##### Table of Contents



UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 (Mark One)
 þ
    
    Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934 for the quarterly period ended October 2, 2005 or
 o
    
    Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the transition period from to
 Commission File Number 0-17869
 COGNEX CORPORATION
 (Exact name of registrant as specified in its charter)
 Massachusetts
    
    04-2713778(State or other jurisdiction of
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)
 One Vision DriveNatick, Massachusetts 01760-2059(508) 650-3000(Address, including zip code, and telephone number,
including area code, of principal executive offices)
  þ o
  þ o
  o þ




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INDEX
 PART I
    
    FINANCIAL INFORMATIONItem 1.
    
    Financial StatementsConsolidated Statements of Operations for the three-month and nine-month periods ended October 2, 2005 and October 3, 2004Consolidated Balance Sheets at October 2, 2005 and December 31, 2004Consolidated
Statement of Shareholders Equity for the nine-month period ended October 2, 2005Consolidated Condensed Statements of Cash Flows for the nine-month periods ended October 2, 2005 and October 3, 2004Notes to Consolidated Financial StatementsItem 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 3.
    
    Quantitative and Qualitative Disclosures About Market RiskItem 4.
    
    Controls and ProceduresPART II
    
    OTHER INFORMATIONItem 1.
    
    Legal ProceedingsItem 2.
    
    Unregistered Sales of Equity Securities and Use of ProceedsItem 3.
    
    Defaults Upon Senior SecuritiesItem 4.
    
    Submission of Matters to a Vote of Security HoldersItem 5.
    
    Other InformationItem 6.
    
    ExhibitsSignaturesEX-31.1 - Section 302 Certification CEOEX-31.2 - Section 302 Certification CFOEX-32.1 - Section 906 Certification CEOEX-32.2 - Section 906 Certification CFO




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##### Table of Contents



PART I: FINANCIAL INFORMATION
 
 ITEM 1: FINANCIAL STATEMENTS
 COGNEX CORPORATION
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
 Three Months Ended
    
    
    Nine Months EndedOctober 2,
    
    
    October 3,
    
    
    October 2,
    
    
    October 3,2005
    
    
    2004
    
    
    2005
    
    
    2004(unaudited)
    
    
    (unaudited)RevenueProduct
    
    $
    52,634
    
    
    $
    48,319
    
    
    $
    138,688
    
    
    $
    138,839Service
    
    
    5,622
    
    
    
    7,093
    
    
    
    17,369
    
    
    
    19,20958,256
    
    
    
    55,412
    
    
    
    156,057
    
    
    
    158,048Cost of revenueProduct
    
    
    11,890
    
    
    
    11,106
    
    
    
    34,776
    
    
    
    34,747Service
    
    
    3,865
    
    
    
    3,780
    
    
    
    10,834
    
    
    
    10,83315,755
    
    
    
    14,886
    
    
    
    45,610
    
    
    
    45,580Gross marginProduct
    
    
    40,744
    
    
    
    37,213
    
    
    
    103,912
    
    
    
    104,092Service
    
    
    1,757
    
    
    
    3,313
    
    
    
    6,535
    
    
    
    8,37642,501
    
    
    
    40,526
    
    
    
    110,447
    
    
    
    112,468Research, development, and engineering expenses
    
    
    7,224
    
    
    
    6,552
    
    
    
    20,724
    
    
    
    20,105Selling, general, and administrative expenses
    
    
    21,351
    
    
    
    18,099
    
    
    
    60,353
    
    
    
    51,981Operating income
    
    
    13,926
    
    
    
    15,875
    
    
    
    29,370
    
    
    
    40,382Foreign currency gain (loss)
    
    
    (410
    )
    
    
    (502
    )
    
    
    (602
    )
    
    
    73Investment and other income
    
    
    1,156
    
    
    
    1,043
    
    
    
    3,599
    
    
    
    3,348Income before provision for income taxes
    
    
    14,672
    
    
    
    16,416
    
    
    
    32,367
    
    
    
    43,803Income tax provision
    
    
    3,814
    
    
    
    4,761
    
    
    
    8,415
    
    
    
    12,703Net income
    
    $
    10,858
    
    
    $
    11,655
    
    
    $
    23,952
    
    
    $
    31,100Net income per common and common-equivalent share:Basic
    
    $
    0.23
    
    
    $
    0.26
    
    
    $
    0.51
    
    
    $
    0.69Diluted
    
    $
    0.22
    
    
    $
    0.25
    
    
    $
    0.50
    
    
    $
    0.66Weighted-average common and common-equivalent shares outstanding:Basic
    
    
    46,931
    
    
    
