Cognex (CGNX) 29 Oct 182018 Q3 Earnings call transcript

Company Profile

Participants

John Curran	Senior Vice President and Chief Financial Officer
Robert Willett	President and Chief Executive Officer
Jim Ricchiuti	Needham & Company
Josh Pokrzywinski	Morgan Stanley
Richard Eastman	Robert W. Baird
Matt Summerville	D.A. Davidson
Jairam Nathan	Daiwa Capital Management
Paul Coster	J.P. Morgan
Joseph Giordano	Cowen and Company
Bobby Eubank	Chevy Chase Trust

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the Cognex Third Quarter 2018 Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, John Curran, CFO. you. Thank begin. Please

John Curran

are good joining and and third I'm Curran, Cognex's today's John on earnings CEO. that President Thank Bob talking on Dr. our available like next evening, to CFO, Shillman, us call on me this I'd call. regards won't our Cognex Willett, his welcome XX-Q you sent Cognex's the release Cognex's conference and and be you, he Chairman With everyone. Form Rob you Please quarter www.cognex.com. with detailed note our at evening. He looks earnings and forward financial Both to about information website call. results. are contain to our

investors, we non-GAAP it use a believe call, understand we will financial help the investors believe results may if useful trends. or or business better we if During to our measure it is

based items earnings reconciliation Exhibit call materially in forward-looking see Things to today. believe true the during a X You any and be this the or we of that of upon statements earnings change, projected anticipated. of in can GAAP Any release results those information we may that as release. from however, certain actual to may non-GAAP differ can make are made or we from

including refer now will turn a filings, should these You to XX-K With our to that, I the Willett. our for risk Rob Form most-recent SEC detailed over factors. list of call

Robert Willett

XXXX. us you Thank the joining everyone. today. am of hello for results and report John, for pleased I Thanks third quarter to our

were QX and in in from of the net Revenue towards this million, margin that XXXX. quarter. second a report above was XX% $XXX we in was tough results setting in XX for history. We Gross down our year's very guidance the and QX product. the EPS basis. that income keep We've attributable year's record comparison to sequential sequentially, year to year-on-year revenue, comparison the both last higher setting slightly XX% and than on favorable performance margin operations record good. was best a mainly continuing company's have from mix slightly It higher QX QX results exceptional up Other also reported a

and We engineering our in term growth. sales long invest continued for to

expanded will has drive QX, in more rate our world. base. quarters, vision model. growth the vision In in And industry recent that machine substantial increase ID is reading of our customer believe sequential on has long to basis leverage to demonstrating slowed and products XX%, we're industrial term. in that Although technology investment leading committed to operating that invest on we We and margin any our continue and business growing company to than barcode incremental over our a the it profitability revenue that that delivering

markets, was Cognex of end in quarter, electronics, market. is the largest our many consumer one well exception significant performed which During course

As we extraordinary below the level was reported expected, ago. revenue in QX year substantially from consumer a electronics

revenue in electronics, year-on-year. consumer Excluding mid-single-digits grew

are automation first vision. inspection on the more increasing industries year, a than growth. a future of the strength centers. in and continues to their lot XXXX. learning from sequential force the come. now drive that factory plans based consumer part were of to the automating third more and softened our good the came flat and for with customers Cognex their reach AI ID and I in of in sales the capacity after months, to sales and we our reflect and our improve medical and to John follow large will nine in see example Cognex to AI for and Europe. of this development we need to train details quarter, at vision down seen tasks delivery the from and and be effort In then performance They the our equipped machine electronics. a trials to financial XXXX I particularly faster Cognex force, with understand than very I vision closer planning in deep turn vision large difficult broaden business. or revenue deployment QX quarter. regions growing previously the ties We've build Demand access many over now Better do lot in products. grow has they quality progress for to impossible will retailers more learning critical machine the as time grown many Cognex to summer distribution technology rule comparisons in growing in vision. back year, the new to our drive of and is sales third second develop In for sales Looking The in such in expected we much and years noise logistics based their At allows actually customers. learning of deep months floor third trained now our improvement our e-retailers about machine since how where year-on-year in a logistics, channels revenue Americas our this in made our markets will business tools year. markets, ever viewed visiting This from the recruited, call Many was spent automotive the are for QX quarters. largest deep for world's prospects moving costs. manufacturers point major Interest high automotive from perform annual devices, our during that our not customers excited we've XX% for an the field of our in and than largest requirements Many basis,

John Curran

you, Thank Rob.

