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<SEC-DOCUMENT>0001157523-07-008453.txt : 20070815
<SEC-HEADER>0001157523-07-008453.hdr.sgml : 20070815
<ACCEPTANCE-DATETIME>20070815160120
ACCESSION NUMBER:		0001157523-07-008453
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070815
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070815
DATE AS OF CHANGE:		20070815

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:		071059820

	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>a5472911.txt
<DESCRIPTION>COGNEX CORP. 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): August 15, 2007




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


          Massachusetts               0-17869              04-2713778
- --------------------------------------------------------------------------------
 (State or other jurisdiction of    (Commission         (I.R.S. Employer
  incorporation or organization)    File Number)       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 August 15, 2007, Cognex Corporation issued a news release to report its
financial results for the second quarter ended July 1, 2007. 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

(d)  Exhibits

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

99.1           News release, dated August 15, 2007, 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: August 15, 2007               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>a5472911ex99_1.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
                                                                    Exhibit 99.1


         Cognex Corporation Announces Second Quarter Results


    NATICK, Mass.--(BUSINESS WIRE)--Aug. 15, 2007--Cognex Corporation
(NASDAQ: CGNX) today announced its financial results for the second
quarter ended July 1, 2007. Revenue, net income and earnings per share
for the quarter and six months ended July 1, 2007 are compared to the
second quarter of 2006, the first quarter of 2007, and the first six
months of 2006 in Table 1 below.

    During the second quarter of 2007, Cognex discovered
irregularities resulting from unsubstantiated orders originating at
the company's Japanese subsidiary. The company has determined that
revenue reported for the first quarter of 2007 was overstated in the
amount of $303,000, and that revenue for the fourth quarter of 2006
was overstated in the amount of $757,000. Due to the immateriality of
the amounts involved, reported revenue for the second quarter of 2007
was reduced by $1,060,000, to correct for the entire overstatement.



                               Table 1
- ----------------------------------------------------------------------

                                                              Earnings
                                                                 per
                                                              Diluted
                                       Revenue    Net Income    Share
- -------------------------------------============-===========-========
       Quarterly Comparisons
====================================----------------------------------
Current quarter: Q2-07               $54,742,000  $3,827,000   $0.09
- ----------------------------------------------------------------------
Prior year's quarter: Q2-06          $63,074,000  $11,434,000  $0.24
- ----------------------------------------------------------------------
Change from Q2-06 to Q2-07              (13%)        (67%)     (64%)
- ----------------------------------------------------------------------
Prior quarter: Q1-07                 $50,929,000  $4,635,000   $0.10
- ----------------------------------------------------------------------
Change from Q1-07 to Q2-07                7%         (17%)     (16%)
- ----------------------------------------------------------------------
      Year to Date Comparisons
====================================----------------------------------
Six months ended July 1, 2007        $105,671,000 $8,462,000   $0.19
- ----------------------------------------------------------------------
Six months ended July 2, 2006        $122,114,000 $20,234,000  $0.42
- ----------------------------------------------------------------------
Change from first six months of 2006
 to first six months of 2007            (13%)        (58%)     (55%)
- ----------------------------------------------------------------------


    For comparative purposes, the company's results are shown in Table
2 below excluding stock option expense and one-time tax items. In
addition, Exhibit 2 shows the effect of stock option expensing and
one-time tax items on certain line items in the P&L as reported under
GAAP.



