NOVEMBER 17, 2008--Cognex (Natick, MA, USA; www.cognex.com) has announced that it has "taken meaningful steps" to cut expenses to help ensure that it will continue profitable operations during the current economic difficulties. The reduction in expenses was accomplished through a number of different measures, including the closing of the company's facility in Georgia scheduled for mid-2009 and the elimination of 60 full-time positions (approximately 7% of its worldwide headcount), primarily in the United States. After the one-time effects of these cuts, projected savings from the actions described are estimated to be approximately $6 million on an annual basis and are expected to be fully realizable beginning in 2010.
As a result, Cognex expects to record a pre-tax charge of approximately $700,000 in 4Q08 (this full amount was included in the guidance given by Cognex on Oct. 29, 2008). In 1H09, Cognex expects to record an additional charge of approximately $1.7 million related to the facility closure. The distribution center that is currently based in Georgia will be consolidated into the company's headquarters in Natick.
"The actions announced today were not made easily; the individuals who were let go were all hardworking, experienced, and dedicated employees; but unfortunately the actions were necessary to ensure the continued profitability of our company," says Dr. Robert J. Shillman, chairman and CEO of Cognex. "Given the rather bleak economic outlook and the expectation that conditions will not improve soon, it is important to align our expenses as quickly as possible to the lower level of business that we anticipate in 2009. The difficult steps that we have taken should allow us to maintain our long record of profitable operations, even as we continue to invest in strategic initiatives to ensure the long-term success of our company."
