A big first quarter for Cognex

After the impressive full year 2010 results did we really expect Cognex to report another blockbuster quarter? Well those who said it couldn't be done had better go eat their humble pie, because I think few would argue that expectations have been exceeded yet again.

For those who want to read the press release in full, here's a link to the pdf.

And if you're too busy to read the whole thing, here's a brief synopsis: revenue up 26% on Q1 2010, gross margin up slightly, and net income up 60%. Impressive eh?

Any flies in the ointment?

Well SGA is up quite a bit – are they letting admin costs spiral out of control? But nothing else stands out. It is worth mentioning that R&D costs have been on the up too. Personally I see that as a good thing; hopefully it means there are some innovative new products in the pipeline.

And what does this say about our business as a whole? Well simply that business is good and machine vision is on a roll. Long may it continue.