Cognex Corp. (CGNX), a machine vision product provider, Tuesday said it implemented additional cost cutting measures in addition to those implemented in November of 2008, to cut expenses by an additional $15 million on an annualized basis.
Cost cutting measures included slashing salaries of certain executives, elimination of approximately 85 employees and contractors, cancellation of most current open positions, additional mandatory shut-down days, a reduction in leased office space, a lower company contribution to the 401(k) plan, and decreases in discretionary spending.
Natick, Massachusetts-based Cognex anticipates a pre-tax charge of approximately $4 million for the second quarter of 2009 from the implementation of the cost cutting initiatives.
Dr. Robert Shillman, Chairman and Chief Executive Officer, Cognex said, "Although the anticipated savings from these cost-cutting measures are substantial, unless the business climate improves significantly, they are unlikely to be sufficient to guarantee our profitability for 2009. Although profitability is very important to us, the deeper cuts that would have been required to achieve it would have required delaying or even eliminating programs that we believe are crucial to the long-term success of our company"
CGNX closed Friday's trading at $14.36, up $0.15 or 1.06% on a volume of 249.243k shares on the Nasdaq.
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