Cognex Corporation Reports Record Revenue and Earnings for the First Quarter of 2000; Machine Vision Company Also Reports Record Bookings and Backlog.

Business/Technology Editors

NATICK, Mass.--(BUSINESS WIRE)--April 19, 2000

Cognex Corporation (NASDAQ: CGNX) today announced revenue for the first quarter ended April 2, 2000 of $54,495,000, a 98% increase over the $27,485,000 reported for the first quarter of 1999. Cognex also reported net income for the first quarter ended April 2, 2000 of $15,412,000, or $0.34 per diluted share, an increase of nearly 400% over the $3,104,000, or $0.07 per diluted share, reported for the comparable period a year ago. The revenue, net income, and earnings per share reported in this quarter are each the highest ever recorded in any quarter in the company's 19-year history.

"The first quarter of 2000 was a fabulous quarter for Cognex, both on the operating level and on the strategic level," said Dr. Robert J. Shillman, Cognex's President, Chief Executive Officer, and Chairman. "On the operating level, we set new records in revenues and profits, and our net income increased to 28% of revenue, well in excess of our target of 20%. On the strategic level, our recent entry into the vision sensor business is showing early signs of success; we recently surpassed $1 million in bookings for our first sensor product, In-Sight, in a short period of only two months, making it the most successful product launch in Cognex history. And, to further accelerate our growth, we purchased the machine vision business of Komatsu Ltd., which firmly establishes Cognex as the leading vision supplier to semiconductor manufacturers in Japan, and which strengthens our existing position as the leading supplier to the semiconductor market, worldwide."

Dr. Shillman continued, "Demand was very strong across our entire customer base, and in both of our divisions. In fact, bookings during the first quarter were the highest ever experienced by the company. And, even though we achieved record revenue, we also ended the quarter with a record backlog which bodes well for the remainder of the year. Based upon both our record bookings level in the first quarter and the positive guidance that we are receiving from our customers who indicate that the industry is in the early phase of the semiconductor cycle, we expect business to remain strong throughout 2000 and into 2001."

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 100,000 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 http://www.cognex.com.

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.

                          COGNEX CORPORATION
               (In thousands, except per share amounts)

                                                  Three Months Ended
                                                  April 2,  April 4,
Income Statement:                                   2000      1999
                                                     (unaudited)

Revenue                                           $54,495   $27,485
Cost of revenue                                    13,918     8,728
Gross margin                                       40,577    18,757
Research, development, and engineering expenses     7,312     6,534
Selling, general, and administrative expenses      12,639     9,768
Income from operations                             20,626     2,455
Investment and other income                         2,039     1,739
Income before provision for taxes                  22,665     4,194
Income tax provision                                7,253     1,090
Net income                                        $15,412   $ 3,104
Net income per diluted common and
 common equivalent share                          $   .34   $   .07
Diluted weighted-average common and
 common equivalent
 shares outstanding                                45,645    43,371


                                    April 2,   Dec. 31,
Balance Sheet Highlights:              2000       1999
                                  (unaudited)

Cash and investments                $229,809   $216,947

Receivables                           33,215     29,396

Inventories                           12,526     10,872

Working capital                      252,125    231,327

Total assets                         347,651    314,822

Stockholders' equity                 309,826    276,624