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8-K - FORM 8-K DATED FEBRUARY 25, 2013 - CYBEROPTICS CORPcyberoptics130822_8k.htm

Exhibit 99.1

 

 

CyberOptics Reports Fourth Quarter Operating Results

 

Minneapolis, MN—February 25, 2013—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.

 

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; the level of revenue and profitability or loss we achieve in 2013; success of anticipated new OEM and end user opportunities; and other factors set forth in the Company’s filings with the Securities and Exchange Commission.

 

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For additional information, contact:

Jeffrey A. Bertelsen, Chief Financial Officer

763/542-5000

 

Richard G. Cinquina

Equity Market Partners

904/415-1415

 

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 at 1-480-629-9818 or toll free at 1-877-941-9205 with the conference ID: 4594886. 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 will be available one hour after the call at 303-590-3030 with the same access code.

 

 

 

 
 

 

CyberOptics Corporation

 

Consolidated Statements of Operations (Unaudited)

(In thousands, except per share amounts)  Three Months Ended Dec. 31,   Twelve Months Ended Dec. 31, 
   2012   2011   2012   2011 
Revenue  $5,803   $13,790   $41,644   $61,087 
Cost of revenue   3,469    7,318    23,465    33,034 
Gross margin   2,334    6,472    18,179    28,053 
Research and development expenses   1,640    2,178    7,748    7,781 
Selling, general and administrative expenses   2,883    3,606    12,802    14,476 
Restructuring and severance costs   523        740     
Amortization of intangibles               108 
Income (loss) from operations   (2,712)   688    (3,111)   5,688 
Interest income and other   (77)   (58)   (24)   39 
Income (loss) before income taxes   (2,789)   630    (3,135)   5,727 
Provision for income taxes   3,710    83    3,576    1,370 
Net income (loss)  $(6,499)  $547   $(6,711)  $4,357 
Net income (loss) per share - Basic  $(0.93)  $0.08   $(0.97)  $0.63 
Net income (loss) per share - Diluted  $(0.93)  $0.08   $(0.97)  $0.63 
Weighted average shares outstanding - Basic   6,965    6,925    6,946    6,906 
Weighted average shares outstanding - Diluted   6,965    6,964    6,946    6,952 

 

Condensed Consolidated Balance Sheets

   December 31, 2012
(Unaudited)
   December 31, 2011
 
 
Assets          
Cash and cash equivalents  $7,340   $13,791 
Marketable securities   11,438    10,640 
Accounts receivable, net   6,129    11,909 
Inventories   12,533    11,052 
Income tax refunds and deposits   1,325    196 
Other current assets   1,338    1,238 
Deferred tax assets   100    2,518 
Total current assets   40,203    51,344 
           
Marketable securities   10,435    6,106 
Intangible and other assets, net   758    799 
Fixed assets, net   1,719    1,400 
Other assets   142    137 
Deferred tax assets   363    3,130 
Total assets  $53,620   $62,916 
           
Liabilities and Stockholders’ Equity          
Accounts payable  $2,476   $4,081 
Accrued expenses   2,403    4,312 
Deferred tax liability   29     
Total current liabilities   4,908    8,393 
           
Other liabilities   1,240    1,554 
Total liabilities   6,148    9,947 
           
Total stockholders’ equity   47,472    52,969 
Total liabilities and stockholders’ equity  $53,620   $62,916 

 

Backlog Schedule:

  1st Quarter 2013  $2,081 
  2nd Quarter 2013 and beyond   529 
  Total backlog  $2,610