After its busiest year ever, Natick-based manufacturer Cognex Corp. said its momentum might be starting to slow down.
Although revenue in the company’s first quarter reached $282.4 million, the second-highest it’s ever been for any quarter in Cognex’s 41-year history, growth could start to slow down because of supply chain issues and staffing shortages. Revenue for the second quarter is expected to sit between $265 million and $285 million, the company said.
“While our [first quarter] results were good, we believe growth momentum is slowing. We are currently hearing from customers that automation projects are taking longer to deploy, and some are being delayed, because of supply chain challenges and staffing shortages,” Cognex CEO Robert Willett said in the press release Thursday announcing the earnings.
Cognex, which makes machine vision systems and barcode readers, reported in late February that its annual revenue had reached $1 billion for the first time ever in 2021.
The logistics sector contributed to Cognex’s first quarter growth, according to a press release, and improved supply conditions also helped the company ship some backlogged orders from last year.
The company’s first quarter revenue represented an 18% increase over the same time last year and a 16% increase from the fourth quarter that preceded it. Profits were $67.3 million in the first quarter, down slightly from $69.8 million in the first quarter of 2021.
As of April 3, the company had $794 million in cash and investments, and no debt. Inventories were up 21% compared to the end of 2021, in anticipation of a higher business level in 2022.
“This solid start to the year was driven by the increasing adoption of machine vision technology and the hard work of Cognoids through difficult conditions around the world to support our customers, manage our supply chain, and continue our product development efforts,” Willett said.
