CyberOptics Reports Second Quarter Results

MINNEAPOLIS--()--CyberOptics Corporation (Nasdaq: CYBE) today reported sales of $15.0 million for the second quarter of 2019 ended June 30, down 5% from $15.9 million in the second quarter of 2018. Second quarter earnings totaled $464,000 or $0.06 per diluted share, compared to earnings of $740,000 or $0.10 per diluted share in last year’s second quarter.

Dr. Subodh Kulkarni, president and chief executive officer, commented: “As we reported on July 2, 2019, CyberOptics’ second quarter operating results were affected by the cyclical, industry-wide slowdown in demand for surface mount technology (SMT) and semiconductor capital equipment as well as the uncertainty surrounding the global trade environment. We expect sluggish market conditions to persist during the second half of 2019. Despite near-term headwinds, investment in research and development will continue as we further strengthen CyberOptics ability to capitalize on strong growth opportunities for our 3D multi-reflection suppression (MRS)-enabled sensors and systems, and WaferSense products. Our confidence in CyberOptics’ future is undiminished.”

Sales of sensors, inspection and metrology systems based on 3D MRS technology totaled $6.0 million in the second quarter of 2019, up 38% from $4.3 million in the year-earlier period. These products together with our semiconductor sensors, primarily consisting of our WaferSense products, accounted for 60% of total second quarter revenue, up from 52% in the year-earlier period.

Sales of inspection and metrology systems increased 49% year-over-year in the second quarter of 2019 to $9.9 million, paced by a 75% increase in year-over-year sales of SQ3000 3D automated optical inspection (AOI) systems to $4.6 million. The competitive advantages of its 3D MRS technology have strongly positioned CyberOptics in the growing market for 3D inspection. CyberOptics received customer acceptances totaling $1.1 million in the second quarter for MX600 memory module inspection systems. Sales of inspection and metrology systems are forecasted to decline in the third quarter of 2019 on both a sequential and year-over-year basis.

Sales of high-precision 3D and 2D sensors fell 62% year-over-year in the second quarter of 2019 to $2.0 million, with sales of 3D MRS-enabled sensors down 30% year-over-year to $1.1 million. Although sensor sales are forecasted to rebound modestly in the third quarter of 2019 on a sequential basis, soft market conditions are expected to persist, resulting in lower year-over-year sales.

Sales of semiconductor sensors fell 21% year-over-year in the second quarter of 2019 to $3.1 million. Sales of semiconductor sensors are forecasted to be flat to down slightly in the third quarter of 2019 on both a sequential and year-over-year basis.

CyberOptics’ MRS based NanoResolution sensor for semiconductor wafer level and advanced packaging inspection and metrology applications recently won the 2019 Best of the West award at the SEMICON West trade show earlier in July. Two OEM customers have adopted the NanoResolution sensor for their 3D advanced packaging inspection and metrology systems. Interest in the NanoResolution sensor was high at the SEMICON West trade show, and many potential customers are evaluating this product, given its high resolution and industry-best inspection speeds. CyberOptics believes inspection and metrology for semiconductor wafer level and advanced packaging applications represent compelling long-term growth opportunities.

CyberOptics ended the second quarter of 2019 with an order backlog of $13.0 million, up from $11.6 million at the end of the first quarter. The June 30, 2019 backlog includes a large order for 3D MRS sensors from an existing OEM which are primarily scheduled for delivery in periods after 2019. As previously announced on July 2, 2019, the company is forecasting sales of $12.0 to $13.5 million for the third quarter of 2019 ending September 30.

About CyberOptics

CyberOptics Corporation (www.cyberoptics.com) is a leading global developer and manufacturer of high-precision 3D sensing technology solutions. CyberOptics’ sensors are used in SMT, semiconductor and metrology markets to significantly improve yields and productivity. By leveraging its leading edge technologies, the Company has strategically established itself as a global leader in high precision 3D sensors, allowing CyberOptics to further increase its penetration of key vertical markets. Headquartered in Minneapolis, Minnesota, CyberOptics conducts worldwide operations through its 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; the timing of orders and shipments of our products, particularly our 3D MRS-enabled AOI systems; 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 to meet customer orders; unanticipated product development challenges; the effect of world events on our sales, the majority of which are from foreign customers; rapid changes in technology in the electronics and semiconductor markets; product introductions and pricing by our competitors; the success of our 3D technology initiatives; the market acceptance of our SQ3000 3D CMM system, products for semiconductor advanced packaging inspection and metrology and CyberGage360 product; costly and time consuming litigation with third parties related to intellectual property infringement; 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 the live call by dialing toll-free 800-458-4121 prior to the start of the call and providing the conference ID: 2252222. A webcast of the live conference call, which will be archived for 30 days, can be heard by visiting the investor relations section of the CyberOptics website, www.cyberoptics.com. A replay of the call, available one hour after the call, can be accessed by dialing 888-203-1112 and providing conference ID: 2252222. The replay will be available for 30 days.

CyberOptics Corporation
 
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Revenue

$

15,044

$

15,854

$

30,020

$

29,974

Cost of revenue

 

8,455

 

8,590

 

16,405

 

16,491

Gross margin

 

6,589

 

7,264

 

13,615

 

13,483

Research and development expenses

 

2,249

 

2,243

 

4,542

 

4,423

Selling, general and administrative expenses

 

3,761

 

4,146

 

7,924

 

8,503

Income from operations

 

579

 

875

 

1,149

 

557

Interest income and other

 

77

 

95

 

136

 

157

Income before income taxes

 

656

 

970

 

1,285

 

714

Provision for income taxes

 

192

 

230

 

326

 

147

Net income

$

464

$

740

$

959

$

567

Net income per share - Basic

$

0.07

$

0.11

$

0.14

$

0.08

Net income per share - Diluted

$

0.06

$

0.10

$

0.13

$

0.08

Weighted average shares outstanding - Basic

 

7,106

 

7,010

 

7,103

 

6,998

Weighted average shares outstanding - Diluted

 

7,296

 

7,242

 

7,309

 

7,114

Condensed Consolidated Balance Sheets
June 30, 2019 Dec. 31, 2018
(Unaudited)
Assets
Cash and cash equivalents

$

9,664

$

9,248

Marketable securities

 

8,245

 

5,771

Accounts receivable, net

 

15,553

 

15,859

Inventories

 

17,563

 

16,163

Other current assets

 

1,437

 

2,096

Total current assets

 

52,462

 

49,137

 
Marketable securities

 

7,893

 

10,322

Intangibles and goodwill, net

 

1,676

 

1,699

Fixed assets, net

 

3,778

 

2,861

Right-of-use assets (operating leases)

 

2,105

 

-

Other assets

 

252

 

259

Deferred tax assets

 

5,189

 

5,422

Total assets

$

73,355

$

69,700

 
Liabilities and Stockholders' Equity
Accounts payable

$

7,670

$

8,513

Accrued expenses

 

3,695

 

4,204

Current operating lease liabilities

 

410

 

-

Total current liabilities

 

11,775

 

12,717

 
Other liabilities

 

256

 

772

Long-term operating lease liabilities

 

3,397

 

-

Total liabilities

 

15,428

 

13,489

 
Total stockholders' equity

 

57,927

 

56,211

Total liabilities and stockholders' equity

$

73,355

$

69,700

 

Contacts

Jeffrey A. Bertelsen, Chief Financial Officer
763-542-5000

Carla Furanna, Head of Global Marketing
952-820-5837

#Hashtags

Contacts

Jeffrey A. Bertelsen, Chief Financial Officer
763-542-5000

Carla Furanna, Head of Global Marketing
952-820-5837