<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5379479ex991.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
                                                                    Exhibit 99.1


Cognex Corporation Announces Very Disappointing First Quarter Results


    NATICK, Mass.--(BUSINESS WIRE)--April 17, 2007--Cognex Corporation
(NASDAQ: CGNX) today announced its financial results for the first
quarter ended April 1, 2007. Revenue, net income and earnings per
share are compared to the first and fourth quarters of 2006 in the
table below.



                                                              Earnings
                                                                per
                                                               Diluted
       Quarterly Comparisons           Revenue    Net Income    Share
==================================== =================================
Current quarter: Q1-07               $50,929,000  $4,635,000   $0.10
------------------------------------ ------------ ----------- --------
Prior year's quarter: Q1-06          $59,040,000  $8,800,000   $0.18
------------------------------------ ------------ ----------- --------
Change from Q1-06 to Q1-07              (14%)        (47%)     (43%)
------------------------------------ ------------ ----------- --------
Prior quarter: Q4-06                 $58,305,000  $9,505,000   $0.21
------------------------------------ ------------ ----------- --------
Change from Q4-06 to Q1-07              (13%)        (51%)     (51%)
------------------------------------ ------------ ----------- --------


    Beginning in 2006, Cognex has included stock option expense in its
results (Exhibit 2 shows the effect of stock option expensing on
certain line items in the P&L as reported under GAAP). For comparative
purposes, the company's results are shown in the table below excluding
stock option expense:



                                                              Earnings
                                                                per
                                                               Diluted
       Quarterly Comparisons          Revenue     Net Income    Share
=================================== ==================================
Current quarter: Q1-07 (Non-GAAP)   $50,929,000  $6,650,000    $0.15
----------------------------------- ------------ ------------ --------
Prior year's quarter: Q1-06 (Non-
 GAAP)                              $59,040,000  $10,718,000   $0.22
----------------------------------- ------------ ------------ --------
Change from Q1-06 to Q1-07             (14%)        (38%)      (33%)
----------------------------------- ------------ ------------ --------
Prior quarter: Q4-06 (Non-GAAP)     $58,305,000  $11,943,000   $0.27
----------------------------------- ------------ ------------ --------
Change from Q4-06 to Q1-07             (13%)        (44%)      (44%)
----------------------------------- ------------ ------------ --------


    "Our results for the first quarter of 2007 were very
disappointing," said Dr. Robert J. Shillman, Cognex's Chairman and
Chief Executive Officer. "Revenue was significantly below our
expectations and, because of that, earnings fell far short as well.
The major cause of the shortfall was in the Factory Automation market,
where orders were significantly lower than planned in each primary
region. Bookings were very slow leading up to our sales kick-off
meetings in February, where everyone was fully informed about the
change in sales strategy implemented by Eric Ceyrolle, our new
Executive Vice President of Worldwide Sales and Marketing. Afterwards,
business picked-up nicely but not enough to offset the earlier
shortfall."

    Dr. Shillman continued, "In spite of the disappointing first
quarter results that we announced today, I believe that 2007 will
still be a good year for Cognex; both the direct sales channel and
distributors now fully understand what is expected of them, and we are
starting to see increased quotation levels coming from the direct
sales force."

                        Details of the Quarter

    Statement of Operations Highlights - First Quarter of 2007

    --  Revenue for the first quarter of 2007 decreased 14% from the
        first quarter of 2006 primarily due to lower sales in the
        Factory Automation market as well as in the Semiconductor and
        Electronics Capital Equipment market. On a sequential basis,
        revenue decreased 13% due to lower sales in all three of the
        company's primary markets; Factory Automation, Surface
        Inspection, and Semiconductor and Electronics Capital
        Equipment.

    --  Gross margin was 72% in the first quarter of 2007, in the
        first quarter of 2006 and in the prior quarter. Excluding
        stock option expense, gross margin was 72% in the first
        quarter of 2007 compared to 72% in the comparable quarter of
        2006 and 73% in the prior quarter. Gross margin excluding
        stock option expense was flat year-on-year despite lower
        revenue due to lower manufacturing costs. The decline in gross
        margin excluding stock option expense on a sequential basis is
        due to lower revenue offset by favorable product mix.

    --  Research, Development & Engineering (R, D & E) spending in the
        first quarter of 2007 was essentially flat with the first
        quarter of 2006 and decreased 2% from the prior quarter.
        Excluding stock option expense, R, D & E spending was
        essentially flat both year-on-year and sequentially.

