<SEC-DOCUMENT>0001193125-16-641660.txt : 20160826
<SEC-HEADER>0001193125-16-641660.hdr.sgml : 20160826
<ACCEPTANCE-DATETIME>20160705164803
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-16-641660
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20160705

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:		CORRESP

	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>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML><HEAD>
<TITLE>Correspondence Letter</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt;margin-bottom:0pt">


<IMG SRC="g222326img1.jpg" ALT="LOGO">
 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">July&nbsp;5, 2016 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>VIA EDGAR </U></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Brian Cascio </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Accounting Branch Chief </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>Re:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Cognex Corporation </B></TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>Form 10-K for Fiscal Year Ended December&nbsp;31, 2015 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>Filed February&nbsp;10, 2016 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>Form 10-Q for the Quarterly Period Ended April&nbsp;3, 2016 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>Filed May&nbsp;2, 2016 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>File No.&nbsp;001-34218 </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear
Mr.&nbsp;Cascio: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This letter is submitted in response to the comments of the staff of the Division of Corporation Finance (the
&#147;Staff&#148;) of the Securities and Exchange Commission (the &#147;Commission&#148;) with respect to the annual report on Form 10-K for the year ended December&nbsp;31, 2015 (the &#147;Form 10-K&#148;) and the quarterly report on Form 10-Q for
the quarterly period ended April&nbsp;3, 2016 (the &#147;Form 10-Q&#148;) of Cognex Corporation (the &#147;Company&#148;), as set forth in your further letter to the undersigned dated June&nbsp;17, 2016 (the &#147;Comment Letter&#148;). For
reference purposes, the text of the Comment Letter has been reproduced herein with responses below each numbered comment. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Form 10-K for Fiscal Year
Ended December&nbsp;31, 2015 </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Item&nbsp;7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Executive Overview, page 17 </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I>1. Please
reconcile your response to prior comment 1 with (1)&nbsp;statements made during your February&nbsp;10, 2016 conference call discussing a slowed growth rate in China and a slower economy in Europe, and (2)&nbsp;statements made during your May&nbsp;2,
2016 conference call indicating that you experience seasonal trends in both your factory-automation and logistics businesses. Also, in future filings, please ensure that the significance of each of your industry and end-market references in your
document is clear from context. </I></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Cognex Corporation&nbsp;&nbsp;&nbsp;&nbsp;One Vision Drive&nbsp;&nbsp;&nbsp;&nbsp;Natick, MA
01760-2059&nbsp;&nbsp;&nbsp;&nbsp;(508) 650-3000&nbsp;&nbsp;&nbsp;&nbsp;fax (508) 650-3333&nbsp;&nbsp;&nbsp;&nbsp;www.cognex.com </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Brian Cascio </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">July 5, 2016 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 2
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Response to Comment 1: </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">With regard to the disclosures related to trends required by Regulation S-K Item&nbsp;303(a)(3)(ii) for full fiscal years, although management
discussed a slower growth rate in China and a slower economy in Europe during the Company&#146;s February&nbsp;10, 2016 conference call, the Company still expects growth from these regions in 2016 and does not believe that these economic conditions
will have a material impact on the Company&#146;s financial condition or results of operations. Specifically, management commented during the call that &#147;we do expect China to be a meaningful contributor to growth even in its current economic
state.&#148; To the extent identified by management, however, the Company will discuss any material trends by country or region affecting its financial condition or results of operations in its future filings. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">With regard to the disclosures related to seasonality required by Regulation S-K Instruction 5 to Item&nbsp;303(b) for interim periods, the
Company has discussed the seasonal aspects of its business in prior filings when these items have had a material effect on the Company&#146;s results of operations. For example, please refer to the Company&#146;s Form 10-Q for the quarterly period
ended October&nbsp;4, 2015, which stated &#147;The decrease for the three-month period was primarily due to the timing of revenue from large orders in the consumer electronics industry. The new product introduction cycles of customers in this
industry result in cyclical ordering patterns. During 2014, large consumer electronics orders were recognized as revenue predominantly in the third quarter, while during 2015, large consumer electronics orders were recognized as revenue in each of
the first three quarters of the year, with the highest level being recognized in the second quarter.&#148; Although the Company has historically experienced seasonality in its factory automation business (and, in particular, with respect to its
consumer electronics and logistics businesses), this seasonality did not have a material effect on the Company&#146;s results of operations for the quarterly period ended April&nbsp;3, 2016. Although management commented during the Company&#146;s
