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Cognex to Cut 85 Jobs, Sees Lower Third Quarter
Cognex Corporation Posted 08/02/2002
NATICK, Mass., August 01, 2002 4:32:00 PM ET (Reuters) - Cognex Corp. (CGNX), which makes image-analysis software, said on Thursday it will cut its global work force by 85 positions and report a third-quarter loss, citing a persistent slowdown in the semiconductor and electronics markets.
The company, based in Natick, Massachusetts, said it expects to report third-quarter results between nil and a loss of 2 cents per share, reversing a profit of 5 cents last year. It will take a charge of $1 million in the quarter from the job cuts. The reductions, which include 75 employees and 10 open positions, are expected to lower expenses by about $6.5 million a year beginning in the fourth quarter.
"There is little reason for optimism today," President Robert Shillman said in a statement. To say the he is confident in the company's future, or that it will emerge stronger from the downturn, "is simply wishful thinking," he said.
"After three quarters of such losses, we have concluded that this slowdown is likely to continue for an indeterminate period of time," Shillman said.
© 2002 Reuters