    --  Selling, General & Administrative (S, G & A) spending in the
        first quarter of 2007 increased 1% from the first quarter of
        2006 and decreased 1% on a sequential basis. Excluding stock
        option expense, S, G & A increased 1% both year-on-year and
        sequentially. The increase in S, G & A spending excluding
        stock option expense year-on-year is due to the impact of
        foreign exchange rates on the company's international
        operations and costs associated with the company's sales
        kick-off meetings in the first quarter of 2007 offset by lower
        employee-related costs and the timing of marketing
        communication programs. On a sequential basis, S, G & A
        spending excluding stock option expense increased primarily
        due to costs for the sales kick-off meetings as well as higher
        employee-related costs and professional fees offset by lower
        travel and entertainment and marketing costs.

    --  The company reported a foreign currency loss of $118,000 in
        the first quarter of 2007, a loss of $145,000 in the first
        quarter of 2006 and a gain of $374,000 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 $1,778,000 in the first
        quarter of 2007, $1,566,000 in the first quarter of 2006 and
        $1,581,000 in the prior quarter. The increase in investment
        and other income year-on-year is due to higher yields offset
        by a lower average invested balance as Cognex used cash to
        repurchase its common stock. Investment and other income
        increased on a sequential basis due to higher yields.

    --  The effective tax rate was 26% in the first quarter of 2007,
        27% in the first quarter of 2006 and 19% in the prior quarter.
        Excluding the one-time discrete items described below, the tax
        rate would have been 25% in the fourth quarter of 2006. The
        decrease in the effective tax rate year-on-year is due to more
        of the company's profits being earned in lower tax
        jurisdictions than in the first quarter of 2006. The increase
        on a sequential basis is due to the expectation that more of
        the company's profits will be earned and taxed in higher tax
        jurisdictions in 2007 than in 2006.

    In the fourth quarter of 2006, Cognex recorded favorable tax
adjustments of nearly $700,000 due to adjusting the estimate of the
Japanese tax audit settlement upon filing of the actual tax return in
Japan, and the favorable impact in the U.S. of the retroactive
reinstatement of the Research & Development tax credit.

    Balance Sheet Highlights - April 1, 2007

    --  Cognex's financial position at April 1, 2007 was very strong,
        with over $265,000,000, or $6.01 per outstanding share, in
        cash and investments and no debt. In the first quarter of
        2007, Cognex generated positive cash flow from operations of
        approximately $6,300,000, paid out over $3,700,000 in
        dividends to shareholders, and spent over $2,600,000 to
        repurchase nearly 125,000 shares of its common stock on the
        open market.

    --  Days sales outstanding (DSO) for the first quarter of 2007 was
        65 days, and remains within the company's targeted range.

    --  Inventories at April 1, 2007, increased by approximately
        $2,100,000, or 7%, from the end of 2006, and inventory turns
        in the first quarter were equivalent to 1.8 times per year.

    Financial Outlook

    --  For the second quarter of 2007, Cognex expects revenue to be
        between $50 million and $55 million. Gross margin is expected
        to be in the low-70% range. 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
        of 2007 are expected to be between $0.07 and $0.12 per diluted
        share (or between $0.11 and $0.16 per diluted share excluding
        an estimated $0.04 per diluted share for estimated stock
        option expense of $300,000 in Cost of Goods Sold and
        $2,700,000 in Operating Expenses).

    Non-GAAP Financial Measures

    This press release and its attachments contain non-GAAP financial
measures. In particular, Cognex incurs expense related to stock
options included in its GAAP presentation of cost of revenue,
research, development, and engineering expenses (R,D&E), and selling,
general and administrative expenses (S,G&A). Cognex excludes these
expenses for the purpose of calculating non-GAAP adjusted gross
margin, non-GAAP adjusted operating income, non-GAAP adjusted net
income and non-GAAP adjusted earnings per share when it evaluates its
continuing operational performance and in connection with its
budgeting process and the allocation of resources, because these
expenses have no current effect on cash or the future uses of cash and
they fluctuate as a result of changes in Cognex's stock price. Cognex
also excludes certain items affecting the tax provision because they
are one-time discrete events. Cognex believes that these non-GAAP
financial measures are useful to investors because they allow
investors to more accurately assess and compare Cognex's results over
multiple periods and to evaluate the effectiveness of the methodology
used by management to review the operating results of the company.
However, these non-GAAP financial measures are not meant to be
considered in isolation, nor as a substitute for financial information
provided in accordance with GAAP. Exhibit 2 shows a reconciliation of
these financial measures from GAAP to non-GAAP.

