Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2024 or


☐			Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________

Commission File Number 001-34218

COGNEX CORPORATION


(Exact name of registrant as specified in its charter)


Massachusetts						04-2713778
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One Vision Drive

Natick, Massachusetts 01760-2059

(508) 650-3000


(Address, including zip code, and telephone number, including area code, of principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.002 per share	CGNX	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☒

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

☒

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☒

As of June 30, 2024, there were 171,500,835 shares of Common Stock, $.002 par value per share, of the registrant outstanding.

INDEX


PART I	FINANCIAL INFORMATION	3

Item 1.	Financial Statements (interim periods unaudited)	3
	Consolidated Statements of Operations for the three-month and six-month periods ended June 30, 2024 and July 2, 2023	3
	Consolidated Statements of Comprehensive Income (Loss) for the three-month and six-month periods ended June 30, 2024 and July 2, 2023	4
	Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	5
	Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2024 and July 2, 2023	6
	Consolidated Statements of Shareholders’ Equity for the three-month and six-month periods ended June 30, 2024 and July 2, 2023	7
	Notes to Consolidated Financial Statements	9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

Item 4.	Controls and Procedures	31

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	32

Item 1A.	Risk Factors	32

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32

Item 3.	Defaults Upon Senior Securities	32

Item 4.	Mine Safety Disclosures	32

Item 5.	Other Information	32

Item 6.	Exhibits	34

	Signatures	35

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
	(unaudited)				(unaudited)
Revenue	$	239,292	$	242,512	$	450,089	$	443,636
Cost of revenue	72,693		62,829		141,553		120,213
Gross margin	166,599		179,683		308,536		323,423
Research, development, and engineering expenses	34,962		33,585		72,067		72,127
Selling, general, and administrative expenses	93,180		83,423		183,808		166,460
Loss (recovery) from fire (Note 17)	—		(2,500)		—		(2,500)
Operating income	38,457		65,175		52,661		87,336
Foreign currency gain (loss)	(181)		(1,605)		(135)		(1,211)
Investment income	3,116		4,095		6,236		7,682
Other income (expense)	176		112		372		185
Income before income tax expense	41,568		67,777		59,134		93,992
Income tax expense	5,356		10,303		10,900		10,903
Net income	$	36,212	$	57,474	$	48,234	$	83,089

Net income per weighted-average common and common-equivalent share:
Basic	$	0.21	$	0.33	$	0.28	$	0.48
Diluted	$	0.21	$	0.33	$	0.28	$	0.48

Weighted-average common and common-equivalent shares outstanding:
Basic	171,568		172,429		171,630		172,527
Diluted	172,733		173,622		172,699		173,791

Cash dividends per common share	$	0.075	$	0.070	$	0.150	$	0.140

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
	(unaudited)				(unaudited)
Net income	$	36,212	$	57,474	$	48,234	$	83,089
Other comprehensive income (loss), net of tax:





Available-for-sale investments:
Net unrealized gain (loss), net of tax of $336 and $(584) in the three-month periods, and net of tax of $453 and $1,274 in the six-month periods, respectively	1,020		(1,706)		1,379		3,720

Reclassification of net realized (gain) loss on the sale of available-for-sale investments into current operations	10		—		8		—
Net change related to available-for-sale investments	1,030		(1,706)		1,387		3,720

Foreign currency translation adjustments:
Foreign currency translation adjustments	(10,247)		(2,866)		(26,403)		(3,225)
Net change related to foreign currency translation adjustments	(10,247)		(2,866)		(26,403)		(3,225)

Other comprehensive income (loss), net of tax	(9,217)		(4,572)		(25,016)		495
Total comprehensive income (loss)	$	26,995	$	52,902	$	23,218	$	83,584

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands)


	June 30, 2024		December 31, 2023
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	176,626	$	202,655
Current investments, amortized cost of $114,177 and $132,799 in 2024 and 2023, respectively, allowance for credit losses of $0 in 2024 and 2023	112,449		129,392
Accounts receivable, allowance for credit losses of $665 and $583 in 2024 and 2023, respectively	159,305		114,164
Unbilled revenue	1,858		2,402
Inventories	157,255		162,285
Prepaid expenses and other current assets	73,524		68,099
Total current assets	681,017		678,997
Non-current investments, amortized cost of $272,613 and $250,790 in 2024 and 2023, respectively, allowance for credit losses of $0 in 2024 and 2023	266,214		244,230
Property, plant, and equipment, net	102,997		105,849
Operating lease assets	71,283		75,115
Goodwill	381,042		393,181
Intangible assets, net	98,548		112,952
Deferred income taxes	396,723		400,400
Other assets	6,260		7,088
Total assets	$	2,004,084	$	2,017,812

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	22,617	$	21,454
Accrued expenses	75,405		72,374
Accrued income taxes	20,827		16,907
Deferred revenue and customer deposits	40,529		31,525
Operating lease liabilities	9,405		9,624
Total current liabilities	168,783		151,884
Non-current operating lease liabilities	64,778		68,977
Deferred income taxes	233,798		246,877
Reserve for income taxes	28,826		26,685
Non-current accrued income taxes	—		18,338
Other liabilities	1,169		299
Total liabilities	497,354		513,060

Commitments and contingencies (Note 10)
Shareholders’ equity:
Preferred stock, $.01 par value – Authorized: 400 shares in 2024 and 2023, respectively; no shares issued and outstanding	—		—
Common stock, $.002 par value – Authorized: 300,000 shares in 2024 and 2023, respectively; issued and outstanding: 171,501 and 171,599 shares in 2024 and 2023, respectively	343		343
Additional paid-in capital	1,061,597		1,037,202
Retained earnings	515,142		512,543
Accumulated other comprehensive loss, net of tax	(70,352)		(45,336)
Total shareholders’ equity	1,506,730		1,504,752
Total liabilities and shareholders' equity	$	2,004,084	$	2,017,812

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)


	Six-months Ended
	June 30, 2024		July 2, 2023
	(unaudited)
Cash flows from operating activities:
Net income	$	48,234	$	83,089
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation expense	26,266		29,153
Depreciation of property, plant, and equipment	10,472		8,177
(Gain) loss on disposal of property, plant, and equipment	—		(8)
Amortization of intangible assets	5,540		1,685
Excess and obsolete inventory charges	1,343		1,443
Fair value adjustment on acquired inventories (Note 18)	1,224		—

Amortization of discounts or premiums on investments	562		1,200
Realized (gain) loss on sale of investments	8		—


Change in deferred income taxes	(7,538)		(14,158)
Change in operating assets and liabilities:
Accounts receivable	(47,784)		(24,420)
Unbilled revenue	527		(104)
Inventories	1,145		(4,981)

Prepaid expenses and other current assets	(6,590)		(5,289)
Accounts payable	2,786		(989)
Accrued expenses	6,234		(9,219)
Accrued income taxes	(14,305)		(13,684)
Deferred revenue and customer deposits	9,374		3,160
Other	3,908		2,347
Net cash provided by (used in) operating activities	41,406		57,402
Cash flows from investing activities:
Purchases of investments	(269,860)		(94,060)
Maturities and sales of investments	266,090		115,761
Purchases of property, plant, and equipment	(8,571)		(10,207)
Net payments related to business acquisitions (Note 18)	(1,444)		—


Net cash provided by (used in) investing activities	(13,785)		11,494
Cash flows from financing activities:
Net payments from issuance of common stock under stock plans	(1,871)		2,655
Repurchase of common stock	(19,879)		(49,163)
Payment of dividends	(25,756)		(24,160)

Net cash provided by (used in) financing activities	(47,506)		(70,668)
Effect of foreign exchange rate changes on cash and cash equivalents	(6,144)		(2,117)
Net change in cash and cash equivalents	(26,029)		(3,889)
Cash and cash equivalents at beginning of period	202,655		181,374
Cash and cash equivalents at end of period	$	176,626	$	177,485

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands)


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Shares	Par Value
Balance as of March 31, 2024	171,662	$	343	$	1,047,643	$	502,338	$	(61,135)	$	1,489,189
Net issuance of common stock under stock plans	81	—		990		—		—		990
Repurchase of common stock	(242)	—		—		(10,540)		—		(10,540)
Stock-based compensation expense	—	—		12,964		—		—		12,964
Payment of dividends ($0.075 per common share)	—	—		—		(12,868)		—		(12,868)
Net income	—	—		—		36,212		—		36,212


Net unrealized gain (loss) on available-for-sale investments, net of tax of $336	—	—		—		—		1,020		1,020

Reclassification of net realized (gain) loss on the sale of available-for-sale investments	—	—		—		—		10		10
Foreign currency translation adjustment	—	—		—		—		(10,247)		(10,247)
Balance as of June 30, 2024 (unaudited)	171,501	$	343	$	1,061,597	$	515,142	$	(70,352)	$	1,506,730


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Shares	Par Value
Balance as of April 2, 2023	172,601	$	345	$	992,690	$	517,526	$	(64,230)	$	1,446,331
Net issuance of common stock under stock plans	179	1		5,709		—		—		5,710
Repurchase of common stock	(487)	(1)		—		(24,984)		—		(24,985)
Stock-based compensation expense	—	—		12,574		—		—		12,574
Payment of dividends ($0.070 per common share)	—	—		—		(12,069)		—		(12,069)
Net income	—	—		—		57,474		—		57,474


Net unrealized gain (loss) on available-for-sale investments, net of tax of $(584)	—	—		—		—		(1,706)		(1,706)


Foreign currency translation adjustment	—	—		—		—		(2,866)		(2,866)
Balance as of July 2, 2023 (unaudited)	172,293	$	345	$	1,010,973	$	537,947	$	(68,802)	$	1,480,463

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands)


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Shares	Par Value
Balance as of December 31, 2023	171,599	$	343	$	1,037,202	$	512,543	$	(45,336)	$	1,504,752
Net issuance of common stock under stock plans	375	—		(1,871)		—		—		(1,871)
Repurchase of common stock	(473)	—		—		(19,879)		—		(19,879)
Stock-based compensation expense	—	—		26,266		—		—		26,266
Payment of dividends ($0.150 per common share)	—	—		—		(25,756)		—		(25,756)
Net income	—	—		—		48,234		—		48,234


Net unrealized gain (loss) on available-for-sale investments, net of tax of $453	—	—		—		—		1,379		1,379

Reclassification of net realized (gain) loss on the sale of available-for-sale investments	—	—		—		—		8		8
Foreign currency translation adjustment	—	—		—		—		(26,403)		(26,403)
Balance as of June 30, 2024 (unaudited)	171,501	$	343	$	1,061,597	$	515,142	$	(70,352)	$	1,506,730


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Shares	Par Value
Balance as of December 31, 2022	172,631	$	345	$	979,167	$	528,179	$	(69,297)	$	1,438,394
Net issuance of common stock under stock plans	628	2		2,653		—		—		2,655
Repurchase of common stock	(966)	(2)		—		(49,161)		—		(49,163)
Stock-based compensation expense	—	—		29,153		—		—		29,153
Payment of dividends ($0.140 per common share)	—	—		—		(24,160)		—		(24,160)
Net income	—	—		—		83,089		—		83,089


Net unrealized gain (loss) on available-for-sale investments, net of tax of $1,274	—	—		—		—		3,720		3,720


Foreign currency translation adjustment	—	—		—		—		(3,225)		(3,225)
Balance as of July 2, 2023 (unaudited)	172,293	$	345	$	1,010,973	$	537,947	$	(68,802)	$	1,480,463

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1: Summary of Significant Accounting Policies

As permitted by the rules of the Securities and Exchange Commission applicable to Quarterly Reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by generally accepted accounting principles (GAAP). Reference should be made to the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for a full description of other significant accounting policies.

In the opinion of the management of Cognex Corporation (the "Company"), the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments, adjustments related to losses and recoveries from the fire at the Company's primary contract manufacturer (Note 17), and financial statement reclassifications necessary to present fairly the Company’s financial position as of June 30, 2024, and the results of its operations for the three-month and six-month periods ended June 30, 2024 and July 2, 2023, and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented.

The results disclosed in the Consolidated Statements of Operations for the three-month and six-month periods ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year.

NOTE 2: New Pronouncements

Accounting Standards Update (ASU) 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures"

The amendments in this ASU apply to all entities that are subject to Topic 740, Income Taxes. The amendments require public business entities to disclose specific categories in their rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. They also require all entities to disclose income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and by individual jurisdictions in which income taxes paid, net of refunds received, are equal to or greater than five percent of total income taxes paid. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2024. The amendments in this ASU should be applied on a prospective basis. Management does not expect ASU 2023-09 to have a material impact on the Company's financial statements and disclosures.

Accounting Standards Update (ASU) 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures"

The amendments in this ASU apply to all public entities, including public entities with a single reportable segment, that are required to report segment information in accordance with Topic 280, Segment Reporting. The amendments require public business entities to provide in interim and annual periods one or more measures of segment profit or loss used by the chief operating decision maker to allocate resources and assess performance. Additionally, the amendments require disclosure of significant segment expenses and other segment items, as well as incremental qualitative disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The amendments in the ASU should be applied on a retrospective basis. We did not early adopt ASU 2023-07. Management does not expect ASU 2023-07 to have a material impact on the Company's financial statements and disclosures.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 3: Fair Value Measurements

Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of June 30, 2024 (in thousands):


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Money market instruments	$	583	$	—	$	—
Corporate bonds	—		316,342		—
Treasury notes	—		45,042		—
Treasury bills	—		26,394		—
Asset-backed securities	—		15,304		—
Certificate of deposit	—		7,601		—


Sovereign bonds	—		1,975		—






Economic hedge forward contracts	—		57		—
Liabilities:

Economic hedge forward contracts	—		152		—

The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1.

The Company’s debt securities and forward contracts are reported at fair value based on model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. Management is responsible for estimating the fair value of these financial assets and liabilities, and in doing so, considers valuations provided by a large, third-party pricing service. For debt securities, this service maintains regular contact with market makers, brokers, dealers, and analysts to gather information on market movement, direction, trends, and other specific data. They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks.

Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis

Non-financial assets, such as property, plant and equipment, operating lease assets, goodwill, and intangible assets, are required to be measured at fair value only when an impairment loss is recognized. The Company did not record impairment charges related to non-financial assets during the three-month or six-month periods ended June 30, 2024 or July 2, 2023.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 4: Cash, Cash Equivalents, and Investments

Cash, cash equivalents, and investments consisted of the following (in thousands):


	June 30, 2024		December 31, 2023

Cash	$	141,508	$	183,242
Treasury bills	26,934		—
Certificate of deposit	7,601		—

Money market instruments	583		19,413

Cash and cash equivalents	176,626		202,655
Corporate bonds	103,654		124,851
Asset-backed securities	5,346		3,551
Treasury notes	2,449		—
Sovereign bonds	1,000		990




Current investments	112,449		129,392
Corporate bonds	212,688		183,965
Treasury notes	42,593		43,523
Asset-backed securities	9,958		15,763

Sovereign bonds	975		979




Non-current investments	266,214		244,230
	$	555,289	$	576,277

Corporate bonds consist of debt securities issued by both domestic and foreign companies; asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; treasury notes consist of debt securities issued by the U.S. government; and sovereign bonds consist of direct debt issued by foreign governments. All of the Company's securities as of June 30, 2024 and December 31, 2023 were denominated in U.S. Dollars.

Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheets and amounted to $4,383,000 and $3,169,000 as of June 30, 2024 and December 31, 2023, respectively.

The following table summarizes the Company’s available-for-sale investments as of June 30, 2024 (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Current:
Corporate bonds	$	105,250	$	—	$	(1,596)	$	103,654
Asset-backed securities	5,426		—		(80)		5,346

Treasury notes	2,500				(51)		2,449
Sovereign bonds	1,001		—		(1)		1,000



Non-current:
Corporate bonds	217,537		73		(4,922)		212,688
Treasury notes	43,362		—		(769)		42,593
Asset-backed securities	10,689		—		(731)		9,958


Sovereign bonds	1,025		—		(50)		975

	$	386,790	$	73	$	(8,200)	$	378,663

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the Company’s available-for-sale investments as of December 31, 2023 (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Current:
Corporate bonds	$	128,150	$	—	$	(3,299)	$	124,851
Asset-backed securities	3,637		—		(86)		3,551



Sovereign bonds	1,012		—		(22)		990



Non-current:
Corporate bonds	189,326		506		(5,867)		183,965
Treasury notes	43,654		82		(213)		43,523
Asset-backed securities	16,773		—		(1,010)		15,763


Sovereign bonds	1,037		—		(58)		979

	$	383,589	$	588	$	(10,555)	$	373,622

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of June 30, 2024 (in thousands):


	Unrealized Loss Position For:
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate bonds	$	93,328	$	(962)	$	203,251	$	(5,556)	$	296,579	$	(6,518)

Treasury notes	22,107		(284)		22,936		(536)		45,043		(820)
Asset-backed securities	9,599		(716)		5,705		(95)		15,304		(811)


Sovereign bonds	—		—		1,974		(51)		1,974		(51)



	$	125,034	$	(1,962)	$	233,866	$	(6,238)	$	358,900	$	(8,200)

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2023 (in thousands):


	Unrealized Loss Position For:
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate bonds	$	30,770	$	(359)	$	226,643	$	(8,807)	$	257,413	$	(9,166)
Treasury notes	20,725		(153)		2,441		(60)		23,166		(213)
Asset-backed securities	17,062		(1,049)		2,252		(47)		19,314		(1,096)


Sovereign bonds	—		—		1,968		(80)		1,968		(80)



	$	68,557	$	(1,561)	$	233,304	$	(8,994)	$	301,861	$	(10,555)

Management monitors debt securities that are in an unrealized loss position to determine whether a loss exists related to the credit quality of the issuer. When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows. Based on this evaluation, no allowance for credit losses on debt securities was recorded as of June 30, 2024 or December 31, 2023. Management currently intends to hold these securities to full value recovery at maturity.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the Company's gross realized gains and losses on the sale of debt securities for the three-month periods ended June 30, 2024 and July 2, 2023 (in thousands):


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Gross realized gains	$	6	$	—	$	8	$	—
Gross realized losses	(16)		—		(16)		—
Net realized gains (losses)	$	(10)	$	—	$	(8)	$	—

Realized gains and losses are included in "Investment income" on the Consolidated Statements of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, were recorded in shareholders’ equity as accumulated other comprehensive income (loss).