    44,928
    
    
    
    46,536
    
    
    
    45,281Diluted
    
    
    48,469
    
    
    
    46,415
    
    
    
    47,703
    
    
    
    47,424Cash dividends per common share
    
    $
    0.08
    
    
    $
    0.08
    
    
    $
    0.24
    
    
    $
    0.20
  1




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##### Table of Contents



COGNEX CORPORATION
 
 CONSOLIDATED BALANCE SHEETS
 October 2,
    
    
    December 31,2005
    
    
    2004(unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    92,025
    
    
    $
    54,270Short-term investments
    
    
    140,959
    
    
    
    180,409Accounts receivable, less reserves of
$2,681 and $2,596 in 2005 and 2004,
respectively
    
    
    38,063
    
    
    
    33,816Inventories, net
    
    
    18,579
    
    
    
    20,091Deferred income taxes
    
    
    8,150
    
    
    
    9,504Prepaid expenses and other current assets
    
    
    15,627
    
    
    
    14,871Total current assets
    
    
    313,403
    
    
    
    312,961Long-term investments
    
    
    79,732
    
    
    
    156,397Property, plant, and equipment, net
    
    
    24,100
    
    
    
    23,995Deferred income taxes
    
    
    6,000
    
    
    
    21,516Intangible assets, net
    
    
    51,537
    
    
    
    7,506Goodwill
    
    
    80,733
    
    
    
    7,033Other assets
    
    
    4,676
    
    
    
    3,900$
    560,181
    
    
    $
    533,308LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    4,629
    
    
    $
    5,563Accrued expenses
    
    
    46,109
    
    
    
    55,779Customer deposits
    
    
    2,784
    
    
    
    3,445Deferred revenue
    
    
    5,612
    
    
    
    5,714Total current liabilities
    
    
    59,134
    
    
    
    70,501Commitments (Notes 3, 7, 8, and 9)Shareholders equity:Common
stock, $.002 par value Authorized: 140,000 shares, issued: 47,274
and 46,155 shares in 2005
and 2004, respectively
    
    
    94
    
    
    
    92Additional paid-in capital
    
    
    218,342
    
    
    
    192,860Retained earnings
    
    
    296,491
    
    
    
    283,712Accumulated other comprehensive loss
    
    
    (13,880
    )
    
    
    (13,857
    )Total shareholders equity
    
    
    501,047
    
    
    
    462,807$
    560,181
    
    
    $
    533,308
  2




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COGNEX CORPORATION
 
 CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY
 AccumulatedAdditional
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    TotalCommon Stock
    
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    Comprehensive
    
    
    ShareholdersShares
    
    
    Par Value
    
    
    Capital
    
    
    Earnings
    
    
    Loss
    
    
    Income
    
    
    EquityBalance at December 31, 2004
    
    
    46,155
    
    
    $
    92
    
    
    $
    192,860
    
    
    $
    283,712
    
    
    $
    (13,857
    )
    
    
    
    
    
    $
    462,807Issuance of stock under stock option, stock
purchase, and other plans
    
    
    1,119
    
    
    
    2
    
    
    
    21,246
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    21,248Tax benefit from exercise of stock options
    
    
    
    
    
    
    
    
    
    
    4,236
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,236Payment of dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,173
    )
    
    
    
    
    
    
    
    
    
    
    (11,173
    )Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23,952
    
    
    
    
    
    
    $
    23,952
    
    
    
    23,952Losses on long-term intercompany loans
net of gains on currency swaps, net of
tax of $118
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (203
    )
    
    
    (203
    )
    
    
    (203
    )Net unrealized loss on available-for-sale
investments, net of tax of $35
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (58
    )
    
    
    (58
    )
    
    
    (58
    )Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    238
    
    
    
    238
    
    
    
    238Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    23,929Balance at October 2, 2005 (unaudited)
    
    
    47,274
    
    
    $
    94
    
    
    $
    218,342
    
    
    $
    296,491
    
    
    $
    (13,880
    )
    
    
    
    
    
    $
    501,047
  3




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COGNEX CORPORATION
 
 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
 Nine Months EndedOctober 2,
    
    
    October 3,2005
    
    
    2004(unaudited)Cash flows from operating activities:Net income
    
    $
    23,952
    
    
    $
    31,100Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation of
property, plant, and equipment
    
    
    3,546
    
    
    
    3,397Amortization of intangible assets
    
    
    2,868
    
    
    
    1,136Amortization of investment discounts and premiums
    
    
    2,325
    
    
    
    2,895Tax benefit from exercise of stock options
    
    
    4,236
    
    
    
