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<SEC-DOCUMENT>0001157523-05-003468.txt : 20050419
<SEC-HEADER>0001157523-05-003468.hdr.sgml : 20050419
<ACCEPTANCE-DATETIME>20050419160551
ACCESSION NUMBER:		0001157523-05-003468
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050419
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050419
DATE AS OF CHANGE:		20050419

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COGNEX CORP
		CENTRAL INDEX KEY:			0000851205
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823]
		IRS NUMBER:				042713778
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17869
		FILM NUMBER:		05759395

	BUSINESS ADDRESS:	
		STREET 1:		ONE VISION DR
		CITY:			NATICK
		STATE:			MA
		ZIP:			01760
		BUSINESS PHONE:		5086503000

	MAIL ADDRESS:	
		STREET 1:		ONE VISION DRIVE
		CITY:			NATICK
		STATE:			MA
		ZIP:			01760
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a4867655.txt
<DESCRIPTION>COGNEX 8-K
<TEXT>
================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K

                                 Current Report
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


        Date of Report (Date of Earliest Event Reported): April 19, 2005




                               COGNEX CORPORATION
 -------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


         Massachusetts                   0-17869               04-2713778
         -------------                   -------               ----------
(State or other jurisdiction of  (Commission File Number)   (I.R.S. Employer
 incorporation or organization)                           Identification No.)


                                One Vision Drive
                        Natick, Massachusetts 01760-2059
          (Address, including zip code, of principal executive offices)


                                 (508) 650-3000
              (Registrant's telephone number, including area code)



          (Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

        |_| Written communications pursuant to Rule 425 under the Securities Act
           (17 CFR 230.425)
        |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
           (17 CFR 240.14a-12)
        |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
            Exchange Act (17 CFR 240.14d-2(b))
        |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
            Exchange Act (17 CFR 240.13e-4(c))

================================================================================
<PAGE>

Item 2.02         Results of Operations and Financial Condition

On April 19, 2005, Cognex Corporation issued a news release to report its
financial results for the first quarter ended April 3, 2005. The release is
furnished as Exhibit 99.1 hereto. The information in this Current Report on Form
8-K, including the Exhibit attached hereto, shall not be deemed "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be
deemed to be incorporated by reference in any filing under the Securities Act of
1933 or the Securities Exchange Act of 1934, regardless of any general
incorporation language in such filing.

Item 9.01         Financial Statements and Exhibits

(c)      Exhibits

Exhibit No.       Description
- -----------       -----------

99.1              News release, dated April 19, 2005, by Cognex Corporation

<PAGE>
                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

                                  COGNEX CORPORATION

Dated: April 19, 2005             By: /s/ Richard A. Morin
                                      ------------------------------------------
                                      Richard A. Morin
                                      Senior Vice President of Finance,
                                      Chief Financial Officer and Treasurer





</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a4867655ex99.txt
<DESCRIPTION>EXHIBIT 99.1 PRESS RELEASE
<TEXT>
                                                                    Exhibit 99.1

           Cognex Corporation Announces Ho-Hum First Quarter Results

     NATICK, Mass.--(BUSINESS WIRE)--April 19, 2005--Cognex Corporation (NASDAQ:
CGNX) today announced revenue for the first quarter ended April 3, 2005, of
$43,198,000, and net income of $5,294,000, or $0.11 per diluted share. These
most recent quarterly results are compared to the company's historical results
for the first quarter of 2004 and for the fourth quarter of 2004 in the table
below.


                                                         Earnings per
                                                           Diluted
          Time Period             Revenue    Net Income      Share
- ------------------------------- ------------ ----------- ------------
Current quarter: Q1-05          $43,198,000  $5,294,000        $0.11
- ------------------------------- ------------ ----------- ------------
Prior year's quarter: Q1-04     $48,169,000  $8,567,000        $0.18
- ------------------------------- ------------ ----------- ------------
Change from Q1-04 to Q1-05             (10%)       (38%)        (39%)
- ------------------------------- ------------ ----------- ------------
Prior quarter: Q4-04            $43,909,000  $6,644,000        $0.14
- ------------------------------- ------------ ----------- ------------
Change from Q4-04 to Q1-05              (2%)       (20%)        (22%)
- ------------------------------- ------------ ----------- ------------