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of June 30, 2024 (in thousands):


	<1 year		1-2 Years		2-3 Years		3-4 Years		4-5 Years		5-8 Years		Total
Corporate bonds	$	103,654	$	59,638	$	57,273	$	61,410	$	34,367	$	—	$	316,342
Treasury notes	2,449		987		18,909		22,697		—				45,042
Asset-backed securities	5,346		4,060		—		—		2,162		3,736		15,304




Sovereign bonds	1,000		975		—		—		—		—		1,975



	$	112,449	$	65,660	$	76,182	$	84,107	$	36,529	$	3,736	$	378,663

NOTE 5: Inventories

Inventories consisted of the following (in thousands):


	June 30, 2024		December 31, 2023
Raw materials	$	97,031	$	93,201
Work-in-process	4,344		5,747
Finished goods	55,880		63,337
	$	157,255	$	162,285

NOTE 6: Leases

The Company's leases are primarily leased properties across different worldwide locations where the Company conducts its operations. All of these leases are classified as operating leases. Certain leases may contain options to extend or terminate the lease at the Company's sole discretion. As of June 30, 2024, there were no options to terminate and twenty options to extend that were accounted for in the determination of the lease term for the Company's outstanding leases. Certain leases contain leasehold improvement incentives, retirement obligations, escalating clauses, rent holidays, and variable payments tied to a consumer price index. There were no restrictions or covenants for outstanding leases as of June 30, 2024.

The total operating lease expense for the three-month and six-month periods ended June 30, 2024 was $3,474,000 and $7,037,000, respectively. The total operating lease cash payments for the three-month and six-month periods ended June 30, 2024 were $3,406,000 and $6,614,000, respectively. The total lease expense for leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability for the three-month and six-month periods ended June 30, 2024 was $57,000 and $139,000, respectively.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The total operating lease expense for the three-month and six-month periods ended July 2, 2023 was $2,639,000 and $5,031,000, respectively. The total operating lease cash payments for the three-month and six-month periods ended July 2, 2023 were $2,364,000 and $4,768,000, respectively. The total lease expense for leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability for the three-month and six-month periods ended July 2, 2023 was $136,000 and $160,000, respectively.

Future operating lease cash payments are as follows (in thousands):


Year Ended December 31,	Amount
Remainder of fiscal 2024	$	6,876
2025	12,011
2026	9,944
2027	9,107
2028	8,659
2029	8,078
Thereafter	44,328
	$	99,003

The discounted present value of the future lease cash payments resulted in a total lease liability of $74,183,000 and $78,601,000 as of June 30, 2024 and December 31, 2023, respectively. The Company did not have any leases that had not yet commenced but that created significant rights and obligations as of June 30, 2024.

The Company leases a building in Singapore that serves as a distribution center for customers in Asia. The lease contains two components: an 88,000 square-foot premises that had a commencement date in June of 2023 and a second 27,000 square-foot premises that does not commence until the fourth quarter of 2025. Accordingly, the second component of the lease has not yet been recorded on the Consolidated Balance Sheets, nor has it created any significant rights and obligations as of June 30, 2024. This second lease component has an original term of eight years and the Company has the right and option to extend this term by an additional five years, commencing upon the expiration of the original term. Future payment obligations associated with this lease component total $13,231,000, none of which is payable in 2024 and which reflects the estimated extension period of five years. Future payment obligations related to this lease component are not included in the future operating lease cash payments table above.

The weighted-average discount rate was 5.7% for the leases outstanding as of both June 30, 2024 and December 31, 2023. The weighted-average remaining lease term was 10.2 and 10.5 years for the leases outstanding as of June 30, 2024 and December 31, 2023, respectively.

NOTE 7: Goodwill

The changes in the carrying value of goodwill were as follows (in thousands):


Balance as of December 31, 2023	$	393,181
Foreign exchange rate changes	(12,139)
Balance as of June 30, 2024	$	381,042

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 8: Intangible Assets

Amortized intangible assets consisted of the following (in thousands):


	Gross Carrying Value		Accumulated Amortization		Net Carrying Value

Customer relationships	$	70,394	$	(7,753)	$	62,641
Completed technologies	58,612		(23,401)		35,211
Trademarks	792		(176)		616
Non-compete agreements	340		(260)		80
Balance as of June 30, 2024	$	130,138	$	(31,590)	$	98,548

	Gross Carrying Value		Accumulated Amortization		Net Carrying Value

Customer relationships	$	75,965	$	(5,352)	$	70,613
Completed technologies	62,123		(20,745)		41,378
Trademarks	903		(50)		853
Non-compete agreements	340		(232)		108
Balance as of December 31, 2023	$	139,331	$	(26,379)	$	112,952

As of June 30, 2024, estimated future amortization expense related to intangible assets was as follows (in thousands):


Year Ended December 31,	Amount
Remainder of fiscal 2024	$	5,247
2025	10,267
2026	9,918
2027	8,976
2028	8,246
2029	8,246
Thereafter	47,648
	$	98,548

NOTE 9: Warranty Obligations

The Company records the estimated cost of fulfilling product warranties at the time of sale based upon historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or changes in circumstances impacting product quality become known that would not have been taken into account using historical data. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers and third-party contract manufacturers, the Company’s warranty obligation is affected by product failure rates, material usage, and service delivery costs incurred in correcting a product failure. An adverse change in any of these factors may result in the need for additional warranty provisions. Warranty obligations are included in “Accrued expenses” on the Consolidated Balance Sheets.

The changes in the warranty obligation were as follows (in thousands):


Balance as of December 31, 2023	$	4,244
Provisions for warranties issued during the period	2,120
Fulfillment of warranty obligations	(1,990)
Foreign exchange rate changes	(20)
Balance as of June 30, 2024	$	4,354

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 10: Commitments and Contingencies

As of June 30, 2024, the Company had outstanding purchase orders totaling $43,078,000 to procure inventory from various vendors. Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties. These purchase commitments relate primarily to expected sales in the next twelve months.

A significant portion of the Company's outstanding inventory purchase orders as of June 30, 2024, as well as additional preauthorized commitments to procure strategic components based on the Company's expected customer demand, are placed with the Company's primary contract manufacturer for the Company's assembled products. The Company has the obligation to purchase any non-cancelable and non-returnable components that have been purchased by the contract manufacturer with the Company's preauthorization, when these components have not been consumed within the period defined in the terms of the Company's agreement with this contract manufacturer. While the Company typically expects such purchased components to be used in future production of Cognex finished goods, these components are considered in the Company's reserve estimate for excess and obsolete inventory. Furthermore, the Company accrues for losses on commitments for the future purchase of non-cancelable and non-returnable components from this contract manufacturer at the time that circumstances, such as changes in demand, indicate that the value of the components may not be recoverable, the loss is probable, and management has the ability to reasonably estimate the amount of the loss.

Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations.

NOTE 11: Derivative Instruments

The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. The Company enters into economic hedges utilizing foreign currency forward contracts with maturities that do not exceed approximately three months to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment.

The Company had the following outstanding forward contracts (in thousands):


	June 30, 2024			December 31, 2023
Currency	Notional Value	USD Equivalent		Notional Value	USD Equivalent
Derivatives Not Designated as Hedging Instruments:

Singapore Dollar	40,700	$	30,041	39,700	$	30,136
Euro	22,000	23,577		40,000	44,302
Chinese Renminbi	100,000	13,711		50,000	7,025
Mexican Peso	215,000	11,663		145,000	8,505
Hungarian Forint	2,180,000	5,883		2,240,000	6,466
British Pound	3,245	4,112		3,345	4,258


Japanese Yen	600,000	3,750		600,000	4,255
Swiss Franc	1,675	1,875		—	—
Canadian Dollar	1,660	1,212		1,470	1,112

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):

Asset Derivatives

Liability Derivatives

Balance

Fair Value

Balance

Fair Value

Sheet
Location

June 30, 2024

December 31, 2023

Sheet
Location

June 30, 2024

December 31, 2023

Derivatives Not Designated as Hedging Instruments:

Economic hedge forward contracts

Prepaid expenses and other current assets

151

Accrued expenses

152

106

The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands):


Asset Derivatives					Liability Derivatives
	June 30, 2024		December 31, 2023			June 30, 2024		December 31, 2023
Gross amounts of recognized assets	$	57	$	151	Gross amounts of recognized liabilities	$	152	$	106
Gross amounts offset	—		—		Gross amounts offset	—		—
Net amount of assets presented	$	57	$	151	Net amount of liabilities presented	$	152	$	106

Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands):


	Location in Financial Statements	Three-months Ended				Six-months Ended
		June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023







Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operations	Foreign currency gain (loss)	$	876	$	859	$	631	$	(612)

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 12: Revenue Recognition

The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands):


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Americas	$	85,162	$	82,297	$	168,297	$	162,911
Europe	57,151		56,860		109,505		116,702
Greater China	54,410		72,351		84,459		105,351

Other Asia	42,569		31,004		87,828		58,672
	$	239,292	$	242,512	$	450,089	$	443,636

The following table summarizes disaggregated revenue information by revenue type (in thousands):


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Standard products and services	$	200,856	$	194,944	$	388,488	$	385,727
Application-specific customer solutions	38,436		47,568		61,601		57,909
	$	239,292	$	242,512	$	450,089	$	443,636

Costs to Fulfill a Contract

Costs to fulfill a contract are included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $11,310,000 and $13,265,000 as of June 30, 2024 and December 31, 2023, respectively.

Accounts Receivable, Contract Assets, and Contract Liabilities

Accounts receivable represent amounts billed and currently due from customers which are reported at their net estimated realizable value. The Company maintains an allowance against its accounts receivable for credit losses. Contract assets consist of unbilled revenue which arises when revenue is recognized in advance of billing for certain application-specific customer solutions contracts. Contract liabilities consist of deferred revenue and customer deposits which arise when amounts are billed to or collected from customers in advance of revenue recognition.

The following table summarizes the allowance for credit losses activity for the six-month period ended June 30, 2024 (in thousands):


Balance as of December 31, 2023	$	583
Increases to the allowance for credit losses	100
Write-offs, net of recoveries	(19)
Foreign exchange rate changes	1
Balance as of June 30, 2024	$	665

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the deferred revenue and customer deposits activity for the six-month period ended June 30, 2024 (in thousands):


Balance as of December 31, 2023	$	31,525
Deferral of revenue billed in the current period, net of recognition	30,777
Recognition of revenue deferred in prior period	(21,271)

Foreign exchange rate changes	(502)
Balance as of June 30, 2024	$	40,529

As a practical expedient, the Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations for our contracts that have an original expected duration of less than one year. The remaining unsatisfied performance obligations for our contracts that have an original expected duration of more than one year, primarily related to extended warranties, are not material.

NOTE 13: Stock-Based Compensation Expense

Stock Plans

The Company’s stock-based awards that result in compensation expense consist of stock options, restricted stock units ("RSUs"), and performance restricted stock units ("PRSUs"). In May 2023, the shareholders of the Company approved the Cognex Corporation 2023 Stock Option and Incentive Plan (the “2023 Plan”). The 2023 Plan permits awards of stock options (both incentive and non-qualified options), stock appreciation rights, RSUs, and PRSUs. Up to 8,100,000 shares of common stock (subject to adjustment in the event of stock splits and other similar events) may be issued pursuant to awards granted under the 2023 Plan. In connection with the approval of the 2023 Plan, no further awards will be made under the Cognex Corporation 2001 General Stock Option Plan, as amended and restated (the “2001 Plan”), and the Cognex Corporation 2007 Stock Option and Incentive Plan, as amended and restated (the “2007 Plan”). With the approval of the 2023 Plan, the 10,610,800 shares of common stock subject to awards granted under the 2001 Plan and the 2007 Plan that were outstanding as of May 3, 2023 may become eligible for issuance under the 2023 Plan if such awards are forfeited, cancelled or otherwise terminated (other than by exercise) (the “Carryover Shares”). As of June 30, 2024, forfeitures, cancellations, and other terminations from the 2001 Plan and the 2007 Plan have resulted in 777,455 Carryover Shares, raising the authorized total shares that may be issued under the 2023 Plan to 8,877,455.

As of June 30, 2024, the Company had 5,958,000 shares available for grant under its stock plans. Stock options are granted with an exercise price equal to the market value of the Company’s common stock at the grant date and generally vest over four or five years based upon continuous service and expire ten years from the grant date. RSUs generally vest upon three or four years of continuous employment or incrementally over such three or four-year periods. PRSUs generally vest upon three years of continuous employment and achievement of performance criteria established by the Compensation Committee of our Board of Directors on or prior to the grant date. Participants are not entitled to dividends on stock options, RSUs, or PRSUs.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Stock Options

The following table summarizes the Company’s stock option activity for the six-month period ended June 30, 2024:


	Shares (in thousands)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2023	9,008	$	50.87
Granted	1,620	39.74
Exercised	(112)	23.52
Forfeited or expired	(397)	56.39
Outstanding as of June 30, 2024	10,119	$	49.17	6.10	$	35,881
Exercisable as of June 30, 2024	5,880	$	49.22	4.31	$	22,854
Options vested or expected to vest as of June 30, 2024 (1)	9,413	$	49.36	5.89	$	33,342

(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options.

The total cash received as a result of stock option exercises for the three-month and six-month periods ended June 30, 2024 was $1,516,000 and $2,637,000, respectively, and for the three-month and six-month periods ended July 2, 2023 was $6,141,000 and $10,118,000, respectively. In connection with these exercises, the tax expense realized by the Company for the three-month and six-month periods ended June 30, 2024 was $2,043,000 and $2,072,000, respectively, and for the three-month and six-month periods ended July 2, 2023 was $2,426,000 and $3,893,000, respectively.

The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Risk-free rate	4.5	%	3.5	%	4.3	%	3.9	%
Expected dividend yield	0.67	%	0.56	%	0.75	%	0.59	%
Expected volatility	39	%	39	%	39	%	39	%
Expected term (in years)	4.7		5.9		4.7		4.9

Risk-free rate

The risk-free rate was based upon a treasury instrument whose term was consistent with the contractual term of the option.

Expected dividend yield

The current dividend yield was calculated by annualizing the cash dividend declared by the Company’s Board of Directors and dividing that result by the closing stock price on the grant date.

Expected volatility

The expected volatility was based upon a combination of historical volatility of the Company’s common stock over the contractual term of the option and implied volatility for traded options of the Company’s stock.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Expected term

The expected term was derived from the binomial lattice model from the impact of events that trigger exercises over time.

The weighted-average grant-date fair values of stock options granted during the three-month and six-month periods ended June 30, 2024 were $18.46 and $14.89, respectively, and during the three-month and six-month periods ended July 2, 2023 were $20.09 and $17.86, respectively.

The total intrinsic values of stock options exercised for the three-month and six-month periods ended June 30, 2024 were $994,000 and $2,049,000, respectively, and for the three-month and six-month periods ended July 2, 2023 were $2,123,000 and $5,562,000, respectively. The total fair values of stock options vested for the three-month and six-month periods ended June 30, 2024 were $698,000 and $26,209,000, respectively, and for the three-month and six-month periods ended July 2, 2023 were $892,000 and $32,073,000, respectively.

Restricted Stock Units (RSUs)

The following table summarizes the Company's RSUs activity for the six-month period ended June 30, 2024:


	Shares (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested as of December 31, 2023	1,429	$	54.22
Granted	797	39.03
Vested	(375)	65.58
Forfeited or expired	(55)	49.86
Nonvested as of June 30, 2024	1,796	$	45.23

The fair value of RSUs is determined based on the observable market price of the Company's stock on the grant date less the present value of expected future dividends. The weighted-average grant-date fair values of RSUs granted during the three-month and six-month periods ended June 30, 2024 were $43.97 and $39.03, respectively, and during the three-month and six-month periods ended July 2, 2023 were $52.53 and $46.86, respectively. There were 36,000 and 375,000 RSUs that vested during the three-month and six-month periods ended June 30, 2024, respectively, and 29,000 and 482,000 that vested during the three-month and six-month periods ended July 2, 2023, respectively.

Tax obligations for vested RSUs are settled by withholding a portion of the shares prior to distribution to the shareholder. The total cash used by the Company to fund the tax payments for the three-month and six-month periods ended June 30, 2024 was $526,000 and $4,507,000, respectively, and for the three-month and six-month periods ended July 2, 2023 was $432,000 and $7,464,000, respectively. In connection with these vested RSUs, the tax expense realized by the Company for the three-month and six-month periods ended June 30, 2024 was $2,074,000 and $6,867,000, respectively, and for the three-month and six-month periods ended July 2, 2023 was $150,000 and $3,476,000, respectively.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Performance Restricted Stock Units (PRSUs)

The following table summarizes the Company's PRSUs activity for the six-month period ended June 30, 2024:


	Shares (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested as of December 31, 2023	79	$	52.23
Granted	55	39.05
Vested	—	—
Forfeited or expired	—	—
Nonvested as of June 30, 2024	134	$	46.82

The fair value of PRSUs is calculated using the Monte Carlo simulation model to estimate the probability of satisfying the service and market conditions stipulated in the award grant. There were 0 and 55,000 PRSUs granted during the three-month and six-month periods ended June 30, 2024, respectively, and 0 and 46,000 granted during the three-month and six-month periods ended July 2, 2023, respectively. No PRSUs vested during the three-month and six-month periods ended June 30, 2024 and July 2, 2023.

Stock-Based Compensation Expense

The Company stratifies its employee population into three groups: one consisting of the CEO, one consisting of senior management, and another consisting of all other employees. The Company currently applies an estimated annual forfeiture rate of 0% to all stock-based awards for the CEO, 9% to all stock-based awards for senior management, and a rate of 13% for all other employees. Each year during the first quarter, the Company revises its forfeiture rate based on updated estimates of employee turnover. This resulted in a decrease to compensation expense of $1,832,000 in 2024 and $234,000 in 2023.

As of June 30, 2024, total unrecognized compensation expense, net of estimated forfeitures, related to non-vested equity awards, including stock options, RSUs, and PRSUs, was $75,507,000, which is expected to be recognized over a weighted-average period of 1.9 years.

The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended June 30, 2024 were $12,964,000 and $2,027,000, respectively, and for the six-month period ended June 30, 2024 were $26,266,000 and $3,772,000, respectively. The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended July 2, 2023 were $12,574,000 and $1,892,000, respectively, and for the six-month period ended July 2, 2023 were $29,153,000 and $4,200,000, respectively. No compensation expense was capitalized as of June 30, 2024 or December 31, 2023.

