<PAGE> 1
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended July 2, 2000 or
[ ] Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the transition period from___________ to _______________
COMMISSION FILE NUMBER 0-17869
COGNEX CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
MASSACHUSETTS 04-2713778
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
ONE VISION DRIVE
NATICK, MASSACHUSETTS 01760-2059
(508) 650-3000
-------------------------------------------
(Address, including zip code, and telephone
number, including area code, of principal
executive offices)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
--- ---
As of July 30, 2000, there were 43,306,365 shares of Common Stock, $.002
par value, of the registrant outstanding.
Total number of pages: 12
Exhibit index is located on page 11
================================================================================
<PAGE> 2
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Income for the three and six
months ended July 2, 2000 and July 4, 1999
Consolidated Balance Sheets at July 2, 2000 and December 31,
1999
Consolidated Statement of Stockholders' Equity for the
six months ended July 2, 2000 Consolidated Condensed
Statements of Cash Flows for the six months ended July 2,
2000 and July 4, 1999
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
PART II OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures
<PAGE> 3
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
COGNEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------- -------------------
JULY 2, JULY 4, JULY 2, JULY 4,
2000 1999 2000 1999
-------- -------- -------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Revenue ......................................................... $ 62,187 $ 35,271 $116,682 $ 62,756
Cost of revenue ................................................. 16,160 10,942 30,078 19,670
-------- -------- -------- --------
Gross profit .................................................... 46,027 24,329 86,604 43,086
Research, development, and engineering expenses ................. 8,083 6,571 15,366 13,058
Selling, general, and administrative expenses ................... 14,593 10,680 27,170 20,440
Amortization of goodwill ........................................ 553 54 644 109
-------- -------- -------- --------
Operating income ................................................ 22,798 7,024 43,424 9,479
Investment income ............................................... 2,486 1,500 4,307 3,078
Other income .................................................... 243 190 461 351
-------- -------- -------- --------
Income before provision for income taxes ........................ 25,527 8,714 48,192 12,908
Provision for income taxes ...................................... 8,169 2,525 15,422 3,615
-------- -------- -------- --------
Net income ...................................................... $ 17,358 $ 6,189 $ 32,770 $ 9,293
======== ======== ======== ========
Net income per share:
Basic ....................................................... $ 40 $ .15 $ .77 $ .23
======== ======== ======== ========
Diluted ..................................................... $ 38 $ .14 $ .71 $ .21
======== ======== ======== ========
Weighted-average common and common equivalent shares
outstanding:
Basic ....................................................... 43,067 40,681 42,735 40,468
======== ======== ======== ========
Diluted ..................................................... 46,159 43,836 45,845 43,560
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
1
<PAGE> 4
COGNEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
<TABLE>
<CAPTION>
JULY 2, DECEMBER 31,
2000 1999
----------- ------------
(UNAUDITED)
<S> <C> <C>
ASSETS
Current assets:
Cash and investments.................................................... $ 248,500 $216,947
Accounts receivable, less reserves of $2,577 and $2,836 in 2000 and
1999, respectively................................................... 39,075 28,742
Inventories............................................................. 14,581 10,872
Deferred income taxes................................................... 5,724 6,082
Prepaid expenses and other.............................................. 10,584 6,149
---------- --------
Total current assets................................................ 318,464 268,792
Property, plant, and equipment, net.......................................... 33,312 31,857
Deferred income taxes........................................................ 7,051 7,051
Other assets................................................................. 23,649 7,122
--------- --------
$ 382,476 $314,822
========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable........................................................ $ 7,536 $ 4,237
Accrued expenses........................................................ 17,873 18,536
Accrued income taxes.................................................... 10,425 7,470
Customer deposits....................................................... 3,097 2,714
Deferred revenue........................................................ 5,352 4,508
-------- --------
Total current liabilities........................................... 44,283 37,465
-------- --------
Other liabilities............................................................ 985 733
Stockholders' equity:
Common stock, $.002 par value -
Authorized: 140,000,000 shares, issued: 45,649,826 and 44,220,434
shares in 2000 and 1999, respectively................................ 91 88