     "Although we met Wall Street's consensus expectations for the quarter, and
although our net profits were very respectable by most companies' standards (at
12.25% of revenue), they are not yet where we want them to be. Furthermore, both
the year-on-year and sequential quarterly comparables are also disappointing,"
lamented Dr. Robert J. Shillman, Cognex's Chief Executive Officer and Chairman.
"There was some glimmer of good news in the quarter...orders increased by 16%
over Q4-2004, and our book-to-bill was above 1.0. And, we are mildly encouraged
by the fact that all three of the primary markets that we serve showed
sequential bookings increases; the largest was for SmartView(R), our vision
system for surface inspection, which booked a record $12,000,000 in the first
quarter, far surpassing the prior record."

     Details of the Quarter

     Statement of Operations Highlights - First Quarter of 2005

     --   Revenue for the first quarter of 2005 decreased 10% from the
          comparable quarter in 2004. This decrease is due to lower sales to
          customers who make capital equipment for the semiconductor and
          electronics industries, although some of the decline was offset by
          revenue from discrete manufacturers in the factory automation area,
          which increased 27% year-on-year. Revenue decreased by 2% on a
          sequential basis, which was also due to the lower level of business
          with customers in the semiconductor and electronics equipment market
          as well as lower SmartView revenue.

     --   Gross margin was 68% in the first quarter of 2005 compared to 69% in
          the comparable quarter in 2004 and 73% in the prior quarter. Cost of
          revenue for the first and fourth quarters of 2004 as well as the first
          quarter of 2005 includes a benefit of $262,000, $317,000, and
          $118,000, respectively, relating to an inventory reserve recorded in
          the fourth quarter of 2001. Excluding this benefit, gross margin would
          have been 68% in the first quarter of 2005, 69% in the first quarter
          of 2004, and 72% in the prior quarter. The decrease in gross margin
          year-on-year is due to the lower sales volume. On a sequential basis,
          gross margin declined due to the revenue mix as well as favorable
          variances in the prior quarter that didn't repeat in the first quarter
          due to the volume decrease.

     --   Research, Development & Engineering (R, D & E) spending in the first
          quarter of 2005 decreased 8% from the comparable quarter in 2004, and
          9% on a sequential basis. The decrease, both year-on-year and
          sequentially, is due to lower employee-related expenses in the first
          quarter of 2005, including a lower accrual of anticipated company
          bonuses. In addition, the fourth quarter of 2004 included outside
          service costs that didn't repeat in the first quarter.

     --   Selling, General & Administrative (S, G & A) spending in the first
          quarter of 2005 increased 7% from the first quarter of 2004 due to
          higher employee-related costs, including additional end-user sales
          personnel hired by the company during 2004, and the impact of foreign
          exchange rates on the company's international operations. On a
          sequential basis, S, G & A decreased 6% due to lower sales commissions
          and a lower accrual of anticipated company bonuses in the first
          quarter.

     --   The company reported a foreign currency gain of $99,000 in the first
          quarter of 2005 compared to a gain of $625,000 in the comparable
          quarter of 2004 and a gain of $1,568,000 in the prior quarter. The
          company recognizes foreign currency gains and losses on the
          revaluation and settlement of accounts receivable and payable balances
          that are reported in one currency and collected or paid in another.

     --   Investment and other income was $1,470,000 in the first quarter of
          2005 compared to $1,274,000 in the first quarter of 2004 and
          $1,322,000 in the prior quarter. The increase in investment and other
          income year-on-year is due to higher cash and investment balances in
          the first quarter of 2005. On a sequential basis, the increase in
          investment and other income is due to higher yields.

     --   The effective tax rate was 26% in the first quarter of 2005 as
          compared to 29% in both the comparable quarter of 2004 and the prior
          quarter. The decrease in the effective tax rate is due to more of the
          company's profits being earned and taxed in lower tax jurisdictions in
          2005 than in 2004.

     Balance Sheet Highlights - April 3, 2005

     --   Cognex's financial position at April 3, 2005 was very strong, with
          nearly $395,000,000 in cash and investments, and no debt. Cash and
          investments increased by $3,400,000 from the end of 2004, primarily as
          a result of positive cash flow from operations, less a dividend
          payment of $3,700,000. Cumulative to date, the company has paid out
          nearly $70 million in repurchases of its common stock on the open
          market and $22 million in dividends.