The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Cost of revenue	$	413	$	441	$	1,018	$	1,062
Research, development, and engineering	3,540		3,308		7,929		9,198
Selling, general, and administrative	9,011		8,825		17,319		18,893
	$	12,964	$	12,574	$	26,266	$	29,153

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 14: Stock Repurchase Program

In March 2022, the Company's Board of Directors authorized the repurchase of $500,000,000 of the Company's common stock. Under this March 2022 program, in addition to repurchases made in prior years, the Company repurchased 966,000 shares at a total cost of $49,163,000 during the six-month period ended July 2, 2023 and 473,000 shares at a total cost of $19,879,000 during the six-month period ended June 30, 2024, leaving a remaining balance of $313,013,000 as of June 30, 2024. The Company may repurchase shares under this program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock awards, stock price, share availability, and cash requirements. The Company is authorized to make repurchases of its common stock through open market purchases, pursuant to Rule 10b5-1 trading plans, or in privately negotiated transactions.

NOTE 15: Income Taxes

The Company's effective tax rate was 13% and 18% for the three-month and six-month periods ended June 30, 2024, respectively, and 15% and 12% for the three-month and six-month periods ended July 2, 2023, respectively.

The Company has defined its major tax jurisdictions as the United States, Ireland, China, Japan, and Korea, and within the United States, Massachusetts. The statutory tax rate is 12.5% in Ireland, 25% in China, 34.6% in Japan, and 21% in Korea, compared to the U.S. federal statutory corporate tax rate of 21%. These foreign tax rate differences resulted in a favorable impact to the effective tax rate for both the three-month and six-month periods ended June 30, 2024 and July 2, 2023.

The Company recorded a net discrete tax benefit totaling $463,000 and a net discrete tax expense totaling $2,622,000 for the three-month and six-month periods ended June 30, 2024, and a net discrete tax expense totaling $399,000 and a net discrete tax benefit totaling $3,195,000 for the same periods in 2023.

Discrete tax items for the six-month period ended June 30, 2024 included (1) an increase in tax expense of $1,371,000 related to stock-based compensation; (2) an increase in tax expense of $477,000 related to state tax matters; (3) an increase in tax expense of $922,000 for interest expense related to tax reserves; (4) a net decrease in tax expense of $1,278,000 related to return-to-provision adjustments; and (5) an increase in tax expense of $1,130,000 for other tax matters.

Discrete tax items for the six-month period ended July 2, 2023 included (1) an increase in tax expense of $1,766,000 related to stock-based compensation; (2) a net decrease in tax expense of $3,051,000 due primarily to the release of tax reserves on state tax credits and foreign audit settlements; (3) a decrease in tax expense of $2,198,000 for adjustments to certain deferred tax assets; and (4) a net increase in tax expense of $288,000 for return-to-provision adjustments.

The Company’s reserve for income taxes, including gross interest and penalties, was $31,193,000 as of June 30, 2024, of which $28,826,000 was classified as a non-current liability and $2,367,000 was classified as an offset to deferred tax assets. If the Company’s tax positions were sustained or the statutes of limitations related to certain positions expired, these reserves would be released and income tax expense would be reduced in a future period.

Within the United States, the tax years 2020 through 2022 remain open to examination by the IRS, and 2019 through 2022 remain open to examination by various state tax authorities. The tax years 2017 through 2023 remain open to examination by various international taxing authorities in other jurisdictions in which the Company operates.

In October 2021, more than 135 countries and jurisdictions agreed to participate in a "two-pillar" international tax approach developed by the Organisation for Economic Co-operation and Development (OECD), which includes establishing a global minimum corporate tax rate of 15%. The OECD published "Tax Challenges Arising from the Digitalisation of the Economy — Global Anti-Base Erosion Model Rules (Pillar Two)" in December 2021 and subsequently issued additional commentary and administrative guidance clarifying several aspects of the model rules. Since the model rules have been released, many countries have now enacted Pillar Two-related laws, some of which became effective January 1, 2024, and it is anticipated that more countries will follow suit throughout 2024. As of June 30, 2024, the Company does not expect Pillar Two taxes to have a significant impact on its 2024 financial statements.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 16: Weighted-Average Shares

Weighted-average shares were calculated as follows (in thousands):


	Three-months Ended		Six-months Ended
	June 30, 2024	July 2, 2023	June 30, 2024	July 2, 2023
Basic weighted-average common shares outstanding	171,568	172,429	171,630	172,527
Effect of dilutive equity awards	1,165	1,193	1,069	1,264
Weighted-average common and common-equivalent shares outstanding	172,733	173,622	172,699	173,791

Stock options to purchase 8,325,000 and 8,415,000 shares of common stock, on a weighted-average basis, were outstanding during the three-month and six-month periods ended June 30, 2024, respectively, and 6,890,000 and 6,713,000 during the three-month and six-month periods ended July 2, 2023, respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. Restricted stock units totaling 1,000 and 9,000 shares of common stock, on a weighted-average basis, were outstanding during the three-month and six-month periods ended June 30, 2024, respectively, and 3,000 and 1,000 during the three-month and six-month periods ended July 2, 2023, respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. No PRSUs were excluded in the calculation of dilutive net income per share for the three-month and six-month periods ended June 30, 2024 and July 2, 2023, respectively, as PRSUs were not anti-dilutive on a weighted-average basis.

NOTE 17: Loss (Recovery) from Fire

On June 7, 2022, the Company’s primary contract manufacturer experienced a fire at its plant in Indonesia, destroying a significant amount of Cognex-owned consigned inventories.

During the three-month period ended July 2, 2023, the Company recorded a recovery related to the fire of $2,500,000 for proceeds received from the Company's insurance carrier in relation to a business interruption claim. This recovery amount is presented in the caption “Loss (recovery) from fire” on the Consolidated Statements of Operations.

NOTE 18: Business Combinations

On October 18, 2023, the Company acquired all the outstanding shares of Moritex Corporation ("Moritex"), a global provider of premium optical components based in Japan, for an enterprise value of ¥40 billion Japanese Yen, or approximately $270 million U.S. Dollars based on the closing date foreign exchange rate.

The cash-free, debt-free enterprise value was adjusted by cash acquired, debt assumed, and final working capital balances to arrive at total consideration to be allocated to assets acquired and liabilities assumed of ¥44,376,245,000 ($296,138,000 based on the closing date foreign exchange rate), of which ¥44,227,414,000 ($295,144,000) was paid in cash on the closing date and ¥148,831,000 ($994,000) was paid during the three-month period ended March 31, 2024 as a final purchase price adjustment based on the closing balance sheet.

NOTE 19: Subsequent Events

On July 31, 2024, the Company’s Board of Directors declared a cash dividend of $0.075 per share. The dividend is payable on August 29, 2024 to all shareholders of record as of the close of business on August 15, 2024.

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

Certain statements made in this report, as well as oral statements made by the Company from time to time, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Readers can identify these forward-looking statements by our use of the words “expects,” “anticipates,” “estimates,” "potential," “believes,” “projects,” “intends,” “plans,” “will,” “may,” “shall,” “could,” “should,” "opportunity," "goal" and similar words and other statements of a similar sense. These statements are based on our current estimates and expectations as to prospective events and circumstances, which may or may not be in our control and as to which there can be no firm assurances given. These forward-looking statements, which include statements regarding business and market trends, future financial performance and financial targets, customer demand and order rates and timing of related revenue, managing supply challenges, delivery lead times, future product or revenue mix, research and development activities, sales and marketing activities (including our 'Emerging Customer' sales initiative), new product offerings and product development activities, customer acceptance of our products, capital expenditures, cost management activities, investments, liquidity, dividends and stock repurchases, strategic and growth plans and opportunities, acquisitions, and estimated tax benefits and expenses and other tax matters, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include: (1) the technological obsolescence of current products and the inability to develop new products, particularly in connection with emerging artificial intelligence technologies; (2) the impact of competitive pressures; (3) the inability to attract and retain skilled employees and maintain our unique corporate culture; (4) the failure to properly manage the distribution of products and services; (5) economic, political, and other risks associated with international sales and operations, including the impact of trade disputes, the economic climate in China, and the wars in Ukraine and Israel; (6) the challenges in integrating and achieving expected results from acquired businesses, including our acquisition of Moritex Corporation; (7) information security breaches and other cybersecurity risks; (8) the failure to comply with laws or regulations relating to data privacy or data protection; (9) the inability to protect our proprietary technology and intellectual property; (10) the failure to manufacture and deliver products in a timely manner; (11) the inability to obtain, or the delay in obtaining, components for our products at reasonable prices; (12) the failure to effectively manage product transitions or accurately forecast customer demand; (13) the inability to manage disruptions to our distribution centers or to our key suppliers; (14) the inability to design and manufacture high-quality products; (15) the loss of, or curtailment of or delays in purchases by, large customers in the logistics, consumer electronics, or automotive industries; (16) potential impairment charges with respect to our investments or acquired intangible assets; (17) exposure to additional tax liabilities, increases and fluctuations in our effective tax rate, and other tax matters; (18) fluctuations in foreign currency exchange rates and the use of derivative instruments; (19) unfavorable global economic conditions, including high interest rates and fluctuating inflation rates; (20) business disruptions from natural or man-made disasters, such as fire, or public health issues; (21) exposure to potential liabilities, increased costs (including regulatory compliance costs), reputational harm, and other potential impacts associated with expectations relating to environmental, social, and governance considerations; (22) stock price volatility; and (23) our involvement in time-consuming and costly litigation or activist shareholder activities. The foregoing list should not be construed as exhaustive and we encourage readers to refer to the detailed discussion of risk factors included in Part I - Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as updated by Part II - Item 1A of this Quarterly Report on Form 10-Q. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company 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.

Executive Overview

Cognex Corporation (the "Company”) invents and commercializes technologies that address some of the most critical manufacturing and distribution challenges. We are a leading global provider of machine vision products and solutions that seek to improve efficiency and quality in a wide range of businesses across attractive industrial end markets. In addition to product revenue derived from the sale of machine vision products, the Company also generates revenue by providing maintenance and support, consulting, and training services to its customers; however, service revenue accounted for less than 10% of total revenue for all periods presented.

Machine vision is used in a variety of industries where technology is widely recognized as an important component of automated production, distribution, and quality assurance. Virtually every manufacturer or distributor can achieve better quality and efficiency by using machine vision. This results in a broad base of potential customers across a variety of industries, including automotive, logistics, consumer electronics, medical-related, semiconductor, consumer products, and food and beverage.

Revenue for the second quarter of 2024 totaled $239,292,000 and was relatively flat compared to the second quarter of 2023. Incremental revenue arising from the acquisition of Moritex Corporation ("Moritex") that closed in the fourth quarter of 2023 and higher revenue from customers in the logistics and semiconductor industries, was partially offset by lower spending trends across our factory automation business. Gross margin as a percentage of revenue was 70% for the second quarter of 2024 as compared to 74% for the second quarter of 2023 due primarily to the impact of a less favorable revenue mix and the amortization of Moritex acquired technologies.

Operating expenses for the second quarter of 2024 increased 12% from the second quarter of 2023. Investments in our “Emerging Customer” sales initiative focused on broadening our customer base and incremental costs related to the acquisition of Moritex were partially offset by the impact of cost management activities.

Operating income decreased to 16% of revenue for the second quarter of 2024 as compared to 27% of revenue for the second quarter of 2023 driven by the lower gross margin percentage and continued investment in our "Emerging Customer" sales initiative. This lower level of operating income resulted in net income of 15% of revenue, or $0.21 per diluted share, for the second quarter of 2024, as compared to 24% of revenue, or $0.33 per diluted share, for the second quarter of 2023.

Results of Operations

As foreign currency exchange rates are a factor in understanding period-to-period comparisons, we believe the presentation of results on a constant-currency basis in addition to reported results helps improve investors’ ability to understand our operating results and evaluate our performance in comparison to prior periods. We also use results on a constant-currency basis as one measure to evaluate our performance. Constant-currency information compares results between periods as if exchange rates had remained constant period-over-period. We generally refer to such amounts calculated on a constant-currency basis as excluding the impact of foreign currency exchange rate changes. Results on a constant-currency basis are not in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and should be considered in addition to, and not as a substitute for, results prepared in accordance with U.S. GAAP.

Revenue

Revenue decreased by $3,220,000, or 1%, for the three-month period and increased by $6,453,000, or 1%, for the six-month period as compared to the same periods in 2023. Revenue from the acquisition of Moritex that closed in the fourth quarter of 2023 represented approximately 7% of total revenue for both periods in 2024.

In addition to the contribution of Moritex, revenue from customers in the logistics and semiconductor industries increased for both the three-month and six-month periods in 2024 from the prior year. These increases were offset by lower spending trends across our factory automation business, most notably in the automotive and consumer electronics industries. The decrease in automotive revenue was due to continued softness across the automotive business, as well as delayed spending from electric vehicle battery manufacturers. The decrease in consumer electronics revenue was also impacted by the timing of large customer deployments that were completed late in the second quarter of 2023.

The following table sets forth our disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands) for the three-month and six-month periods ended June 30, 2024 and July 2, 2023.


	Three-months Ended										Six-months Ended
	June 30, 2024			July 2, 2023			$ Change		% Change		June 30, 2024			July 2, 2023			$ Change		% Change
	(unaudited)										(unaudited)
Americas	$	85,162		$	82,297		$	2,865	3	%	$	168,297		$	162,911		$	5,386	3	%
Percentage of total revenue	36		%	34		%					37		%	37		%
Europe	$	57,151		$	56,860		$	291	1	%	$	109,505		$	116,702		$	(7,197)	(6)	%
Percentage of total revenue	24		%	23		%					24		%	26		%
Greater China	$	54,410		$	72,351		$	(17,941)	(25)	%	$	84,459		$	105,351		$	(20,892)	(20)	%
Percentage of total revenue	23		%	30		%					19		%	24		%


Other Asia	$	42,569		$	31,004		$	11,565	37	%	$	87,828		$	58,672		$	29,156	50	%
Percentage of total revenue	18		%	13		%					20		%	13		%
Total revenue	$	239,292		$	242,512		$	(3,220)	(1)	%	$	450,089		$	443,636		$	6,453	1	%

Changes in revenue from a geographic perspective were as follows:

•Revenue from customers based in the Americas increased by 3% for both the three-month and six-month periods. The increase was primarily driven by higher revenue from customers in the logistics industry, partially offset by continued softness across our factory automation business. The increase in logistics revenue for the six-month period in 2024 included a strategic logistics project completed in the first quarter.

•Revenue from customers based in Europe increased by 1% for the three-month period and decreased by 6% for the six-month period. Similar to the Americas, the Europe region continued to experience softness across our factory automation business. Although logistics revenue was higher for both periods in 2024, this increase was not enough to offset declines in factory automation revenue for the six-month period.

•Revenue from customers based in Greater China decreased by 25% for the three-month period and decreased by 20% for the six-month period. The Greater China region continued to experience a challenging business environment. The impact of lower spending trends, as well as the timing of certain deployments related to a large consumer electronics customer that were completed late in the second quarter of 2023, was partially offset by the revenue contribution from the Moritex acquisition.

•Revenue from customers based in other countries in Asia increased by 37% for the three-month period and increased by 50% for the six-month period. The increase was primarily driven by incremental revenue related to the acquisition of Moritex, for which the majority of revenue currently comes from customers based in Japan, as well as higher revenue from customers in the semiconductor and logistics industries.

Gross Margin

The following table sets forth our gross margin (in thousands) for the three-month and six-month periods ended June 30, 2024 and July 2, 2023.


	Three-months Ended										Six-months Ended
	June 30, 2024			July 2, 2023			$ Change		% Change		June 30, 2024			July 2, 2023			$ Change		% Change
	(unaudited)										(unaudited)
Gross margin	$	166,599		$	179,683		$	(13,084)	(7)	%	$	308,536		$	323,423		$	(14,887)	(5)	%
Percentage of total revenue	70		%	74		%					69		%	73		%

Gross margin as a percentage of revenue was 70% and 69% for the three-month and six-month periods in 2024, respectively, as compared to 74% and 73% for the same periods in 2023. The decrease was due to a less favorable revenue mix in 2024 that included products with relatively low gross margins from the Moritex acquisition that closed in the fourth quarter of 2023, as well as the amortization of Moritex acquired technologies. The decrease for the six-month period was also due to a strategic logistics project completed in the first quarter that had lower-than-average gross margins, as well as charges related to the final sell-through of Moritex acquired inventories in the first quarter that were written up to fair value. These decreases were partially offset by lower inventory costs driven by a reduction in premiums paid to brokers for the purchase of components as supply chain constraints eased.

Operating Expenses

The following table sets forth our operating expenses (in thousands) for the three-month and six-month periods ended June 30, 2024 and July 2, 2023.


	Three-months Ended										Six-months Ended
	June 30, 2024			July 2, 2023			$ Change		% Change		June 30, 2024			July 2, 2023			$ Change		% Change
	(unaudited)										(unaudited)
Research, development, and engineering expenses	$	34,962		$	33,585		$	1,377	4	%	$	72,067		$	72,127		$	(60)	—	%
Percentage of total revenue	15		%	14		%					16		%	16		%
Selling, general, and administrative expenses	$	93,180		$	83,423		$	9,757	12	%	$	183,808		$	166,460		$	17,348	10	%
Percentage of total revenue	39		%	34		%					41		%	38		%
Loss (recovery) from fire	$	—		$	(2,500)		$	2,500	(100)	%	$	—		$	(2,500)		$	2,500	(100)	%
Percentage of total revenue	—		%	(1)		%					—		%	(1)		%
Total operating expenses	$	128,142		$	114,508		$	13,634	12	%	$	255,875		$	236,087		$	19,788	8	%
Percentage of total revenue	54		%	47		%					57		%	53		%

Research, Development, and Engineering Expenses

Research, development, and engineering (RD&E) expenses increased by $1,377,000, or 4%, for the three-month period and remained relatively flat for the six-month period as compared to the same periods in 2023. Higher incentive compensation expenses were offset by lower stock-based compensation expenses for the six-month period due to the impact of forfeiture adjustments in the first quarter. Personnel-related costs remained relatively flat, as the additional costs associated with a new team of optical engineers that joined Cognex with the acquisition of Moritex in the fourth quarter of 2023 were offset by lower deferred compensation costs related to the 2019 acquisition of Sualab Co, Ltd. that were fully paid in October 2023 and cost management activities that included the realignment of headcount to business levels.

RD&E expenses as a percentage of revenue were 15% and 16% for the three-month and six-month periods in 2024, respectively, as compared to 14% and 16% for the same periods in 2023. We believe that a continued commitment to RD&E activities is essential to maintain or achieve product leadership with our existing products and to provide innovative new product offerings, as well as to provide engineering support for large customers. In addition, we consider our ability to accelerate the time to market for new products to be critical to our revenue growth and competitive position. These percentages are impacted by revenue levels and investment cycles.

