor in 2022 | All | 11% of total revenue in 2022. Accounts receivable <10% of total as of 12/31/2022. |
Customer #3 | Major revenue contributor in 2024 | All | 10% of total revenue in 2024 ($91.45 million). 10% of total accounts receivable as of 12/31/2024 ($14.34 million). |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Moritex Corporation | 2023 | Cognex completed an all-cash acquisition of Moritex Corporation on October 18, 2023, for £10 billion (approximately $270–$275 million). This deal strategically expands Cognex’s portfolio by incorporating Moritex’s leading optics components expertise, strengthening its foothold in the high-growth Japanese machine vision market, with Moritex expected to contribute 6–8% of revenue and be accretive to GAAP EPS in 2025. |
Recent press releases and 8-K filings for CGNX.
- AI Integration in Machine Vision: Cognex is accelerating its transition towards AI-enabled products, with every new machine vision launch now incorporating AI features such as auto tune for guided deployments, while maintaining 70% gross margins.
- Significant Sales Force Investments: The company is expanding its sales initiatives to tap into a broader customer base, with investments of $28 million in 2023 and an additional $23 million in 2024, reaching a $50 million run rate.
- Divergent Market Trends: Cognex sees strong growth potential in the logistics and semiconductor segments, driven by automation and AI trends, whereas the automotive vertical experienced a 14% revenue decline in 2024 due to market uncertainties.
- Competitive and Technological Landscape: The firm faces competition from Keyence in factory automation and SICK in warehouse/logistics applications, while continuing to enhance its portfolio with innovations in 3D vision and LiDAR technologies.