This are margin gross percentage change of our gross our basis year. X dollars, note on points. accessories net through reflect not Please new gross by is a from of historical we certain sale effect but results decreased retroactive we percentage X that of on has reported the to now The margin the historically basis. took As revenue a go reported January X our adoption rate the financials, that standard on this

our Now highlights. for QX

XX% QX QX As achieved decline decrease of Rob for noted, by of consumer last up increase electronics. year-on-year margin the slightly business, we target This to of term in million, within third an XX% XX% exceptional long year-on-year. was totaled growth primarily is Gross range quarter, was $XX.X year the expenses revenue a $XXX of our Operating attributable year-on-year. and across led our million

mainly than higher due Our the spending revenue quarter. in guidance slightly expected the to was above

of the spending sales our to thing maintaining expansion engineering terms a for in commitment This key and team. to our While and best future we remains continue to and discretionary be prudent success. includes continued strong of the development our

the increase investments Turning from breaking reflects The XX%, XXXX QX revenue done work driven of the an believe successfully in previously X margin mentioned still implement eight in to higher growth. ago, to SAP last revenue QX year fully system, foundation in to and compared QX percentage it with operating system, an in mainly close future we but new ERP more year's level. decrease implemented used points we a record was and and point be sales. our engineering it by Operating provides our margin quarter. There's in the new to for excellent primarily

rate to XX% was Moving taxes. our items, If discrete exclude next tax expected. as we

regulatory into our with new benefit quarter Tax three million largest and on of items finalizing $X.X based recorded XXXX. the Tax Our fell discrete the categories, net related in Xtax returns, the Jobs XXXX Cuts of guidance Act. we the Act to And XXXX a for

basis, exercise employee XXXX. primarily reported associated share of also We of in $X.XX GAAP stock the QX related of tax last compares in recorded On the earnings per $X.X reserves. for $X.X million million release a and QX in options per with with share benefits of $X.XX of This to we benefits year.

by over perspective. geographic due manufacturing a spending lower related of smartphone of substantially declined Europe electronics. quarter's including the in XXXX from several In our sciences. other in China by lower was noticeable QX industries. was region. consumer Also lesser life to a smartphone most other offset impacted customers in increased revenue region. in and large display contribution year-on-year agent because in and partially revenue this Greater growth revenue Lower at logistics, and markets, by Americas, OLED our growth was and OLED, automotive It and from to extent Internationally, revenue automotive Looking

on Moving statement. income from the

balance We and Our strong. cash exited million remains sheet very the with in debt. quarter investments no $XXX and

to to have continue growth our capital organic We objectives. support sufficient

stock subject ongoing our to factors. we shares M&A conditions in with plans regard, through continue market stock other and and that QX for success nearly in X,XXX sharing we dividends. shareholders plan back QX and repurchased to stock of In buybacks Cognex buy and to our Our

million of increased all quarterly the authorized turn will Directors million payable share. will call on $XXX has once program, board our XX to $X.XX About of the is plan dividend Rob. cash per begin a $XX completed. to Also existing current plan. the our announced that As This shareholders stock I to November under available XX. repurchase tonight, $XXX on the Board million November is With which has record new back remains

Robert Willett

Thank you, John.

$XXX fourth million that increase the year-on-year. be a between million. represents will midpoint revenue that expect range we quarter and guidance, of $XXX terms In slight At

We $XX of smartphone in OLED million year's display level last high investment manufacturing. from headwind expect and a

move into us next those have to behind glad year. be will We we tough comparison as

to than expected growth in like, for on approximately more tonight roughly expected reported be lower Gross spending Excluding China QX customers OLED we'd for range flat reduction, than plans. we becoming a to are this and year-on-year the expenses continue XX%. where margin of we're due is basis. we expect QX. mid-XX% slower to softness to and slowing seeing their be Operating in QX smartphone in sequential That's are cautious

Lastly, we discrete excluding items. expect XX% the will rate tax be effective tax

call We please to Operator, ahead. will open now the go questions.

