Cognex Corporation announces fourth-quarter results

JANUARY 29--Cognex Corp. (Natick, MA) announced revenue for the fourth quarter ended December 31, 2002, of $33,829,000, a 34% increase over the $25,170,000 reported for the fourth quarter of 2001, and net income for the fourth quarter of 2002 of $424,000, or $0.01 per diluted share, compared to a loss of $20,335,000, or $0.46 per diluted share, for the same period a year ago. Cognex reported revenue for the year ended December 31, 2002, of $114,107,000, compared to $140,729,000 for 2001, and a loss for 2002 of $6,027,000, or $0.14 per diluted share, compared to a loss of $11,127,000, or $0.25 per diluted share, for 2001.

"2002 was a very challenging year for Cognex," said Dr. Robert J. Shillman, Cognex's President, Chief Executive Officer, and Chairman. "The worldwide slowdown in capital equipment spending by manufacturers, particularly those in the semiconductor and electronics industries, has severely impacted our results. The best thing I can say about 2002 is that it is behind us."

In the fourth quarter of 2002, bookings decreased on a sequential basis, and the company's book-to-bill ratio slipped below 1.0 for the first time since the beginning of 2002. This decline was due to lower orders from OEM customers. As a result, Cognex expects revenue for the first quarter of 2003 to also decline on a sequential basis to between $31 million and $33 million. At that revenue level, gross margin is expected to be in the low- to mid-60% range. Operating expenses for the first quarter are expected to decrease on a sequential basis in the range of 5% to 10%. The effective tax rate for the first quarter of 2003 is expected to be 28%. And, earnings for the first quarter are expected to be between $0.02 and $0.05 per diluted share. Cognex has no visibility for customer demand beyond the first quarter of 2003.