Cyber Optics Returns to profitability

Consolidated sales totaled $12,341,000, an increase of 38% from $8,975,000 in the fourth quarter of 2009 and also up 183% from $4,362,000 in the year-earlier period. Order bookings for the first quarter were up 58% to $16,960,000 from $10,704,000 in the fourth quarter of 2009. First quarter operating income was $257,000, compared to operating losses of $1,560,000 in last year’s fourth quarter and $3,981,000 in the first quarter of 2009. Net income came to $247,000 or $0.04 per diluted share, compared to net losses of $1,619,000 or $0.24 per share in the fourth quarter and $2,433,000 or $0.36 per share in the first quarter of 2009. Cash and marketable securities totaled $22,153,000 at the end of this year’s first quarter, compared to $21,879,000 at the beginning of 2010. Embedded inspection technology forms the basis of Cyber Optics’ strategy aimed at increasing the size of its addressable market for inspection solutions and diversifying into new markets. This technology utilizes common hardware platforms and sensing capabilities that are embedded in Cyber Optics’ stand-alone systems as well as the production equipment of OEM customers. By leveraging and embedding our technology in this manner, Cyber Optics is providing a lower cost solution to the approximately 50% of the market that currently uses no form of circuit board inspection. Initial shipments of the next-generation QX500 automated optical inspection (AOI) system, is expected in this year’s second quarter. Based upon high levels of customer interest, the QX500 is expected to be a significant growth driver in 2010, according to Cyber Optics. Later in 2010, Dek International is expected to start shipping solder paste screen printers equipped with embedded inspection technology as an option. Milara, Inc. became a customer for embedded technology in March when it was announced that the 3-D inspection sensor in Cyber Optics’ stand-alone SE500 system had been integrated into Milara’s TouchPrint Digital TD2929 inline solder paste screen printer. Initial orders from Milara are expected later this year. Juki has incorporated Cyber Optics’ embedded process verification, or EPV, inspection technology into its KE-2070 pick-and-place machine. The KE-2070 is the industry’s first system capable of inspecting for the presence or absence of electronic components on SMT circuit boards immediately following their placement. The EPV technology is currently being integrated into two additional Juki platforms. Kathleen P. Iverson, chief executive officer and chair, commented: “Reflecting the strong progress that we are making with our growing range of inspection solutions, we are receiving significant orders from a number of the industry-leading ODMs . We gained five new customers in this year’s first quarter, and new orders for both inspection systems and alignment sensors are continuing at robust levels thus far in the second quarter. Moreover, we ended this year’s first quarter with an order backlog of $11.7 million, up from $7.1 million at the beginning of 2010. The majority of this backlog is scheduled to ship in the second and third quarters. Given these factors, we are forecasting earnings of $0.12 to $0.17 per diluted share on revenues of $16.0 to $17.0 million for the second quarter of 2010 ending June 30.”