                               Table 2
- ----------------------------------------------------------------------

                                                              Earnings
                                                                 per
                                                              Diluted
                                       Revenue    Net Income    Share
- -------------------------------------============-===========-========
       Quarterly Comparisons
====================================----------------------------------
Current quarter: Q2-07 (Non-GAAP)    $54,742,000  $5,966,000   $0.14
- ----------------------------------------------------------------------
Prior year's quarter: Q2-06 (Non-
 GAAP)                               $63,074,000  $12,839,000  $0.27
- ----------------------------------------------------------------------
Change from Q2-06 to Q2-07              (13%)        (54%)     (50%)
- ----------------------------------------------------------------------
Prior quarter: Q1-07 (Non-GAAP)      $50,929,000  $6,650,000   $0.15
- ----------------------------------------------------------------------
Change from Q1-07 to Q2-07                7%         (10%)      (9%)
- ----------------------------------------------------------------------
      Year to Date Comparisons
====================================----------------------------------
Six months ended July 1, 2007(Non-
 GAAP)                               $105,671,000 $12,616,000  $0.28
- ----------------------------------------------------------------------
Six months ended July 2, 2006 (Non-
 GAAP)                               $122,114,000 $23,557,000  $0.49
- ----------------------------------------------------------------------
Change from first six months of 2006
 to first six months of 2007            (13%)        (46%)     (43%)
- ----------------------------------------------------------------------


    "I am pleased that the revenue and earnings we reported for the
second quarter were within the guidance range we gave to investors in
April, especially considering the revenue adjustment that we recorded
during the quarter, as well as a $2 million increase to the excess
inventory reserve," said Dr. Robert J. Shillman, Cognex's Chairman and
Chief Executive Officer. "However, that does not mitigate the tepid
capital spending trends we continue to see in the semiconductor,
electronics and automotive industries, which are currently among the
largest users of Cognex machine vision. In light of these industry
conditions, as well as the typical softness we see in the Factory
Automation market during the summer months, revenue for the third
quarter will likely be flat, at best, on a sequential basis."

                        Details of the Quarter

    Statement of Operations Highlights - Second Quarter of 2007

    --  Revenue for the second quarter of 2007 decreased 13% from the
        second quarter of 2006 primarily due to lower sales to
        customers in the semiconductor and electronics industries, as
        well as lower revenue from the Surface Inspection market. On a
        sequential basis, revenue increased 7% due to higher sales to
        the Factory Automation market and, to a lesser extent, higher
        sales of surface inspection systems.

    --  Gross margin was 67% in the second quarter of 2007, 74% in the
        second quarter of 2006 and 72% in the first quarter of 2007.
        Gross margin for the second quarter of 2007 includes a pre-tax
        charge of $2,126,000 in cost of goods sold for excess
        inventory resulting from lower actual and currently forecasted
        orders than were estimated in the company's original
        production plan. Excluding both this charge and stock option
        expense, gross margin would have been 72% in the second
        quarter of 2007 compared to 74% in the comparable quarter of
        2006 and 72% in the first quarter of 2007. The decrease in
        gross margin year-on-year is due to the lower sales volume.

    --  Research, Development & Engineering (R, D & E) spending in the
        second quarter of 2007 decreased 7% from the second quarter of
        2006 and increased 1% on a sequential basis. Excluding stock
        option expense, R, D & E spending decreased 4% and increased
        3%, respectively. The decrease in R, D & E spending excluding
        stock option expense year-on-year is due to a lower bonus
        accrual in the second quarter of 2007, which was somewhat
        offset by higher costs resulting from additional headcount to
        support new product initiatives. On a sequential basis, R, D &
        E spending excluding stock option expense increased due to
        higher labor and outside service costs, which were partially
        offset by a lower bonus accrual.

    --  Selling, General & Administrative (S, G & A) spending in the
        second quarter of 2007 decreased 3% from the second quarter of
        2006 and increased 3% on a sequential basis. Excluding stock
        option expense, S, G & A increased 0% and 4%, respectively. S,
        G & A spending excluding stock option expense was flat
        year-on-year due to higher employee-related costs and the
        impact of foreign exchange rates on the company's
        international operations being offset by a lower bonus
        accrual. On a sequential basis, S, G & A spending excluding
        stock option expense increased due to higher marketing costs.

    --  The company reported a foreign currency loss of $323,000 in
        the second quarter of 2007, a loss of $280,000 in the second
        quarter of 2006 and a loss of $118,000 in the first quarter of
        2007. 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 $1,938,000 in the second
        quarter of 2007, $1,772,000 in the second quarter of 2006 and
        $1,778,000 in the first quarter of 2007. Investment and other
        income increased both year-on-year and sequentially due to
        higher yields.