Additional paid-in capital.............................................. 148,727 122,522
Treasury stock, at cost, 2,365,442 and 2,381,032 shares in 2000 and
1999, respectively................................................... (42,678) (43,550)
Retained earnings....................................................... 229,786 197,016
Accumulated other comprehensive income.................................. 1,282 548
-------- --------
Total stockholders' equity.......................................... 337,208 276,624
-------- --------
$382,476 $314,822
======== ========
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
2
<PAGE> 5
COGNEX CORPORATION
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(Dollars in thousands)
<TABLE>
<CAPTION>
Accumulated
Common Stock Additional Treasury Stock Other Total
------------------- Paid-in -------------------- Retained Comprehensive Comprehensive Stockholders'
Shares Par Value Capital Shares Cost Earnings Income Income Equity
--------- --------- --------- ---------- -------- --------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31,
1999....................... 44,220,434 $88 $122,522 2,381,032 $(43,550) $197,016 $ 548 $276,624
Issuance of common stock
under stock option and
stock purchase plans...... 1,429,392 3 16,205 16,208
Tax benefit from exercise
of stock options......... 10,000 10,000
Common stock received for
payment of stock option
exercises................. 2,029 (80) (80)
Acquisition of Image
Industries, Ltd........... (17,619) 952 952
Comprehensive income:
Net income............... 32,770 $32,770 32,770
Unrealized gain on
investment, net of tax.. 917 917 917
Foreign currency
translation adjustment.. (183) (183) (183)
Comprehensive income..... $33,504
---------- --- -------- --------- -------- -------- ------ ======= --------
Balance at July 2, 2000
(unaudited)................ 45,649,826 $91 $148,727 2,365,442 $(42,678) $229,786 $1,282 $337,208
========== === ======== ========= ======== ======== ====== ========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
3
<PAGE> 6
COGNEX CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
----------------------
JULY 2, JULY 4,
2000 1999
--------- ---------
(UNAUDITED)
<S> <C> <C>
Cash flows from operating activities:
Net income .......................................................... $ 32,770 $ 9,293
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization ..................................... 5,832 4,449
Tax benefit from exercise of stock options ........................ 10,000 1,470
Change in current assets and current liabilities .................. (12,728) 9,791
Other ............................................................. (1,072) (128)
--------- ---------
Net cash provided by operating activities ........................... 34,802 24,875
--------- ---------
Cash flows from investing activities:
Purchase of investments ............................................. (78,458) (61,236)
Maturity of investments ............................................. 40,728 39,062
Purchase of property, plant, and equipment .......................... (4,138) (1,551)
Cash paid for business and technology acquisitions,
net of cash assumed ....................................... (11,932) (864)
--------- ---------
Net cash used in investing activities ............................... (53,800) (24,589)
--------- ---------
Cash flows from financing activities:
Issuance of common stock under stock option and stock purchase plans 16,128 5,462
--------- ---------
Net cash provided by financing activities ........................... 16,128 5,462
--------- ---------
Effect of exchange rate changes on cash .................................. 236 295
--------- ---------
Net (decrease) increase in cash and cash equivalents ..................... (2,634) 6,043
Cash and cash equivalents at beginning of period ......................... 48,665 27,807
--------- ---------
Cash and cash equivalents at end of period ............................... 46,031 33,850
Investments .............................................................. 202,469 151,979
--------- ---------
Cash and investments ..................................................... $ 248,500 $ 185,829
========= =========
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
4
<PAGE> 7
COGNEX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
As permitted by the rules of the Securities and Exchange Commission
applicable to Quarterly Reports on Form 10-Q, these notes are
condensed and do not contain all disclosures required by generally
accepted accounting principles. Reference should be made to the
consolidated financial statements and related notes included in the
Company's Annual Report on Form 10-K for the year ended December 31,
1999.
In the opinion of the management of Cognex Corporation, the
accompanying consolidated unaudited financial statements contain all
adjustments (consisting of only normal, recurring adjustments)
necessary to present fairly the Company's financial position at July
2, 2000, and the results of operations for the three and six months
ended July 2, 2000 and July 4, 1999, and changes in stockholders'
equity and cash flows for the periods presented.
The results disclosed in the Consolidated Statements of Income for the
three and six months ended July 2, 2000 are not necessarily indicative
of the results to be expected for the full year.
Certain amounts reported in prior periods have been reclassified to be
consistent with the current period's presentation.