    8,798Deferred income tax expense (benefit)
    
    
    (469
    )
    
    
    914Change in current assets and current liabilities
    
    
    (6,099
    )
    
    
    1,965Other
    
    
    309
    
    
    
    (67
    )Net cash provided by operating activities
    
    
    30,668
    
    
    
    50,138Cash flows from investing activities:Purchase of investments
    
    
    (618,271
    )
    
    
    (439,870
    )Maturity and sale of investments
    
    
    731,967
    
    
    
    346,051Purchase of property, plant, and equipment
    
    
    (2,909
    )
    
    
    (2,030
    )Cash paid for business acquisitions
    
    
    (111,591
    )
    
    
    Net cash used in investing activities
    
    
    (804
    )
    
    
    (95,849
    )Cash flows from financing activities:Issuance of stock under stock option, stock
purchase, and other plans
    
    
    21,248
    
    
    
    42,481Payment of dividends
    
    
    (11,173
    )
    
    
    (9,070
    )Net cash provided by financing activities
    
    
    10,075
    
    
    
    33,411Effect of foreign exchange rate changes on cash
    
    
    (2,184
    )
    
    
    1,178Net increase (decrease) in cash and cash equivalents
    
    
    37,755
    
    
    
    (11,122
    )Cash and cash equivalents at beginning of period
    
    
    54,270
    
    
    
    76,227Cash and cash equivalents at end of period
    
    $
    92,025
    
    
    $
    65,105
  4




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COGNEX CORPORATION
 
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 NOTE 1: Summary of Significant Accounting Policies
    Share-Based Compensation Plans
  Three Months Ended
    
    
    Nine Months EndedOctober 2,
    
    
    October 3,
    
    
    October 2,
    
    
    October 3,2005
    
    
    2004
    
    
    2005
    
    
    2004Net income, as reported
    
    $
    10,858
    
    
    $
    11,655
    
    
    $
    23,952
    
    
    $
    31,100Less: Total share-based compensation
costs determined under fair value based
method, net of tax
    
    
    (2,360
    )
    
    
    (3,421
    )
    
    
    (7,040
    )
    
    
    (11,002
    )Net income, pro forma
    
    $
    8,498
    
    
    $
    8,234
    
    
    $
    16,912
    
    
    $
    20,098Basic net income per share, as reported
    
    $
    0.23
    
    
    $
    0.26
    
    
    $
    0.51
    
    
    $
    0.69Basic net income per share, pro forma
    
    $
    0.18
    
    
    $
    0.18
    
    
    $
    0.36
    
    
    $
    0.44Diluted net income per share, as reported
    
    $
    0.22
    
    
    $
    0.25
    
    
    $
    0.50
    
    
    $
    0.66Diluted net income per share, pro forma
    
    $
    0.18
    
    
    $
    0.18
    (1)
    
    $
    0.35
    
    
    $
    0.42
    (1)
 
 (1)
    
    Amounts were originally reported as $0.21 and $0.49 and have been adjusted to $0.18 and $0.42
for the three-month and nine-month periods, respectively, due to a refinement in the calculation. 5




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COGNEX CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 NOTE 1: Summary of Significant Accounting Policies (continued)
  Three Months Ended
    
    Nine Months EndedOctober 2,
    
    October 3,
    
    October 2,
    
    October 3,2005
    
    2004
    
    2005
    
    2004Risk-free interest rate
    
    
    4.0
    %
    
    
    3.4
    %
    
    
    3.4
    %
    
    
    2.9
    %Expected life (in years)
    
    
    2.9
    
    
    
    3.0
    
    
    
    2.8
    
    
    
    3.1Expected volatility
    
    
    35
    %
    
    
    42
    %
    
    
    35
    %
    
    
    45
    %Expected dividend yield
    
    
    1.08
    %
    
    
    1.02
    %
    
    
    1.27
    %
    
    
    1.02
    %
 NOTE 2: New Pronouncements
     6




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COGNEX CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 NOTE 2: New Pronouncements (continued)
   NOTE 3: Cash, Cash Equivalents, and Investments
  October 2,
    
    
    December 31,2005
    
    
    2004Cash
    
    $
    92,025
    
    
    $
    54,270Total cash and cash
equivalents
    
    
    92,025
    
    
    
    54,270Municipal
bonds
    
    $
    140,959
    
    
    $
    180,409Total short-term
investments
    
    
    140,959
    
    
    
    180,409Municipal
bonds
    
    $
    68,157
    
    
    $
    144,685Limited partnership
interest
    
    
    11,575
    
    
    
    11,712Total long-term
investments
    
    
    79,732
    
    
    