    --  The effective tax rate was 34% in the second quarter of 2007,
        19% in the second quarter of 2006 and 26% in the first quarter
        of 2007. Excluding the one-time discrete items described
        below, the tax rate would have been 26% in the second quarter
        of 2007 and 25% in the second quarter of 2006. The increase in
        the effective tax rate year-on-year is due to more of the
        company's profits being earned in higher tax jurisdictions
        than in the second quarter of 2006.

    The second quarter of 2007 includes an unfavorable adjustment of
$438,000 resulting from the filing of the actual amended tax returns
arising out of the Japanese tax audit settlement that occurred in the
third quarter of 2006. The second quarter of 2006 includes a benefit
of $869,000 from the settlement of a multi-year state tax audit during
the quarter.

    Balance Sheet Highlights - July 1, 2007

    --  Cognex's financial position at July 1, 2007 was very strong,
        with over $246,000,000, or $5.69 per outstanding share, in
        cash and investments and no debt. In the first six months of
        2007, Cognex generated positive cash flow from operations of
        approximately $18,000,000, paid out $7,534,000 in dividends to
        shareholders, and spent $32,633,000 to repurchase nearly
        1,430,000 shares of its common stock on the open market (of
        which approximately $30,000,000 was spent in the second
        quarter).

    --  Days sales outstanding (DSO) for the second quarter of 2007
        was 57 days, and remains within the company's targeted range.

    --  Inventories at July 1, 2007, increased by $2,075,000, or 7%,
        from the end of 2006, and inventory turns in the second
        quarter were equivalent to 2.2 times per year.

    Financial Outlook

    --  For the third 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 5% to 10% on a
        sequential basis, including estimated costs of between $1
        million and $1.5 million for the investigation of
        unsubstantiated orders originating at the company's Japanese
        subsidiary. The effective tax rate is expected to be 26%. As a
        result of the above, earnings for the third quarter of 2007
        are expected to be between $0.05 and $0.10 per diluted share
        (or between $0.09 and $0.14 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 $2,400,000 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 if they are one-time discrete events, such
as those affecting cost of revenue and the tax provision. 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
second quarter of 2007, as well as its financial outlook, on Thursday,
August 16, 2007 at 4:00 p.m. eastern time. The telephone number for
the live call is 866-882-0695 (or 703-639-1480 if outside the United
States). A replay will begin at 7:00 p.m. eastern time on Thursday,
August 16, 2007 and will run continuously until 11:59 p.m. eastern
time on Sunday, August 19, 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 1107345.

    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      Six Months Ended
                        July 1,  April 1, July 2,   July 1,   July 2,
                          2007     2007     2006     2007      2006
                        ----------------- ------------------ ---------

Revenue                 $54,742  $50,929  $63,074  $105,671  $122,114

Cost of revenue (1)      17,981   14,421   16,593    32,402    33,303
                        -------- -------- -------- --------- ---------

Gross margin             36,761   36,508   46,481    73,269    88,811
     Percentage of
      revenue                67%      72%      74%       69%       73%

Research, development,
 and engineering
 expenses (1)             8,019    7,931    8,582    15,950    16,499
     Percentage of
      revenue                15%      16%      14%       15%       14%

Selling, general, and
 administrative
 expenses (1)            24,594   23,973   25,277    48,567    49,056
     Percentage of
      revenue                45%      47%      40%       46%       40%
                        -------- -------- -------- --------- ---------

Operating income          4,148    4,604   12,622     8,752    23,256
     Percentage of
      revenue                 8%       9%      20%        8%       19%

Foreign currency loss      (323)    (118)    (280)     (441)     (425)

Investment and other
 income                   1,938    1,778    1,772     3,716     3,338
                        -------- -------- -------- --------- ---------

