CyberOptics Reports Fourth Quarter Operating Results

MINNEAPOLIS--()--CyberOptics Corporation (Nasdaq: CYBE) today reported operating results for the fourth quarter of 2017 ended December 31.

Fourth quarter sales, which were modestly above the previously-issued guidance for this period, totaled $13.2 million, compared to $13.5 million in the fourth quarter of 2016. CyberOptics also reported earnings of $503,000 or $0.07 per share, which included a $414,000 income tax benefit related to recent changes in federal income tax law. Earnings of $6.1 million or $0.85 per share were reported in the fourth quarter of 2016, which included a $5.3 million non-cash income tax benefit from the reversal of the valuation allowance for deferred income taxes.

For full-year 2017, CyberOptics reported sales of $53.3 million, compared to $66.2 million in 2016. Earnings for the year came to $1.3 million or $0.19 per share, compared to $11.6 million or $1.64 per share in 2016.

CyberOptics’ fourth quarter performance benefited from strongly higher sales of OEM sensors, including 3D MRS-enabled products, and WaferSense products for the semiconductor industry. Sales of all 3D MRS-based products increased 59% year-over-year to $3.8 million in the fourth quarter of 2017. For the year, total MRS-based revenues rose 17% to $14.3 million. However, the underlying growth rate was 88%, absent $4.7 million of SQ3000 sales to one customer in 2016.

Sensor sales increased 25% year-over-year to $3.5 million in the fourth quarter, paced by higher volumes of 3D MRS-enabled sensors and legacy 2D products. Fourth quarter sales of 3D MRS sensors to KLA-Tencor and Nordson YESTECH, our principal OEM customers for these products, increased by approximately 100% year-over-year. With demonstrations underway of its MRS-enabled mid-end semiconductor inspection capability, the company believes initial sales of these sensors are possible during the second half of 2018.

Sales of SMT inspection systems declined 31% year-over-year to $4.6 million in the fourth quarter of 2017. Reduced demand for legacy 2D products more than offset solidly higher sales of SQ3000 3D AOI systems, which increased nearly 70% year-over-year to $2.7 million in the fourth quarter. During this period, CyberOptics added six new SQ3000 customers as more manufacturers are recognizing the competitive advantages of this important inspection technology. For the year, 24 new SQ3000 customers were added, nearly double the number of new customers in 2016.

Sales of semiconductor sensors, principally the WaferSense product line, increased 29% year-over-year to $3.4 million in the fourth quarter, reflecting favorable industry conditions and the steadily growing traction these productivity enhancement tools are gaining in the semiconductor industry. Sales of general-purpose metrology products increased 26% year-over-year to $1.7 million in the fourth quarter, driven by legacy scanning products and services. Prospective metrology customers are showing interest in the recently introduced SQ3000 3DCMM (Coordinate Measurement) system that has a significant speed advantage over traditional CMM’s. This 3D MRS-based system incorporates the SQ3000’s AOI inspection capabilities with some of the metrology functionality of the CyberGage360 Scanning System, but with greater resolution and measurement performance. CyberOptics believes that general-purpose metrology is an attractive market for its products.

Dr. Subodh Kulkarni, president and chief executive officer, commented: “We are very optimistic about the future prospects of our 3D MRS technology, particularly in the areas of inspection and metrology for mid-end semiconductor and advanced packaging applications and inspection of complex electronics in areas such as automotive and mobile devices. As discussed previously, we have started to make incremental additions to our sales team and will continue to enhance our global sales channels.”

He continued: “CyberOptics ended the fourth quarter of 2017 with an order backlog of $11.4 million, up modestly from the level at the end of the third quarter. Sales of $12.5 - $13.5 million are currently forecasted for the first quarter of 2018 ending March 31.”

Kulkarni added: “We are very optimistic about CyberOptics’ future. Our positive outlook reflects the competitive advantages of our suite of MRS-enabled sensors and inspection systems, the potential for incremental revenue from mid-end semiconductor inspection, and the steadily growing acceptance of our WaferSense products.”

About CyberOptics

CyberOptics Corporation (www.cyberoptics.com) is a leading global developer and manufacturer of high precision sensing technology solutions. CyberOptics’ sensors are used in surface mount technology (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 markets; product introductions and pricing by our competitors; the success of our 3D technology initiatives; the success of CyberGage360; and other factors set forth in the Company’s filings with the Securities and Exchange Commission.

Fourth Quarter Conference Call and Replay

CyberOptics will review its fourth quarter operating results in a conference call at 4:30 PM Eastern today. Investors can access this call toll-free at 888-394-8218 prior to the start of the call by providing the conference ID: 2186928. 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 fourth quarter conference call, available one hour after the call, can be accessed by dialing 888-203-1112 and providing conference ID: 2186928. The replay will be available for 30 days following the call.

           
CyberOptics Corporation
 
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts) Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
        2017   2016   2017   2016
Revenue $13,176 $13,455 $53,333 $66,240
Cost of revenue       7,139     7,130     28,573     37,185  
Gross margin 6,037 6,325 24,760 29,055
Research and development expenses 2,130 1,903 8,022 8,040
Selling, general and administrative expenses 3,836 3,768 15,657 14,796
Amortization of intangibles       16     16     66     66  
Income from operations 55 638 1,015 6,153
Interest income and other       34     169     (107 )   238  
Income before income taxes 89 807 908 6,391
Benefit for income taxes       (414 )   (5,279 )   (404 )   (5,171 )
Net income       $503     $6,086     $1,312     $11,562  
Net income per share - Basic $0.07 $0.88 $0.19 $1.69
Net income per share - Diluted       $0.07     $0.85     $0.19     $1.64  
Weighted average shares outstanding - Basic 6,980 6,889 6,946 6,832
Weighted average shares outstanding - Diluted       7,187     7,153     7,075     7,049  
 
Condensed Consolidated Balance Sheets
Dec. 31, 2017 Dec. 31, 2016
                (Unaudited)    
Assets
Cash and cash equivalents $6,944 $10,640
Marketable securities 6,670 6,493
Accounts receivable, net 10,772 10,895
Inventories 14,393 11,531
Other current assets               1,593     1,535  
Total current assets 40,372 41,094
 
Marketable securities 9,073 8,728
Intangible and other assets, net 1,746 1,804
Fixed assets, net 2,307 2,438
Other assets 261 193
Deferred tax assets               5,742     5,323  
Total assets               $59,501     $59,580  
 
Liabilities and Stockholders' Equity
Accounts payable $4,294 $6,217
Accrued expenses               2,678     4,084  
Total current liabilities 6,972 10,301
 
Other liabilities               247     381  
Total liabilities 7,219 10,682
                     
Total stockholders' equity               52,282     48,898  
Total liabilities and stockholders' equity             $59,501     $59,580  
 

Contacts

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

Release Summary

CyberOptics Reports Fourth Quarter Operating Results

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Contacts

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