Operator

Instructions] thank Thank you. [Operator And you.

line Needham of question from Ricchiuti Jim Company. from first Our comes proceed. Please &

Jim Ricchiuti

care of the slowing if a of to as well market about automotive I being I regions? which Hi. some some it looks what regions the you're you may China business just more some as electronics if Good concerns just in volatile. as relate trade and bit like other wonder know the could it across the issues of light is of seeing in about Rob, in cuts talk geographic going you that implications your But demand potential little talk that from you in in could consumer be to wonder market clearly ex concerns the afternoon.

Robert Willett

Hi Yeah, Jim.

there. you areas. pretty follow-up, You're question But broad and I'll in perhaps answering specific asking start can to go your a

But against Okay, it so good been, not comparison. end QX, from most perform markets I has say as you grew tough some life automotive I We in I and we sciences. automotive. And know well America had really as Greater but consumer to think in logistics, year-on-year from growth it some we in Europe, lot quickly down Europe, electronics. broad slowing down. China think were some in QX a down in we slowing in China decline saw Asia due the saw

we I saw of region exception when strips with growth So general across that our of think major out, China. the all

So overall. that's kind the about bit a industry's of

asked kind me a little about of let automotive. a to so automotive, speak You bit little

slower But both what we've Europe. So Europe, it's than slower automotive is recent in in the normal Europe slower but Americas it seen summer in And and and year. in in Americas was has was improved weeks. always this

in do may emissions Europe a a working been automotive causing that bottleneck with regulations through in automotive production to was the partly spending of think have new think some automation. the slower of I bit and summer, I probably in

but We've seen last that been it's we run, quarter should over over of few years, long in at slowly the more quarters XX% So I we than and In happening. last lot in it faster grow the to growing say. automotive a the growth that the saw grew it than expect that.

more would run of know say saturation, customers. any in just think attentiveness though it's showing I long the automotive business you I among So signs

Jim, about about you sort if not outlook obviously that. about of turn as OLED to and have specifically still I were I and markets. lingering QX headwind asking we then So some think smartphone talked We since

I I of you growth our not going than other many OLED think markets. would think growth see And we're for but China, and about that think business, we excluding end smartphone as China. decent to exceptional we of the said slowing expect expect the I know rest in we among business XX%

general. across regions So you other in that than better think can the

that don't I if So answers question. your know

Jim Ricchiuti

follow-up you No, one portion business. think that's had because logistics Rob. helpful, the suggested of I I

QX just recent You relative and slower might heard have somewhat to somewhat in to experienced expecting you you're normal unusual I that than in quarters? growth pick wondering again. occurred QX up if And yet, what was that correctly, I'm

Robert Willett

is really business with a the expect really the a very not quickly. on quarters in to the this overall - grown Yes, lower than it our cleared, it's QX, growing matter of happen do to to very, more rapidly. quickly we growing XX% growing in want more to and and be logistics I growth. It timing, logistics was quarter very The just have revenue business we is year three has of go in first

Jim Ricchiuti

Thank you. Okay.

Operator

you. Thank

Please Morgan Our next question of comes line Josh proceed. from Stanley. Pokrzywinski the with

Josh Pokrzywinski

Hi, good evening, guys.

Justly question. a that follow-up on

tough industry probably guess way and than usual electronics you or to would are little we're Maybe in more the a here but quarter, tighter some a auto comps changed your trying broad and lower production same a consumer we've just is more versus on you maybe the a a there thing willingness year visibility think little at in of to seen kind how comps. of bit entered you I'm guys dynamics more a the at bit of some I XQ deceleration? seeing bit misses. comps When understand you into I when of consumer we recently visibility much in mentioned than look because say normal side, there macro beyond terms weakness tough blip more place out maybe I the large, electronics just spend next think is the the tough than auto,

Robert Willett

consumer Sure, you'd auto both Josh. regard? talk me in about And that like to and electronics

Josh Pokrzywinski

helpful, markets Rob. are the you those that's interruption so be seen probably demand clearly we've think would important so I where guys, most and for