May&nbsp;2, 2016 conference call that &#147;we typically experience a revenue decline from Q4 to Q1 and that seasonal trend held true this year,&#148; the sequential decline in revenue was only $1.6 million or 2%, and therefore, the Company does not
believe this was a material seasonal trend requiring disclosure in the Form 10-Q. The Company will discuss the seasonal aspects of its businesses in future filings when such seasonality has had a material impact upon the Company&#146;s financial
condition or results of operations. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Also, per the Staff&#146;s comment, the Company will ensure that, in future filings, the significance
of each of its industry and end-market references in the filing is clear from context. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Gross Margin, page 18 </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I>2. Please expand your response to prior comment 2 to (1)&nbsp;clarify the basis for your conclusion that a margin in the mid 70% range would
be immaterial, and (2)&nbsp;address whether the preferred pricing arrangement with your material customer involves a material change in </I></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Brian Cascio </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">July 5, 2016 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 3
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>
margin during periods beyond your second quarter. Also tell us the extent that your margins would have changed during the periods presented absent your agreement with the material customer; your
response should make clear the extent that you must make sales with margins that offset your preferred pricing to maintain historic margins. </I></P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Response to Comment 2: </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Company
currently expects its gross margin to remain in the mid-to-high 70% range for the remainder of 2016, inclusive of the impact of the preferred pricing arrangement with its material customer. A gross margin at the lower end of this range would likely
be associated with higher total revenue, which would result in a positive contribution to the Company&#146;s operating income; therefore, the Company does not believe that a gross margin in the mid 70% range would be material to its results of
operations. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Company&#146;s gross margin would have been approximately 30 basis points higher absent its agreement with the material
customer in 2015 as compared to 2014 (please note that this impact is different from the 30 basis points attributed to increased sales of ID products in the Company&#146;s prior response). The preferred pricing arrangement and increased sales of ID
products contributed to a shift in revenue mix to relatively-lower margin products and services. As described in the Form 10-K, this shift in revenue mix, as well as the negative impact of changes in foreign currency exchange rates, was partially
offset by lower inventory charges in 2015 as compared to 2014, to result in a slight decline in the gross margin from 78% in 2014 to 77% in 2015. None of these items, either favorable or unfavorable to the gross margin, were individually material
(50 basis points or less). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Company has discussed the gross margin impact of arrangements with material customers in prior filings
when these items have had a material effect on the Company&#146;s results of operations. For example, please refer to the Company&#146;s Form 10-Q for the quarterly period ended July&nbsp;5, 2015, which stated that the lower gross margin was due in
part to &#147;volume pricing discounts on certain large orders.&#148; The Company will continue to describe material changes in its gross margin in future filings. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Income Tax, page 22 </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I>3. Please refer
to comment 3. We see that the statutory tax rates in your major foreign jurisdictions are significantly higher than the foreign effective tax rate that can be derived from the disclosures in Note 16. Accordingly, in future filings please also
disclose the foreign effective tax rate and describe the principal reasons for the difference between the foreign effective tax rate and the foreign statutory rates you disclose in MD&amp;A. </I></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Brian Cascio </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">July 5, 2016 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 4
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Response to Comment 3: </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Per the Staff&#146;s comment, the Company will disclose, in future filings, the foreign effective tax rate and describe the principal reasons
for the difference between the foreign effective tax rate and the foreign statutory rates the Company discloses in MD&amp;A. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Item&nbsp;8. Financial
Statements </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Note 1. Summary of Significant Accounting Policies, page 39 </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Revenue Recognition, page 41 </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I>4. Please
refer to comment 4. While we acknowledge the proposed revisions to your revenue recognition disclosure, in future filings, please describe the specific circumstances where you recognize revenue in advance of billing, including a description of the
underlying terms of any specific arrangements. Also, describe how payment terms of those arrangements differ from those when you recognize revenue and bill receivables at shipment or delivery, as described in your basic revenue policy disclosure.