INVENTORIES
Inventories consist of the following:
(In thousands) JULY 2, DECEMBER 31,
2000 1999
----------- ------------
(UNAUDITED)
Raw materials............................. 2,103 $ 5,451
Work-in-process........................... 3,692 1,987
Finished goods............................ 8,786 3,434
-------- --------
$ 14,581 $ 10,872
======== ========
5
<PAGE> 8
COGNEX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NET INCOME PER SHARE
Net income per share is calculated as follows:
(In thousands)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
JULY 2, JULY 4, JULY 2, JULY 4,
2000 1999 2000 1999
------- ------- ------- -------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net income ............................................. $17,358 $ 6,189 $32,770 $ 9,293
======= ======= ======= =======
Basic:
Weighted-average common shares outstanding ......... 43,067 40,681 42,735 40,468
======= ======= ======= =======
Net income per common share ........................ $ 40 $ .15 $ .77 $ .23
======= ======= ======= =======
Diluted:
Weighted-average common shares outstanding ......... 43,067 40,681 42,735 40,468
Effect of dilutive securities:
Stock options ................................... 3,092 3,155 3,110 3,092
------- ------- ------- -------
Weighted-average common and common equivalent shares
outstanding ..................................... 46,159 43,836 45,845 43,560
======= ======= ======= =======
Net income per common and common equivalent share .. $ .38 $ .14 $ .71 $ .21
======= ======= ======= =======
</TABLE>
ACQUISITION OF KOMATSU LTD. MACHINE VISION BUSINESS
On March 31, 2000, the Company acquired selected assets of the machine vision
business of Komatsu Ltd. for $11,200,000 in cash, with the potential for
additional cash payments in 2002 of up to $8,000,000 depending upon certain
performance criteria. The purchase price was allocated as follows: $297,000
to tangible equipment, to be depreciated in accordance with the Company's
depreciation policy; $400,000 to workforce, to be amortized over two years;
$2,462,000 to complete technology, to be amortized over five years; and
$8,041,000 to goodwill, also to be amortized over five years. The contingent
consideration will be recorded as purchase price when paid and will be
allocated to goodwill to be amortized over the remaining period of expected
benefit.
The acquisition was accounted for under the purchase method of accounting. As
a result of the proximity of the acquisition date to the end of the quarter,
the results of operations of the acquired business were not included in the
first quarter. The results of operations of the acquired business were not
material compared to the Company's consolidated results of operations, and
therefore, pro forma results are not presented.
ACQUISITION OF IMAGE INDUSTRIES, LTD.
On April 20, 2000, the Company acquired all of the outstanding shares of
Image Industries, Ltd. ("Image Industries"), a privately held manufacturer of
low-cost machine vision systems located in the United Kingdom. The purchase
price of $2,706,000 included $876,000 in cash at closing, $878,000 in cash to
be paid out through 2002, and 17,619 shares of Cognex common stock, issued
from treasury, with a fair value of $952,000. The purchase price was
allocated as follows: $671,000 to tangible
6
<PAGE> 9
COGNEX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
net assets; $200,000 to workforce, to be amortized over five years; and
$1,835,000 to goodwill, also to be amortized over five years.
The acquisition was accounted for under the purchase method of accounting.
Accordingly, Image Industries' results of operations have been included in
the Company's consolidated results of operations since the date of the
acquisition. Image Industries' historical results of operations were not
material compared to the Company's consolidated results of operations, and
therefore, pro forma results are not presented.
OTHER ASSETS
On June 30, 2000, Cognex Corporation became a Limited Partner in Venrock
Associates III, L.P., a venture capital fund. The Company invested $2,500,000
in the partnership and committed to a total investment of up to $25,000,000
over a ten-year period. The investment is recorded in "Other assets" on the
Consolidated Balance Sheet and will be accounted for on a cost basis. A
director of the Company is affiliated with Venrock Associates III, L.P.
7
<PAGE> 10
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Revenue for the three-month and six-month periods ended July 2, 2000 totaled
$62,187,000 and $116,682,000, respectively, compared to $35,271,000 and
$62,756,000 for the same periods in 1999, representing a 76% increase for the
three-month period and an 86% increase for the six-month period. Comparing
consecutive quarters, revenue increased 14% over the first quarter of 2000.
