Sunday, May 10, 2009

Keeping their head above water

Dalsa, who are in the high-end camera, software and framegrabber business, just published their Q1, 2009 results. Comparisons with Cognex are interesting, because the two companies are of similar size and operate in overlapping markets.

Like Cognex, Dalsa saw revenues drop 30% over the same period in ’08, but unlike Cognex, they’ve managed to stay in the black, even though cash flow turned negative. Dalsa CEO Brian Doody explains that the biggest demand drop was in the Asia/Pacific region, and adds that their semiconductor business is holding up well, at least in comparison to digital imaging. Presumably that’s what’s pulling them through, although lacking the cash reserves of Cognex, they’ll need a rapid turnaround in demand to avoid making further cuts.

Or is there an opportunity here for the two companies to cut overheads through collaboration rather than competition?

Just a thought.

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