Cognex(CGNX) - 2023 Q4 - Annual Report

Financial Position and Investments - The company had approximately $576 million in cash and investments as of December 31, 2023, with no long-term debt, positioning it well to weather economic downturns[391] - The fair value of the company's portfolio of debt securities amounted to$373,622,000 as of December 31, 2023, with a yield to maturity of 2.3%[521] - 68% of the company's investment portfolio had effective maturity dates of less than three years as of December 31, 2023[521] - The company's investment policy was modified in July 2023 to reduce effective maturities of newly purchased securities to up to five years[521] Risks and Vulnerabilities - The company faces risks from potential business disruptions due to natural disasters, fires, energy shortages, or public health crises, particularly affecting its third-party primary contractor manufacturers in Indonesia and Malaysia[391] - The company is exposed to potential liabilities, increased costs, and reputational harm due to environmental, social, and governance considerations, including climate change and greenhouse gas emissions[391] - The company relies on single or limited sources for certain components and manufacturing, making it vulnerable to supply chain disruptions[391] - The company's operating results could be adversely affected by unfavorable global economic conditions, including high inflation rates and increased interest rates[391] - The company's inability to obtain components at reasonable prices or manage product transitions effectively could negatively impact its operating results[382][397] - The company's failure to comply with data privacy or data protection laws and regulations could result in legal and regulatory proceedings[391]