Item 7.01

Regulation FD Disclosure

Products of Cognex Corporation (“Cognex”) are manufactured utilizing third-party contractors, whereby the majority of component procurement, system assembly, and initial testing are performed by electronics manufacturing services suppliers. On June 7, 2022, Cognex’s primary contract manufacturer experienced a fire at its plant in Indonesia. At this time, Cognex is not aware of any casualties or injuries associated with the fire. A significant portion of Cognex’s products is presently manufactured by this contract manufacturer and Cognex finished goods, unfinished goods, component inventory, and equipment used to manufacture Cognex’s products are located at this site. A portion of Cognex’s finished goods, unfinished goods and component inventory are stored in the building most affected by the fire and are estimated to be valued at approximately $35 million. In addition, there is approximately $35 million of Cognex-designated components owned by the contract manufacturer located at this site. Cognex is working with this contract manufacturer to assess the damage. Cognex is also working with this contract manufacturer to determine when production may be resumed at this plant or potentially shifted to other plants of this contract manufacturer or other suppliers, as well as developing a plan for sourcing components that may be necessary for production following this incident.

As of the date of this report, it is too early to determine the potential impact of this incident on Cognex’s results of operations and financial condition for the remainder of the fiscal year or the scope of insurance coverage related to this incident. However, Cognex does not currently believe that this incident will have a material impact on Cognex’s results of operations and financial condition for the second quarter of 2022. Cognex expects to provide more information on this matter during its second quarter earnings conference call.

Certain statements made in this report constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Readers can identify these forward-looking statements by our use of the words “expects,” “anticipates,” “estimates,” “believes,” “projects,” “intends,” “plans,” “will,” “may,” “shall,” “could,” “should,” and similar words and other statements of a similar sense. These statements are based on current estimates and expectations as to prospective events and circumstances, which may or may not be in Cognex’s control and as to which there can be no firm assurances given.  These forward-looking statements, which include statements regarding the potential impact of the fire at Cognex’s primary contract manufacturer’s plant in Indonesia on Cognex’s future results of operations and financial condition, the scope of insurance coverage, and the ability to resume full production, shift production to other plants and/or source necessary components, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected.  Such risks and uncertainties include, but are not limited to: (1) the reliance on key suppliers to manufacture and deliver Cognex products; (2) the inability to obtain components for Cognex products or increased costs or delays in obtaining such components; (3) the failure to resume full production in a timely manner; (4) delays in the delivery of Cognex products and related revenue recognition; (5) challenges in shifting production to other plants, including as a result of the production and test equipment unique to the manufacture of Cognex products; (6) increased costs of production of Cognex products; (7) the inability to manage disruptions to Cognex’s business and distribution centers; (8) the inability to manufacture high-quality products; (9) the failure to meet delivery schedules resulting in customer dissatisfaction; (10) the timing and scope of insurance coverage; (11) the impact of competitive pressures; (12) unfavorable global economic conditions; and (13) economic, political, and other risks associated with international operations. The foregoing list should not be construed as exhaustive and readers should refer to the detailed discussion of risk factors included in Cognex’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and other reports filed with the Securities and Exchange Commission. Cognex cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Cognex disclaims any obligation to subsequently revise forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date such statements are made.

Exhibit No.	Description
104	Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.