EX-99 2 cyber073014_ex99.htm PRESS RELEASE DATED JULY 24, 2007 Exhibit 99 to CyberOptics Corporation Form 8-K dated July 24, 2007

Exhibit 99


CyberOptics Reports Better Than Forecasted Second Quarter Operating Results

And Strong Bookings and Backlog

 

Minneapolis, MN—July 24, 2007—CyberOptics Corporation (Nasdaq: CYBE) today reported operating results for the second quarter of 2007 ended June 30:

 

 

Consolidated sales totaled $13,974,000, up modestly from $13,741,000 in this year’s first quarter and down from $14,551,000 in the second quarter of 2006. Second quarter sales exceeded the previously issued guidance for this period.

 

 

Operating income came to $1,274,000, up from $1,174,000 in the first quarter and down from $2,469,000 in the year-earlier period.

 

 

Net income totaled $1,198,000 or $0.13 per diluted share, up from $1,153,000 or $0.13 per diluted share in the first quarter and down from $1,907,000 or $0.21 per diluted share in the second quarter of 2006. Earnings for this year’s second quarter also exceeded the forecasted financial guidance for this period.

 

 

CyberOptics ended the second quarter of 2007 with cash and marketable securities of $48,842,000, compared to $49,115,000 at the end of the first quarter and $49,007,000 at the beginning of 2007. The slight decrease in cash and marketable securities at the end of the second quarter was due to additional inventory for anticipated increases in third quarter sales. CyberOptics also used cash in the second quarter to repurchase approximately 13,000 shares of its common stock.

 

Kathleen P. Iverson, president and chief executive officer, commented: “Our above-plan operating results for the second quarter were paced by stronger than anticipated sales of LaserAlign® sensors for our long-time OEM partners. We believe this increased demand reflects the start of a general upturn in the global electronic assembly market, which has been sluggish throughout the past year. Also benefiting our second quarter sales was an order that we received for 37 SE 300 solder paste inspection systems, the largest such order in CyberOptics’ history. Approximately one-half of this order, which was placed by a major Asian original design manufacturer, or ODM, was shipped in the second quarter, with the balance expected to ship in the third quarter. Due to the number of systems in this order, which was placed by our largest ODM customer, this transaction was priced aggressively, which affected our second quarter gross margin.”

 

Iverson continued: “Order bookings, including electronic assembly sensors and inspection systems, totaled $17.0 million in the second quarter, and we ended this period with a backlog totaling $8.6 million, our largest quarter-ending backlog since the fourth quarter of 2000. The majority of our backlog is scheduled to ship in the third quarter. As a result, we are forecasting sales of $14.5 to $15.5 million and earnings of $0.12 to $0.15 per diluted share for the third quarter of 2007 ending September 30. Our third quarter guidance incorporates higher R&D investments related to the development of next-generation solder paste and automated optical inspection systems. We also will incur the front-end costs associated with replacing our high-cost U.S. software development contractors with an Indian contractor, a move that is expected to result in R&D savings in 2008.”

 




Steven K. Case, Ph.D., chairman and founder, added: “A number of significant recent wins for our electronic assembly inspection solutions have further validated our belief that this will be a strong and consistent growth driver going forward. Reflecting this conviction, we have deemed it essential to keep our system offerings on the leading edge of inspection technology. This is why we will be significantly increasing R&D investments on next-generation solder paste and automated optical inspection, or AOI, systems during the second half of 2007. We see substantial opportunities for inspection solutions based on faster production through-put speeds, as well as improved imaging resolutions required for inspecting the progressively smaller and nearly microscopic components now used in a growing range of end-user electronics. By making these R&D investments today, we believe CyberOptics can remain at the forefront of the global inspection market well into the future.”

 

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; and other factors set forth in the Company’s filings with the Securities and Exchange Commission.

 

#       #       #

 

For additional information, contact:

Jeffrey A. Bertelsen, Chief Financial Officer

763/542-5000

 

Richard G. Cinquina

Equity Market Partners

904/415-1415

 

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 a live webcast of the conference call by visiting the investor relations section of the CyberOptics website, www.cyberoptics.com. The webcast will be archived for 30 days. A replay of the conference call can be heard through July 31 by dialing 303-590-3000 and providing the 11093968 confirmation code.

 











CyberOptics Corporation

 

Condensed Consolidated Income Statements (Unaudited)

(In thousands, except per share amounts)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2007

 

2006

 

2007

 

2006

 

Revenue

 

$

13,974

 

$

14,551

 

$

27,715

 

$

29,269

 

Cost of revenue

 

 

6,880

 

 

6,438

 

 

13,489

 

 

13,521

 

Gross profit

 

 

7,094

 

 

8,113

 

 

14,226

 

 

15,748

 

Selling, general and administrative expenses

 

 

3,573

 

 

3,565

 

 

7,154

 

 

7,118

 

Research and development expenses

 

 

2,201

 

 

1,907

 

 

4,533

 

 

3,940

 

Amortization of intangibles

 

 

46

 

 

172

 

 

91

 

 

379

 

Income from operations

 

 

1,274

 

 

2,469

 

 

2,448

 

 

4,311

 

Interest income and other

 

 

559

 

 

418

 

 

1,118

 

 

812

 

Income before income taxes

 

 

1,833

 

 

2,887

 

 

3,566

 

 

5,123

 

Provision for income taxes

 

 

635

 

 

980

 

 

1,215

 

 

1,760

 

Net income

 

$

1,198

 

$

1,907

 

$

2,351

 

$

3,363

 

Net income per share – Basic

 

$

0.13

 

$

0.21

 

$

0.26

 

$

0.38

 

Net income per share – Diluted

 

$

0.13

 

$

0.21

 

$

0.26

 

$

0.37

 

Weighted average shares outstanding – Basic

 

 

8,901

 

 

8,997

 

 

8,890

 

 

8,962

 

Weighted average shares outstanding – Diluted

 

 

8,988

 

 

9,100

 

 

8,980

 

 

9,072

 

 

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

June 30, 2007

 

Dec. 31, 2006

 

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

17,118

 

$

30,056

 

Marketable securities

 

 

7,608

 

 

12,175

 

Accounts receivable, net

 

 

11,278

 

 

10,471

 

Inventories

 

 

10,514

 

 

8,357

 

Other current assets

 

 

1,032

 

 

868

 

Deferred tax assets

 

 

2,572

 

 

2,725

 

Total current assets

 

 

50,122

 

 

64,652

 

 

 

 

 

 

 

 

 

Marketable securities

 

 

24,116

 

 

6,776

 

Intangible and other assets, net

 

 

6,358

 

 

6,374

 

Fixed assets, net

 

 

2,012

 

 

1,814

 

Deferred tax assets

 

 

2,316

 

 

2,394

 

Total assets

 

$

84,924

 

$

82,010

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Accounts payable

 

$

3,501

 

$

3,783

 

Accrued expenses

 

 

3,840

 

 

5,207

 

Total current liabilities

 

 

7,341

 

 

8,990

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

1,368

 

 

 

Total liabilities

 

 

8,709

 

 

8,990

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

76,215

 

 

73,020

 

Total liabilities and stockholders’ equity

 

$

84,924

 

$

82,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Backlog Schedule:

 

 

 

 

 

 

 

3rd Quarter 2007

 

 

 

 

$

7,630

 

4th Quarter 2007 and thereafter

 

 

 

 

 

957

 

Total backlog

 

 

 

 

$

8,587