Revenue during the quarter surged 37.52 percent to $147.95 million from $107.59 million in the previous year period. Gross margin for the quarter expanded 233 basis points over the previous year period to 77.87 percent. Total expenses were 63.14 percent of quarterly revenues, down from 73.52 percent for the same period last year. This has led to an improvement of 1038 basis points in operating margin to 36.86 percent.

Operating income for the quarter was $54.53 million, compared with $28.48 million in the previous year period.

However, the adjusted operating income for the quarter stood at $59.15 million compared to $32.87 million in the prior year period. At the same time, adjusted operating margin improved 943 basis points in the quarter to 39.98 percent from 30.55 percent in the last year period.

"Our third quarter performance was impressive," said Robert J. Willett, chief executive officer of Cognex. "Revenue grew significantly year-on-year as large opportunities drove growth well above our 20% long-term target for factory automation. Operating margin expanded to 37% compared to 26% in the third quarter a year ago, reflecting the substantial leverage that incremental revenue has on our profitability. And, earnings per share were significantly higher than consensus expectations even when you exclude the $0.07 per share tax benefit from stock option exercises that we recognized during the quarter. We are pleased to see our hard work deliver such great results."

For the fourth-quarter, Cognex Corp forecasts revenue to be in the range of $115 million to $118 million.