Looking
at the Q1 2013 results from Cognex, it seems to me they’re starting
to respond to competition from rivals. Let’s take a quick look at
the numbers, and then I’ll offer my take on what’s happening.
First,
comparing this latest quarter with Q1 of ’12, revenue was up 4% to
almost $81m and income grew 9% to $15.6m. So it’s fair to say
things are going well, but what of the long term?
Here’s
where I see a couple of interesting indicators. R&D spend is up
9% compared to a year ago, and SG&A (basically, the sales force,)
is up 5%. Those increases are larger than the revenue growth, and, as
stated on the published results, are “to accelerate the
introduction of new products.”
What
new products have we seen? Well there have been a couple of DataMan
code readers, which appeal to markets outside of manufacturing, like
logistics and “e-tail” and there’s also a 3D
laser sensor,
the DS1000 series.
While
the sales volumes for this will be small it’s an interesting, and
late, riposte to SICK’s Ranger series of products, and perhaps also
the growing strength of LMI. What I haven’t registered though is
any advance in the VisionPro software platform. And with ID readers
accounting for a quarter of revenue and growing fast, I suspect we
won’t.
What’s
Brian’s take on this? Well let’s factor in one other point:
Cognex are doing well in Asia, except for Japan where, adjusting for
exchange rate shifts, revenue is flat. Who lives in Japan? Why isn’t
that Keyence’s home?
So,
I think that while Cognex have decided to address the threat from the
3D guys, it’s really Keyence that has them concerned. Keyence is
bigger and has deep pockets, and that my friends, is why Cognex are
plowing more resources in to product development.
I
think we machine vision users will be the beneficiaries. Especially
if we buy code readers.
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