</I></P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Response to Comment 4: </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Per the
Staff&#146;s comment, the Company will disclose, in future filings, the specific circumstances where the Company recognizes revenue in advance of billing, including a description of the underlying terms of any specific arrangements. In addition, in
future filings, the Company will describe how payment terms of those arrangements differ from those when the Company recognizes revenue and bills receivables at shipment or delivery, as described in its basic revenue policy disclosure. The
Company&#146;s intended disclosure is included below (changes to existing disclosure marked, with new disclosure in underlined text). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">&#147;In order to recognize revenue, the Company requires that a signed customer contract or purchase order is received, the fee from the
arrangement is fixed or determinable, and the collection of the resulting receivable is probable. Assuming that these criteria have been met, product revenue is generally recognized upon delivery, revenue from maintenance and support programs is
recognized ratably over the program period, and revenue from consulting and training services is recognized when the services have been provided. When customer-specified acceptance criteria exists that are substantive, product revenue is deferred,
along with associated incremental direct costs, until these criteria have been met <U>and any remaining performance obligations are inconsequential or perfunctory. </U> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><U>For the majority of the Company&#146;s revenue transactions, revenue recognition and invoicing both occur upon delivery. In certain
circumstances, however, the agreement with the customer provides for invoicing terms which differ from revenue recognition criteria, resulting in either deferred revenue or unbilled revenue. Invoicing that precedes revenue recognition is common for
various</U> </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Brian Cascio </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">July 5, 2016 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 5
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">
<U>customers in the logistics industry where milestone billings are prevalent, resulting in deferred revenue. Conversely, the Company records unbilled revenue in connection with a material
customer in the consumer electronics industry. For this arrangement, the Company recognizes revenue for all delivered products when the first production line that incorporates these products is validated, because at that point the remaining
performance obligations are inconsequential or perfunctory. Invoicing for all delivered products occurs as the production lines incorporating those products are installed over a period of several weeks. The Company also has a technical support
obligation related to this arrangement for which revenue is deferred and recognized over the support period of approximately six months.&#148;</U> </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Note 16. Taxes, page 59 </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I>5. Please
refer to comment 7. While your response indicates that you have repatriated a certain amount of current year earnings in each year, Note 16 does not provide any disclosure about repatriated earnings and we do not see any deferred tax liability for
undistributed foreign earnings not deemed permanently reinvested. To help us better understand your response, please describe to us the actual circumstances leading you to repatriate and provide for U.S. income taxes on foreign earnings and quantify
the impact on the provision for income taxes for each year presented. Also, clarify the basis for your disclosure on page 61 that you do not provide U.S. income taxes on foreign subsidiaries undistributed earnings because they are deemed to be
permanently reinvested. </I></P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Response to Comment 5: </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Each year the Company reviews its earnings in the various jurisdictions in which it operates and determines the level of funds required to
sustain future growth. These funds are considered permanently reinvested. Where it is determined that excess funds are available within the current year&#146;s earnings, the excess has been repatriated to the United States and appropriate taxes paid