Selling, General, and Administrative Expenses

Selling, general, and administrative (SG&A) expenses increased by $9,757,000, or 12%, for the three-month period and increased by $17,348,000, or 10%, for the six-month period as compared to the same periods in 2023. The increase was primarily due to increased costs related to our “Emerging Customer” sales initiative, including additional headcount, travel expenses, and marketing costs. We launched this initiative in 2023 to serve a broader customer base and deepen penetration of less served markets, and are continuing to increase our investment in 2024.

Costs related to the acquisition of Moritex that closed in the fourth quarter of 2023 also contributed to the higher SG&A expenses. These costs included additional sales and support personnel-related costs, the amortization of acquired customer relationships and trademarks, and integration costs.

Lower stock-based compensation expense and cost management activities helped to offset the increase in SG&A expenses, including the realignment of headcount to support the Emerging Customer sales initiative.

Loss (Recovery) from Fire

On June 7, 2022, the Company’s primary contract manufacturer experienced a fire at its plant in Indonesia, destroying a significant amount of Cognex inventories. In the second quarter of 2023, the Company recorded a recovery related to the fire of $2,500,000 for proceeds received from the Company’s insurance carrier in relation to a business interruption claim.

Non-operating Income (Expense)

The following table sets forth our non-operating income (expense) (in thousands) for the three-month and six-month periods ended June 30, 2024 and July 2, 2023.


	Three-months Ended								Six-months Ended
	June 30, 2024		July 2, 2023		$ Change		% Change		June 30, 2024		July 2, 2023		$ Change		% Change
	(unaudited)								(unaudited)
Foreign currency gain (loss)	$	(181)	$	(1,605)	$	1,424	(89)	%	$	(135)	$	(1,211)	$	1,076	(89)	%
Investment income	$	3,116	$	4,095	$	(979)	(24)	%	$	6,236	$	7,682	$	(1,446)	(19)	%
Other income (expense)	$	176	$	112	$	64	57	%	$	372	$	185	$	187	101	%
Total non-operating income (expense)	$	3,111	$	2,602	$	509	20	%	$	6,473	$	6,656	$	(183)	(3)	%

The Company recorded foreign currency losses of $181,000 and $135,000 for the three-month and six-month periods in 2024, respectively, and $1,605,000 and $1,211,000 for the corresponding periods in 2023, primarily resulting from the revaluation and settlement of assets and liabilities that are denominated in currencies other than the functional currency of the Company, which is the U.S. Dollar, or its subsidiaries.

Investment income decreased by $979,000, or 24%, for the three-month period and decreased by $1,446,000, or 19%, for the six-month period in 2024 as compared to the corresponding periods in 2023. The decrease was primarily due to lower average investment balances, partially offset by higher yields on the Company's portfolio of debt securities. During the fourth quarter of 2023, net cash payments related to the acquisition of Moritex reduced cash available to invest by approximately $257 million, which resulted in lower investment income for 2024.

The Company recorded other income of $176,000 and $372,000 for the three-month and six-month periods in 2024, respectively, and $112,000 and $185,000 for the corresponding periods in 2023.

Income Tax Expense

The following table sets forth income tax information (in thousands) for the three-month and six-month periods ended June 30, 2024 and July 2, 2023.


	Three-months Ended										Six-months Ended
	June 30, 2024			July 2, 2023			$ Change		% Change		June 30, 2024			July 2, 2023			$ Change		% Change
	(unaudited)										(unaudited)
Income before income tax expense	$	41,568		$	67,777		$	(26,209)	(39)	%	$	59,134		$	93,992		$	(34,858)	(37)	%
Income tax expense	$	5,356		$	10,303		$	(4,947)	(48)	%	$	10,900		$	10,903		$	(3)	—	%
Effective income tax rate	13		%	15		%					18		%	12		%

The Company’s effective tax rate was 13% and 18% for the three-month and six-month periods in 2024, respectively, and 15% and 12% for the same periods in 2023.

The Company recorded a net discrete tax benefit of $463,000 for the three-month period in 2024 and a net discrete tax expense of $2,622,000 for the six-month period in 2024, as compared to a net discrete tax expense of $399,000 in the three-month period in 2023 and a net discrete tax benefit of $3,195,000 for the six-month period in 2023. The higher level of discrete tax expense for the six-month period in 2024 was driven by unfavorable adjustments to certain tax assets and reserves, while the higher level of discrete tax benefits for the six-month period in 2023 was driven by the release of tax reserves on state tax credits and favorable adjustments to certain deferred tax assets.

Excluding the impact of all discrete tax items, the Company's effective tax rate was 14% for both the three-month and six-month periods in 2024, as compared to 15% for the corresponding periods in 2023. The decrease was primarily due to more of the Company's profits being taxed in relatively lower tax rate jurisdictions.

Liquidity and Capital Resources

The Company has historically been able to generate positive cash flow from operations, which has funded its operating activities and other cash requirements and has resulted in an accumulated cash and investment balance of $555,289,000 as of June 30, 2024. The Company has established guidelines relative to credit ratings, diversification, and maturities of its investments to maintain the liquidity and safety of the investment portfolio.

As of June 30, 2024, the Company's portfolio of debt securities was in a net unrealized loss position of $8,127,000. Although the Company typically holds investments in an unrealized loss position until full value recovery at maturity, if the Company is required to sell debt securities to meet liquidity needs, it may sell these investments at a loss.

Operating activities

Net cash provided by operating activities totaled $41,406,000 for the six-month period in 2024. Significant uses of cash consisted of an increase in accounts receivable primarily related to the seasonality of large consumer electronics orders.

Investing activities

Net cash used in investing activities totaled $13,785,000 for the six-month period in 2024. Investing activities included capital expenditures that totaled $8,571,000 and consisted primarily of continued investments in business systems, manufacturing test equipment related to new product introductions, as well as building and leasehold improvements.

Financing activities

Net cash used in financing activities totaled $47,506,000 for the six-month period in 2024.

In March 2022, the Company's Board of Directors authorized the repurchase of $500,000,000 of the Company's common stock. Under this March 2022 program, the Company repurchased 473,000 shares at a total cost of $19,879,000 during the six-month period in 2024, leaving a remaining balance of $313,013,000 as of June 30, 2024. The Company may repurchase shares under this program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock awards, stock price, share availability, and cash requirements. The Company is authorized to make repurchases of its common stock through open market purchases, pursuant to Rule 10b5-1 trading plans, or in privately negotiated transactions.

The Company’s Board of Directors declared and paid cash dividends of $0.075 per share for the first and second quarters of 2024, totaling $25,756,000. Future dividends will be declared at the discretion of the Company's Board of Directors and will depend on such factors as the Board deems relevant, including, among other things, the Company's ability to generate positive cash flow from operations.

Future Cash Requirements

The Company's future material cash requirements include contractual obligations related to inventory purchase commitments and leases. As of June 30, 2024, the Company had inventory purchase commitments of $43,078,000, with the majority payable in the next twelve months, and lease payment obligations of $112,234,000, with $13,364,000 payable in the next twelve months.

Other significant and/or expected cash outlays for 2024 are as follows:

•We expect to continue to make significant cash outlays related to our Emerging Customer sales initiative as we continue to grow our sales force to serve a broader customer base and deepen penetration of less served markets.

•The Tax Cuts and Jobs Act of 2017 subjected unrepatriated foreign earnings to a one-time transition tax. As of June 30, 2024, the Company had a remaining balance payable of $18,338,000 through 2025.

We believe that the Company's existing cash and investment balances, together with cash flow from operations, will be sufficient to meet its operating, investing, and financing activities for the next twelve months. In addition, the Company has no long-term debt. We believe that our balance sheet condition currently gives us a strong position with respect to anticipated longer-term liquidity needs.

New Pronouncements

Refer to Part I - Note 2 within this Form 10-Q, for a full description of recently issued accounting pronouncements including the expected dates of adoption and the expected impact on the financial position and results of operations of the Company.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to the Company’s exposures to market risk since December 31, 2023.

ITEM 4: CONTROLS AND PROCEDURES

As required by Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934, the Company has evaluated, with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, the effectiveness of its disclosure controls and procedures (as defined in such rules) as of the end of the period covered by this report. Based on such evaluation, except as described below relating to the acquisition of Moritex Corporation, the Chief Executive Officer and the Chief Financial Officer concluded that such disclosure controls and procedures were effective as of that date.

The Company closed the acquisition of Moritex Corporation on October 18, 2023. The new acquisition's total assets and revenues constituted approximately 5% and 7%, respectively, of the Company’s consolidated total assets and revenues as shown on our consolidated financial statements as of and for the period ended June 30, 2024. As the acquisition occurred during the fourth quarter of 2023, the Company excluded Moritex Corporation from the scope of the assessment of the effectiveness of the Company’s internal control over financial reporting and, with respect to the portion of disclosure controls and procedures that are subsumed by internal control over financial reporting of Moritex Corporation, the Company's disclosure controls and procedures. This exclusion is in accordance with the general guidance issued by the Staff of the Securities and Exchange Commission that an assessment of a recently-acquired business may be omitted from the scope for the one-year period following the acquisition if specified conditions are satisfied.

Except as described above, there have been no changes in the Company's internal control over financial reporting that occurred during the quarter ended June 30, 2024 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. The Company continues to review its disclosure controls and procedures, including its internal control over financial reporting, and may from time to time make changes aimed at enhancing their effectiveness and to ensure that the Company’s systems evolve with its business.

PART II: OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

ITEM 1A. RISK FACTORS

For a list of factors that could affect the Company’s business, results of operations, and financial condition, see the risk factors discussion provided in Part I—Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information with respect to purchases by the Company of shares of its common stock during the three-month period ended June 30, 2024:


	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1)
April 1, 2024 - April 28, 2024	88,000	$	40.69	88,000	$	319,986,000
April 29, 2024 - May 26, 2024	71,000	44.95		71,000	316,817,000
May 27, 2024 - June 30, 2024	83,000	45.63		83,000	313,013,000
Total	242,000	$	43.64	242,000	$	313,013,000

(1) On March 3, 2022, the Company's Board of Directors authorized the repurchase of $500,000,000 of the Company's common stock. Purchases under this program commenced in March 2022. The Company may repurchase shares under this program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock awards, stock price, share availability, and cash requirements. The Company is authorized to make repurchases of its common stock through open market purchases, pursuant to Rule 10b5-1 trading plans, or in privately negotiated transactions.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

During the quarter ended June 30, 2024, the following executive officer adopted a Rule 10b5-1 trading arrangement, as defined in Item 408 of Regulation S-K, that is intended to satisfy the affirmative defense conditions of Securities Exchange Act Rule 10b5-1(c):

•On June 7, 2024, Carl Gerst, the Executive Vice President of ID and Vision Products of the Company, adopted a trading arrangement for the sale of shares of the Company’s common stock (a “Rule 10b5-1 Trading Plan”). Mr. Gerst’s Rule 10b5-1 Trading Plan, which has a term ending on April 1, 2025, provides for the sale of up to 16,302 shares of common stock pursuant to the terms of the plan.

During the quarter ended June 30, 2024, no 10b5-1 trading arrangements were modified or terminated, and no director or officer of the Company adopted or terminated a “non-Rule 10b5-1 trading arrangement,” as defined in Item 408 of Regulation S-K.

ITEM 6. EXHIBITS


Exhibit Number
10.1+						Relocation Letter Agreement, effective as of April 22, 2024, by and between Cognex Corporation and Dennis Fehr*
31.1						Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act of 1934*
31.2						Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act of 1934*
32.1						Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
32.2						Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
101.SCH						Inline XBRL Taxonomy Extension Schema Document*
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document*
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document*
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document*
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document*
104						Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*)
*						Filed herewith
**						Furnished herewith
+						Indicates management contract or compensatory plan or arrangement

SIGNATURES

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

Date:

August 1, 2024

COGNEX CORPORATION

By:

/s/ Robert J. Willett

Robert J. Willett

President and Chief Executive Officer

(Principal Executive Officer)

By:

/s/ Dennis Fehr

Dennis Fehr

Senior Vice President of Finance and Chief Financial Officer

(Principal Financial Officer)

Cognex Corporation One Vision Drive Natick, MA 01760-2059 (508) 650-3000 fax (508) 650-3333 www.cognex.com Exhibit 10.1 March 27, 2024 Dennis Fehr [Address] PERSONAL & CONFIDENTIAL Dear Dennis: Congratulations on your new position! All of us on the Cognex management team are excited about the prospect of you joining Cognex Corporation in Natick, Massachusetts. This letter details the terms and conditions applicable to your move from Bethesda, Maryland to Massachusetts. This letter does not create a contract of employment, but simply seeks to confirm the conditions which pertain to your relocation. Your targeted start date is subject to our receipt from you of a signed copy of this letter, and the other contingencies set out in your offer letter. Once finalized, you will be considered an “at will” employee of Cognex Corporation. Position: Senior Vice President of Finance Effective Date: April 22, 2024 You will report to: Rob Willett Location: Natick, Massachusetts Relocation Support Aires: We have contracted with Aires: Corporation Relocation Services to provide you with a seamless integration into your new position in Natick, Massachusetts. You will be connected with a dedicated individual from Aires who will be your contact throughout your relocation. Specifically, you will be provided with a relocation allowance of up to USD $60,000 (net) to be put towards the following relocation benefits: • Home Finding Trip: This will be for you and your spouse and will include an orientation and home search guidance through a destination provider. • Temporary Lodging: Cognex will reimburse temporary accommodations for a period of up to 90 days for you and your family. • Shipment of Household Goods: Cognex will assist with the movement of the contents of your current home to the new location. All shipping arrangements are made with and through Aires. • Final Move Expenses: Cognex will reimburse reasonable expenses incurred in moving your family to the new location using the most direct route according to the company travel policy. Home Sale: Cognex will assist with the selling of your home in your old location up to $75,000 (net of all applicable taxes) inclusive of all realtor and transaction costs. All invoices submitted for your relocation budget must be submitted directly to Aires. Please ensure that anything business related is processed through Concur, and anything relocation related is processed through Aires. Please touch base with Thassia Gunn if you have any questions as to where an expense should fall.

Cognex Corporation One Vision Drive Natick, MA 01760-2059 (508) 650-3000 fax (508) 650-3333 www.cognex.com Reimbursement In the event you voluntarily terminate your employment with Cognex prior to October 31, 2028, you will be responsible for the reimbursement of all or a portion of the relocation expenses paid by Cognex in accordance with the Repayment Agreement attached as Exhibit A. Further, in the event you voluntarily terminate your employment with Cognex prior to April 22, 2026, you will be responsible for the reimbursement of all or a portion of your $170,000 guaranteed bonus payment in accordance with the Repayment Agreement attached as Exhibit A. Congratulations Dennis! We look forward to you joining the team as we carry on in our quest for greatness in the world of machine vision. Sincerely, /s/ Rob Willett Rob Willett CEO & President Cognex Corporation Please indicate your agreement to this letter, including your agreement to the attached Repayment Agreement, by signing below and returning this letter as soon as possible. /s/ Dennis Fehr __________________________ Dennis Fehr

Cognex Corporation One Vision Drive Natick, MA 01760-2059 (508) 650-3000 fax (508) 650-3333 www.cognex.com Exhibit A REPAYMENT AGREEMENT Dennis Fehr [Address] As consideration for the relocation benefits of up to $60,000 which Cognex Corporation (“Cognex”) has agreed to pay me, Dennis Fehr, pursuant to this relocation letter, as well as the 2024 $170,000 guaranteed bonus payment which Cognex has agreed to pay me within 30 days of my start date (the “Guaranteed Bonus”), I agree that if I voluntarily terminate my employment prior to October 31, 2027, I will reimburse Cognex for 100% of relocation expenses incurred by Cognex. Additionally, I agree that if I voluntarily terminate my employment after October 31, 2027, but prior to October 31, 2028, I will reimburse Cognex for 50% of the relocation expenses incurred by Cognex. Examples of expenses which must be repaid to Cognex include, but are not limited to, temporary housing, house hunting trips, lump sum payments and actual moving expenses. Further, I agree that if I voluntarily terminate my employment within twelve (12) months of April 22, 2024, I will reimburse Cognex for 100% of the Guaranteed Bonus. I also agree that if I voluntarily terminate my employment anytime within twelve to twenty-four (12-24) months from April 22, 2024, I will reimburse Cognex for 50% of the Guaranteed Bonus. Any reimbursement I owe to Cognex pursuant to this paragraph is to be paid as follows: one-half of the amount(s) owed must be paid on my last day of employment; the balance(s) must be paid no later than 60 days after my last day of employment. If Cognex incurs any costs or expenses, including but not limited to attorneys’ fees, in the collection of this debt, I agree to pay the attorneys’ fees and expenses associated with the collection of this debt. In addition, if I am late in making payments or fail to make any payments under this Agreement, Cognex may, in its sole discretion, make all monies owed immediately due and payable. This Repayment Agreement in no way modifies my status as an at-will employee. I understand that this Repayment Agreement is not to be construed and is not a guarantee that I will continue to be employed for any period of time. I further understand that I can be terminated at any time, with or without cause, at the sole discretion of Cognex.

