CyberOptics Reports Second Quarter Operating Results

CyberOptics Corporation (Nasdaq: CYBE) today reported operating results for the second quarter of 2012 ended June 30.
  • Consolidated sales totaled $13.0 million, up from $11.3 million in this year’s first quarter but down from $16.9 million in the second quarter of 2011, reflecting greater than anticipated weakness in the global electronics market.
  • Operating income of $98,000 was up from $92,000 in the first quarter of 2012, but down from $1.8 million in last year’s second quarter.
  • Net income came to $143,000 or $0.02 per diluted share in this year’s second quarter, compared to $92,000 or $0.01 per diluted share in the first quarter and $1.4 million or $0.20 per diluted share in the year-earlier period.
  • Backlog at June 30, 2012 totaled $4.3 million, compared to $5.6 million at the end of this year’s first quarter.
  • Cash and marketable securities increased $1.8 million to $32.3 million at June 30, 2012 from $30.5 million at December 31, 2011. Cash reserves at the end of this year’s second quarter also were up substantially from $23.9 million at June 30, 2011.

Kathleen P. Iverson, chief executive officer and chair, commented: “We previously believed that the first quarter of 2012 marked the trough of a multi-quarter cyclical downturn in the global electronics industry. However, the extent of the market downturn caused by continued weakening of the global economy negatively affected our second quarter results. Given widespread market weakness, we experienced reduced year-over-year demand for most of our product categories, although revenue was sequentially higher in the second quarter of 2012. A slowing Chinese economy and continued economic turmoil in Europe, which drove heightened customer caution in our markets, were significant contributing factors to the lower demand for our sensor and system products. In addition, sensor sales continued to be affected by the absence of solar sensor sales due to persistently sluggish conditions in the solar market.”

She continued: “Despite the difficult operating environment, sales of our best-in-class automated optical inspection (AOI) systems, which are based upon CyberOptics’ unique strobed inspection module technology, were up 4% on a year-over-year basis, reflecting continued market share gains in the AOI market. We were particularly encouraged by the solid market reception accorded our new off-line and integrated in-line AOI tabletop systems that are part of our tiered product strategy, which is intended to increase the size of CyberOptics’ served market. Sales of these products totaled approximately $500,000 in the second quarter of 2012. The success of our AOI products is the direct result of CyberOptics’ ongoing commitment to product development, an emphasis we plan to maintain as we continue working on next-generation products. We believe these new products will position us to capture additional market share and help fuel our future growth and profitability. In addition, we are continuing to evaluate strategic acquisition opportunities as a means for entering new markets with related technologies.”

Iverson added: “We are fully consolidating our Portland-based semiconductor operations into our Minneapolis headquarters facility. We believe this move, which will result in a restructuring charge of approximately $300,000 in the third quarter, will allow us to accelerate development of our WaferSense products through more efficient access to CyberOptics’ sensor engineering talent, while further streamlining our business. This action will have no impact on our global sales and service capabilities. Sales of our WaferSense product line were up 15% sequentially and 17% year-over-year, and our consolidation initiative will enable WaferSense to remain a growing and important component of our product mix.”

Iverson continued: “Given the prolonged weakness in the global economy, we believe sluggish market conditions will likely extend at least through the end of 2012. Based upon this outlook, we believe CyberOptics’ second half sales may be lower than the level posted in this year’s first six months. And since we plan to continue funding our product development initiatives at a relatively high level, maintaining profitability in 2012 may be challenging. Despite this near-term outlook, we remain confident about CyberOptics’ longer-term future, as we prepare for the next upturn of the electronics market by developing a range of important next-generation products.”

About CyberOptics

Founded in 1984, CyberOptics Corporation is a leading provider of sensors and inspection systems that provide process yield and through-put improvement solutions for the global electronic assembly and semiconductor capital equipment markets. Our products are deployed on production lines that manufacture surface mount technology circuit boards and semiconductor process equipment. By increasing productivity and product quality, our sensors and inspection systems enable electronics manufacturers to strengthen their competitive positions in highly price-sensitive markets. Headquartered in Minneapolis, Minnesota, we conduct worldwide operations through facilities in North America, Asia and Europe.

Statements regarding the Company’s anticipated performance are forward-looking and therefore involve risks and uncertainties, including but not limited to: market conditions in the global SMT and semiconductor capital equipment industries; increasing price competition and price pressure on our product sales, particularly our SMT systems; the level of orders from our OEM customers; the availability of parts required for meeting customer orders; the effect of world events on our sales, the majority of which are from foreign customers; product introductions and pricing by our competitors; the level of revenue and profitability we achieve in 2012; success of anticipated new OEM and end-user opportunities; the need for a valuation allowance with respect to our deferred tax assets; and other factors set forth in the Company’s filings with the Securities and Exchange Commission.

Second Quarter Conference Call and Replay

CyberOptics will review its second quarter operating results in a conference call at 4:30 pm Eastern today. Investors can access this call at 1-877-941-0843 prior to the start of the call and providing the conference ID: 4552165 or by listening to a live webcast through the investor relations section of the CyberOptics website, www.cyberoptics.com. The webcast will be archived for 30 days. A replay of the second quarter conference call will be available one hour after the call at 303-590-3030 with the same access code.
               
CyberOptics Corporation
 
 
 
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30,
      2012     2011     2012     2011
Revenue $13,003 $16,859 $24,283 $30,209
Cost of revenue     7,474       9,352       13,519       16,095
Gross margin 5,529 7,507 10,764 14,114
Research and development expenses 2,062 1,947 3,979 3,765
Selling, general and administrative expenses 3,369 3,671 6,595 7,328
Amortization of intangibles     -       45       -       90
Income from operations 98 1,844 190 2,931
Interest income and other     (76 )     (7 )     (41 )     79
Income before income taxes 22 1,837 149 3,010
Provision (benefit) for income taxes     (121 )     439       (86 )     766
Net income     $143       $1,398       $235       $2,244
Net income per share - Basic $0.02 $0.20 $0.03 $0.33
Net income per share - Diluted     $0.02       $0.20       $0.03       $0.32
Weighted average shares outstanding - Basic 6,935 6,894 6,934 6,893
Weighted average shares outstanding - Diluted     6,994       6,948       6,988       6,941
 
Condensed Consolidated Balance Sheets
June 30, 2012 Dec. 31, 2010
                  (Unaudited)        
Assets
Cash and cash equivalents $10,863 $13,791
Marketable securities 10,859 10,640
Accounts receivable, net 8,627 11,909
Inventories 12,249 11,052
Income tax refunds and deposits 539 196
Other current assets 1,433 1,238
Deferred tax assets                 2,372       2,518  
Total current assets 46,942 51,344
 
Marketable securities 10,566 6,106
Intangible and other assets, net 796 799
Fixed assets, net 1,520 1,400
Other assets 138 137
Deferred tax assets                 3,045       3,130  
Total assets                 $63,007       $62,916  
 
Liabilities and Stockholders' Equity
Accounts payable $4,740 $4,081
Accrued expenses                 2,975       4,312  
Total current liabilities 7,715 8,393
 
Other liabilities                 1,513       1,554  
Total liabilities 9,228 9,947
                           
Total stockholders' equity                 53,779       52,969  
Total liabilities and stockholders' equity                 $63,007       $62,916  
 
 
Backlog Schedule:          
3rd Quarter 2012 $3,609
4th Quarter 2012 and beyond                       671  
Total backlog                       $4,280  

Copyright Business Wire 2010

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