EX-99.1 2 cyber134410_ex99-1.htm PRESS RELEASE DATED OCTOBER 24, 2013

Exhibit 99.1

 

CyberOptics Reports Third Quarter Operating Results

 

Minneapolis, MN—October 24, 2013—CyberOptics Corporation (Nasdaq: CYBE) today reported its operating results for the third quarter of 2013 ended September 30:

 

  • Consolidated sales of $8.7 million were down from $9.3 million in this year’s second quarter and $11.6 million in the year-earlier period.
  • The operating loss for the quarter of $961,000 was improved from $1.2 million in this year’s second quarter. CyberOptics reported an operating loss of $589,000 in the third quarter of 2012.
  • CyberOptics posted a net loss of $774,000 or $0.11 per share in the quarter, including a previously announced one-time income tax benefit of $318,000, compared to the net losses of $1.2 million or $0.17 per share in this year’s second quarter and $447,000 or $0.06 per share in last year’s third quarter.

Kathleen P. Iverson, chief executive officer, commented: “CyberOptics’ disappointing third quarter results reflect lower than expected sales of SMT inspection systems. An anticipated $1.0 million order for our SE500 product for use in laptop PC production, while not lost to a competitor, did not materialize. Third quarter sales were also adversely affected by a slowdown in September orders for inspection systems, as well as below-plan market acceptance of QX600 automated optical inspection (AOI) systems. Partly offsetting the weakness in our inspection systems business was 17% sequential quarterly sales growth of electronic assembly sensors, as we started selling our next-generation LaserAlign and EPV sensors to our largest OEM customer. We also posted moderate sequential quarterly sales growth of our semiconductor products.”

 

She continued: “Many of the factors that affected our third quarter performance will continue in the fourth quarter. We are forecasting sales of $7.0 to $8.0 million and a net loss for the fourth quarter of 2013 ending December 31. Since we do not anticipate a material near-term recovery in sales, we will be strengthening our commitment to cost control to minimize losses and cash consumption and our focus on market support for our product lines.”

 

Executive Chairman Dr. Subodh Kulkarni said: “We are encouraged by initial acceptance of our new SE600 solder paste system, which we believe has the improved performance and usability we need to gain SPI market share. Currently the largest issue we face is in the AOI market, which accounts for approximately two-thirds of the total inspection systems market. Customer acceptance of the QX600 AOI inspection system, which is expected to address market segments outside the laptop PC space, has been slower than anticipated, as competitors stress the importance of 3D versus 2D AOI. ”

 

He continued: “My plan is to focus my efforts on helping CyberOptics leverage its resources to develop new, cutting edge technologies and products. Toward this end, we are developing disruptive 3D technologies for AOI and SPI, which we expect to be market-ready by the start of 2015. We are confident that CyberOptics is pursuing the correct strategic direction of both supporting the market position of our current, high value products and leveraging our capacity to bring world class products and technology to the marketplace.”

 

CyberOptics ended the third quarter of 2013 with cash and marketable securities of $23.8 million, compared to $25.3 million at the end of the second quarter. During the third quarter, CyberOptics used approximately $1.3 million to repurchase common shares under its $3.0 million share repurchase authorization. Approximately $1.0 million remains available for share repurchases under this authorization.

 

 
 

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 loss we achieve in the remainder of 2013; success of anticipated new OEM and end-user opportunities; and other factors set forth in the Company’s filings with the Securities and Exchange Commission.

 

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For additional information, contact:

Jeffrey A. Bertelsen, Chief Financial Officer

763/542-5000

 

Richard G. Cinquina

Equity Market Partners

904/415-1415

 

Third Quarter Conference Call and Replay

CyberOptics will review its third quarter operating results in a conference call at 4:30 pm Eastern today. Investors can access this call at 1-480-629-9819 or toll-free at 1-877-941-6009 prior to the start of the call and providing the conference ID: 4645334. Investors also can listen 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 third 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 Sept 30,     Nine Months Ended Sept 30,  
    2013     2012     2013     2012  
Revenue   $ 8,726     $ 11,558     $ 24,756     $ 35,841  
Cost of revenue     4,720       6,477       13,737       19,996  
Gross margin     4,006       5,081       11,019       15,845  
Research and development expenses     1,978       2,129       5,835       6,108  
Selling, general and administrative expenses     2,989       3,324       9,340       9,919  
Restructuring and severance costs           217             217  
Loss from operations     (961 )     (589 )     (4,156 )     (399 )
Interest income and other     (107 )     94       (184 )     53  
Loss before income taxes     (1,068 )     (495 )     (4,340 )     (346 )
Provision (benefit) for income taxes     (294 )     (48 )     (220 )     (134 )
Net loss   $ (774 )   $ (447 )   $ (4,120 )   $ (212 )
Net loss per share - Basic   $ (0.11 )   $ (0.06 )   $ (0.60 )   $ (0.03 )
Net loss per share - Diluted   $ (0.11 )   $ (0.06 )   $ (0.60 )   $ (0.03 )
Weighted average shares outstanding - Basic     6,784       6,951       6,883       6,940  
Weighted average shares outstanding - Diluted     6,784       6,951       6,883       6,940  

 

 

Condensed Consolidated Balance Sheets (Unaudited)

                Sept. 30, 2013     Dec. 31, 2012  
                (Unaudited)        
Assets                                
Cash and cash equivalents                   $ 4,524     $ 7,340  
Marketable securities                     7,801       11,438  
Accounts receivable, net                     7,548       6,129  
Inventories                     12,457       12,533  
Income tax refunds and deposits                     789       1,325  
Other current assets                     1,407       1,338  
Deferred tax assets                     100       100  
Total current assets                     34,626       40,203  
                                 
Marketable securities                     11,445       10,435  
Intangible and other assets, net                     702       758  
Fixed assets, net                     1,438       1,719  
Other assets                     195       142  
Deferred tax assets                     197       363  
Total assets                   $ 48,603     $ 53,620  
                                 
Liabilities and Stockholders’ Equity                                
Accounts payable                   $ 4,124     $ 2,476  
Accrued expenses                     2,165       2,403  
Deferred tax liability                     29       29  
Total current liabilities                     6,318       4,908  
Other liabilities                     824       1,240  
Total liabilities                     7,142       6,148  
                                 
Total stockholders’ equity                     41,461       47,472  
Total liabilities and stockholders’ equity                   $ 48,603     $ 53,620  
                                 
                                 
Backlog Schedule (Unaudited):                                
4th Quarter 2013                           $ 3,747  
1st Quarter 2014 and beyond                             985  
     Total backlog                           $ 4,732