Cognex reports record financial results for first quarter.

NATICK, Mass.--(BUSINESS WIRE)--April 16, 1996--Cognex Corporation (NASDAQ:CGNX) today announced revenue for the first quarter ended March 31, 1996 of $34,887,000, a 79% increase from the first quarter of 1995 of $19,437,000, and the highest revenue recorded in a single quarter in the company's history.

Net income for the first quarter ended March 31, 1996 increased 84% to $10,829,000, or $0.25 per share, compared to $5,873,000, or $0.14 per share, for the comparable period a year ago. Without the revenue and profit contributions of Isys Controls, Inc., the growth rate for revenue and profit would have been 63% and 75%, respectively.

"We are very pleased with our record first quarter results, which include the operations of Isys Controls that we acquired during the quarter," said Dr. Robert J. Shillman, Cognex's President, Chief Executive Officer, and Chairman. "We are continuing to hire new employees around the world; we have just begun construction of a 50,000 square-foot addition to our headquarters in Natick, Massachusetts; and we are expanding many of our other offices around the world, including those located in Tokyo, Paris, California, and Illinois."

Cognex Corporation designs, develops, manufactures, and markets machine vision systems, or computers that can "see," which are used to automate a wide range of manufacturing processes where vision is required. Cognex is the world's leader in the machine vision industry, having shipped to date more than 40,000 machine vision systems valued in excess of $350 million. In addition to its headquarters in Natick, Massachusetts, the company has remote offices located throughout the United States, Japan, Europe, and Southeast Asia. In addition, Cognex has two wholly-owned subsidiaries: Acumen, based in Portland, Oregon, which specializes in machine vision systems for automated product identification, and Isys Controls, based in Alameda, California, which specializes in automated, high-speed surface inspection.

                      COGNEX CORPORATION
              CONSOLIDATED STATEMENTS OF INCOME
           (In thousands, except per share amounts)

                                    Three Months Ended
                                    March 31,   April 2,
                                    1996          1995
                                       (unaudited)

Revenue                      $       34,887   $   19,437

Cost of revenue                       9,206        3,952

Gross margin                         25,681       15,485

Research, development
   and engineering expenses           4,766        2,716

Selling, general and
   administrative expenses            6,345        5,071

Income from operations               14,570        7,698

Other income                          1,011          632

Income before provision
   for income taxes                  15,581        8,330

Provision for income taxes            4,752        2,457

Net income                       $   10,829    $   5,873

Net income per share                $   .25      $   .14

Weighted average common shares
   outstanding                       44,057       40,784

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                          COGNEX CORPORATION
                     CONSOLIDATED BALANCE SHEETS
                        (Dollars in thousands)

                               ASSETS
                                      March 31,   December 31,
                                        1996         1995
                                     (unaudited)
Current assets:
 Cash and investments              $   109,253     $   90,640
 Accounts receivable                    22,075         24,312
 Inventories                            12,610         12,567
 Prepaid expenses and
  other current assets                  10,636          8,274

   Total current assets                154,574        135,793

Property, plant and
 equipment, net                         23,818         22,133

Other assets                             3,976          4,246

                                   $   182,368    $   162,172

                   LIABILITIES AND STOCKHOLDERS' EQUITY

                                      March 31,   December 31,
                                        1996         1995
                                     (unaudited)
Current liabilities:
 Deferred revenue and
  customer deposits                  $   2,834      $   1,172
 Accrued expenses
  and other current liabilities         17,498         15,219

   Total current liabilities            20,332         16,391

Other liabilities                        1,947          1,865

Stockholders' equity:
 Common stock, $.002 par value -
  Authorized: 120,000,000 shares,
  issued: 40,483,756
  and 39,039,675 shares in
  1996 and 1995, respectively               81             78

 Additional paid-in capital             74,553         71,171
 Cumulative translation adjustment          52             40
 Retained earnings                      86,292         73,516
 Treasury stock, at cost,
  80,918 shares in 1996 and 1995          (889)          (889)

   Total stockholders' equity          160,089        143,916

                                   $   182,368    $   162,172

CONTACT: Cognex Corp.

John J. Rogers, Jr., 508/650-3000

Executive Vice President and Chief Financial Officer