Cognex Corporation Expects Lower Revenue And Net Income For The Remainder Of 1998
Also Announces Completion of Stock Buy-Back
NATICK, Mass.--(BUSINESS WIRE)--June 1, 1998--Cognex Corporation (NASDAQ:CGNX - news) today announced that it expects revenue and net income for each of the remaining three quarters of 1998 and for the full year to be lower than the levels achieved in the comparable periods in 1997. The company also announced that it has completed the repurchase of $20 million of its common stock under a plan approved by its Board of Directors on April 22, 1998.
The anticipated lower revenue for the quarters and the year is due to a slowdown in orders from customers in the semiconductor and electronics industries, whose businesses have slowed substantially since the start of the Asian financial crisis. Net income for 1998 is expected to be approximately 20% lower than 1997 because of the combination of the lower expected revenue in 1998 as well as higher employee-related expenses due to increased headcount in 1998 compared to 1997.
''The slowdown in business which is currently being reported to us by our customers in the semiconductor and electronics industries is caused by cutbacks in capital spending in Asia and the United States and is negatively impacting our business. We now believe that demand from our customers will remain lower than anticipated for the remainder of the year,'' said Dr. Robert J. Shillman, Cognex's President, Chief Executive Officer, and Chairman. Dr. Shillman continued, ''In spite of the lower revenue outlook for 1998, we have made the business decision to continue 1998 planned expenditures in strategic areas. Cognex will continue its aggressive product development schedule and will also continue to invest in our distribution network to capitalize on the large potential for machine vision worldwide.''
''Despite the anticipated lower revenue and profitability this year, we have confidence in the continuing need for machine vision and its growing market acceptance. In view of our long-term potential, we believe Cognex's stock is still attractive,'' said John J. Rogers, Jr., Cognex's Executive Vice President and CFO. ''We have recently completed the repurchase of 882,000 shares of common stock on the open market at an average price of $22.60 per share under a stock repurchase program announced on April 22, 1998, and we intend to review opportunities for future repurchase programs.''
Cognex Corporation designs, develops, manufactures, and markets machine vision systems, or computers that can ''see.'' Cognex is the world's leader in the machine vision industry, having shipped to date more than 75,000 machine vision systems. Cognex's Modular Vision Systems Division, headquartered in Natick, Massachusetts, specializes in machine vision systems which are used for automating the manufacture of a wide range of discrete items and for assuring their quality. Cognex's Surface Inspection Systems Division, headquartered in Alameda, California, specializes in machine vision systems which are used for inspecting the surfaces of products manufactured in a continuous fashion, such as metals, paper, and plastics. In addition to its corporate headquarters in Natick, Massachusetts, Cognex also has regional offices located throughout North America, Japan, Europe, and Southeast Asia. Visit Cognex on-line at cognex.com
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Certain statements made in this press release 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 involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. 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. The company disclaims any obligation subsequently to 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.
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Contact:
Susan Conway
Investor Relations Manager
Cognex Corporation
(508) 650-3000 |