    156,397$
    312,716
    
    
    $
    391,076
   NOTE 4: Inventories
  October 2,
    
    
    December 31,2005
    
    
    2004Raw materials
    
    $
    8,668
    
    
    $
    6,311Work-in-process
    
    
    3,744
    
    
    
    6,285Finished goods
    
    
    6,167
    
    
    
    7,495$
    18,579
    
    
    $
    20,091
 7




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##### Table of Contents



COGNEX CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 NOTE 4: Inventories (continued)
   Balance Sheet
    
    

Statement
of
OperationsAccruedInventories
    
    
    Expenses
    
    
    BenefitsReserve balance at December 31, 2004
    
    $
    7,448
    
    
    $
    1,400Benefits to cost of product revenue recorded in 2004
    
    
    
    
    
    
    
    
    
    $
    874Inventory sold to customers
    
    
    (472
    )
    
    
    
    
    
    
    472Inventory sold to brokers
    
    
    (125
    )
    
    
    
    
    
    
    Write-off and scrap of inventory
    
    
    (508
    )
    
    
    
    
    
    
    Reserve balance at October 2, 2005
    
    $
    6,343
    
    
    $
    1,400Benefits to cost of product revenue recorded in 2005
    
    
    
    
    
    
    
    
    
    $
    472
  NOTE 5: Intangible Assets
  October 2, 2005
 Gross
    
    
    
    
    
    
    NetCarrying
    
    
    Accumulated
    
    
    CarryingAmount
    
    
    Amortization
    
    
    AmountDistribution networks
    
    $
    38,060
    
    
    $
    1,369
    
    
    $
    36,691Customer contracts and relationships
    
    
    12,281
    
    
    
    2,223
    
    
    
    10,058Completed technologies
    
    
    9,037
    
    
    
    5,305
    
    
    
    3,732Other
    
    
    1,266
    
    
    
    210
    
    
    
    1,056$
    60,644
    
    
    $
    9,107
    
    
    $
    51,537
 8




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##### Table of Contents



COGNEX CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 NOTE 5: Intangible Assets (continued)
 December 31, 2004
 Gross
    
    
    
    
    
    
    NetCarrying
    
    
    Accumulated
    
    
    CarryingAmount
    
    
    Amortization

    
    
    AmountCustomer contracts and relationships
    
    $
    8,349
    
    
    $
    1,522
    
    
    $
    6,827Completed technologies
    
    
    5,440
    
    
    
    4,864
    
    
    
    576Other
    
    
    176
    
    
    
    73
    
    
    
    103$
    13,965
    
    
    $
    6,459
    
    
    $
    7,506
   Year
    
    Amount2005
    
    $
    4,2432006
    
    
    5,6482007
    
    
    5,5972008
    
    
    5,5062009
    
    
    5,291Thereafter
    
    
    28,120$
    54,405
 NOTE 6: Goodwill
   MVSD
    
    
    SISD
    
    
    ConsolidatedBalance at December 31, 2004
    
    $
    4,121
    
    
    $
    2,912
    
    
    $
    7,033Business acquisition (Note 12)
    
    
    74,331
    
    
    
    
    
    
    
    74,331Foreign exchange rate changes
    
    
    (299
    )
    
    
    (332
    )
    
    
    (631
    )Balance at October 2, 2005
    
    $
    78,153
    
    
    $
    2,580
    
    
    $
    80,733
 NOTE 7: Warranty Obligations
  9




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COGNEX CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 NOTE 7: Warranty Obligations (continued)
  Balance at December 31, 2004
    
    $
    1,758Provisions for warranties issued during the period
    
    
    598Warranty obligations assumed in business acquisition (Note 12)
    
    
    200Fulfillment of warranty obligations
    
    
    (814
    )Foreign exchange rate changes
    
    
    (140
    )Balance at October 2, 2005
    
    $
    1,602
 NOTE 8: Indemnification Provisions
    NOTE 9: Standby Letters of Credit and Income Taxes
  10




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COGNEX CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 NOTE 9: Standby Letters of Credit and Income Taxes (continued)
  NOTE 10: Net Income Per Share
  Three Months Ended
    
    
    Nine Months EndedOctober 2,
    
    
    October 3,
    
    
    October 2,
    
    
    October 3,2005
    
    
    2004
    
    
    2005
    
    
    2004Net income
    
    $
    10,858
    
    
    $
    11,655
    
    
    $
    23,952
    
    
    $
    31,100Basic:Weighted-average common shares
outstanding
    
    
    46,931
    
    
    
    44,928
    
    
    
    46,536
    
    
    
