CyberOptics Reports Stronger Than Forecasted Third Quarter Operating Results
October 24, 2007 at 16:00 PM EDT
CyberOptics Corporation (Nasdaq:CYBE) today reported operating results for the third quarter of 2007 ended September 30:
Kathleen P. Iverson, president and chief executive officer, commented: “Our above-plan operating results in the third quarter were paced by much stronger than anticipated sales of electronic assembly sensors and continued robust demand for inspection systems. Sales of electronic assembly sensors to our primary OEM customers were at their strongest level within the past two years, reflecting an upturn in the global electronic assembly market that we believe started strengthening during this year’s second quarter. Our third quarter sales also benefited from the shipment of the remaining half of 37 SE 300 solder paste inspection systems from an earlier order. In addition, significant orders for both solder paste and automated optical inspection (AOI) systems were received from original design manufacturers (ODMs) and electronics manufacturing services companies. We also completed our first Flex Ultra AOI sales to key ODM and memory module customers, who previously had only used our SE 300 solder paste inspection systems. We ended the third quarter with a solid backlog of inspections systems and believe that fourth quarter revenue from inspection systems should increase from the third quarter level.”
Iverson continued: “Order bookings of both electronic assembly sensors and inspection systems totaled $15.7 million in the third quarter, and we ended this period with a backlog totaling $8.1 million. The majority of this backlog is scheduled to ship in the fourth quarter. Sales of electronic assembly sensors are forecasted to remain robust, although we expect the fourth quarter sensor order rate to moderate somewhat from the exceptionally strong third quarter level. As a result, we are forecasting sales of $13.5 to $14.5 million and earnings of $0.12 to $0.14 per diluted share for the fourth quarter of 2007 ending December 31. Our fourth quarter guidance incorporates the continuation of higher R&D investment related to the development of next-generation solder paste and AOI systems.”
Steven K. Case, Ph.D., chairman and founder, added: “We believe that the upturn in the global electronics assembly market should continue into 2008. To fully capitalize upon positive market conditions, we will continue the accelerated R&D program that we implemented in the third quarter, which is aimed at keeping our systems offerings on the leading edge of inspection technology. We see substantial opportunities for inspection solutions based on faster production through-put speeds, programming ease of use, and improved imaging resolutions. We believe the next-generation systems now under development will also serve us well in future market environments, since demand for inspection systems is not driven solely by increases in production capacity. To help ensure end-product quality, automated inspection is increasingly required for inspecting the progressively smaller and nearly microscopic components now used in a growing range of end-user electronics. For this reason, CyberOptics long-term future will benefit from today’s investments.”
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.
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 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 October 31 by dialing 303-590-3000 and providing the 11099312 confirmation code.