MINNEAPOLIS – CyberOptics reported third-quarter sales of $11.6 million, down 29% from last year. The net loss was $772,000, down from net income of $1.5 million a year ago. The net loss included about $650,000 of pre-tax expenses related to transition of inspection systems-related R&D and manufacturing to Singapore and a $257,000 income tax benefit.

The operating loss was $1.7 million for the period ended Sept. 30, down from operating income of $1.81 million in 2007.

Inspection system sales were flat with second-quarter levels and up 23% from the year-earlier period. Those sales partially offset sharply lower sales of electronics assembly sensors, reflecting the slowing growth of new SMT production capacity worldwide. The company added 11 new systems customers during the quarter, and also received an order for 17 Flex Ultra AOI.

In a press release, president and chief executive Kathleen P. Iverson said, “Our third-quarter operating results were consistent with our expectations, despite the continuing slowdown in the global electronics market. The extreme miniaturization of electronic components used on SMT circuit boards is driving the growing need to inspect for product quality. This ongoing trend has made our systems business less reliant on expansions in SMT production capacity, since a substantial portion of our systems sales involves retrofitting existing production lines with our solder paste or AOI systems, or both.”

The transition of CyberOptics’ systems-related R&D to Singapore is scheduled for completion, as planned, by the end of this year’s fourth quarter. The company will phase out its Minneapolis-based systems R&D function throughout 2008. Product development of next-generation sensors will remain in Minneapolis.

Iverson guided for lower fourth-quarter sales of electronics assembly sensors, and a larger sequential quarterly decline in sales of inspection systems, adding that SPI and AOI systems are nevertheless “expected to remain at a relatively solid level.” For the quarter ending Dec. 31, 2008, CyberOptics forecasts sales of $8.5 million to $9.5 million.