Cognex Corporations Reports Second Quarter Results

NATICK, MA, July 23, 2001Cognex Corporation (NASDAQ: CGNX) today announced revenue for the second quarter ended July 1, 2001 of $37,379,000, compared to $62,187,000 reported for the second quarter of 2000. Net income for the second quarter ended July 1, 2001 was $2,155,000, or $0.05 per diluted share, compared to $17,358,000, or $0.38 per diluted share, reported for the comparable period a year ago.

Revenue for the six months ended July 1, 2001 was $81,585,000, compared to $116,682,000 reported for the same six-month period a year ago. For the six months ended July 1, 2001, Cognex reported net income of $6,916,000, or $0.15 per diluted share, compared to $32,770,000, or $0.71 per diluted share, for the comparable period in 2000.

Reported results for the second quarter and for the first half of both 2000 and 2001 include the amortization of goodwill. Excluding the amortization of goodwill, net income for the quarter and six months ended July 1, 2001 would have been $0.06 per diluted share and $0.18 per diluted share, respectively, compared to $0.38 per diluted share and $0.72 per diluted share, respectively, in the comparable periods a year ago.

'During the second quarter, delays and cutbacks in capital equipment spending by manufacturers, primarily in the semiconductor and electronics industries, continued to negatively impact our business,' said Dr. Robert J. Shillman, Cognex's President, Chief Executive Officer, and Chairman. 'Although requests by customers to cancel or delay orders have subsided in recent weeks, the volume of business is significantly below the record level achieved in 2000. Based upon the current lower order level as well as our customers' uncertainty as to the timing of a business recovery, we remain negative about the near-term outlook. For the third quarter of 2001, we believe that revenue will decline sequentially by approximately 10%, and earnings will be in the range of $0.03 to $0.05 per share.'

Dr. Shillman continued, 'In spite of the near-term uncertainty, our aggressive product development schedule, established sales and distribution network, and strong, conservative balance sheet will enable the company to be in an even stronger competitive position when business conditions improve.'

Analyst Conference Call and Simultaneous Webcast
Cognex Corporation will host an analyst conference call to discuss its results for the second quarter of 2001, as well as the financial outlook, today at 5:30 p.m. eastern. The telephone number to listen to the live conference call is 212-346-0260. A replay of the conference call will begin at approximately 7:30 p.m. eastern today and will be available for one week. To listen to the replay of the conference call, the telephone number is 800-633-8284 (or 858-812-6440 if outside the United States) and the access code for the replay is 19239919.

Internet users can listen to a real-time audio broadcast of the conference call on Cognex's website. An archive of the webcast will be available on Cognex's website for one week.

About Cognex Corporation
Cognex Corporation designs, develops, manufactures, and markets machine vision systems, or computers that can 'see.' Cognex is the world's leader in the machine vision industry, having shipped to date more than 150,000 machine vision systems, representing over $1 billion in cumulative revenue, since the company's founding in 1981. Cognex's Modular Vision Systems Division, headquartered in Natick, Massachusetts, specializes in machine vision systems which are used for automating the manufacture of a wide range of discrete items and for assuring their quality. Cognex's Surface Inspection Systems Division, headquartered in Alameda, California, specializes in machine vision systems which are used for inspecting the surfaces of products that are manufactured in a continuous fashion, such as metals, paper, and plastics. In addition to its corporate headquarters in Natick, Massachusetts, Cognex also has regional offices located throughout North America, Japan, Europe, and Southeast Asia. Visit Cognex on-line at.

Forward-Looking Statement
Certain statements made in this press release are forward-looking statements. These statements are based on the company's current expectations and estimates as to prospective events and circumstances which may or may not be in the company's control and as to which there can be no firm assurances given. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. The company wishes to caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Further discussions of risk factors are also available in the company's registration statements filed with the Securities and Exchange Commission.
 
CONTACT:
Susan Conway
Investor Relations Manager
Cognex Corporation
(508) 650-3353

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