     --   Days sales outstanding (DSO) for the first quarter of 2005 was 61
          days, and remains within the company's targeted range.

     --   Inventories at April 3, 2005 decreased by $2,300,000, or 11%, from the
          end of the prior quarter as the company used inventory to meet
          customer requirements. Inventory turns in the first quarter increased
          slightly to a rate equivalent to 2.9 times per year.

     Business Trends and Financial Outlook

     --   For the first quarter of 2005, bookings increased by 16% on a
          sequential basis. All three of the primary markets served by the
          company participated in the pickup, with the largest increase in
          surface inspection due to record orders for SmartView. As a result,
          Cognex expects revenue for the second quarter of 2005 to increase on a
          sequential basis to between $46 million and $49 million. At that
          revenue level, gross margin is expected to be approximately 70%. For
          the second quarter, operating expenses (R, D & E and S, G & A) are
          expected to increase by approximately 5% on a sequential basis. The
          effective tax rate is expected to be 26%. As a result of the above,
          earnings for the second quarter are expected to be between $0.13 and
          $0.17 per diluted share.

     Analyst Conference Call and Simultaneous Webcast

     Cognex Corporation will host a conference call to discuss its results for
the first quarter of 2005, as well as its financial outlook, today at 5:00 p.m.
eastern time. The telephone number for the live call is 800-770-5589 (or
973-935-2039 if outside the United States). A replay will begin tonight at
approximately 7:00 p.m. eastern time and will run continuously for 72 hours. The
telephone number for the replay is 877-519-4471 (or 973-341-3080 if outside the
United States) and the access code is 5889943.
     Internet users can listen to a real-time audio broadcast of the conference
call, as well as an archive replay of the call, on Cognex's website at
http://www.cognex.com/investor/default.asp.

     About Cognex Corporation

     Cognex Corporation designs, develops, manufactures, and markets machine
vision systems, or computers that can "see." Cognex is the world's leader in the
machine vision industry, having shipped more than 225,000 machine vision
systems, representing over $1.7 billion in cumulative revenue, since the
company's founding in 1981. Cognex's Modular Vision Systems Division,
headquartered in Natick, Massachusetts, specializes in machine vision systems
that are used for automating the manufacture of a wide range of discrete items
and for assuring their quality. Cognex's Surface Inspection Systems Division,
headquartered in Alameda, California, specializes in machine vision systems that
are used for inspecting the surfaces of products manufactured in a continuous
fashion, such as metals, papers and plastics. In addition to its corporate
headquarters in Natick, Massachusetts, Cognex has regional offices and
distributors located throughout North America, Japan, Europe, and Southeast
Asia. Visit Cognex on-line at http://www.cognex.com.

     Forward-Looking Statement

     Certain statements made in this press release and its attachments, which do
not relate solely to historical matters, are forward-looking statements. You can
identify these forward-looking statements by use of the words "expects,"
"anticipates," "estimates," "believes," "projects," "intends," "plans," "will,"
"may," "shall" and similar words. These forward-looking statements, which
include statements regarding business trends and the company's financial
outlook, involve risks and uncertainties that could cause actual results to
differ materially from those projected. Such risks and uncertainties include:
(1) global economic conditions that impact the capital spending trends of
manufacturers in a variety of industries; (2) the cyclicality of the
semiconductor and electronics industries; (3) the inability to achieve
significant international revenue; (4) fluctuations in foreign exchange rates;
(5) the loss of, or significant curtailment of purchases by, any one or more
principal customers; (6) the reliance upon certain sole source suppliers to
manufacture and deliver critical components for the company's products; and (7)
the other risks detailed in the company's reports filed with the SEC, including
the company's Form 10-K for the fiscal year ended December 31, 2004. You should
not place undue reliance upon any such forward-looking statements, which speak
only as of the date made. The company disclaims any obligation to update
forward-looking statements after the date of such statements.


