

                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 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) October 14, 1998


                       ADVANCED MACHINE VISION CORPORATION
             (Exact name of registrant as specified in its charter)


                                   California
                 (State or other jurisdiction of incorporation)


               0-20097                                   33-0256103
      (Commission File Number)                 (IRS Employer Identification No.)

       3709 Citation Way #102
          Medford, Oregon                                  97504
(Address of principal executive offices)                 (Zip Code)

                                  541-776-7700
              (Registrant's telephone number, including area code)



                           Total Number of Pages: 98

<PAGE>

Item 5.      Other Events
             ------------

             On October 14, 1998,  Advanced Machine Vision  Corporation  ("AMV")
             sold 119,106 shares of its Series B Preferred  Stock ("the Shares")
             to FMC Corporation ("FMC") for $2,620,332. Contracts related to the
             transaction provide, among other things, for the following:

             1.   The Shares are initially  convertible  into AMV Class A Common
                  Stock on the basis of ten common shares for each Share.

             2.   In matters placed before common shareholders,  the Shares have
                  a number of votes  equal to the number of common  shares  into
                  which  the  Shares  are  convertible.  The  Shares  vote  as a
                  separate  class in the election of one director of AMV,  which
                  expands the size of AMV's board from seven to eight directors.
                  Pursuant to this provision,  Marc T. Giles, General Manager of
                  FMC FoodTech's Food Systems and Handling Division, was elected
                  to AMV's Board of Directors

             3.   The Shares have a liquidation preference of $22 per share.

             4.   Upon a change in control  of AMV,  excluding  any change  that
                  involves FMC or its affiliates,  FMC may "put" the Shares back
                  to AMV  for a  price  equal  to the  greater  of the  original
                  purchase  price  or  the  average  closing  bid  price  of the
                  equivalent common shares for 45 days prior to the transaction.

             5.   FMC was granted a security interest in SRC VISION, Inc.'s (a
                  wholly-owned subsidiary of AMV) intellectual property.

             6.   FMC can demand registration of the common stock underlying the
                  Shares.

             7.   FMC  received  a  five-year  option to  purchase  15% of AMV's
                  common shares  outstanding on the date of exercise for a price
                  equal to the greater of $2.20 per share or the average closing
                  bid price for 45 days immediately preceding the exercise date.
                  If and when the option is exercised, FMC shall have the right
                  to designate one additional director.

             8.   AMV has a right of first refusal to purchase back the Shares
                  if FMC elects to sell the Shares.

             9.   While the Shares are outstanding and owned by FMC, FMC's
                  consent is required for AMV to:

                  * Change the rights, preferences or privileges with respect to
                    the Shares.

                  * Issue any new shares having rights senior or equal to the
                    Shares.

                  * Redeem or repurchase any shares of capital stock.

                  * Transact a merger, reorganization, sale of control and sale
                    of intellectual property.

                  * Purchase, lease, license or acquire assets or property of
                    another  person  or  entity,  other  than in the  ordinary
                    course of business,  in excess of $500,000 individually or
                    $2,000,000 in the aggregate.

                  * Issue  common  stock or other  equity  securities  except
                    pursuant to existing option or other stock plans.

                  * Amend  or  waive  any  provision  of  AMV's  Articles  of
                    Incorporation or By-Laws.

             10.  FMC will act as AMV's exclusive or nonexclusive sales
                  representative in many world markets.

Item 7.      Financial Statements and Exhibits
             ---------------------------------

             * Certificate of Determination for Series B Preferred Stock.

             * Series B Preferred Stock Purchase Agreement dated October 14,
               1998.

             * Intellectual Property Security Agreement between SRC VISION, Inc.
               and FMC Corporation dated October 14, 1998.


                                   SIGNATURES

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


                                             ADVANCED MACHINE VISION CORPORATION



Date:  October 16, 1998                      By:   /s/ Alan R. Steel
                                                --------------------------------
                                                   Vice President, Finance and
                                                   Chief Financial Officer

<PAGE>

                                  EXHIBIT INDEX
                                  -------------


4            Certificate of Determination for Series B Preferred Stock.

10.1         Series B Preferred Stock Purchase Agreement dated October 14, 1998.

10.2         Intellectual Property Security Agreement between SRC VISION, Inc.
             and FMC Corporation dated October 14, 1998.