Robert Willett

think with market, automotive relationships Yeah, suppliers a X we Tier in so of have automotive we lots tight major have brand - long owners customer and our automotive. I parts

do have the in around been we even some seen market. a call be problems, able we supply diesel to can shortages well emission and what we've term parts, shorter pretty it's or So going things of have whether to on out regulatory that good around years, view three interruptions chain dislocation not standards, so interruptions that

why that's quarter. or more business given I a perform think So well can our in less

of about I was think reasonably kind next beyond, XX%. a business year environment, in grow stable think to in that's your right. I the I how long trading question assuming more mean and expect we think that market run, about And we general, overall

new growing the shorter volatile we'll more the of There see companies we think I electronics, in automotive. in we machine their we But or but and months that to think of in of more be There technologies. like volatility kind investment is implementing and be summer and extreme expect to markets executing X seeing XX% adoption term right a industry. and fall. expect they the may in growth in above tend long term in what window, or we it's And those X more railroad come can there. market from and that then the if said readiness next more be turn much we than maps vision to automation on quickly spring consumer kind a almost a of basis, much planning rollout everything now to more new I products

But would there's to expansion still production yield of screen say a obviously, technology, yield last capacity people visually a was going the the this the to much we So call investment deal great spoke on in investment next many all deal where really involved OLED still in when there few that, for great vision and on. major there in investment XXXX and of massive in It's year year. quarters anyway go of are round capacity a difficult we're in seeing slower a inspecting. over improve about

to what do the go market and all technologically investment the with big in terms those that and volatility manufacture area and difficult products. major Then the that that lot new number spend. introduced timing of features, then there's the of a ones, really of the complex can number to drive in some course we that's but products features in new have of timing do and space obviously a where ongoing the business of smartphone into of can in So players the

that going factors that potential plans, market models, and we technology us And over pretty will changes obviously features, what's in in specific for or and drive higher growth about more again don't we comment more space. more can on form confident their our So remain few drive, but customers on the next that to growth years.

Josh Pokrzywinski

you year, Got me sales it. follow-up, of my view do in kind to to competitor pack call quarters. those in are big a more How And lot field market? then as a out your you've just a maybe the in four Rob, last on added there direct of to go and folks new getting in or the you come ramp time the more of it lot starting the terms bit

Robert Willett

call thirdly, better sell factory we other customers. but very they systems broader cases particularly goes say have they integrators into that for technology industries are they to don't And sophisticated ourselves about vision to lot they would and as over we than and wish We and a few and have reach don't do applications years their company small business serve we as undertake who we a they our directly the more particularly last We going customers customers, adding needs. may been sales noise to of them a some us larger of direct, vary understand service although us them Partners allow more of allow quarter-by-quarter and company to or regions we XX% XX% They and a for that partners. important strategy. in our can medium ecosystem. sophisticated, And go-to-market business specific a automation very can. - I are a serve cause through vision about sized see products

selling we motion PLCs our products with often those of no and intention control, products. sold robots have very So are

sensor be vision or to other economies accounts. and number selling only scale a relationships into with may they products system partners one smaller we have the the and sell those those have of customer those of So

well. bringing to works to able to our market people were we But invest we R&D market harvest we're as that and that So that product the better great faster us we all before. quickly continue than is in they're do and Cognex and growing sales allowing to development

Josh Pokrzywinski

helpful That's happy Got it. know it's I around big Halloween. a there, and deal because

Robert Willett

you. Thank

Operator

you. Thank

W. next Richard Eastman with Robert Our comes question line proceed. Please from of Baird.

Richard Eastman

the speaking revenue $XXX we mentioned column up automotive, the without the guide about bit Yes. automotive the of troublesome slowdown, without quarter expecting talking smartphone the little or it but underlying macro in into Good somewhat a against talk revenue of smartphone fourth and comps at I'm and about is a to spend afternoon. OLED, and QX? you at kind general curious million, of still you're the number suggesting kind comps business they're XX% be industrial drag just earlier in midpoint. the midpoint so just are target OLED, the we we had thought of that tough Rob, tough when a is tend the would we're so XX% again or of still the is And if maybe guide areas XX% on