Exhibit 31.1

CERTIFICATION

I, Robert J. Willett, certify that:

1 I have reviewed this quarterly report on Form 10-Q of Cognex Corporation;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4 The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5 The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:

August 1, 2024

By:

/s/ Robert J. Willett

Robert J. Willett

President and Chief Executive Officer

(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION

I, Dennis Fehr, certify that:

1 I have reviewed this quarterly report on Form 10-Q of Cognex Corporation;

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:

August 1, 2024

By:

/s/ Dennis Fehr

Dennis Fehr

Senior Vice President of Finance and Chief Financial Officer

(Principal Financial Officer)

Exhibit 32.1*

CERTIFICATION PURSUANT TO

18 U.S.C. 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned officer of Cognex Corporation (the “Company”) hereby certifies to his knowledge that the Company’s quarterly report on Form 10-Q for the quarterly period ended June 30, 2024 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:

August 1, 2024

By:

/s/ Robert J. Willett

Robert J. Willett

President and Chief Executive Officer

(Principal Executive Officer)


*			This certification shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

Exhibit 32.2*

CERTIFICATION PURSUANT TO

18 U.S.C. 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Date:

August 1, 2024

By:

/s/ Dennis Fehr

Dennis Fehr

Senior Vice President of Finance and Chief Financial Officer

(Principal Financial Officer)


*			This certification shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

Cover Page	6 Months Ended
Cover Page	Jun. 30, 2024 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-34218
Entity Registrant Name	COGNEX CORP
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-2713778
Entity Address, Address Line One	One Vision Drive
Entity Address, City or Town	Natick
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01760
City Area Code	508
Local Phone Number	650-3000
Title of 12(b) Security	Common Stock, par value $.002 per share
Trading Symbol	CGNX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	171,500,835
Document Period End Date	Jun. 30, 2024
Entity Central Index Key	0000851205
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Income Statement [Abstract]
Revenue	$ 239,292	$ 242,512	$ 450,089	$ 443,636
Cost of revenue	72,693	62,829	141,553	120,213
Gross margin	166,599	179,683	308,536	323,423
Research, development, and engineering expenses	34,962	33,585	72,067	72,127
Selling, general, and administrative expenses	93,180	83,423	183,808	166,460
Loss (recovery) from fire (Note 17)	0	(2,500)	0	(2,500)
Operating income	38,457	65,175	52,661	87,336
Foreign currency gain (loss)	(181)	(1,605)	(135)	(1,211)
Investment income	3,116	4,095	6,236	7,682
Other income (expense)	176	112	372	185
Income before income tax expense	41,568	67,777	59,134	93,992
Income tax expense	5,356	10,303	10,900	10,903
Net income	$ 36,212	$ 57,474	$ 48,234	$ 83,089
Net income per weighted-average common and common-equivalent share:
Basic (usd per share)	$ 0.21	$ 0.33	$ 0.28	$ 0.48
Diluted (usd per share)	$ 0.21	$ 0.33	$ 0.28	$ 0.48
Weighted-average common and common-equivalent shares outstanding:
Basic (shares)	171,568	172,429	171,630	172,527
Diluted (shares)	172,733	173,622	172,699	173,791
Cash dividends per common share (usd per share)	$ 0.075	$ 0.070	$ 0.150	$ 0.140

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 36,212	$ 57,474	$ 48,234	$ 83,089
Available-for-sale investments:
Net unrealized gain (loss) on available-for-sale investments, net of tax	1,020	(1,706)	1,379	3,720
Reclassification of net realized (gain) loss on the sale of available-for-sale investments into current operations	10	0	8	0
Net change related to available-for-sale investments	1,030	(1,706)	1,387	3,720
Foreign currency translation adjustments:
Foreign currency translation adjustments	(10,247)	(2,866)	(26,403)	(3,225)
Net change related to foreign currency translation adjustments	(10,247)	(2,866)	(26,403)	(3,225)
Other comprehensive income (loss), net of tax	(9,217)	(4,572)	(25,016)	495
Total comprehensive income (loss)	$ 26,995	$ 52,902	$ 23,218	$ 83,584

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Statement of Comprehensive Income [Abstract]
Tax effect of unrealized gain (loss) on available-for-sale investments	$ 336	$ (584)	$ 453	$ 1,274

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 176,626	$ 202,655
Current investments, amortized cost of $114,177 and $132,799 in 2024 and 2023, respectively, allowance for credit losses of $0 in 2024 and 2023	112,449	129,392
Accounts receivable, allowance for credit losses of $665 and $583 in 2024 and 2023, respectively	159,305	114,164
Unbilled revenue	1,858	2,402
Inventories	157,255	162,285
Prepaid expenses and other current assets	73,524	68,099
Total current assets	681,017	678,997
Non-current investments, amortized cost of $272,613 and $250,790 in 2024 and 2023, respectively, allowance for credit losses of $0 in 2024 and 2023	266,214	244,230
Property, plant, and equipment, net	102,997	105,849
Operating lease assets	71,283	75,115
Goodwill	381,042	393,181
Intangible assets, net	98,548	112,952
Deferred income taxes	396,723	400,400
Other assets	6,260	7,088
Total assets	2,004,084	2,017,812
Current liabilities:
Accounts payable	22,617	21,454
Accrued expenses	75,405	72,374
Accrued income taxes	20,827	16,907
Deferred revenue and customer deposits	40,529	31,525
Operating lease liabilities	9,405	9,624
Total current liabilities	168,783	151,884
Non-current operating lease liabilities	64,778	68,977
Deferred income taxes	233,798	246,877
Reserve for income taxes	28,826	26,685
Non-current accrued income taxes	0	18,338
Other liabilities	1,169	299
Total liabilities	497,354	513,060
Commitments and Contingencies
Shareholders’ equity:
Preferred stock, $.01 par value – Authorized: 400 shares in 2024 and 2023, respectively; no shares issued and outstanding	0	0
Common stock, $.002 par value – Authorized: 300,000 shares in 2024 and 2023, respectively; issued and outstanding: 171,501 and 171,599 shares in 2024 and 2023, respectively	343	343
Additional paid-in capital	1,061,597	1,037,202
Retained earnings	515,142	512,543
Accumulated other comprehensive loss, net of tax	(70,352)	(45,336)
Total shareholders’ equity	1,506,730	1,504,752
Total liabilities and shareholders' equity	$ 2,004,084	$ 2,017,812

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Amortized cost of current investments	$ 114,177	$ 132,799
Allowance for credit losses	0	0
Allowance for credit losses, current	665	583
Amortized cost of non-current investments	272,613	250,790
Allowance for credit losses, non-current	$ 0	$ 0
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock shares authorized (in shares)	400,000	400,000
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.002	$ 0.002
Common stock shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	171,501,000	171,599,000
Common stock, shares outstanding (in shares)	171,501,000	171,599,000

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023
Cash flows from operating activities:
Net income	$ 48,234	$ 83,089
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation expense	26,266	29,153
Depreciation of property, plant, and equipment	10,472	8,177
(Gain) loss on disposal of property, plant, and equipment	0	(8)
Amortization of intangible assets	5,540	1,685
Excess and obsolete inventory charges	1,343	1,443
Fair value adjustment on acquired inventories (Note 18)	1,224	0
Amortization of discounts or premiums on investments	562	1,200
Realized (gain) loss on sale of investments	8	0
Change in deferred income taxes	(7,538)	(14,158)
Accounts receivable	(47,784)	(24,420)
Unbilled revenue	527	(104)
Inventories	1,145	(4,981)
Prepaid expenses and other current assets	(6,590)	(5,289)
Accounts payable	2,786	(989)
Accrued expenses	6,234	(9,219)
Accrued income taxes	(14,305)	(13,684)
Deferred revenue and customer deposits	9,374	3,160
Other	3,908	2,347
Net cash provided by (used in) operating activities	41,406	57,402
Cash flows from investing activities:
Purchases of investments	(269,860)	(94,060)
Maturities and sales of investments	266,090	115,761
Purchases of property, plant, and equipment	(8,571)	(10,207)
Net payments related to business acquisitions (Note 18)	(1,444)	0
Net cash provided by (used in) investing activities	(13,785)	11,494
Cash flows from financing activities:
Net payments from issuance of common stock under stock plans	(1,871)	2,655
Repurchase of common stock	(19,879)	(49,163)
Payment of dividends	(25,756)	(24,160)
Net cash provided by (used in) financing activities	(47,506)	(70,668)
Effect of foreign exchange rate changes on cash and cash equivalents	(6,144)	(2,117)
Net change in cash and cash equivalents	(26,029)	(3,889)
Cash and cash equivalents at beginning of period	202,655	181,374
Cash and cash equivalents at end of period	$ 176,626	$ 177,485

Consolidated Statement of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning Balance (in shares) at Dec. 31, 2022		172,631
Beginning Balance at Dec. 31, 2022	$ 1,438,394	$ 345	$ 979,167	$ 528,179	$ (69,297)
Increase (Decrease) in Stockholders' Equity
Net issuance of common stock under stock plans (in shares)		628
Net issuance of common stock under stock plans	2,655	$ 2	2,653
Repurchase of common stock (in shares)		(966)
Repurchase of common stock	(49,163)	$ (2)		(49,161)
Stock-based compensation expense	29,153		29,153
Payment of dividends	(24,160)			(24,160)
Net income	83,089			83,089
Net unrealized gain (loss) on available-for-sale investments, net of tax	3,720				3,720
Reclassification of net realized (gain) loss on the sale of available-for-sale investments	0
Foreign currency translation adjustment	(3,225)				(3,225)
Ending Balance (in shares) at Jul. 02, 2023		172,293
Ending Balance at Jul. 02, 2023	1,480,463	$ 345	1,010,973	537,947	(68,802)
Beginning Balance (in shares) at Apr. 02, 2023		172,601
Beginning Balance at Apr. 02, 2023	1,446,331	$ 345	992,690	517,526	(64,230)
Increase (Decrease) in Stockholders' Equity
Net issuance of common stock under stock plans (in shares)		179
Net issuance of common stock under stock plans	5,710	$ 1	5,709
Repurchase of common stock (in shares)		(487)
Repurchase of common stock	(24,985)	$ (1)		(24,984)
Stock-based compensation expense	12,574		12,574
Payment of dividends	(12,069)			(12,069)
Net income	57,474			57,474
Net unrealized gain (loss) on available-for-sale investments, net of tax	(1,706)				(1,706)
Reclassification of net realized (gain) loss on the sale of available-for-sale investments	0
Foreign currency translation adjustment	(2,866)				(2,866)
Ending Balance (in shares) at Jul. 02, 2023		172,293
Ending Balance at Jul. 02, 2023	$ 1,480,463	$ 345	1,010,973	537,947	(68,802)
Beginning Balance (in shares) at Dec. 31, 2023	171,599	171,599
Beginning Balance at Dec. 31, 2023	$ 1,504,752	$ 343	1,037,202	512,543	(45,336)
Increase (Decrease) in Stockholders' Equity
Net issuance of common stock under stock plans (in shares)		375
Net issuance of common stock under stock plans	(1,871)		(1,871)
Repurchase of common stock (in shares)		(473)
Repurchase of common stock	(19,879)	$ 0		(19,879)
Stock-based compensation expense	26,266		26,266
Payment of dividends	(25,756)			(25,756)
Net income	48,234			48,234
Net unrealized gain (loss) on available-for-sale investments, net of tax	1,379				1,379
Reclassification of net realized (gain) loss on the sale of available-for-sale investments	8				8
Foreign currency translation adjustment	$ (26,403)				(26,403)
Ending Balance (in shares) at Jun. 30, 2024	171,501	171,501
Ending Balance at Jun. 30, 2024	$ 1,506,730	$ 343	1,061,597	515,142	(70,352)
Beginning Balance (in shares) at Mar. 31, 2024		171,662
Beginning Balance at Mar. 31, 2024	1,489,189	$ 343	1,047,643	502,338	(61,135)
Increase (Decrease) in Stockholders' Equity
Net issuance of common stock under stock plans (in shares)		81
Net issuance of common stock under stock plans	990	$ 0	990
Repurchase of common stock (in shares)		(242)
Repurchase of common stock	(10,540)	$ 0		(10,540)
Stock-based compensation expense	12,964		12,964
Payment of dividends	(12,868)			(12,868)
Net income	36,212			36,212
Net unrealized gain (loss) on available-for-sale investments, net of tax	1,020				1,020
Reclassification of net realized (gain) loss on the sale of available-for-sale investments	10				10
Foreign currency translation adjustment	$ (10,247)				(10,247)
Ending Balance (in shares) at Jun. 30, 2024	171,501	171,501
Ending Balance at Jun. 30, 2024	$ 1,506,730	$ 343	$ 1,061,597	$ 515,142	$ (70,352)

Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividends per common share (usd per share)	$ 0.075	$ 0.070	$ 0.150	$ 0.140
Tax effect of unrealized gain (loss) on available-for-sale investments	$ 336	$ (584)	$ 453	$ 1,274

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies As permitted by the rules of the Securities and Exchange Commission applicable to Quarterly Reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by generally accepted accounting principles (GAAP). Reference should be made to the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for a full description of other significant accounting policies. In the opinion of the management of Cognex Corporation (the "Company"), the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments, adjustments related to losses and recoveries from the fire at the Company's primary contract manufacturer (Note 17), and financial statement reclassifications necessary to present fairly the Company’s financial position as of June 30, 2024, and the results of its operations for the three-month and six-month periods ended June 30, 2024 and July 2, 2023, and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented. The results disclosed in the Consolidated Statements of Operations for the three-month and six-month periods ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year.

New Pronouncements	6 Months Ended
New Pronouncements	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
New Pronouncements	New Pronouncements Accounting Standards Update (ASU) 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" The amendments in this ASU apply to all entities that are subject to Topic 740, Income Taxes. The amendments require public business entities to disclose specific categories in their rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. They also require all entities to disclose income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and by individual jurisdictions in which income taxes paid, net of refunds received, are equal to or greater than five percent of total income taxes paid. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2024. The amendments in this ASU should be applied on a prospective basis. Management does not expect ASU 2023-09 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" The amendments in this ASU apply to all public entities, including public entities with a single reportable segment, that are required to report segment information in accordance with Topic 280, Segment Reporting. The amendments require public business entities to provide in interim and annual periods one or more measures of segment profit or loss used by the chief operating decision maker to allocate resources and assess performance. Additionally, the amendments require disclosure of significant segment expenses and other segment items, as well as incremental qualitative disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The amendments in the ASU should be applied on a retrospective basis. We did not early adopt ASU 2023-07. Management does not expect ASU 2023-07 to have a material impact on the Company's financial statements and disclosures.

Fair Value Measurements

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of June 30, 2024 (in thousands):


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Money market instruments	$	583	$	—	$	—
Corporate bonds	—		316,342		—
Treasury notes	—		45,042		—
Treasury bills	—		26,394		—
Asset-backed securities	—		15,304		—
Certificate of deposit	—		7,601		—


Sovereign bonds	—		1,975		—






Economic hedge forward contracts	—		57		—
Liabilities:

Economic hedge forward contracts	—		152		—

The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1.

Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis

Cash, Cash Equivalents, and Investments

6 Months Ended

Jun. 30, 2024

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, and Investments

Cash, cash equivalents, and investments consisted of the following (in thousands):


	June 30, 2024		December 31, 2023

Cash	$	141,508	$	183,242
Treasury bills	26,934		—
Certificate of deposit	7,601		—

Money market instruments	583		19,413

Cash and cash equivalents	176,626		202,655
Corporate bonds	103,654		124,851
Asset-backed securities	5,346		3,551
Treasury notes	2,449		—
Sovereign bonds	1,000		990




Current investments	112,449		129,392
Corporate bonds	212,688		183,965
Treasury notes	42,593		43,523
Asset-backed securities	9,958		15,763

Sovereign bonds	975		979




Non-current investments	266,214		244,230
	$	555,289	$	576,277

The following table summarizes the Company’s available-for-sale investments as of June 30, 2024 (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Current:
Corporate bonds	$	105,250	$	—	$	(1,596)	$	103,654
Asset-backed securities	5,426		—		(80)		5,346

Treasury notes	2,500				(51)		2,449
Sovereign bonds	1,001		—		(1)		1,000



Non-current:
Corporate bonds	217,537		73		(4,922)		212,688
Treasury notes	43,362		—		(769)		42,593
Asset-backed securities	10,689		—		(731)		9,958


Sovereign bonds	1,025		—		(50)		975

	$	386,790	$	73	$	(8,200)	$	378,663

The following table summarizes the Company’s available-for-sale investments as of December 31, 2023 (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Current:
Corporate bonds	$	128,150	$	—	$	(3,299)	$	124,851
Asset-backed securities	3,637		—		(86)		3,551



Sovereign bonds	1,012		—		(22)		990



Non-current:
Corporate bonds	189,326		506		(5,867)		183,965
Treasury notes	43,654		82		(213)		43,523
Asset-backed securities	16,773		—		(1,010)		15,763


Sovereign bonds	1,037		—		(58)		979

	$	383,589	$	588	$	(10,555)	$	373,622

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of June 30, 2024 (in thousands):


	Unrealized Loss Position For:
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate bonds	$	93,328	$	(962)	$	203,251	$	(5,556)	$	296,579	$	(6,518)

Treasury notes	22,107		(284)		22,936		(536)		45,043		(820)
Asset-backed securities	9,599		(716)		5,705		(95)		15,304		(811)


Sovereign bonds	—		—		1,974		(51)		1,974		(51)



	$	125,034	$	(1,962)	$	233,866	$	(6,238)	$	358,900	$	(8,200)

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2023 (in thousands):


	Unrealized Loss Position For:
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate bonds	$	30,770	$	(359)	$	226,643	$	(8,807)	$	257,413	$	(9,166)
Treasury notes	20,725		(153)		2,441		(60)		23,166		(213)
Asset-backed securities	17,062		(1,049)		2,252		(47)		19,314		(1,096)


Sovereign bonds	—		—		1,968		(80)		1,968		(80)



	$	68,557	$	(1,561)	$	233,304	$	(8,994)	$	301,861	$	(10,555)

The following table summarizes the Company's gross realized gains and losses on the sale of debt securities for the three-month periods ended June 30, 2024 and July 2, 2023 (in thousands):


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Gross realized gains	$	6	$	—	$	8	$	—
Gross realized losses	(16)		—		(16)		—
Net realized gains (losses)	$	(10)	$	—	$	(8)	$	—

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of June 30, 2024 (in thousands):


	<1 year		1-2 Years		2-3 Years		3-4 Years		4-5 Years		5-8 Years		Total
Corporate bonds	$	103,654	$	59,638	$	57,273	$	61,410	$	34,367	$	—	$	316,342
Treasury notes	2,449		987		18,909		22,697		—				45,042
Asset-backed securities	5,346		4,060		—		—		2,162		3,736		15,304




Sovereign bonds	1,000		975		—		—		—		—		1,975



	$	112,449	$	65,660	$	76,182	$	84,107	$	36,529	$	3,736	$	378,663

Inventories

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following (in thousands):


	June 30, 2024		December 31, 2023
Raw materials	$	97,031	$	93,201
Work-in-process	4,344		5,747
Finished goods	55,880		63,337
	$	157,255	$	162,285

Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

Future operating lease cash payments are as follows (in thousands):


Year Ended December 31,	Amount
Remainder of fiscal 2024	$	6,876
2025	12,011
2026	9,944
2027	9,107
2028	8,659
2029	8,078
Thereafter	44,328
	$	99,003

Goodwill

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying value of goodwill were as follows (in thousands):


Balance as of December 31, 2023	$	393,181
Foreign exchange rate changes	(12,139)
Balance as of June 30, 2024	$	381,042

Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Amortized intangible assets consisted of the following (in thousands):


	Gross Carrying Value		Accumulated Amortization		Net Carrying Value

Customer relationships	$	70,394	$	(7,753)	$	62,641
Completed technologies	58,612		(23,401)		35,211
Trademarks	792		(176)		616
Non-compete agreements	340		(260)		80
Balance as of June 30, 2024	$	130,138	$	(31,590)	$	98,548

	Gross Carrying Value		Accumulated Amortization		Net Carrying Value

Customer relationships	$	75,965	$	(5,352)	$	70,613
Completed technologies	62,123		(20,745)		41,378
Trademarks	903		(50)		853
Non-compete agreements	340		(232)		108
Balance as of December 31, 2023	$	139,331	$	(26,379)	$	112,952

As of June 30, 2024, estimated future amortization expense related to intangible assets was as follows (in thousands):


Year Ended December 31,	Amount
Remainder of fiscal 2024	$	5,247
2025	10,267
2026	9,918
2027	8,976
2028	8,246
2029	8,246
Thereafter	47,648
	$	98,548

Warranty Obligations

6 Months Ended

Jun. 30, 2024

Product Warranties Disclosures [Abstract]

Warranty Obligations

The changes in the warranty obligation were as follows (in thousands):


Balance as of December 31, 2023	$	4,244
Provisions for warranties issued during the period	2,120
Fulfillment of warranty obligations	(1,990)
Foreign exchange rate changes	(20)
Balance as of June 30, 2024	$	4,354

Commitment and Contingencies	6 Months Ended
Commitment and Contingencies	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies As of June 30, 2024, the Company had outstanding purchase orders totaling $43,078,000 to procure inventory from various vendors. Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties. These purchase commitments relate primarily to expected sales in the next twelve months. A significant portion of the Company's outstanding inventory purchase orders as of June 30, 2024, as well as additional preauthorized commitments to procure strategic components based on the Company's expected customer demand, are placed with the Company's primary contract manufacturer for the Company's assembled products. The Company has the obligation to purchase any non-cancelable and non-returnable components that have been purchased by the contract manufacturer with the Company's preauthorization, when these components have not been consumed within the period defined in the terms of the Company's agreement with this contract manufacturer. While the Company typically expects such purchased components to be used in future production of Cognex finished goods, these components are considered in the Company's reserve estimate for excess and obsolete inventory. Furthermore, the Company accrues for losses on commitments for the future purchase of non-cancelable and non-returnable components from this contract manufacturer at the time that circumstances, such as changes in demand, indicate that the value of the components may not be recoverable, the loss is probable, and management has the ability to reasonably estimate the amount of the loss. Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations.

