Cognex Corp. (CGNX), a machine vision products company, Wednesday said it slipped to a second quarter loss from profit a year ago, primarily due to an increase in restructuring charges as well as a decline in revenues and gross margin. Revenues, however, exceeded Street expectations.
Natick, Massachusetts-based Cognex reported a second quarter net loss of $6.419 million or $0.16 per share, compared to net income of $5.653 million or $0.13 per share in the same quarter a year ago.
Loss from continuing operations for the second quarter was $6.419 million or $0.16 per share, compared to income from continuing operations of $5.653 million or $0.21 per share in the prior year quarter.
On a non-GAAP basis, loss from continuing operations for the second quarter was $2.161 million or $0.05 per share, compared to income from continuing operations of $10.467 million or $0.25 per share in the second quarter last year. Non-GAAP measures excluded stock option expense and restructuring charges.
On average, five analysts polled by Thomson Financial expected the company to report a loss of $0.11 per share for the quarter. Analysts estimate typically excludes special items such as one-time charges or gains.
Second quarter results were negatively impacted by restructuring charges of $3.738 million, compared to $0.30 million in the same quarter a year ago.
Revenues for the second quarter dropped 39% to $40.968 million from $67.089 million in the corresponding quarter last year, however, came in above Street's estimate of $38.01 million.
Owing to a decline in average invested balance, as well as yields, investment and other income for the quarter decreased to $447 thousand from $1.786 million in the same quarter a year ago.
Operating loss for the second quarter came in at 7.854 million, compared to operating income of $10.726 million in the same quarter last year.
Gross margin for the quarter declined sharply to 63% from 72% in the second quarter last year, the result of an essentially flat new product introduction costs on a lower revenue base, and a higher provision for excess inventory, and product mix.
For the six-month period, net loss was $9.829 million or $0.25 per share, compared to a net profit of $14.128 million or $0.33 per share in the same period a year ago.
Revenues for the period dropped to $83.255 million from $127.602 million in the comparable period last year.
The company did not provide forecast for the third quarter considering an uncertain economy. Cognex, however, said it expects revenue for the third quarter to decrease both year-on-year and sequentially. It also expects "to report a smaller loss from continuing operations for the third quarter as compared to the second quarter of 2009."
CGNX ix currently trading at $16.56, up $0.01 or 0.06%, on a volume of 0.265 million shares on the Nasdaq.
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