Income before taxes       5,763    6,264   14,114    12,027    26,169

Income tax provision      1,936    1,629    2,680     3,565     5,935
                        -------- -------- -------- --------- ---------

Net income              $ 3,827  $ 4,635  $11,434  $  8,462  $ 20,234
     Percentage of
      revenue                 7%       9%      18%        8%       17%
                        ======== ======== ======== ========= =========

Net income per diluted
 common and common
 equivalent share (2)   $  0.09  $  0.10  $  0.24  $   0.19  $   0.42
                        ======== ======== ======== ========= =========

Diluted weighted-
 average common and
 common equivalent
 shares outstanding      44,281   44,905   47,517    44,665    47,756
                        ======== ======== ======== ========= =========

Cash dividends per
 common share           $ 0.085  $ 0.085  $ 0.080  $  0.170  $  0.160
                        ======== ======== ======== ========= =========

  (1) Amounts include
       stock option
       expense, as
       follows:
        Cost of revenue $   297  $   292  $   426  $    589  $    781
        Research,
         development,
         and
         engineering        723      822      948     1,545     1,730
        Selling,
         general, and
         administrative   1,509    1,878    2,131     3,387     3,950
                        -------- -------- -------- --------- ---------
        Total stock
         option expense $ 2,529  $ 2,992  $ 3,505  $  5,521  $  6,461
                        ======== ======== ======== ========= =========

  (2) Net income per
       diluted common
       and common
       equivalent share
       excluding stock
       option expense.  $  0.13  $  0.15  $  0.29  $   0.27  $   0.51
                        ======== ======== ======== ========= =========




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




                            Three Months Ended      Six Months Ended
                        July 1,  April 1, July 2,   July 1,   July 2,
                          2007     2007     2006     2007      2006
                        -------- -------- -------- --------- ---------

Revenue (GAAP)          $54,742  $50,929  $63,074  $105,671  $122,114
                        ======== ======== ======== ========= =========

Gross margin (GAAP)     $36,761  $36,508  $46,481  $ 73,269  $ 88,811
 Stock option expense       297      292      426       589       781
 Charge for excess
  inventory               2,126        -        -     2,126         -
                        -------- -------- -------- --------- ---------
 Gross margin (Non-
  GAAP)                 $39,184  $36,800  $46,907  $ 75,984  $ 89,592
                        ======== ======== ======== ========= =========
      Percentage of
       revenue               72%      72%      74%       72%       73%

R, D & E expenses
 (GAAP)                 $ 8,019  $ 7,931  $ 8,582  $ 15,950  $ 16,499
 Stock option expense      (723)    (822)    (948)   (1,545)   (1,730)
                        -------- -------- -------- --------- ---------
 R, D & E expenses
  (Non-GAAP)            $ 7,296  $ 7,109  $ 7,634  $ 14,405  $ 14,769
                        ======== ======== ======== ========= =========

S, G & A expenses
 (GAAP)                 $24,594  $23,973  $25,277  $ 48,567  $ 49,056
 Stock option expense    (1,509)  (1,878)  (2,131)   (3,387)   (3,950)
                        -------- -------- -------- --------- ---------
 S, G & A expenses
  (Non-GAAP)            $23,085  $22,095  $23,146  $ 45,180  $ 45,106
                        ======== ======== ======== ========= =========

Operating income (GAAP) $ 4,148  $ 4,604  $12,622  $  8,752  $ 23,256
 Stock option expense     2,529    2,992    3,505     5,521     6,461
                        -------- -------- -------- --------- ---------
 Operating income (Non-
  GAAP)                 $ 6,677  $ 7,596  $16,127  $ 14,273  $ 29,717
                        ======== ======== ======== ========= =========
      Percentage of
       revenue               12%      15%      26%       14%       24%