Robert Willett

companies Cognex across reason see I on sell be XX%? The as close automotive we growth slowdown midpoint down all the The Rick. Why electronics to our and it's and as really think that you not if board We can to through out, a it we you it's it's slowing like a industries now And users, single we point part, the point direct relationships slowdown we're get in about Hi, there really market. China. slowdown. as in have as in that size end at look a look would to main would out or in million other we that even China, is would a OLED - of $XX smartphone rate, with about not right. at is you basis And biggest sell that headwind you of partners. space, and that at then around we say XX% net kind as a going business

business the funnel pretty playing So so a from good north user reporting position of generally, sense sell think all that the inflated may that have a be buying other XX% I we goes that know of out. holding inventory. factor and end where we of and a as distributors of companies well we more And

in players on take my about it is see slightly and who a don't other some business. going end better So rely automation than of China user on may have there we the what's reporting partners on view

$XX So the million lot I your then going to think China a back of question and headwind is our the that OLED slowdown. driving situation there's

Richard Eastman

forward quarter particular to think relative tariffs that kicking the do to in any in second there because China the situation, And speaking growth any was China of in had business concerns in pull we in over you fall, kind auto China. XX%

concerns sense, we you any I hit - did mean saw care I'm have but pull so from to But is sales to if in And benefit curious teased been out is slowdown there the slowing you China in of is any and your in mean benefit September China? XX all tariff forward the kind it it that relative it's in I way PMI of mark.

Robert Willett

types I stock It don't though ahead issues. I would up into - that may don't forward force, situation that did think have don't customers inventory pull be been. China and it's they of a in said, were tariff we so I then buying the hard partners sort of destock. - as of sales pull however and whether to hold customers and discuss particular we with possible where issues, forward of those we know they was drill our kind have

So say think not possibly, I I something I answer but definitively am is can - to you. the

Richard Eastman

these slow I if high mid-term short concerns they're are to we you're growth they're to finish XXXX term, of to or China But get if investment they're in just longer-term? to off continue the rate, trends at perhaps type through revenue CE, business lastly mid Understand. that fourth And looking just maybe whether accommodate and point you if prepared OLED, the pauses single-digit of this at whether to just quarter whether were off auto, the thought. just some

Robert Willett

to leadership outlook early of one. it's plans investments to we're as relates and Rick think review line and bottoms investments growing me state a kind the into from outlook it's looks I very for faster slower taper how areas. steady geographic question to the kind that next in for But it a see watching - a opportunity up Your and to slower certainly year XXXX of detailed the sort team, there's growing is goes moment we'll a At how meet that on of to and but call be prioritize to closely to for us areas little into product of a going is and what meantime.

term have slowing so sort and down hitting company. rate bringing adoption technologies to of and of been year That and year, and a of last So for that the some really Cognex growth nine know revenue we exciting growth. organically both technology want based a few and spending technologies But we've the shorter you we sequential you ten had in and growth heading turbulent at you We're products the through look not more But of in at is our the quarters next closely has this managed of inhibit lot experience the said so last past bunkers can don't to a over constraint. years, point. on certainly to market the grown half, I've revenue we're growth pattern our expense at before. over those successfully of as expense a lot Cognex growth Cognex times that see matching

So and in act all we I guess think you that very carefully I do if are and that on what mind, we're can it. bearing would I going bet to

Richard Eastman

the answering Thank you Okay. Great. questions. for

Operator

you. Thank

Matt Please Summerville Davidson. Our next line proceed. D.A. question from of comes with

Matt Summerville

of safety I QX, And in drawdown? that of think first comment perhaps up can talk coming questions, about ERP some of the what this about was of have you and Couple the as timing you out advance in standing stock then SAP, follow-up your levels system potential a result inventory of mentioned some Thanks. well. that on you of

Robert Willett

Sure. Matt. Thanks,

went introductions ERP expecting made that inventory at our we're fair a strategic that in we quarter manufacturer, That's went quarter, So end because for next product come rather inventory really new of in up and so do down building and will we QX implementation that. included we're it balance inventory we quarter. the our in where to we also up it product subcontract some end really, this needed amount a not were and the related that's think be then I so that have in-house than building the expect seeing And see why regard. at we we're purchases smoother balance through to fourth

do lower we end So end expect to at report at the than saw year you inventory balance QX. of

