Robotic Vision Systems, Inc. Reports First Quarter of FY2002 Results

CANTON, MASSACHUSETTS - February 7, 2002 - Robotic Vision Systems, Inc. (RVSI) (NASDAQ: ROBV) today reported results for the first quarter of its fiscal year 2002 ended December 31, 2001. Revenues were $14,965,000 and, excluding unusual gains and charges, the company had a net loss of $10,209,000, or $0.27 per share. Inclusive of all unusual items, which included the sale of the company's Material Handling business, the company reported a net loss of $3,439,000 or $0.09 per share. Click here for a Statement of Operations.

These results compare to revenues of $38,964,000 and a net loss of $19,664,000, or $0.56 per share in the first quarter of fiscal year 2001; and to revenue of $16,513,000 and a net loss of $17,472,000 or $0.49 per share, in fiscal year 2001's fourth quarter.  The net loss figures in both quarters are exclusive of unusual charges.

RVSI's results in the first quarter of FY2002 include a gain of $6,935,000 on the sale of the company's Material Handling business, which was completed in December 2001.  The results for the just-completed quarter also include severance and other charges of $165,000.
"We saw two key turning points for RVSI in the December quarter," said Pat V. Costa, Chairman and CEO of RVSI.  "First, we believe we have seen the bottom for orders.  In the past several weeks, inquiry rates and quote activity have picked up markedly.  Second, we have completed the sale of our Material Handling business on very favorable terms.

"We have also continued to reduce expenses," Mr. Costa said.  "Our fixed expense is currently $16 million per quarter. At this cost level, RVSI requires approximately $32 million per quarter of revenues to break even. While we are still substantially below that level, we have seen in previous semiconductor industry recoveries that revenue growth can accelerate very quickly."

 Mr. Costa said RVSI had abandoned previously announced plans for the sale of a second product line.  "In the past several weeks, the prospects for recovery in that business have brightened substantially," he said.

Progress on Data Matrix; wafer inspection systems
During the past three months, RVSI saw progress in multiple areas, including:

• The selection of RVSI's bumped wafer inspection system as "best of breed" by one of the world's largest manufacturers of microelectronics devices, and the placement of the first order against what is expected to total as many as six WS-series systems.
• The first customer requests in more than a year for quotes on multi-unit lead scanning systems with a value in excess of $1 million.
• The demonstration of RVSI's new ID Trace™ biometric identification system to more than 50 organizations and government agencies since its unveiling in November.  
• Shipment of more than $500,000 of Data Matrix reading equipment for a manufacturer of automotive catalytic converters. 
• Shipment of $725,000 of machine vision equipment for a consumer products manufacturer.

Prospects for the next twelve months
At December 31, 2001, RVSI's balance sheet included $3.5 million of cash and $5.4 million of short-term debt, without having accessed its bank credit facility.  "While we believe the recovery in the semiconductor industry is now underway, we recognize that RVSI must have the resources to both finance the shipment ramp that comes with that recovery and cover the company's cash needs until revenues recover to above the $32 million quarterly level, " Mr. Costa said.  "Our financial resources include cash on hand, our bank credit facility, customer advance payments, continued cost reductions, and cash flows from operations.  We recognize that additional financing will also be needed and we are in discussions to raise such financing.  Provided we are successful in obtaining that financing, we believe the combination of the preceding sources will provide us sufficient liquidity to fund our business for at least the next twelve months."

About RVSI
Robotic Vision Systems, Inc. (RVSI) (NASDAQ:ROBV) has the most comprehensive line of machine vision systems available today. Headquartered in Canton, Massachusetts, with offices worldwide, RVSI is the world leader in vision-based semiconductor inspection and media transfer equipment. Using leading-edge technology, RVSI joins vision-enabled process equipment, high-performance optics, lighting, and advanced hardware and software to assure product quality, identify and track parts, control manufacturing processes, and ultimately enhance profits for companies worldwide. Serving the semiconductor, electronics, aerospace, automotive, pharmaceutical and packaging industries, RVSI holds approximately 100 patents in a broad range of technologies.

Forward Looking Statement
Except for the historical information herein, certain matters discussed in this release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to: the historical cyclical nature of the semiconductor industry, risks in products and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, both here and abroad, timely development and release of new products, strategic suppliers and customers, the effect of the company's accounting policies and other risk factors detailed in the Company's most recent registration statement, annual report on Form 10-K and 10K/A, and other filings with the Securities and Exchange Commission.