The increase in revenue for the three-month and six-month periods ended July
2, 2000 over the same periods in 1999 is due to a higher volume of machine
vision systems sold to both Original Equipment Manufacturers (OEM) and
end-user customers. Sales to OEM customers increased $16,856,000, or 84%,
over the three-month period in 1999 and $36,489,000, or 107%, over the
six-month period in 1999. Sales to end-user customers increased $10,060,000,
or 66%, over the three-month period in 1999 and $17,437,000, or 61%, over the
six-month period in 1999.
Based on strong order levels in both the OEM and end-user markets experienced
in the first half of 2000, the Company anticipates continued revenue growth
in the second half of 2000.
Gross profit as a percentage of revenue for the three-month and six-month
periods ended July 2, 2000 was 74% in both periods, compared to 69% for the
same periods in 1999. The increase in the gross margin is due primarily to
manufacturing efficiencies that resulted from a significant increase in
product sales without a corresponding increase in manufacturing overhead.
Research, development, and engineering expenses for the three-month and
six-month periods ended July 2, 2000 were $8,083,000 and $15,366,000,
respectively, compared to $6,571,000 and $13,058,000 for the same periods in
1999, representing a 23% increase for the three-month period and an 18%
increase for the six-month period. The increase in aggregate expenses is due
primarily to higher personnel-related costs to support the Company's
continued investment in the development of new and existing products.
Included in the incremental expenses are the operating costs associated with
the acquisitions of the machine vision businesses of Komatsu, Ltd. and Image
Industries. Expenses as a percentage of revenue were 13% for both the
three-month and six-month periods in 2000, compared to 19% and 21% for the
same periods in 1999. The decrease in expenses as a percentage of revenue is
a result of revenue increasing at a faster rate than spending. The Company
anticipates that aggregate expenses will continue to increase in 2000 due to
planned investment in product development.
Selling, general, and administrative expenses for the three-month and
six-month periods ended July 2, 2000 were $14,593,000 and $27,170,000,
respectively, compared to $10,680,000 and $20,440,000 for the same periods in
1999, representing a 37% increase for the three-month period and a 33%
increase for the six-month period. The increase in aggregate expenses is due
primarily to higher personnel-related costs to support the Company's
expanding worldwide operations. Included in the incremental expenses are the
operating costs associated with the acquisitions of the machine vision
businesses of Komatsu, Ltd. and Image Industries. Expenses as a percentage of
revenue were 23% for both the three-month and six-month periods in 2000,
compared to 30% and 33% for the same periods in 1999. Expenses as a
percentage of revenue decreased as a result of revenue increasing at a faster
rate than expenses. The Company anticipates that aggregate expenses will
continue to increase in 2000 due to additional resources required to support
the anticipated higher level of demand and to further penetrate the end-user
market.
Amortization of goodwill for the three-month and six-month periods ended July
2, 2000 was $553,000 and $644,000, respectively, compared to $54,000 and
$109,000 for the same periods in 1999. The increase in amortization expense
is due to goodwill recorded in 2000 associated with the purchase of the
machine vision businesses of Komatsu, Ltd. and Image Industries.
8
<PAGE> 11
Investment income for the three-month and six-month periods ended July 2,
2000 was $2,486,000 and $4,307,000, respectively, compared to $1,500,000 and
$3,078,000 for the same periods in 1999, representing a 66% increase for the
three-month period and a 40% increase for the six-month period. The increase
in investment income is primarily due to a higher average invested cash
balance in 2000.
The Company's effective tax rate for both the three-month and six-month
periods ended July 2, 2000 was 32%, compared to 29% and 28% for the same
periods in 1999. The increase in the effective tax rate is due primarily to
the higher operating income in 2000 and the diminishing effect of tax-free
investment income.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash requirements during the six-month period ended July 2,
2000 were met through cash generated from operations. Cash and investments
increased $34,053,000 from December 31, 1999 primarily as a result of
$34,802,000 of cash generated from operations and $16,128,000 from the
issuance of common stock under stock option and stock purchase plans, offset
by $11,932,000 cash paid for business and technology acquisitions. Capital
expenditures for the six-month period were $4,138,000 and consisted primarily
of expenditures for computer hardware and software.
The Company believes that its existing cash and investments balance, together
with cash generated from operations, will be sufficient to meet the Company's
planned working capital and capital expenditure requirements through 2000,
including potential future business acquisitions.