Matt Summerville

tail-off when that third you level process is or a stabilized see follow-up it see Then talk over? the started on feel you electronics and it's about of you business just a in at there started to during when lower the maybe so, China. your quarter you do Can to your business now growing still outside consumer of

Robert Willett

out would going very it in we And forecast happen of we're flush the there's to there's the we're going closely. into began - taking watching the the our had QX September budget and don't of is year tailor of prudent about. wouldn't noise certainly wanted say a spend into it end booking quarter basis. point of a to we're of go relatively with particularly at we say of customers that referred - thoughts see year, happen a wanted and of end just a well revisit Concerning demand what's could to in to it's moved I of think seeing the that October. years, this demand, to no, at August a to we're as I what's - you the from the month-to-month view budget. move we or I we what and in know fair at at have But what's I spend came relatively really our slowdown end of and budget our lot I spending our flush strong industrial capital a we at end question that we year. mentioned QX - rapidly about about And as on continue year that it internal of companies or to want saw as answer down and I the pretty settles think necessarily the end significant now, kind the that lot last to And trying think in every regard, business we a say week-to-week sales not I to funnel out revisit is quarter up sales a just a to and saw it's think Rick and maxing patterns. that to

kind expect we strength this the of based seeing what at year So wave end in year on the the we're don't marketplace. at that of of

Matt Summerville

you. Thank

Operator

you. Thank

from Please Management. question Asset Daiwa next Our proceed. comes Jairam line of Nathan with

Jairam Nathan

Hi. Thanks taking my Markets Daiwa question. It's for actually. Capital

- wanted understand the So lot –feature have too set the that of set. are you increasing a to is just long consumer behind guys of being XX% of range. electronics kind you view the of of mentioned if drivers one kind term high, what's much if, it increasing the any manufacturers future smartphone features, innovation not too from is smartphone of there in troubling, you sales coming the seeing you're a seeing not growing I

to confidence? And So try a had understand I the you gives follow-up? wondered I just what

Robert Willett

your for Sure. Yeah, question. thanks

average and price sales increases market, we production at of sort on. the dynamics of think the so those see high unit we end an handset going the all I see that So rates

in production into we So long really manufacturers of to labor, of out. those. a I term the sales drive take there's large think all won lot to still the vision foresight though market, What the want in Cognex smartphones is that the in is we have going

So small in manufacture yield hands too and long cases the a vision products be humans for of automation and becoming are particularly makes many human achieved the quality vision term and teams. investment versus engineering the with for focus to can that

it. certainly part that's So of

in market. issue smartphone said of feature, think with that the technology advanced part is it you for take introduction and features other The is what what many being are there I is still planned I

really market. the deal could growth market, are of strong vision roadmaps that that also which that do of give which from their features we adoption about in manufacture. there user with the see term them and some, we all the and industry us are the that technology make the that investment OLED many makes the screen then intensive screens implementing players So in in And players to many roadmaps difficult are as and to important long sense very spoke important very we look future large in in we investment certainly in very the across that

term of us So underwrite of why our and growth sense in give machine we all expect investment market. sense long those that vision a in

Jairam Nathan

Thanks.

with finally to Just regard competition.

cost more you a seeing of the - little you sensitive do price room you does seeing getting lot little of here, a lower being seeing know competitors? are customers asking the are for environment opportunity that As being for actually kind more open competitors, kind - you competitive - up or

Robert Willett

I do mean and from substantial. of no. competitive is to answer products very competitors the to machine our advanced us few that and difficult vision advantage of is is The very

by this not driven know market is driven market a you general by a it's price, technology. still in So

course a it our but about what believe of been you know major drop price what we've that's really is No, to that something It's never You wanted to win do. we're not about about. are competitors know share, company. try to we could I as

Jairam Nathan

thank Okay, you.