    45,281Net income per common share
    
    $
    0.23
    
    
    $
    0.26
    
    
    $
    0.51
    
    
    $
    0.69Diluted:Weighted-average common shares
outstanding
    
    
    46,931
    
    
    
    44,928
    
    
    
    46,536
    
    
    
    45,281Effect of dilutive stock options
    
    
    1,538
    
    
    
    1,487
    
    
    
    1,167
    
    
    
    2,143Weighted-average common and
common-equivalent shares
outstanding
    
    
    48,469
    
    
    
    46,415
    
    
    
    47,703
    
    
    
    47,424Net income per common and
common-equivalent share
    
    $
    0.22
    
    
    $
    0.25
    
    
    $
    0.50
    
    
    $
    0.66
  NOTE 11: Segment Information
  11




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COGNEX CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 NOTE 11: Segment Information (continued)
  ReconcilingMVSD
    
    
    SISD
    
    
    Items
    
    
    ConsolidatedThree Months Ended
October 2, 2005Product revenue
    
    $
    45,770
    
    
    $
    6,864
    
    
    $
    
    
    
    $
    52,634Service revenue
    
    
    3,033
    
    
    
    2,589
    
    
    
    
    
    
    
    5,622Operating income
    
    
    14,124
    
    
    
    1,902
    
    
    
    (2,100
    )
    
    
    13,926Nine Months Ended
October 2, 2005Product revenue
    
    $
    120,363
    
    
    $
    18,325
    
    
    $
    
    
    
    $
    138,688Service revenue
    
    
    10,063
    
    
    
    7,306
    
    
    
    
    
    
    
    17,369Operating income
    
    
    31,565
    
    
    
    4,015
    
    
    
    (6,210
    )
    
    
    29,370Three Months Ended
October 3, 2004Product revenue
    
    $
    43,511
    
    
    $
    4,808
    
    
    $
    
    
    
    $
    48,319Service revenue
    
    
    5,121
    
    
    
    1,972
    
    
    
    
    
    
    
    7,093Operating income
    
    
    18,009
    
    
    
    62
    
    
    
    (2,196
    )
    
    
    15,875Nine Months Ended
October 3, 2004Product revenue
    
    $
    123,751
    
    
    $
    15,088
    
    
    $
    
    
    
    $
    138,839Service revenue
    
    
    13,602
    
    
    
    5,607
    
    
    
    
    
    
    
    19,209Operating income
    
    
    45,924
    
    
    
    1,012
    
    
    
    (6,554
    )
    
    
    40,382
  NOTE 12: Acquisition of DVT Corporation
   12




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##### Table of Contents



COGNEX CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 NOTE 12: Acquisition of DVT Corporation (continued)
    Three Months Ended
    
    
    Nine Months EndedOctober 2,
    
    
    October 3,
    
    
    October 2,
    
    
    October 3,2005
    
    
    2004
    
    
    2005
    
    
    2004Revenue
    
    $
    58,256
    
    
    $
    62,942
    
    
    $
    166,613
    
    
    $
    178,957Net income
    
    $
    10,858
    
    
    $
    11,314
    
    
    $
    23,516
    
    
    $
    29,845Net income per diluted share
    
    $
    0.22
    
    
    $
    0.24
    
    
    $
    0.49
    
    
    $
    0.63
 NOTE 13: Dividends
  NOTE 14: Subsequent Event
  13




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##### Table of Contents



ITEM 2: MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 FORWARD-LOOKING STATEMENTS
  Executive Overview
      14




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##### Table of Contents



Results of Operations
 Revenue
   â
 Gross Margin
   15




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##### Table of Contents



â
 Operating Expenses
   Foreign Currency Gain (Loss)
  Investment and Other Income
  Income Taxes
  Liquidity and Capital Resources
  16




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##### Table of Contents



New Pronouncements
  17




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##### Table of Contents



ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  
 ITEM 4: CONTROLS AND PROCEDURES
  18




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##### Table of Contents



PART II: OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
     
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 ITEM 5. OTHER INFORMATION
  19




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##### Table of Contents



ITEM 6. EXHIBITS
     
 *
    
    Filed herewith**
    
    Furnished herewith 20




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##### Table of Contents



SIGNATURES
  DATE: November 2, 2005
    
    COGNEX CORPORATION/s/ Robert J. ShillmanRobert J. ShillmanChairman of the Board of Directors and Chief Executive Officer(duly authorized officer, principal executive officer)/s/ Richard A. MorinRichard A. MorinSenior Vice President of Finance and Administration, ChiefFinancial Officer, and Treasurer(duly authorized officer, principal financial and accounting officer)
 21