NATICK, MA, USA Juli 25, 2008
Cognex Announces Dramatic Increase to its Quarterly Cash Dividend
Machine Vision Company Increases Cash Dividend by 76%
NATICK, MA, July 25, 2008 — Cognex Corporation (NASDAQ: CGNX) announced today that the company’s Board of Directors declared a quarterly cash dividend of 15 cents per share, representing a 6.5 cent, or 76%, increase over the 8.5 cent dividend paid in the prior quarter.
“This very significant dividend is a meaningful way of sharing our ongoing success with our shareholders, and it demonstrates the confidence that the Board of Directors has in Cognex’s financial strength and in our long-term growth opportunities," said Dr. Robert J. Shillman, Cognex’s Chief Executive Officer and Chairman. “We are able to offer this substantial dividend and, at the same time continue to invest in growth, because we have both a strong balance sheet, with over a quarter of a billion dollars in cash and investments and no debt, and a business model that consistently generates cash.”
Dr. Shillman continued, “At the current Cognex stock price, the quarterly cash dividend declared today provides a yield of over 2.5%! That yield, especially when combined with the 15% federal tax rate on dividends plus the potential for stock appreciation, provides a substantial incentive for new investors to purchase our stock and for current investors to continue to hold it.”
The dividend announced today is payable on September 12, 2008, to all shareholders of record at the close of business on August 29, 2008. This is Cognex’s twenty-first consecutive quarterly cash dividend. To date, $70 million in dividends has been paid to shareholders since the first cash dividend was declared in the third quarter of 2003.
Certain statements made in this press release, which do not relate solely to historical matters, are forward-looking statements. These statements can be identified by use of the words “expects,” “anticipates,” ”estimates,” “believes,” “projects,” “intends,” “plans,” “will,” “may,” “shall” and similar words. These forward-looking statements, which include statements regarding business and market trends, revenue and earnings growth, and the company’s financial outlook, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include: (1) economic conditions that impact the capital spending trends of manufacturers in a variety of industries; (2) the cyclicality of the semiconductor and electronics industries; (3) the inability to achieve significant international revenue; (4) fluctuations in foreign exchange rates; (5) the loss of, or a significant curtailment of purchases by, any one or more principal customers; (6) the reliance upon certain sole-source suppliers of critical components; (7) the inability to attract and retain skilled employees; (8) the inability to design and manufacture high-quality products; (9) the technological obsolescence of current products and the inability to develop new products; (10) the failure to effectively manage product transitions or accurately forecast customer demand; (11) the failure to properly manage the distribution of products and services; (12) the inability to protect Cognex proprietary technology and intellectual property; (13) the company’s involvement in time-consuming and costly litigation; (14) the impact of competitive pressures; (15) the challenges in integrating acquired businesses and achieving expected results; (16) exposure to additional tax liabilities; and (17) the other risks detailed in the company’s reports filed with the SEC, including the company’s Form 10-K for the fiscal year 2007. You should not place undue reliance upon any such forward-looking statements, which speak only as of the date made. Cognex disclaims any obligation to update forward-looking statements after the date of such statements.
Director of Investor Relations
Telephone: (508) 650-3353