    Analyst Conference Call and Simultaneous Webcast

    Cognex will host a conference call to discuss its results for the
first quarter of 2007, as well as its financial outlook, today at 5:00
p.m. eastern time. The telephone number for the live call is
866-256-9239 (or 703-639-1213 if outside the United States). A replay
will begin tonight at approximately 8:00 p.m. eastern time and will
run continuously until 11:59 p.m. eastern time on Friday, April 20,
2007. The telephone number for the replay is 888-266-2081 (or
703-925-2533 if outside the United States) and the access code is
1066695.

    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 sensors and systems, or devices that can "see." Cognex
vision sensors are used in factories around the world to automate the
manufacture of a wide range of items and to assure their quality.
Cognex is the world's leader in the machine vision industry, having
shipped more than 350,000 machine vision systems, representing over $2
billion in cumulative revenue, since the company's founding in 1981.
In addition to its corporate headquarters in Natick, Massachusetts,
Cognex also has regional offices and distributors located throughout
North America, Japan, Europe, Asia, and Latin America. Visit Cognex
on-line at http://www.cognex.com/.

    Forward-Looking Statements

    Certain statements made in this press release, 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," "should," "shall" and similar
words. These forward-looking statements, which include statements
regarding business trends, revenue growth and the company's financial
outlook, involve known and unknown 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 reliance upon certain sole-source suppliers to
manufacture and deliver critical components for the company's
products; (4) the inability to design and manufacture high-quality
products; (5) the technological obsolescence of current products and
the inability to develop new products; (6) the inability to protect
the company's proprietary technology and intellectual property; (7)
the challenges in integrating acquisitions and achieving anticipated
benefits; (8) the failure to effectively manage product transitions or
accurately forecast customer demand; (9) the inability to attract and
retain skilled employees; and (10) 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, 2006. 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
                             (Unaudited)
            Dollars in thousands, except per share amounts




                                                Three Months Ended
                                                     December
                                            April 1,    31,   April 2,
                                             2007     2006     2006
                                            --------------------------

Revenue                                     $50,929  $58,305  $59,040

Cost of revenue (1)                          14,421   16,193   16,710
                                            -------- -------- --------

Gross margin                                 36,508   42,112   42,330
     Percentage of revenue                       72%      72%      72%

Research, development, and engineering
 expenses (1)                                 7,931    8,111    7,917
     Percentage of revenue                       16%      14%      13%

Selling, general, and administrative
 expenses (1)                                23,973   24,208   23,779
     Percentage of revenue                       47%      42%      40%
                                            -------- -------- --------

Operating income                              4,604    9,793   10,634
     Percentage of revenue                        9%      17%      18%

Foreign currency gain (loss)                   (118)     374     (145)

Investment and other income                   1,778    1,581    1,566
                                            -------- -------- --------

Income before taxes                           6,264   11,748   12,055

Income tax provision                          1,629    2,243    3,255
                                            -------- -------- --------

Net income                                   $4,635   $9,505   $8,800
     Percentage of revenue                        9%      16%      15%
                                            ======== ======== ========

Net income per diluted common and common
     equivalent share (2)                     $0.10    $0.21    $0.18
                                            ======== ======== ========

Diluted weighted-average common and
 common
     equivalent shares outstanding           44,905   45,346   48,419
                                            ======== ======== ========

Cash dividends per common share              $0.085   $0.085   $0.080
                                            ======== ======== ========

   (1)Amounts include stock option
    expense, as follows:
            Cost of revenue                    $292     $402      355
            Research, development, and
             engineering                        822      956      782
            Selling, general, and
             administrative                   1,878    2,330    1,819
                                            -------- -------- --------
            Total stock option expense       $2,992   $3,688    2,956
                                            ======== ======== ========

   (2)Net income per diluted common and
 common equivalent share excluding stock
                         option expense.      $0.15    $0.27    $0.22
                                            ======== ======== ========




                          COGNEX CORPORATION
        Reconciliation of Selected Items from GAAP to Non-GAAP
                             (Unaudited)
            Dollars in thousands, except per share amounts




                                                Three Months Ended
                                                     December
                                            April 1,    31,   April 2,
                                             2007     2006     2006
                                            -------- -----------------

Revenue (GAAP)                              $50,929  $58,305  $59,040
                                            ======== ======== ========

Gross margin (GAAP)                         $36,508  $42,112  $42,330
      Stock option expense                      292      402      355
                                            -------- -------- --------
      Gross margin (Non-GAAP)               $36,800  $42,514  $42,685
                                            ======== ======== ========
        Percentage of revenue                    72%      73%      72%