Derivative Instruments

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

The Company had the following outstanding forward contracts (in thousands):


	June 30, 2024			December 31, 2023
Currency	Notional Value	USD Equivalent		Notional Value	USD Equivalent
Derivatives Not Designated as Hedging Instruments:

Singapore Dollar	40,700	$	30,041	39,700	$	30,136
Euro	22,000	23,577		40,000	44,302
Chinese Renminbi	100,000	13,711		50,000	7,025
Mexican Peso	215,000	11,663		145,000	8,505
Hungarian Forint	2,180,000	5,883		2,240,000	6,466
British Pound	3,245	4,112		3,345	4,258


Japanese Yen	600,000	3,750		600,000	4,255
Swiss Franc	1,675	1,875		—	—
Canadian Dollar	1,660	1,212		1,470	1,112

Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):

Asset Derivatives

Liability Derivatives

Balance

Fair Value

Balance

Fair Value

Sheet
Location

June 30, 2024

December 31, 2023

Sheet
Location

June 30, 2024

December 31, 2023

Derivatives Not Designated as Hedging Instruments:

Economic hedge forward contracts

Prepaid expenses and other current assets

151

Accrued expenses

152

106


Asset Derivatives					Liability Derivatives
	June 30, 2024		December 31, 2023			June 30, 2024		December 31, 2023
Gross amounts of recognized assets	$	57	$	151	Gross amounts of recognized liabilities	$	152	$	106
Gross amounts offset	—		—		Gross amounts offset	—		—
Net amount of assets presented	$	57	$	151	Net amount of liabilities presented	$	152	$	106

Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands):


	Location in Financial Statements	Three-months Ended				Six-months Ended
		June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023







Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operations	Foreign currency gain (loss)	$	876	$	859	$	631	$	(612)

Revenue Recognition

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands):


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Americas	$	85,162	$	82,297	$	168,297	$	162,911
Europe	57,151		56,860		109,505		116,702
Greater China	54,410		72,351		84,459		105,351

Other Asia	42,569		31,004		87,828		58,672
	$	239,292	$	242,512	$	450,089	$	443,636

The following table summarizes disaggregated revenue information by revenue type (in thousands):


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Standard products and services	$	200,856	$	194,944	$	388,488	$	385,727
Application-specific customer solutions	38,436		47,568		61,601		57,909
	$	239,292	$	242,512	$	450,089	$	443,636

Costs to Fulfill a Contract

Accounts Receivable, Contract Assets, and Contract Liabilities

The following table summarizes the allowance for credit losses activity for the six-month period ended June 30, 2024 (in thousands):


Balance as of December 31, 2023	$	583
Increases to the allowance for credit losses	100
Write-offs, net of recoveries	(19)
Foreign exchange rate changes	1
Balance as of June 30, 2024	$	665

The following table summarizes the deferred revenue and customer deposits activity for the six-month period ended June 30, 2024 (in thousands):


Balance as of December 31, 2023	$	31,525
Deferral of revenue billed in the current period, net of recognition	30,777
Recognition of revenue deferred in prior period	(21,271)

Foreign exchange rate changes	(502)
Balance as of June 30, 2024	$	40,529

Stock-Based Compensation Expense

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation Expense

Stock Plans

Stock Options

The following table summarizes the Company’s stock option activity for the six-month period ended June 30, 2024:


	Shares (in thousands)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2023	9,008	$	50.87
Granted	1,620	39.74
Exercised	(112)	23.52
Forfeited or expired	(397)	56.39
Outstanding as of June 30, 2024	10,119	$	49.17	6.10	$	35,881
Exercisable as of June 30, 2024	5,880	$	49.22	4.31	$	22,854
Options vested or expected to vest as of June 30, 2024 (1)	9,413	$	49.36	5.89	$	33,342

The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Risk-free rate	4.5	%	3.5	%	4.3	%	3.9	%
Expected dividend yield	0.67	%	0.56	%	0.75	%	0.59	%
Expected volatility	39	%	39	%	39	%	39	%
Expected term (in years)	4.7		5.9		4.7		4.9

Risk-free rate

The risk-free rate was based upon a treasury instrument whose term was consistent with the contractual term of the option.

Expected dividend yield

The current dividend yield was calculated by annualizing the cash dividend declared by the Company’s Board of Directors and dividing that result by the closing stock price on the grant date.

Expected volatility

Expected term

The expected term was derived from the binomial lattice model from the impact of events that trigger exercises over time.

Restricted Stock Units (RSUs)

The following table summarizes the Company's RSUs activity for the six-month period ended June 30, 2024:


	Shares (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested as of December 31, 2023	1,429	$	54.22
Granted	797	39.03
Vested	(375)	65.58
Forfeited or expired	(55)	49.86
Nonvested as of June 30, 2024	1,796	$	45.23

Performance Restricted Stock Units (PRSUs)

The following table summarizes the Company's PRSUs activity for the six-month period ended June 30, 2024:


	Shares (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested as of December 31, 2023	79	$	52.23
Granted	55	39.05
Vested	—	—
Forfeited or expired	—	—
Nonvested as of June 30, 2024	134	$	46.82

Stock-Based Compensation Expense

The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Cost of revenue	$	413	$	441	$	1,018	$	1,062
Research, development, and engineering	3,540		3,308		7,929		9,198
Selling, general, and administrative	9,011		8,825		17,319		18,893
	$	12,964	$	12,574	$	26,266	$	29,153

Stock Repurchase Program	6 Months Ended
Stock Repurchase Program	Jun. 30, 2024
Equity [Abstract]
Stock Repurchase Program	Stock Repurchase ProgramIn March 2022, the Company's Board of Directors authorized the repurchase of $500,000,000 of the Company's common stock. Under this March 2022 program, in addition to repurchases made in prior years, the Company repurchased 966,000 shares at a total cost of $49,163,000 during the six-month period ended July 2, 2023 and 473,000 shares at a total cost of $19,879,000 during the six-month period ended June 30, 2024, leaving a remaining balance of $313,013,000 as of June 30, 2024. The Company may repurchase shares under this program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock awards, stock price, share availability, and cash requirements. The Company is authorized to make repurchases of its common stock through open market purchases, pursuant to Rule 10b5-1 trading plans, or in privately negotiated transactions.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company's effective tax rate was 13% and 18% for the three-month and six-month periods ended June 30, 2024, respectively, and 15% and 12% for the three-month and six-month periods ended July 2, 2023, respectively. The Company has defined its major tax jurisdictions as the United States, Ireland, China, Japan, and Korea, and within the United States, Massachusetts. The statutory tax rate is 12.5% in Ireland, 25% in China, 34.6% in Japan, and 21% in Korea, compared to the U.S. federal statutory corporate tax rate of 21%. These foreign tax rate differences resulted in a favorable impact to the effective tax rate for both the three-month and six-month periods ended June 30, 2024 and July 2, 2023. The Company recorded a net discrete tax benefit totaling $463,000 and a net discrete tax expense totaling $2,622,000 for the three-month and six-month periods ended June 30, 2024, and a net discrete tax expense totaling $399,000 and a net discrete tax benefit totaling $3,195,000 for the same periods in 2023. Discrete tax items for the six-month period ended June 30, 2024 included (1) an increase in tax expense of $1,371,000 related to stock-based compensation; (2) an increase in tax expense of $477,000 related to state tax matters; (3) an increase in tax expense of $922,000 for interest expense related to tax reserves; (4) a net decrease in tax expense of $1,278,000 related to return-to-provision adjustments; and (5) an increase in tax expense of $1,130,000 for other tax matters. Discrete tax items for the six-month period ended July 2, 2023 included (1) an increase in tax expense of $1,766,000 related to stock-based compensation; (2) a net decrease in tax expense of $3,051,000 due primarily to the release of tax reserves on state tax credits and foreign audit settlements; (3) a decrease in tax expense of $2,198,000 for adjustments to certain deferred tax assets; and (4) a net increase in tax expense of $288,000 for return-to-provision adjustments. The Company’s reserve for income taxes, including gross interest and penalties, was $31,193,000 as of June 30, 2024, of which $28,826,000 was classified as a non-current liability and $2,367,000 was classified as an offset to deferred tax assets. If the Company’s tax positions were sustained or the statutes of limitations related to certain positions expired, these reserves would be released and income tax expense would be reduced in a future period. Within the United States, the tax years 2020 through 2022 remain open to examination by the IRS, and 2019 through 2022 remain open to examination by various state tax authorities. The tax years 2017 through 2023 remain open to examination by various international taxing authorities in other jurisdictions in which the Company operates. In October 2021, more than 135 countries and jurisdictions agreed to participate in a "two-pillar" international tax approach developed by the Organisation for Economic Co-operation and Development (OECD), which includes establishing a global minimum corporate tax rate of 15%. The OECD published "Tax Challenges Arising from the Digitalisation of the Economy — Global Anti-Base Erosion Model Rules (Pillar Two)" in December 2021 and subsequently issued additional commentary and administrative guidance clarifying several aspects of the model rules. Since the model rules have been released, many countries have now enacted Pillar Two-related laws, some of which became effective January 1, 2024, and it is anticipated that more countries will follow suit throughout 2024. As of June 30, 2024, the Company does not expect Pillar Two taxes to have a significant impact on its 2024 financial statements.

Weighted-Average Shares

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Weighted-Average Shares

Weighted-average shares were calculated as follows (in thousands):


	Three-months Ended		Six-months Ended
	June 30, 2024	July 2, 2023	June 30, 2024	July 2, 2023
Basic weighted-average common shares outstanding	171,568	172,429	171,630	172,527
Effect of dilutive equity awards	1,165	1,193	1,069	1,264
Weighted-average common and common-equivalent shares outstanding	172,733	173,622	172,699	173,791

Loss (Recovery) from Fire	6 Months Ended
Loss (Recovery) from Fire	Jun. 30, 2024
Unusual or Infrequent Items, or Both [Abstract]
Loss (Recovery) from Fire	Loss (Recovery) from Fire On June 7, 2022, the Company’s primary contract manufacturer experienced a fire at its plant in Indonesia, destroying a significant amount of Cognex-owned consigned inventories. During the three-month period ended July 2, 2023, the Company recorded a recovery related to the fire of $2,500,000 for proceeds received from the Company's insurance carrier in relation to a business interruption claim. This recovery amount is presented in the caption “Loss (recovery) from fire” on the Consolidated Statements of Operations.

Business Combinations	6 Months Ended
Business Combinations	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Business Combinations	Business Combinations On October 18, 2023, the Company acquired all the outstanding shares of Moritex Corporation ("Moritex"), a global provider of premium optical components based in Japan, for an enterprise value of ¥40 billion Japanese Yen, or approximately $270 million U.S. Dollars based on the closing date foreign exchange rate. The cash-free, debt-free enterprise value was adjusted by cash acquired, debt assumed, and final working capital balances to arrive at total consideration to be allocated to assets acquired and liabilities assumed of ¥44,376,245,000 ($296,138,000 based on the closing date foreign exchange rate), of which ¥44,227,414,000 ($295,144,000) was paid in cash on the closing date and ¥148,831,000 ($994,000) was paid during the three-month period ended March 31, 2024 as a final purchase price adjustment based on the closing balance sheet.

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn July 31, 2024, the Company’s Board of Directors declared a cash dividend of $0.075 per share. The dividend is payable on August 29, 2024 to all shareholders of record as of the close of business on August 15, 2024.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Pay vs Performance Disclosure
Net income	$ 36,212	$ 57,474	$ 48,234	$ 83,089

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Carl Gerst [Member]
Trading Arrangements, by Individual
Name	Carl Gerst
Title	Executive Vice President of ID and Vision Products
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 7, 2024
Carl Gerst, Rule Trading Arrangement, Common Stock Sale [Member] \| Carl Gerst [Member]
Trading Arrangements, by Individual
Aggregate Available	16,302

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2024
Accounting Policies [Abstract]
New Pronouncements	New Pronouncements Accounting Standards Update (ASU) 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" The amendments in this ASU apply to all entities that are subject to Topic 740, Income Taxes. The amendments require public business entities to disclose specific categories in their rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. They also require all entities to disclose income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and by individual jurisdictions in which income taxes paid, net of refunds received, are equal to or greater than five percent of total income taxes paid. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2024. The amendments in this ASU should be applied on a prospective basis. Management does not expect ASU 2023-09 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" The amendments in this ASU apply to all public entities, including public entities with a single reportable segment, that are required to report segment information in accordance with Topic 280, Segment Reporting. The amendments require public business entities to provide in interim and annual periods one or more measures of segment profit or loss used by the chief operating decision maker to allocate resources and assess performance. Additionally, the amendments require disclosure of significant segment expenses and other segment items, as well as incremental qualitative disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The amendments in the ASU should be applied on a retrospective basis. We did not early adopt ASU 2023-07. Management does not expect ASU 2023-07 to have a material impact on the Company's financial statements and disclosures.

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of June 30, 2024 (in thousands):


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Money market instruments	$	583	$	—	$	—
Corporate bonds	—		316,342		—
Treasury notes	—		45,042		—
Treasury bills	—		26,394		—
Asset-backed securities	—		15,304		—
Certificate of deposit	—		7,601		—


Sovereign bonds	—		1,975		—






Economic hedge forward contracts	—		57		—
Liabilities:

Economic hedge forward contracts	—		152		—

Cash, Cash Equivalents, and Investments (Tables)

6 Months Ended

Jun. 30, 2024

Cash and Cash Equivalents [Abstract]

Components of Cash, Cash Equivalents, and Investments

Cash, cash equivalents, and investments consisted of the following (in thousands):


	June 30, 2024		December 31, 2023

Cash	$	141,508	$	183,242
Treasury bills	26,934		—
Certificate of deposit	7,601		—

Money market instruments	583		19,413

Cash and cash equivalents	176,626		202,655
Corporate bonds	103,654		124,851
Asset-backed securities	5,346		3,551
Treasury notes	2,449		—
Sovereign bonds	1,000		990




Current investments	112,449		129,392
Corporate bonds	212,688		183,965
Treasury notes	42,593		43,523
Asset-backed securities	9,958		15,763

Sovereign bonds	975		979




Non-current investments	266,214		244,230
	$	555,289	$	576,277

Summary of Available-for-Sale Investments

The following table summarizes the Company’s available-for-sale investments as of June 30, 2024 (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Current:
Corporate bonds	$	105,250	$	—	$	(1,596)	$	103,654
Asset-backed securities	5,426		—		(80)		5,346

Treasury notes	2,500				(51)		2,449
Sovereign bonds	1,001		—		(1)		1,000



Non-current:
Corporate bonds	217,537		73		(4,922)		212,688
Treasury notes	43,362		—		(769)		42,593
Asset-backed securities	10,689		—		(731)		9,958


Sovereign bonds	1,025		—		(50)		975

	$	386,790	$	73	$	(8,200)	$	378,663

The following table summarizes the Company’s available-for-sale investments as of December 31, 2023 (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Current:
Corporate bonds	$	128,150	$	—	$	(3,299)	$	124,851
Asset-backed securities	3,637		—		(86)		3,551



Sovereign bonds	1,012		—		(22)		990



Non-current:
Corporate bonds	189,326		506		(5,867)		183,965
Treasury notes	43,654		82		(213)		43,523
Asset-backed securities	16,773		—		(1,010)		15,763


Sovereign bonds	1,037		—		(58)		979

	$	383,589	$	588	$	(10,555)	$	373,622

Gross Unrealized Losses and Fair Values for Available-for-Sale Investments

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of June 30, 2024 (in thousands):


	Unrealized Loss Position For:
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate bonds	$	93,328	$	(962)	$	203,251	$	(5,556)	$	296,579	$	(6,518)

Treasury notes	22,107		(284)		22,936		(536)		45,043		(820)
Asset-backed securities	9,599		(716)		5,705		(95)		15,304		(811)


Sovereign bonds	—		—		1,974		(51)		1,974		(51)



	$	125,034	$	(1,962)	$	233,866	$	(6,238)	$	358,900	$	(8,200)

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2023 (in thousands):


