SAN FRANCISCOMachine vision vendor Cognex Corp. Monday (May 4) announced additional cost-cutting measures including the elimination of about 85 jobs and reported that first quarter sales fell 30 percent compared to the same period of 2008.
Cognex (Natick, Mass.) said it would cut expenses by an additional $15 million per year by eliminating 85 employees and contractors, cutting executive salaries, implementing more mandatory shut-down days and other actions.
Cognex said it expects to record a pre-tax charge of approximately $4 million in the second quarter as the result of the cost-reduction measures.
"In late 2008, it became clear to us that the slumping global economy would negatively impact our business. Based on that, we reduced our expenses in anticipation of lower revenue in 2009," said Robert Shillman, the Cognex chairman and CEO, in a statement.
"Unfortunately, conditions have deteriorated beyond what we had anticipated last fall, and because we currently see no sign of improvement in the near term, we are taking the additional steps announced today to more closely align our costs with the decreased level of demand for our products," Shillman said.
Last November, Cognex announced cost-cutting measures including the closure of a facility in Georgia and the elimination of 60 full time positions, or about 7 percent of the company's workforce.
The combined layoffs and cost-cutting measures are projected to save the company in total about $21 million per year, Cognex said.
Cognex reported first quarter sales of $42.3 million, down 18 percent from the fourth quarter of 2008 and 30 percent from the first quarter of 2008. Cognex posted a loss of $3.4 million after posting profits $1.8 million and $8.6 million, respectively, for the previous and year-ago quarters.
Cognex announced that its board of directors declared a quarterly cash dividend of 5 cents per share, down from 15 cents per share in the prior quarter.
Citing limited visibility, Cognex declined to provide second quarter revenue or earnings-per-share guidance. The company said it expects revenue for the second quarter to decrease both year-on-year and sequentially. Cognex said it expects to report a loss for the second quarter.