R, D & E expenses (GAAP)                     $7,931   $8,111   $7,917
      Stock option expense                     (822)    (956)    (782)
                                            -------- -------- --------
      R, D & E expenses (Non-GAAP)           $7,109   $7,155   $7,135
                                            ======== ======== ========

S, G & A expenses (GAAP)                    $23,973  $24,208  $23,779
      Stock option expense                   (1,878)  (2,330)  (1,819)
                                            -------- -------- --------
      S, G & A expenses (Non-GAAP)          $22,095  $21,878  $21,960
                                            ======== ======== ========

Operating income (GAAP)                      $4,604   $9,793  $10,634
     Stock option expense                     2,992    3,688    2,956
                                            -------- -------- --------
     Operating income (Non-GAAP)             $7,596  $13,481  $13,590
                                            ======== ======== ========
       Percentage of revenue                     15%      23%      23%

Net income (GAAP)                            $4,635   $9,505   $8,800
      Stock option expense, net of tax        2,015    2,438    1,918
      Net income excluding stock option
                                            -------- -------- --------
      expense (Non-GAAP)                     $6,650  $11,943  $10,718
      Tax benefit from discrete events            -     (694)       -
                                            -------- -------- --------
      Net income excluding stock option
      expense and tax benefit (Non-GAAP)     $6,650  $11,249  $10,718
                                            ======== ======== ========
      Percentage of revenue                      13%      19%      18%

Net income per diluted share (GAAP)           $0.10    $0.21    $0.18
      Stock option expense, net of tax         0.05     0.06     0.04
                                            -------- -------- --------
      Net income per diluted share
       excluding
      stock option expense (Non-GAAP)         $0.15    $0.27    $0.22
      Tax benefit from discrete events            -    (0.02)       -
                                            -------- -------- --------
      Net income per diluted share
       excluding stock
      option expense and tax benefit
       (Non-GAAP)                             $0.15    $0.25    $0.22
                                            ======== ======== ========




                          COGNEX CORPORATION
                            Balance Sheets
                             (Unaudited)
                             In thousands




                                                   April 1,  December
                                                                31,
                                                     2007      2006
                                                   -------------------

Assets

Cash and investments                               $266,551  $266,220

Accounts receivable                                  38,042    40,055

Inventories                                          32,724    30,583

Property, plant, and equipment                       26,509    26,028

Other assets                                        170,251   165,765
                                                   --------- ---------

Total assets                                       $534,077  $528,651
                                                   ========= =========


Liabilities and Shareholders' Equity

Current liabilities                                 $48,289   $54,801

Long-term tax liabilities                            12,743         -

Shareholders' equity                                473,045   473,850
                                                   --------- ---------

Total liabilities and shareholders' equity         $534,077  $528,651
                                                   ========= =========




                          COGNEX CORPORATION
                   Additional Information Schedule
                             (Unaudited)
                         Dollars in thousands



                                                Three Months Ended
                                            April 1, December April 2,
                                                        31,
                                             2007     2006     2006
                                            --------------------------

Revenue                                     $50,929  $58,305  $59,040
                                            ======== ======== ========

Revenue by division:
  Modular Vision Systems Division                89%      86%      89%
  Surface Inspection Systems Division            11%      14%      11%
                                            -------- -------- --------
  Total                                         100%     100%     100%
                                            ======== ======== ========

Revenue by geography:
  Americas                                       37%      35%      33%
  Japan                                          26%      29%      30%
  Europe                                         29%      28%      27%
  Asia                                            8%       8%      10%
                                            -------- -------- --------
  Total                                         100%     100%     100%
                                            ======== ======== ========

Revenue by market:
  Discrete factory automation                    59%      56%      56%
  Semiconductor and electronics capital
   equipment                                     30%      30%      33%
  Surface inspection                             11%      14%      11%
                                            -------- -------- --------
  Total                                         100%     100%     100%
                                            ======== ======== ========

Revenue by product:
  Vision sensors                                 54%      51%      48%
  PC-based vision systems                        28%      29%      36%
  Surface inspection vision systems               6%       9%       7%
  Service                                        12%      11%       9%
                                            -------- -------- --------
  Total                                         100%     100%     100%
                                            ======== ======== ========



    CONTACT: Cognex Corporation
             Susan Conway, 508-650-3353
             Director of Investor Relations
             susan.conway@cognex.com
</TEXT>
</DOCUMENT>