	Unrealized Loss Position For:
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate bonds	$	30,770	$	(359)	$	226,643	$	(8,807)	$	257,413	$	(9,166)
Treasury notes	20,725		(153)		2,441		(60)		23,166		(213)
Asset-backed securities	17,062		(1,049)		2,252		(47)		19,314		(1,096)


Sovereign bonds	—		—		1,968		(80)		1,968		(80)



	$	68,557	$	(1,561)	$	233,304	$	(8,994)	$	301,861	$	(10,555)

Realized Gain (Loss) on Investments

The following table summarizes the Company's gross realized gains and losses on the sale of debt securities for the three-month periods ended June 30, 2024 and July 2, 2023 (in thousands):


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Gross realized gains	$	6	$	—	$	8	$	—
Gross realized losses	(16)		—		(16)		—
Net realized gains (losses)	$	(10)	$	—	$	(8)	$	—

Effective Maturity Dates of Available-for-Sale Investments

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of June 30, 2024 (in thousands):


	<1 year		1-2 Years		2-3 Years		3-4 Years		4-5 Years		5-8 Years		Total
Corporate bonds	$	103,654	$	59,638	$	57,273	$	61,410	$	34,367	$	—	$	316,342
Treasury notes	2,449		987		18,909		22,697		—				45,042
Asset-backed securities	5,346		4,060		—		—		2,162		3,736		15,304




Sovereign bonds	1,000		975		—		—		—		—		1,975



	$	112,449	$	65,660	$	76,182	$	84,107	$	36,529	$	3,736	$	378,663

Inventories (Tables)

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following (in thousands):


	June 30, 2024		December 31, 2023
Raw materials	$	97,031	$	93,201
Work-in-process	4,344		5,747
Finished goods	55,880		63,337
	$	157,255	$	162,285

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Lessee, Operating Lease, Liability, Maturity

Future operating lease cash payments are as follows (in thousands):


Year Ended December 31,	Amount
Remainder of fiscal 2024	$	6,876
2025	12,011
2026	9,944
2027	9,107
2028	8,659
2029	8,078
Thereafter	44,328
	$	99,003

Goodwill (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying value of goodwill were as follows (in thousands):


Balance as of December 31, 2023	$	393,181
Foreign exchange rate changes	(12,139)
Balance as of June 30, 2024	$	381,042

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Amortized intangible assets consisted of the following (in thousands):


	Gross Carrying Value		Accumulated Amortization		Net Carrying Value

Customer relationships	$	70,394	$	(7,753)	$	62,641
Completed technologies	58,612		(23,401)		35,211
Trademarks	792		(176)		616
Non-compete agreements	340		(260)		80
Balance as of June 30, 2024	$	130,138	$	(31,590)	$	98,548

	Gross Carrying Value		Accumulated Amortization		Net Carrying Value

Customer relationships	$	75,965	$	(5,352)	$	70,613
Completed technologies	62,123		(20,745)		41,378
Trademarks	903		(50)		853
Non-compete agreements	340		(232)		108
Balance as of December 31, 2023	$	139,331	$	(26,379)	$	112,952

Schedule of Intangible Assets, Future Amortization Expense

As of June 30, 2024, estimated future amortization expense related to intangible assets was as follows (in thousands):


Year Ended December 31,	Amount
Remainder of fiscal 2024	$	5,247
2025	10,267
2026	9,918
2027	8,976
2028	8,246
2029	8,246
Thereafter	47,648
	$	98,548

Warranty Obligations (Tables)

6 Months Ended

Jun. 30, 2024

Product Warranties Disclosures [Abstract]

Changes in Warranty Obligations

The changes in the warranty obligation were as follows (in thousands):


Balance as of December 31, 2023	$	4,244
Provisions for warranties issued during the period	2,120
Fulfillment of warranty obligations	(1,990)
Foreign exchange rate changes	(20)
Balance as of June 30, 2024	$	4,354

Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Outstanding Forward Contracts Table

The Company had the following outstanding forward contracts (in thousands):


	June 30, 2024			December 31, 2023
Currency	Notional Value	USD Equivalent		Notional Value	USD Equivalent
Derivatives Not Designated as Hedging Instruments:

Singapore Dollar	40,700	$	30,041	39,700	$	30,136
Euro	22,000	23,577		40,000	44,302
Chinese Renminbi	100,000	13,711		50,000	7,025
Mexican Peso	215,000	11,663		145,000	8,505
Hungarian Forint	2,180,000	5,883		2,240,000	6,466
British Pound	3,245	4,112		3,345	4,258


Japanese Yen	600,000	3,750		600,000	4,255
Swiss Franc	1,675	1,875		—	—
Canadian Dollar	1,660	1,212		1,470	1,112

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):

Asset Derivatives

Liability Derivatives

Balance

Fair Value

Balance

Fair Value

Sheet
Location

June 30, 2024

December 31, 2023

Sheet
Location

June 30, 2024

December 31, 2023

Derivatives Not Designated as Hedging Instruments:

Economic hedge forward contracts

Prepaid expenses and other current assets

151

Accrued expenses

152

106

Offsetting Assets


Asset Derivatives					Liability Derivatives
	June 30, 2024		December 31, 2023			June 30, 2024		December 31, 2023
Gross amounts of recognized assets	$	57	$	151	Gross amounts of recognized liabilities	$	152	$	106
Gross amounts offset	—		—		Gross amounts offset	—		—
Net amount of assets presented	$	57	$	151	Net amount of liabilities presented	$	152	$	106

Derivative Instruments, Gain (Loss)

Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands):


	Location in Financial Statements	Three-months Ended				Six-months Ended
		June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023







Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operations	Foreign currency gain (loss)	$	876	$	859	$	631	$	(612)

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue from External Customers by Geographic Areas

The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands):


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Americas	$	85,162	$	82,297	$	168,297	$	162,911
Europe	57,151		56,860		109,505		116,702
Greater China	54,410		72,351		84,459		105,351

Other Asia	42,569		31,004		87,828		58,672
	$	239,292	$	242,512	$	450,089	$	443,636

Revenue from External Customers by Products and Services

The following table summarizes disaggregated revenue information by revenue type (in thousands):


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Standard products and services	$	200,856	$	194,944	$	388,488	$	385,727
Application-specific customer solutions	38,436		47,568		61,601		57,909
	$	239,292	$	242,512	$	450,089	$	443,636

Schedule of Allowance for Credit Loss Activity

The following table summarizes the allowance for credit losses activity for the six-month period ended June 30, 2024 (in thousands):


Balance as of December 31, 2023	$	583
Increases to the allowance for credit losses	100
Write-offs, net of recoveries	(19)
Foreign exchange rate changes	1
Balance as of June 30, 2024	$	665

Deferred Revenue, by Arrangement, Disclosure

The following table summarizes the deferred revenue and customer deposits activity for the six-month period ended June 30, 2024 (in thousands):


Balance as of December 31, 2023	$	31,525
Deferral of revenue billed in the current period, net of recognition	30,777
Recognition of revenue deferred in prior period	(21,271)

Foreign exchange rate changes	(502)
Balance as of June 30, 2024	$	40,529

Stock-Based Compensation Expense (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity for the six-month period ended June 30, 2024:


	Shares (in thousands)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2023	9,008	$	50.87
Granted	1,620	39.74
Exercised	(112)	23.52
Forfeited or expired	(397)	56.39
Outstanding as of June 30, 2024	10,119	$	49.17	6.10	$	35,881
Exercisable as of June 30, 2024	5,880	$	49.22	4.31	$	22,854
Options vested or expected to vest as of June 30, 2024 (1)	9,413	$	49.36	5.89	$	33,342

Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted

The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Risk-free rate	4.5	%	3.5	%	4.3	%	3.9	%
Expected dividend yield	0.67	%	0.56	%	0.75	%	0.59	%
Expected volatility	39	%	39	%	39	%	39	%
Expected term (in years)	4.7		5.9		4.7		4.9

Schedule of Nonvested Restricted Stock Units Activity

The following table summarizes the Company's RSUs activity for the six-month period ended June 30, 2024:


	Shares (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested as of December 31, 2023	1,429	$	54.22
Granted	797	39.03
Vested	(375)	65.58
Forfeited or expired	(55)	49.86
Nonvested as of June 30, 2024	1,796	$	45.23

Schedule of Nonvested Performance-based Units Activity

The following table summarizes the Company's PRSUs activity for the six-month period ended June 30, 2024:


	Shares (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested as of December 31, 2023	79	$	52.23
Granted	55	39.05
Vested	—	—
Forfeited or expired	—	—
Nonvested as of June 30, 2024	134	$	46.82

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):


	Three-months Ended				Six-months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Cost of revenue	$	413	$	441	$	1,018	$	1,062
Research, development, and engineering	3,540		3,308		7,929		9,198
Selling, general, and administrative	9,011		8,825		17,319		18,893
	$	12,964	$	12,574	$	26,266	$	29,153

Weighted-Average Shares (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Calculation of Weighted-Average Shares

Weighted-average shares were calculated as follows (in thousands):


	Three-months Ended		Six-months Ended
	June 30, 2024	July 2, 2023	June 30, 2024	July 2, 2023
Basic weighted-average common shares outstanding	171,568	172,429	171,630	172,527
Effect of dilutive equity awards	1,165	1,193	1,069	1,264
Weighted-average common and common-equivalent shares outstanding	172,733	173,622	172,699	173,791

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets:
Financial assets at fair value	$ 378,663	$ 373,622
Corporate bonds
Assets:
Financial assets at fair value	316,342
Treasury notes
Assets:
Financial assets at fair value	45,042
Asset-backed securities
Assets:
Financial assets at fair value	15,304
Sovereign bonds
Assets:
Financial assets at fair value	1,975
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Recurring
Assets:
Money market instruments	583
Certificate of deposit	0
Economic hedge forward contracts	0
Liabilities:
Economic hedge forward contracts	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Recurring \| Treasury bills
Assets:
Cash and cash equivalents	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Recurring \| Corporate bonds
Assets:
Financial assets at fair value	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Recurring \| Treasury notes
Assets:
Financial assets at fair value	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Recurring \| Asset-backed securities
Assets:
Financial assets at fair value	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Recurring \| Sovereign bonds
Assets:
Financial assets at fair value	0
Significant Other Observable Inputs (Level 2) \| Recurring
Assets:
Money market instruments	0
Certificate of deposit	7,601
Economic hedge forward contracts	57
Liabilities:
Economic hedge forward contracts	152
Significant Other Observable Inputs (Level 2) \| Recurring \| Treasury bills
Assets:
Cash and cash equivalents	26,394
Significant Other Observable Inputs (Level 2) \| Recurring \| Corporate bonds
Assets:
Financial assets at fair value	316,342
Significant Other Observable Inputs (Level 2) \| Recurring \| Treasury notes
Assets:
Financial assets at fair value	45,042
Significant Other Observable Inputs (Level 2) \| Recurring \| Asset-backed securities
Assets:
Financial assets at fair value	15,304
Significant Other Observable Inputs (Level 2) \| Recurring \| Sovereign bonds
Assets:
Financial assets at fair value	1,975
Unobservable Inputs (Level 3) \| Recurring
Assets:
Money market instruments	0
Certificate of deposit	0
Economic hedge forward contracts	0
Liabilities:
Economic hedge forward contracts	0
Unobservable Inputs (Level 3) \| Recurring \| Treasury bills
Assets:
Cash and cash equivalents	0
Unobservable Inputs (Level 3) \| Recurring \| Corporate bonds
Assets:
Financial assets at fair value	0
Unobservable Inputs (Level 3) \| Recurring \| Treasury notes
Assets:
Financial assets at fair value	0
Unobservable Inputs (Level 3) \| Recurring \| Asset-backed securities
Assets:
Financial assets at fair value	0
Unobservable Inputs (Level 3) \| Recurring \| Sovereign bonds
Assets:
Financial assets at fair value	$ 0

Cash, Cash Equivalents, and Investments - Components of Cash, Cash Equivalents, and Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale
Cash and cash equivalents	$ 176,626	$ 202,655
Current investments	112,449	129,392
Non-current investments	266,214	244,230
Total	555,289	576,277
Cash
Debt Securities, Available-for-sale
Cash and cash equivalents	141,508	183,242
Treasury bills
Debt Securities, Available-for-sale
Cash and cash equivalents	26,934	0
Certificate of deposit
Debt Securities, Available-for-sale
Cash and cash equivalents	7,601	0
Money market instruments
Debt Securities, Available-for-sale
Cash and cash equivalents	583	19,413
Corporate bonds
Debt Securities, Available-for-sale
Current investments	103,654	124,851
Long-term investments	212,688	183,965
Asset-backed securities
Debt Securities, Available-for-sale
Current investments	5,346	3,551
Long-term investments	9,958	15,763
Treasury notes
Debt Securities, Available-for-sale
Current investments	2,449	0
Long-term investments	42,593	43,523
Sovereign bonds
Debt Securities, Available-for-sale
Current investments	1,000	990
Long-term investments	$ 975	$ 979

Cash, Cash Equivalents, and Investments - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Cash and Cash Equivalents [Line Items]
Debt securities, available-for-sale, allowance for credit loss	$ 0	$ 0
Other current assets
Cash and Cash Equivalents [Line Items]
Accrued interest receivable	$ 4,383	$ 3,169

Cash, Cash Equivalents, and Investments - Summary of Available-for-Sale Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale
Amortized Cost	$ 386,790	$ 383,589
Gross Unrealized Gains	73	588
Gross Unrealized Losses	(8,200)	(10,555)
Fair Value	378,663	373,622
Corporate bonds
Debt Securities, Available-for-sale
Fair Value	316,342
Corporate bonds \| Current assets
Debt Securities, Available-for-sale
Amortized Cost	105,250	128,150
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1,596)	(3,299)
Fair Value	103,654	124,851
Corporate bonds \| Non-current assets
Debt Securities, Available-for-sale
Amortized Cost	217,537	189,326
Gross Unrealized Gains	73	506
Gross Unrealized Losses	(4,922)	(5,867)
Fair Value	212,688	183,965
Asset-backed securities
Debt Securities, Available-for-sale
Fair Value	15,304
Asset-backed securities \| Current assets
Debt Securities, Available-for-sale
Amortized Cost	5,426	3,637
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(80)	(86)
Fair Value	5,346	3,551
Asset-backed securities \| Non-current assets
Debt Securities, Available-for-sale
Amortized Cost	10,689	16,773
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(731)	(1,010)
Fair Value	9,958	15,763
Treasury notes
Debt Securities, Available-for-sale
Fair Value	45,042
Treasury notes \| Current assets
Debt Securities, Available-for-sale
Amortized Cost	2,500
Gross Unrealized Gains
Gross Unrealized Losses	(51)
Fair Value	2,449
Treasury notes \| Non-current assets
Debt Securities, Available-for-sale
Amortized Cost	43,362	43,654
Gross Unrealized Gains	0	82
Gross Unrealized Losses	(769)	(213)
Fair Value	42,593	43,523
Sovereign bonds
Debt Securities, Available-for-sale
Fair Value	1,975
Sovereign bonds \| Current assets
Debt Securities, Available-for-sale
Amortized Cost	1,001	1,012
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1)	(22)
Fair Value	1,000	990
Sovereign bonds \| Non-current assets
Debt Securities, Available-for-sale
Amortized Cost	1,025	1,037
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(50)	(58)
Fair Value	$ 975	$ 979

Cash, Cash Equivalents, and Investments - Gross Unrealized Losses and Fair Values for Available-for-Sale Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale
Fair value, less than 12 months	$ 125,034	$ 68,557
Unrealized losses, less than 12 months	(1,962)	(1,561)
Fair value, 12 months or greater	233,866	233,304
Unrealized losses, 12 months or greater	(6,238)	(8,994)
Total fair value	358,900	301,861
Total unrealized Losses	(8,200)	(10,555)
Corporate bonds
Debt Securities, Available-for-sale
Fair value, less than 12 months	93,328	30,770
Unrealized losses, less than 12 months	(962)	(359)
Fair value, 12 months or greater	203,251	226,643
Unrealized losses, 12 months or greater	(5,556)	(8,807)
Total fair value	296,579	257,413
Total unrealized Losses	(6,518)	(9,166)
Treasury notes
Debt Securities, Available-for-sale
Fair value, less than 12 months	22,107	20,725
Unrealized losses, less than 12 months	(284)	(153)
Fair value, 12 months or greater	22,936	2,441
Unrealized losses, 12 months or greater	(536)	(60)
Total fair value	45,043	23,166
Total unrealized Losses	(820)	(213)
Asset-backed securities
Debt Securities, Available-for-sale
Fair value, less than 12 months	9,599	17,062
Unrealized losses, less than 12 months	(716)	(1,049)
Fair value, 12 months or greater	5,705	2,252
Unrealized losses, 12 months or greater	(95)	(47)
Total fair value	15,304	19,314
Total unrealized Losses	(811)	(1,096)
Sovereign bonds
Debt Securities, Available-for-sale
Fair value, less than 12 months	0	0
Unrealized losses, less than 12 months	0	0
Fair value, 12 months or greater	1,974	1,968
Unrealized losses, 12 months or greater	(51)	(80)
Total fair value	1,974	1,968
Total unrealized Losses	$ (51)	$ (80)

Cash, Cash Equivalents, and Investments - Gross Realized Gains and Losses on the Sale of Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Cash and Cash Equivalents [Abstract]
Gross realized gains	$ 6	$ 0	$ 8	$ 0
Gross realized losses	(16)	0	(16)	0
Net realized gains (losses)	$ (10)	$ 0	$ (8)	$ 0

Cash, Cash Equivalents, and Investments - Effective Maturity Dates of Available-for-Sale Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale
less than 1 year	$ 112,449
1-2 Years	65,660
2-3 Years	76,182
3-4 Years	84,107
4-5 Years	36,529
5-8 Years	3,736
Total	378,663	$ 373,622
Corporate bonds
Debt Securities, Available-for-sale
less than 1 year	103,654
1-2 Years	59,638
2-3 Years	57,273
3-4 Years	61,410
4-5 Years	34,367
5-8 Years	0
Total	316,342
Treasury notes
Debt Securities, Available-for-sale
less than 1 year	2,449
1-2 Years	987
2-3 Years	18,909
3-4 Years	22,697
4-5 Years	0
5-8 Years
Total	45,042
Asset-backed securities
Debt Securities, Available-for-sale
less than 1 year	5,346
1-2 Years	4,060
2-3 Years	0
3-4 Years	0
4-5 Years	2,162
5-8 Years	3,736
Total	15,304
Sovereign bonds
Debt Securities, Available-for-sale
less than 1 year	1,000
1-2 Years	975
2-3 Years	0
3-4 Years	0
4-5 Years	0
5-8 Years	0
Total	$ 1,975