                          COGNEX CORPORATION
                       Statements of Operations
               (In thousands, except per share amounts)

                                               Three Months Ended
                                           April 3,  Dec. 31, April 4,
                                               2005     2004     2004
                                          ----------------------------
                                                  (unaudited)

Revenue                                     $43,198  $43,909  $48,169

Cost of revenue                              13,790   11,791   14,789
                                          ---------- -------- --------

Gross margin                                 29,408   32,118   33,380
     Percentage of revenue                       68%      73%      69%

Research, development, and engineering
 expenses                                     6,315    6,958    6,898
     Percentage of revenue                       15%      16%      14%

Selling, general, and administrative
 expenses                                    17,508   18,693   16,314
     Percentage of revenue                       41%      43%      34%
                                          ---------- -------- --------

Operating income                              5,585    6,467   10,168
     Percentage of revenue                       13%      15%      21%

Foreign currency gain (loss)                     99    1,568      625

Investment and other income                   1,470    1,322    1,274
                                          ---------- -------- --------

Income before taxes                           7,154    9,357   12,067

Income tax provision                          1,860    2,713    3,500
                                          ---------- -------- --------

Net income                                   $5,294   $6,644   $8,567
     Percentage of revenue                       12%      15%      18%
                                          ========== ======== ========

Net income per diluted common and common
     equivalent share                         $0.11    $0.14    $0.18
                                          ========== ======== ========

Diluted weighted-average common and common
     equivalent shares outstanding           47,181   46,157   46,752
                                          ========== ======== ========

Cash dividends per common share               $0.08    $0.08    $0.06
                                          ========== ======== ========


                          COGNEX CORPORATION
                            Balance Sheets
                            (In thousands)
                                                  April 3,   Dec. 31,
                                                    2005       2004
                                                 ---------------------
                                                 (unaudited)
Assets

Cash and investments                               $394,455  $391,076

Accounts receivable                                  29,303    33,816

Inventories                                          17,799    20,091

Property, plant, and equipment                       23,573    23,995

Other assets                                         59,582    64,330
                                                 ----------- ---------

Total assets                                       $524,712  $533,308
                                                 =========== =========


Liabilities and Stockholders' Equity

Current liabilities                                 $58,285   $70,501

Stockholders' equity                                466,427   462,807
                                                 ----------- ---------

Total liabilities and stockholders' equity         $524,712  $533,308
                                                 =========== =========


                          COGNEX CORPORATION
                    Additional Information Schedule
                        (Dollars in thousands)

                                              Three Months Ended
                                          April 3,   Dec. 31, April 4,
                                            2005      2004     2004
                                         -----------------------------
                                                  (unaudited)

Revenue                                     $43,198  $43,909  $48,169
                                         =========== ======== ========

Revenue by division:
  Modular Vision Systems Division                84%      83%      88%
  Surface Inspection Systems Division            16%      17%      12%
                                         ----------- -------- --------
  Total                                         100%     100%     100%
                                         =========== ======== ========

Revenue by geography:
  United States                                  37%      36%      28%
  Europe                                         29%      29%      26%
  Japan                                          28%      29%      41%
  Other                                           6%       6%       5%
                                         ----------- -------- --------
  Total                                         100%     100%     100%
                                         =========== ======== ========

Revenue by industry:
  Semiconductor and electronics capital
   equipment                                     27%      27%      47%
  Surface inspection                             16%      17%      12%
  Electronics other                              14%      10%       9%
  Automotive                                     13%      14%       8%
  Semiconductor other                             4%       6%       5%
  Other                                          26%      26%      19%
                                         ----------- -------- --------
  Total                                         100%     100%     100%
                                         =========== ======== ========

Revenue by product:
  PC-based vision systems                        39%      37%      51%
  Vision sensors                                 37%      36%      28%
  Surface inspection vision systems              10%      13%       9%
  Service                                        14%      14%      12%
                                         ----------- -------- --------
  Total                                         100%     100%     100%
                                         =========== ======== ========

Number of new customer accounts:
  End user                                      214      268      191
  Original equipment manufacturer                32       15       37
                                         ----------- -------- --------
  Total                                         246      283      228
                                         =========== ======== ========


     CONTACT: Cognex Corporation
              Susan Conway, 508-650-3353
              Director of Investor Relations
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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