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.