In December 1999, the Securities and Exchange Commission issued Staff
Accounting Bulletin (SAB) No. 101, "Revenue Recognition in Financial
Statements." SAB No. 101 sets forth guidelines for accounting and disclosures
related to revenue recognition. SAB No. 101, as amended by SAB No. 101B, does
not require registrants that have not applied this accounting to restate
prior financial statements, provided they report a change in accounting
principle in accordance with Accounting Principles Board Opinion No. 20,
"Accounting Changes," no later than the fourth quarter of the fiscal year
beginning after December 15, 1999. The Company is evaluating the accounting
and disclosure requirements of SAB No. 101 and will report the effect, if
any, in the fourth quarter of 2000.
In March 2000, the Financial Accounting Standards Board issued Interpretation
No. 44, "Accounting for Certain Transactions Involving Stock Compensation -
an interpretation of Accounting Principles Board (APB) Opinion No. 25" (FIN
44). FIN 44 clarifies the application of APB Opinion No. 25 including: the
definition of an employee for purposes of applying APB Opinion No. 25, the
criteria for determining whether a plan qualifies as a noncompensatory plan,
the accounting consequence of various modifications to the terms of
previously fixed stock options or awards, and the accounting for an exchange
of stock compensation awards in a business combination. FIN 44 is effective
July 1, 2000, but certain conclusions in FIN 44 cover specific events that
occurred after either December 15, 1998 or January 12, 2000. The Company does
not expect the application of FIN 44 to have a material impact on its results
of operations or financial position.
9
<PAGE> 12
FORWARD-LOOKING STATEMENTS
Certain statements made in this report, as well as oral statements made by
the Company from time to time, which are prefaced with words such as
"expects," "anticipates," "believes," "projects," "intends," "plans," and
similar words and other statements of similar sense, 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, like any other
forward-looking statements, involve risks and uncertainties that could cause
actual results to differ materially from those projected or anticipated. Such
risks and uncertainties include (1) the loss of, or a significant curtailment
of purchases by, any one or more principal customers; (2) the cyclicality of
the semiconductor and electronics industries; (3) the Company's continued
ability to achieve significant international revenue; (4) capital spending
trends by manufacturing companies; (5) inability to protect the Company's
proprietary technology and intellectual property; (6) inability to attract or
retain skilled employees; (7) technological obsolescence of current products
and the inability to develop new products; (8) inability to respond to
competitive technology and pricing pressures; and (9) reliance upon certain
sole source suppliers to manufacture or deliver critical components of the
Company's products. The foregoing list should not be construed as exhaustive
and the Company disclaims any obligation to subsequently 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. 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.
10
<PAGE> 13
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the Annual Meeting of Stockholders of Cognex Corporation
held on May 8, 2000, the Stockholders elected Robert J.
Shillman to serve as a Director for a term of three years.
Jerald Fishman, William Krivsky, Anthony Sun, and Rueben
Wasserman continued as Directors after the meeting. In
addition, the Stockholders approved a proposal to amend the
Articles of Organization of the Company to increase the number
of shares of common stock which the Company has the authority
to issue from 120,000,000 shares to 140,000,000 shares. The
39,486,671 shares represented at the meeting voted as follows.
The election of Robert J. Shillman as Director, 39,139,049
votes for and 347,622 against; the amendment of the Articles
of Organization; 37,770,568 votes for, 1,701,416 against, and
14,687 votes abstained.
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(electronic filing only)
(b) Reports on Form 8-K
None
11
<PAGE> 14
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 thereunto duly authorized.
DATE: August 11, 2000 COGNEX CORPORATION
/s/ Richard A. Morin
-----------------------------------
Richard A. Morin
Vice President of Finance, Chief
Financial Officer, and Treasurer
(duly authorized officer, principal
financial and accounting officer)
12
<PAGE> 15
August 11, 2000
Securities and Exchange Commission
Washington, D.C. 20549
RE: Cognex Corporation Quarterly Report on Form 10-Q
Commission File No. 0-17869
Ladies and Gentlemen:
Pursuant to Regulation S-T, Cognex Corporation hereby submits for filing its
Quarterly Report on Form 10-Q for the quarter ended July 2, 2000.
Any questions or correspondence concerning this filing should be addressed
to Richard A. Morin at Cognex Corporation (Telephone No. (508) 650-3000).
Very truly yours,
Richard A. Morin
Vice President of Finance, Chief
Financial Officer, and Treasurer
(duly authorized officer,
principal financial and
accounting officer)
