Cognex has posted third quarter revenue of $209.6 million, down 26% on the same period from last year and by 24% from Q2-22.
“We expected the third quarter would be difficult for Cognex,” said Robert Willett, CEO of Cognex. “Two challenges in the business – the June fire at our primary contract manufacturer’s site that destroyed a large amount of our component inventory and the slowdown in capacity expansion for e-commerce fulfilment by certain customers – lowered revenue significantly on both a year-on-year and sequential basis.”
Willett added: “While we believe that overcapacity in logistics will dampen our results again in Q4, we replenished our inventory positions following the fire more quickly than we anticipated, and we believe that business disruption is behind us.
“The leadership team and I are grateful for the perseverance demonstrated by Cognoids and our suppliers as we worked through a difficult situation.”
Cognex recorded pre-tax charges of $2.9 million and $17.4 million in Q3-22 and Q2-22, respectively, related to the June 2022 fire at the company’s primary contract manufacturer in Indonesia.
Meanwhile, Basler announced its sales increased by 25% to €205.2 million over the first nine months of this year compared to the same period last year. However, incoming orders were down 12% on last year, reaching €209.7 million over nine months.
Basler said that ‘incoming orders began to decline as early as the second quarter, and cancellations and postponements from overheated demand in previous quarters also began to increase in the third quarter.’
Orders amounting to €19.5 million were adjusted from 2021; Basler said this correction took place increasingly in the Asia region and is expected to spread to other sales regions in the fourth quarter.
Cognex expects revenue for Q4-22 will be between $235 million and $255 million. On a year-on-year basis, the company expects revenue will be roughly flat at the mid-point thanks to growth from the broader market being offset by lower spending on large projects in logistics and a roughly 10-percentage point unfavourable impact of currency exchange rates.
Basler’s management is generally optimistic about the rest of the year and has adjusted its full-year forecast upwards from €235-265 million to €262-270 million.
