MINNEAPOLIS -- CyberOptics today reported second-quarter net income fell 89% year-over-year to $143,000 on slower demand in China and Europe and the poor solar market.

Profits were up 55% sequentially for the period ended June 30.

The AOI and SPI equipment maker reported consolidated sales of $13 million, up 15% sequentially but down 23% from 2011, reflecting greater-than-anticipated weakness in the global electronics market. Operating income was $98,000, up from $92,000 in the first quarter, but down from $1.8 million last year. Backlogs as of June 30 slipped to $4.3 million from $5.6 million at the end of the first quarter.

The company said it would take a $300,000 charge next quarter to cover costs associated with the move of its Portland, OR, operations to its Minneapolis headquarters.

“We previously believed that the first quarter marked the trough of a multi-quarter cyclical downturn in the global electronics industry," chief executive officer Kathleen (Kitty) Iverson said. "However, the extent of the market downturn caused by continued weakening of the global economy negatively affected our second quarter results. A slowing Chinese economy and continued economic turmoil in Europe, which drove heightened customer caution in our markets, were significant contributing factors to the lower demand for our sensor and system products.”

CyberOptics said sales in the second-half may be lower than the first half due to prolonged weakness in the global economy.

Sales of CyberOptics' automated optical inspection systems were up 4% on a year-over-year basis, and Iverson called the company "particularly encouraged" by market reception of its new offline and integrated inline AOI tabletop systems, sales of which products totaled approximately $500,000 in the quarter.

CyberOptics is evaluating potential acquisition opportunities as well, adding that such deals would be to enter new markets with related technologies.

CyberOptics will consolidate its Portland-based semiconductor operations into the Minneapolis facility in order to accelerate development of its WaferSense products, the firm said.

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