Net income (GAAP)       $ 3,827  $ 4,635  $11,434  $  8,462  $ 20,234
 Stock option expense,
  net of tax              1,701    2,015    2,274     3,716     4,192
                        -------- -------- -------- --------- ---------
 Net income excluding
  stock option expense
  (Non-GAAP)            $ 5,528  $ 6,650  $13,708  $ 12,178  $ 24,426
 Discrete tax events        438        -     (869)      438      (869)
                        -------- -------- -------- --------- ---------
 Net income excluding
  stock option expense
  and tax benefit (Non-
  GAAP)                 $ 5,966  $ 6,650  $12,839  $ 12,616  $ 23,557
                        ======== ======== ======== ========= =========
      Percentage of
       revenue               11%      13%      20%       12%       19%

Net income per diluted
 share (GAAP)           $  0.09  $  0.10  $  0.24  $   0.19  $   0.42
 Stock option expense,
  net of tax               0.04     0.05     0.05      0.08      0.09
                        -------- -------- -------- --------- ---------
 Net income per diluted
  share excluding stock
  option expense (Non-
  GAAP)                 $  0.13  $  0.15  $  0.29  $   0.27  $   0.51
 Discrete tax events       0.01        -    (0.02)     0.01     (0.02)
                        -------- -------- -------- --------- ---------
 Net income per diluted
  share excluding stock
  option expense and
  tax benefit (Non-
  GAAP)                 $  0.14  $  0.15  $  0.27  $   0.28  $   0.49
                        ======== ======== ======== ========= =========




                          COGNEX CORPORATION
                            Balance Sheets
                             (Unaudited)
                             In thousands




                                               July 1,    December 31,
                                                 2007         2006
                                             -------------------------

Assets

Cash and investments                         $    246,066 $    266,220

Accounts receivable                                35,520       40,055

Inventories                                        32,658       30,583

Property, plant, and equipment                     26,525       26,028

Other assets                                      171,533      165,765
                                             ------------ ------------

Total assets                                 $    512,302 $    528,651
                                             ============ ============


Liabilities and Shareholders' Equity

Current liabilities                          $     50,239 $     46,434

Reserve for income taxes                           13,098        8,367

Shareholders' equity                              448,965      473,850
                                             ------------ ------------

Total liabilities and shareholders' equity   $    512,302 $    528,651
                                             ============ ============




                          COGNEX CORPORATION
                   Additional Information Schedule
                             (Unaudited)
                         Dollars in thousands



                               Three Months Ended    Six Months Ended
                            July 1, April 1, July 2, July 1,  July 2,
                              2007    2007     2006    2007     2006
                            ------------------------ -----------------

Revenue                     $54,742 $ 50,929 $63,074 $105,671 $122,114
                            ======= ======== ======= ======== ========

Revenue by division:
  Modular Vision Systems
   Division                     88%      89%     86%      88%      87%
  Surface Inspection
   Systems Division             12%      11%     14%      12%      13%
                            ------- -------- ------- -------- --------
  Total                        100%     100%    100%     100%     100%
                            ======= ======== ======= ======== ========

Revenue by geography:
  Americas                      36%      37%     35%      37%      34%
  Europe                        34%      29%     30%      32%      29%
  Japan                         21%      26%     26%      23%      28%
  Asia                           9%       8%      9%       8%       9%
                            ------- -------- ------- -------- --------
  Total                        100%     100%    100%     100%     100%
                            ======= ======== ======= ======== ========

Revenue by market:
  Discrete factory
   automation                   63%      59%     55%      61%      55%
  Semiconductor and
   electronics capital
   equipment                    25%      30%     31%      27%      32%
  Surface inspection            12%      11%     14%      12%      13%
                            ------- -------- ------- -------- --------
  Total                        100%     100%    100%     100%     100%
                            ======= ======== ======= ======== ========

Revenue by product:
  Vision sensors                59%      54%     46%      56%      47%
  PC-based vision systems       22%      28%     35%      26%      35%
  Surface inspection vision
   systems                       8%       6%     10%       7%       9%
  Service                       11%      12%      9%      11%       9%
                            ------- -------- ------- -------- --------
  Total                        100%     100%    100%     100%     100%
                            ======= ======== ======= ======== ========



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