Cognex expansion

I picked up a press release on the blogs last Monday. Cognex have announced an expansion of the manufacturing and distribution facility in Ireland. What, you may ask, is Big Yellah doing in the Emerald Isle? Well here’s snippet from their recent SEC 10K filing that might explain:

“Cognex’s MVSD [modular vision systems division] products are manufactured utilizing a turnkey operation whereby the majority of component procurement, assembly, and initial testing are performed under agreement by third-party contract manufacturers. Cognex’s primary contract manufacturers are located in Ireland and Southeast Asia. After the completion of initial testing, fully-assembled product from the contract manufacturer is routed to one of the Company’s two distribution locations: Cork, Ireland or Duluth, Georgia, USA. At these locations, Cognex’s software is loaded onto the product, final quality control is performed, and the product is kitted for shipment to our customers. Orders for customers in the Americas are shipped from our Duluth, Georgia facility, while orders for customers in Japan, Europe, and Southeast Asia are shipped from our Cork, Ireland facility.”

And what may we deduce from this? It would seem that they are experiencing some sales growth and need additional capacity. Perhaps it’s time to buy stock in Cognex?

(Note that “machinevision4users” is not authorized to provide investment advice.)