net of foreign tax credits. In 2014, the Company repatriated $35 million in foreign earnings and provided for $8.7 million in Federal income taxes. In 2015, the Company repatriated $44 million in foreign earnings and provided for $12.3 million in
Federal income taxes. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">To the extent that the Company has undistributed foreign earnings that are not deemed permanently reinvested in the
future, the Company will provide appropriate footnote disclosure and record a deferred tax liability with respect to such undistributed foreign earnings. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I>6. Please refer to comment 7. Tell us the cumulative amount of undistributed earnings of your foreign subsidiaries at December&nbsp;31,
2015. </I></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Brian Cascio </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">July 5, 2016 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 6
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Response to Comment 6: </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Company&#146;s cumulative amount of undistributed earnings of its foreign subsidiaries was $375 million at December&nbsp;31, 2015. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Form 10-Q for the Quarterly Period Ended April&nbsp;3, 2016 </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I>7. Please expand your response to prior comment 8 to provide your analysis of whether your complete amended charter was required to be filed
with your previous Form 10-Q; include in your response the date that the charter was amended. Also address in your response when you are required to file your complete amended bylaws. </I></P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Response to Comment 7: </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Company
proposed amendments to its charter and bylaws for approval by its shareholders at its 2016 Annual Meeting of Shareholders held on April&nbsp;28, 2016. These proposed amendments, which were set forth in the Company&#146;s definitive proxy statement
filed with the Commission on March&nbsp;16, 2016, were approved by the Company&#146;s shareholders at the Annual Meeting. However, the amendments to the charter were not effective until the filing and acceptance of articles of amendment in
appropriate form with the Secretary of State of the Commonwealth of Massachusetts, which occurred on May&nbsp;5, 2016. The amendment to the Company&#146;s bylaws became effective at the same time. As a result, the Company will be required to file
its complete amended charter and complete amended bylaws with its next periodic report (its quarterly report on Form 10-Q for the quarterly period ended July&nbsp;3, 2016) pursuant to Regulation S-K Item&nbsp;601(b)(3)(i) and (ii). </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If you should have any questions concerning these responses, please contact the undersigned at (508)&nbsp;650-6363. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="100%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sincerely,</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">/s/ Richard A. Morin</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Richard A. Morin</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Executive Vice President of</I></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Finance
and Administration</I></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman"><I>and Chief Financial Officer</I></P></TD></TR>
</TABLE></DIV>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>g222326img1.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 g222326img1.jpg
M_]C_X  02D9)1@ ! @  9 !D  #_[  11'5C:WD  0 $    9   _^X #D%D
M;V)E &3      ?_; (0  0$! 0$! 0$! 0$! 0$! 0$! 0$! 0$! 0$! 0$!
M 0$! 0$! 0$! 0$! 0(" @(" @(" @(" P,# P,# P,# P$! 0$! 0$" 0$"
M @(! @(# P,# P,# P,# P,# P,# P,# P,# P,# P,# P,# P,# P,# P,#
M P,# P,# P,#_\  $0@ ' #  P$1  (1 0,1 ?_$ (L   (" @,! 0
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M+SW)M,XBC=U;GW.>GI+;N.S<DDLQUA<:B\7.;7N4.$:,.X=Q6&N2 @A>68G
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MH4.]X)&KDE[&!Y4I$>_,-/X5.<M$ O;$(>Q2FNM:^.@$K]3O^VYQH?URS?\
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M^&_F=C;]O:T"%_[E+_EC_6ZT#G[E+_EC_6ZT"7B;X6[R,+N6]J?(5YESN?\
M*/-AVQ\S7;MBX?J_EWVIU%V^X/E_,OJ.SM<+]8WF@=\!GPJ?FOM'Y'O*[YJN
M<K>S6KO9S?JCE*[5TKW<^Z/5O [[EVS]H<1JX/ZQL: U#H (,W;W"O75I?>X
M=@>YO3#WVNZ[[A=>]%\R)YAO^TWWBZ5YSM\'S3ZGQ7$\)])Q.@>,RG/<!=\I
IE[I;HGO#T"=W#[5^9;E70G-$FXZSZ\^X6QSC8Y?QGUS?;SA?Y[0/_]D!

end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