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 97,031	$ 93,201
Work-in-process	4,344	5,747
Finished goods	55,880	63,337
Inventories	$ 157,255	$ 162,285

Leases - Narrative (Details) ft² in Thousands, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2023 ft² lease_component	Jun. 30, 2024 USD ($) terminationOptions extension_option	Jul. 02, 2023 USD ($)	Jun. 30, 2024 USD ($) terminationOptions extension_option	Jul. 02, 2023 USD ($)	Dec. 31, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease, number of options to terminate \| terminationOptions		0		0
Operating leases, number of options to extend \| extension_option		20		20
Operating lease, cost		$ 3,474	$ 2,639	$ 7,037	$ 5,031
Operating lease, payments		3,406	2,364	6,614	4,768
Lease, cost		57	$ 136	139	$ 160
Operating lease liability		74,183		74,183		$ 78,601
Future lease payments		99,003		99,003
Remainder of fiscal 2024		$ 6,876		$ 6,876
Weighted average discount rate		5.70%		5.70%		5.70%
Weighted average remaining lease term		10 years 2 months 12 days		10 years 2 months 12 days		10 years 6 months
Singapore
Lessee, Lease, Description [Line Items]
Lease components \| lease_component	2
Singapore \| 88,000 square-foot premises
Lessee, Lease, Description [Line Items]
Rentable area \| ft²	88
Singapore \| 27,000 square-foot premises
Lessee, Lease, Description [Line Items]
Rentable area \| ft²	27
Term of contract	8 years
Option to renew, term of contract	5 years
Future lease payments		$ 13,231		$ 13,231
Remainder of fiscal 2024		$ 0		$ 0

Leases - Future Minimum Lease Payment Obligations Under Operating Leases (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Leases [Abstract]
Remainder of fiscal 2024	$ 6,876
2025	12,011
2026	9,944
2027	9,107
2028	8,659
2029	8,078
Thereafter	44,328
Total	$ 99,003

Goodwill (Details) $ in Thousands	6 Months Ended
Goodwill (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Goodwill [Roll Forward]
Balance as of December 31, 2023	$ 393,181
Foreign exchange rate changes	(12,139)
Balance as of June 30, 2024	$ 381,042

Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks
Gross Carrying Value	$ 130,138	$ 139,331
Accumulated Amortization	(31,590)	(26,379)
Net Carrying Value	98,548	112,952
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	98,548	112,952
Indefinite-lived intangible asset excluding in-process technologies
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks
Net Carrying Value	98,548
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of fiscal 2024	5,247
2025	10,267
2026	9,918
2027	8,976
2028	8,246
2029	8,246
Thereafter	47,648
Net Carrying Value	98,548
Customer relationships
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks
Gross Carrying Value	70,394	75,965
Accumulated Amortization	(7,753)	(5,352)
Net Carrying Value	62,641	70,613
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	62,641	70,613
Completed technologies
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks
Gross Carrying Value	58,612	62,123
Accumulated Amortization	(23,401)	(20,745)
Net Carrying Value	35,211	41,378
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	35,211	41,378
Trademarks
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks
Gross Carrying Value	792	903
Accumulated Amortization	(176)	(50)
Net Carrying Value	616	853
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	616	853
Non-compete agreements
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks
Gross Carrying Value	340	340
Accumulated Amortization	(260)	(232)
Net Carrying Value	80	108
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	$ 80	$ 108

Warranty Obligations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Warranty Obligations (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance			$ 4,244
Provisions for warranties issued during the period			2,120
Fulfillment of warranty obligations			(1,990)
Standard Product Warranty Accrual, Foreign Currency Translation Gain (Loss)			20
Ending balance	$ 4,354		4,354
Revenue	$ 239,292	$ 242,512	$ 450,089	$ 443,636

Commitment and Contingencies (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Outstanding purchase orders	$ 43,078

Derivative Instruments - Narrative (Details)	6 Months Ended
Derivative Instruments - Narrative (Details)	Jun. 30, 2024
Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Remaining maturity of foreign currency derivatives (up to)	3 months

Derivative Instruments - Outstanding Forward Contracts Table (Details) - Not Designated as Hedging Instrument € in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, SFr in Thousands, Ft in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	Jun. 30, 2024 SGD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2024 EUR (€)	Jun. 30, 2024 CNY (¥)	Jun. 30, 2024 MXN ($)	Jun. 30, 2024 HUF (Ft)	Jun. 30, 2024 GBP (£)	Jun. 30, 2024 JPY (¥)	Jun. 30, 2024 CHF (SFr)	Jun. 30, 2024 CAD ($)	Dec. 31, 2023 SGD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 MXN ($)	Dec. 31, 2023 HUF (Ft)	Dec. 31, 2023 GBP (£)	Dec. 31, 2023 JPY (¥)	Dec. 31, 2023 CHF (SFr)	Dec. 31, 2023 CAD ($)
Japanese Yen
Derivative [Line Items]
Outstanding forward contracts		$ 3,750						¥ 600,000				$ 4,255						¥ 600,000
Euro
Derivative [Line Items]
Outstanding forward contracts		23,577	€ 22,000									44,302	€ 40,000
Singapore Dollar
Derivative [Line Items]
Outstanding forward contracts	$ 40,700	30,041									$ 39,700	30,136
Chinese Renminbi
Derivative [Line Items]
Outstanding forward contracts		13,711		¥ 100,000								7,025		¥ 50,000
Mexican Peso
Derivative [Line Items]
Outstanding forward contracts		11,663			$ 215,000							8,505			$ 145,000
Hungarian Forint
Derivative [Line Items]
Outstanding forward contracts		5,883				Ft 2,180,000						6,466				Ft 2,240,000
British Pound
Derivative [Line Items]
Outstanding forward contracts		4,112					£ 3,245					4,258					£ 3,345
Canadian Dollar
Derivative [Line Items]
Outstanding forward contracts		1,212								$ 1,660		1,112								$ 1,470
Swiss Franc
Derivative [Line Items]
Outstanding forward contracts		$ 1,875							SFr 1,675			$ 0							SFr 0

Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Derivatives, Fair Value [Line Items]
Derivative asset	$ 57	$ 151
Derivative liability	152	106
Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative asset	57	151
Derivative liability	$ 152	$ 106

Derivative Instruments - Offsetting Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross amounts of recognized assets	$ 57	$ 151
Gross amounts offset	0	0
Net amount of assets presented	57	151
Gross amounts of recognized liabilities	152	106
Gross amounts offset	0	0
Net amount of liabilities presented	$ 152	$ 106

Derivative Instruments - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in current operations	$ 876	$ 859	$ 631	$ (612)

Revenue Recognition - Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 239,292	$ 242,512	$ 450,089	$ 443,636
Americas
Disaggregation of Revenue [Line Items]
Revenue	85,162	82,297	168,297	162,911
Europe
Disaggregation of Revenue [Line Items]
Revenue	57,151	56,860	109,505	116,702
Greater China
Disaggregation of Revenue [Line Items]
Revenue	54,410	72,351	84,459	105,351
Other Asia
Disaggregation of Revenue [Line Items]
Revenue	$ 42,569	$ 31,004	$ 87,828	$ 58,672

Revenue Recognition - Revenue Disaggregated by Products and Services (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Revenue from External Customer [Line Items]
Revenue	$ 239,292	$ 242,512	$ 450,089	$ 443,636
Standard products and services
Revenue from External Customer [Line Items]
Revenue	200,856	194,944	388,488	385,727
Application-specific customer solutions
Revenue from External Customer [Line Items]
Revenue	$ 38,436	$ 47,568	$ 61,601	$ 57,909

Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Costs to fulfill contract	$ 11,310	$ 13,265

Revenue Recognition - Schedule of Allowance for Credit Loss (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance as of December 31, 2023	$ 583
Increases to the allowance for credit losses	100
Write-offs, net of recoveries	(19)
Foreign exchange rate changes	1
Balance as of June 30, 2024	$ 665

Revenue Recognition - Deferred Revenue Activity (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Movement in Deferred Revenue [Roll Forward]
Balance as of December 31, 2023	$ 31,525
Deferral of revenue billed in the current period, net of recognition	30,777
Recognition of revenue deferred in prior period	(21,271)
Foreign exchange rate changes	(502)
Balance as of June 30, 2024	$ 40,529

Stock-Based Compensation Expense - Narrative (Details)	3 Months Ended		6 Months Ended		14 Months Ended
Stock-Based Compensation Expense - Narrative (Details)	Jun. 30, 2024 USD ($) group $ / shares shares	Jul. 02, 2023 USD ($) $ / shares shares	Jun. 30, 2024 USD ($) group $ / shares shares	Jul. 02, 2023 USD ($) $ / shares shares	Jun. 30, 2024 USD ($) group shares	Dec. 31, 2023 USD ($)	May 03, 2023 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Stock Options Exercised	$ 1,516,000	$ 6,141,000	$ 2,637,000	$ 10,118,000
Share-Based Payment Arrangement, Exercise of Option, Tax Benefit	$ 2,043,000	$ 2,426,000	$ 2,072,000	$ 3,893,000
Weighted-average grant-date fair values (in dollars per share) \| $ / shares	$ 18.46	$ 20.09	$ 14.89	$ 17.86
Total intrinsic value	$ 994,000	$ 2,123,000	$ 2,049,000	$ 5,562,000
Total fair values of stock options vest	$ 698,000	892,000	$ 26,209,000	32,073,000
Groups within the employee population \| group	3		3		3
Estimated forfeiture rate for unvested options for CEO	0		0		0
Estimated annual forfeiture rate for unvested options for senior management	9.00%		9.00%		9.00%
Estimated annual forfeiture rate for unvested options for all other employees	13.00%		13.00%		13.00%
Decrease in compensation expense due to revised estimated forfeiture rates			$ 1,832,000	234,000
Unrecognized compensation expense	$ 75,507,000		$ 75,507,000		$ 75,507,000
Weighted average period to be recognized			1 year 10 months 24 days
Stock-based compensation expense	12,964,000	12,574,000	$ 26,266,000	29,153,000
Tax benefit from compensation expense	2,027,000	$ 1,892,000	3,772,000	$ 4,200,000
Recognized period costs capitalized	$ 0		$ 0		$ 0	$ 0
2001 Plan and 2007 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant under stock option plans (in shares) \| shares							10,610,800
2023 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares auhtorised for grant under stock option plans (in shares) \| shares	8,877,455		8,877,455		8,877,455		8,100,000
Additional shares available for grant under stock option plans (in shares) \| shares					777,455
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant under stock option plans (in shares) \| shares	5,958,000		5,958,000		5,958,000
Expiration period from grant day			10 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share) \| $ / shares	$ 43.97	$ 52.53	$ 39.03	$ 46.86
Vested (in shares) \| shares	36,000	29,000	375,000	482,000
Payment, Tax Withholding, Share-Based Payment Arrangement	$ 526,000	$ 432,000	$ 4,507,000	$ 7,464,000
Granted (in shares) \| shares			797,000
Tax benefit from compensation expense	$ 2,074,000	$ 150,000	$ 6,867,000	$ 3,476,000
Performance Shares (PRSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock option plans			3 years
Granted (in dollars per share) \| $ / shares			$ 39.05
Vested (in shares) \| shares	0	0	0	0
Granted (in shares) \| shares	0	0	55,000	46,000
Minimum \| General Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock option plans			4 years
Minimum \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock option plans			3 years
Maximum \| General Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock option plans			5 years
Maximum \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock option plans			4 years

Stock-Based Compensation Expense - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares
Shares (in thousands)
Outstanding (in shares) \| shares	9,008
Granted (in shares) \| shares	1,620
Exercised (in shares) \| shares	(112)
Forfeited or expired (in shares) \| shares	(397)
Outstanding (in shares) \| shares	10,119
Exercisable as of reporting date (in shares) \| shares	5,880
Options vested or expected to vest as of reporting date (in shares) \| shares	9,413
Weighted- Average Exercise Price
Outstanding (in dollars per shares) \| $ / shares	$ 50.87
Granted (in dollars per shares) \| $ / shares	39.74
Exercised (in dollars per shares) \| $ / shares	23.52
Forfeited or expired (in dollars per shares) \| $ / shares	56.39
Outstanding (in dollars per shares) \| $ / shares	49.17
Exercisable as of reporting date (in dollars per shares) \| $ / shares	49.22
Vested and expected to vest (in dollars per shares) \| $ / shares	$ 49.36
Weighted- Average Remaining Contractual Term (in years)
Outstanding (in years)	6 years 1 month 6 days
Exercisable (in years)	4 years 3 months 21 days
Options vested or expected to vest (in years)	5 years 10 months 20 days
Aggregate Intrinsic Value (in thousands)
Outstanding \| $	$ 35,881
Exercisable \| $	22,854
Options vested or expected to vest \| $	$ 33,342

Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Share-Based Payment Arrangement [Abstract]
Risk-free rate	4.50%	3.50%	4.30%	3.90%
Expected dividend yield	0.67%	0.56%	0.75%	0.59%
Expected volatility	39.00%	39.00%	39.00%	39.00%
Expected term (in years)	4 years 8 months 12 days	5 years 10 months 24 days	4 years 8 months 12 days	4 years 10 months 24 days

Stock-Based Compensation Expense - Schedule of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Shares (in thousands)
Nonvested as of beginning of period (in shares)			1,429
Granted (in shares)			797
Vested (in shares)	36	29	375	482
Forfeited or expired (in shares)			(55)
Nonvested as of end of period (in shares)	1,796		1,796
Weighted-Average Grant Date Fair Value
Nonvested as of beginning of period (in dollars per share)			$ 54.22
Granted (in dollars per share)	$ 43.97	$ 52.53	39.03	$ 46.86
Vested (in dollars per share)			65.58
Forfeited or expired (in dollars per share)			49.86
Nonvested as of end of period (in dollars per share)	$ 45.23		$ 45.23

Stock-Based Compensation Expense - Schedule of Performance Restricted Stock Units (Details) - Performance Shares (PRSUs) - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Shares (in thousands)
Nonvested as of beginning of period (in shares)			79
Granted (in shares)	0	0	55	46
Vested (in shares)	0	0	0	0
Forfeited or expired (in shares)			0
Nonvested as of end of period (in shares)	134		134
Weighted-Average Grant Date Fair Value
Nonvested as of beginning of period (in dollars per share)			$ 52.23
Granted (in dollars per share)			39.05
Vested (in dollars per share)			0
Forfeited or expired (in dollars per share)			0
Nonvested as of end of period (in dollars per share)	$ 46.82		$ 46.82

Stock-Based Compensation Expense - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 12,964	$ 12,574	$ 26,266	$ 29,153
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	413	441	1,018	1,062
Research, development, and engineering
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	3,540	3,308	7,929	9,198
Selling, general, and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 9,011	$ 8,825	$ 17,319	$ 18,893

Stock Repurchase Program (Details) - Repurchase Program March 2022 - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Mar. 03, 2022
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount			$ 500,000
Shares repurchased (in shares)	473,000	966,000
Value of shares repurchased at cost	$ 19,879	$ 49,163
Remaining authorized repurchase amount	$ 313,013

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Income Tax Contingency [Line Items]
Effective tax rate	13.00%	15.00%	18.00%	12.00%
Discrete tax expense (benefit)	$ (463)	$ (399)	$ (2,622)	$ 3,195
Increase in tax expense related to stock-based compensation			1,371	1,766
Decrease in tax expense arising from tax settlement			477	3,051
Increase in tax expense, tax reserves			922
Change in tax expense related to valuation allowance				2,198
Tax expense related to return-to-provision adjustments			1,278	$ 288
Tax expense related to other tax matters			1,130
Liability for uncertain tax positions	31,193		31,193
Unrecognized tax benefits, gross, noncurrent liability	28,826		28,826
Unrecognized tax benefits, gross, offset to tax attributes	$ 2,367		$ 2,367
Tax years open to examination by Internal Revenue Service			2020 through 2022
Tax years open to examination by various taxing authorities for other entities			2017 through 2023
Foreign Tax Authority \| Ireland
Income Tax Contingency [Line Items]
Statutory tax rate			12.50%
Foreign Tax Authority \| China
Income Tax Contingency [Line Items]
Statutory tax rate			25.00%
Foreign Tax Authority \| Korea
Income Tax Contingency [Line Items]
Statutory tax rate			21.00%
Foreign Tax Authority \| JAPAN
Income Tax Contingency [Line Items]
Statutory tax rate			34.60%
Domestic Tax Authority
Income Tax Contingency [Line Items]
Statutory tax rate			21.00%

Weighted-Average Shares - Calculation of Weighted-Average Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Earnings Per Share [Abstract]
Basic weighted-average common shares outstanding (in shares)	171,568	172,429	171,630	172,527
Effect of dilutive equity awards (in shares)	1,165	1,193	1,069	1,264
Weighted-average common and common-equivalent shares outstanding (in shares)	172,733	173,622	172,699	173,791

Weighted-Average Shares - Narrative (Details) - shares	3 Months Ended		6 Months Ended
Weighted-Average Shares - Narrative (Details) - shares	Jun. 30, 2024	Jul. 02, 2023	Jun. 30, 2024	Jul. 02, 2023
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (shares)	8,325,000	6,890,000	8,415,000	6,713,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (shares)	1,000	3,000	9,000	1,000
Performance Shares (PRSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (shares)	0	0	0	0

Loss (Recovery) from Fire (Details) $ in Thousands	3 Months Ended
Loss (Recovery) from Fire (Details) $ in Thousands	Jul. 02, 2023 USD ($)
Fire
Unusual or Infrequent Item, or Both [Line Items]
Insurance recoveries, business interruption	$ 2,500

Business Combinations (Details) - Moritex Corporation ¥ in Thousands, $ in Thousands			3 Months Ended
	Oct. 18, 2023 JPY (¥)	Oct. 18, 2023 USD ($)	Mar. 31, 2024 JPY (¥)	Mar. 31, 2024 USD ($)	Oct. 18, 2023 USD ($)
Business Acquisition [Line Items]
Business Combination, Enterprise Value	¥ 40,000,000				$ 270,000
Business Combination, Consideration Transferred	44,376,245	$ 296,138
Payments to Acquire Businesses, Gross	¥ 44,227,414	$ 295,144	¥ 148,831	$ 994

Subsequent Events (Details)	Jul. 31, 2024 $ / shares
Subsequent Event
Subsequent Event [Line Items]
Dividends (in dollars per share)	$ 0.075

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