CyberOptics Corporation (Nasdaq: CYBE) today reported consolidated sales of $5.8 million for the fourth quarter of 2012 ended December 31, down from $13.8 million in the year-earlier period as the downturn in the global electronics market deepened considerably during the quarter. The operating loss for the quarter was $2.7 million versus operating income of $688,000 in the fourth quarter of 2011. CyberOptics posted a net loss of $6.5 million or $0.93 per share in the quarter, compared to earnings of $547,000 or $0.08 per diluted share in the year-earlier period. The net loss for the current quarter included a $5.7 million non-cash charge to record a valuation allowance against CyberOptics’ deferred tax assets due to weak operating results and the soft near-term business outlook. The valuation allowance may be reversed once CyberOptics’ operations and outlook materially strengthen. The fourth quarter net loss also included a restructuring charge of $523,000 related to the previously announced reduction in the company’s workforce.

For 2012, CyberOptics reported sales of $41.6 million, down from $61.1 million in 2011. The net loss for the year came to $6.7 million or $0.97 per share, including the $5.7 million non-cash charge for the valuation allowance and restructuring charges of $740,000, compared to net income of $4.4 million or $0.63 per diluted share in 2011.

Kathleen P. Iverson, chief executive officer and chair, commented: “Although our fourth quarter results were consistent with our forecast for this period, we are disappointed with our weak performance. The most recent cyclical downturn of the semiconductor and electronic assembly markets has caused customers for our sensors and inspection systems to delay plans for expanding their manufacturing capacity, which is the main driver of our business. Weak demand for our products has been particularly pronounced in China, which has experienced slowing economic growth and where many of our largest customers derive a significant portion of their revenue. Given our backlog of $2.6 million at December 31, 2012, compared to $2.2 million at the end of the third quarter, and ongoing weakness in the global electronics industry, revenues for the first quarter of 2013 are expected to approximate fourth quarter levels.”

Iverson continued: “The fourth quarter and first quarter of 2013 are expected to mark the low point of this market cycle. At this time, activity levels appear to be picking up in China and the Americas, making us believe sales should gradually ramp up as we progress through 2013. This outlook is supported by our strategy for tiering inspection systems, which is providing us with new products aimed at further strengthening our position in the mobile computing market. Scheduled for introduction during the first half of 2013, the QX600 automated optical inspection (AOI) system and SE600 solder paste inspection (SPI) system are designed with significantly improved resolution and performance required for accurately inspecting the smallest circuit board components used in smart phones and tablets. The SE500ultra SPI system, which will be introduced in the second quarter, will offer a 30% increase in inspection speed for high-volume production runs.”

She added: “CyberOptics has successfully weathered many market downturns throughout our history, and we will emerge from the current cycle with a series of new products that should enable us to gain further share in the electronic assembly market. Backed by cash and marketable securities of nearly $30 million at the end of 2012, we also have the resources required for pursuing new avenues of growth that will help dampen the impact of future cycles in the electronics market.”

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.