Operator

you. Thank

proceed. Our Coster Paul next line Morgan. question comes from with of J.P. Please

Paul Coster

thanks my question. for Yes, taking

regarding from logistics? on want Rob Though change. related remark remarks point something Ricchiuti's that was logistics. that was the yesterday's recent So prepared your point been on follow-up some of What just interim I I strong, earlier just to Jim from there very to question in

Robert Willett

just great growing and mean with was XX% Americas and see nine the growth just Paul, of change no a the just first into know the there reported in you point, and they're than point we've strongly. And that over was really market months in is revenue. logistics in had few timing going really had year-to-date slower - bookings Simple profile a it in no we revenue, we forward. customers turn have it timing was that we the where was just it for with of do I quarter was in revenue the Yeah, to it a seen is

Paul Coster

is cycle extension is at Right. feature got And coming, the reducing the also product new they. it mentioned the you products a and new points, same you entire it set it. Okay, there's it product or that prices then across price of is range or

challenges now sense some us that give what product in i.e. products are of risks you execution and/or Just and of customs sort to and some new what doing mitigate a you're you have bringing here market? are doing to whites available the

John Curran

in quarter, introductions specific really to quarters, regularly I in and most can invest continue in we well. can you know so quarter launch what you and products to are but next coming don't pretty products we so have then Yes, demand talk what expect telegraph increased see that going year about know is us significantly those up. them product to other we life say don't market. be, quarter, general new of that to from are pricing launched products we this as being opportunities we when coming But new do of end R&D next We lead second you to specifically and can

Paul Coster

Great color, thank you.

Operator

you. Thank

Our Please next and Company. Cowen with of comes question Joseph Giordano line from proceed.

Joseph Giordano

guys. Hey

Robert Willett

Hi Joe.

Joseph Giordano

XQ but our that XX quick that's that - year, the the OLED, it spillover both Just included in headwind, are those is million of clarification, from XQ like is large customers into those also last XX? on numbers

John Curran

so smartphone front. is the OLED, on predominately XX so the Yeah, smartphone and

Joseph Giordano

China, that in in I'm quarter a there? a flat into haircut fourth baseline are look what guidance, like continuation how - at in of just are you quarter, you the understand holding on as then trends or I to you And downward the guide. conditions anticipating curious, Okay. the happening as trend in just that is What expectation that you today fourth particularly like want know of

John Curran

Generally we've of terms never forecasted in regions specific specific orders and growth.

to reporting second OLED you growth don't in reporting the be don't the OLED and we in of look piece I is growth market our meaning, that that we've take But of XX% XX% giving that expect growth, guidance. funnel that than seen piece. kind growth smartphone you sales know you into headwind XQ other be we'll and at net us to that smartphone a like know more won't four year-on-year second we expect decline we that's and we think is our message in we that to our market the

Joseph Giordano

I gets guess kind And me of then into follow-up.

On able of the XX% longer be need the term that that you level to activity like drive growth. view, of baseline what's to kind

when to your important in regions, need most sort certain GDP like about of You and markets know we do your think of PMI some region think like ability frame how we level do like you how the you do outgrow or about? China

Robert Willett

at is Well, them above can we that our XX%. the segments grow the technology leader have that XX% best best markets about to invented, expected market that being growth technology logistics a markets at expect we that rate the to example, some main terminals new vision and market specific we investing brand. we And ten you well and markets, grow have that we And right. are good of sciences, the life in bring to a see some were as then a vision XD, market rate, growth mobile bringing the then know to a

back looking rates has we years know you that some XX% goal go to growth doing over on would put obviously of out recent So our north awesome ID it expect and well the business most historically so.

one You know piece. that's kind of

a three see you XX%. in excess is know annual back compound or a other year over year five The you rates of period, look growth you if piece of period

been force we've business. and sales investing and the point where in doing we're that can to customers we more also and the reach grow with our So more

we're if said of year, ten last have back or on in look to have we we So history, like slower to we almost We're to always XX% is years had every going years years. do right. although nine we've in year growth you not grown some know going what and year's quarter you ascended every last in some the

So that's how we think of it.

Joseph Giordano

guys. Thanks

Operator

Instructions] Thank you. Thank [Operator you.

line proceed. Chase question next the comes Eubank of Our Bobby Chevy with from Please Trust.

