AUGUST 16, 2007--Cognex Corporation (Natick, MA, USA) has announced its financial results for the second quarter, ended July 1, 2007. During the second quarter of 2007, Cognex discovered irregularities resulting from unsubstantiated orders originating at the company's Japanese subsidiary. The company has determined that revenue reported for the first quarter of 2007 was overstated in the amount of $303,000 and that revenue for the fourth quarter of 2006 was overstated in the amount of $757,000. Due to the immateriality of the amounts involved, reported revenue for the second quarter of 2007 was reduced by $1,060,000 to correct for the entire overstatement.
"I am pleased that the revenue and earnings we reported for the second quarter were within the guidance range we gave to investors in April, especially considering the revenue adjustment that we recorded during the quarter, as well as a $2 million increase to the excess inventory reserve," said Robert J. Shillman, Cognex chairman and chief executive officer. "However, that does not mitigate the tepid capital-spending trends we continue to see in the semiconductor, electronics, and automotive industries, which are currently among the largest users of Cognex machine vision. In light of these industry conditions, as well as the typical softness we see in the factory-automation market during the summer months, revenue for the third quarter will likely be flat, at best, on a sequential basis."
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