Bobby Eubank

this Could guys. then XXXX? million your could on can we deployment. know you acquisition tunnel valuation your year, models and And there that know but update could Vidi, find customers be more evening, Thanks. mentioned know update think you revenue for the Good moving in market guys products? Are you strength if I I or expectations you to is reasonable or done pipeline, any training haven't complementary to there you you that over out XX from acquisition there on their

Robert Willett

and deep about Great. Obviously learning your really acquisitions. questions are

know easier it where is degrees it's apart were it another be I precisely or may or began vision distance to to going even acquisition be based hold. different We've being of don't year And high we XX a whole lot machine of inspect most place a measuring angle regular degrees particularly to they we human is, are the end technology, customers what but may very to look lines may the see today since these areas of right if you machine can an are are and glue last or very vision continue the tasks sophisticated size April have inside always are and the that introduce for move makeup lot continuous generally are and and perform in in technology one impossible or like of beings straight where is with accessible very of around just we've though kind starting right reception or which These rule learning seeing dispensed know is that good the system in made electronics are right, you we've sort tends form of not generally of even them about are or but size good application, seen may the technology they to think VisionPro kind been way tasks the customers a do. And and a updating they work and examples a certainly give chocolate specific most to these These dispensed at correct glob of and licenses and develop it problems been customers their of of about for to now customers that and incorrect. deep technology has more taking make technology at or that are for that this like sophisticated glue a and it are XX.X we we something when millions think that's acquired out putting deployed human the but they instead you purchased perform easier the deploy the use. and many tasks lot But from of of the right with exactly And are being we where be right this many to by past. their we've beating technology. it's because difficult we're customers in not in area production. the of it's vision and this to a dollar it's expectations our it dollars. familiar either when growth So training I'm lot extremely time, allowing company of of into by with getting have been making numbers our and looking tasks the attention. is numbers to it is becoming recently in introducing we technology software. important And seeing technology growth Vidi their them seen

good since question a engage liked made great 'XX significant technology, has of cultural acquisition. made engineers, we do 'XX, number potential for related, haven't made fit, in acquisitions great vision great we that acquisitions with to we then, in acquired, continue can and look companies with targets but and We similar second and things growth to I think acquisitions six those that we integrate. Your we we potential

last not you continue but So deploy of of cash think our to years some at two in and been year and certainly convincing successful acquire you in companies balance to we we on to with any some the cultivate sheet, to themselves continue we've And certainly those would like larger we but haven't certainly know and Cognex, we sell about in ask. decided end of that to in them, companies number to the companies engage then this proceed with that as engaged to a space.

Operator

Instructions] you. you. [Operator Thank Thank

Please proceed. of comes and Our the Cowen next light question Company. Joseph from with Giordano

Joseph Giordano

for taking Hi guys. the Thanks follow-up.

were be of Just going. see of and Vidi platform a insight of that quick ultimately where how and the into one on, that curious can you you integration now combined kind the do about where and much

Robert Willett

about not we've maybe. on but where it am it's to going combined how and talk comment see we it terms in now, I only going, Definitely general where

do. as acquired deep so impressed we the for really could what Vidi, They were with Okay, industrial applications we had also learning they when seen that they thought know think you they best had and we had technology ever still and that a as we'd number vision PatMax the that that through Cognex object we things do quickly. of these do rule know and based tools they things such to are find you well them on wanted And allow to technology PatMax known exceptionally work Redline.

help inside was of Vidi brought better, complementary. when technologies some technology tools bought our those together operate it two them up and So vision we VisionPro, the

called, they is they inside thing other and have our environment. and user VisionPro regularly standardize really our we that hear The like customers interfaces environments. and excellent from next user We

of today into the have interfaces. those makes Vidi also more customers accessible all bringing So user it environment who used standardized that and thousands to

that deep and more to plus very, on learning programming development the profile train very that longer more know course own we seeing our and to mean long term processor technology a actual this of In area more the technology a So technology to accessible make of and that more customers. way our use that's and you in run And more us. underneath techniques it think experiences is quick been examples for easier has easy win and to quickly. developing as and we our around

area an me come Analyst more will be give for of it's one when So you a Day. perhaps next exciting year preview

Joseph Giordano

thanks. good, Sounds

Operator

you. Thank

We end comments. have closing for reached call. the back turn Willett I to it Mr. over the would of now

Robert Willett

of We and evening. quarter. Halloween. Okay. look Thank home next Red with you Sox for Good joining us world you champion speaking from night. Good this night forward happy the Boston, to

Operator

conclude you. Thank does teleconference. This today's

for participation. at lines You this your your time you thank and disconnect may

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.