MINNEAPOLIS -- CyberOptics narrowed its third-quarter operating loss although revenues fell 25% year-over-year on lower demand for SMT inspection systems. For the quarter ended Sept. 30, the AOI maker reported an operating loss of $961,000, less than the $1.2 million in losses taken in the June quarter, but 63% lower than a year ago.

CyberOptics posted a net loss of $774,000, including a one-time income tax benefit of $318,000, compared to a net loss of $1.2 million sequentially and $447,000 in last year’s third quarter.

Chief executive Kathleen Iverson said, “CyberOptics’ disappointing third quarter results reflect lower than expected sales of SMT inspection systems." She added that sales of the company's QX600 AOI systems were slower than anticipated. The company's electronic assembly sensors sales rose 17% sequentially, and the firm saw sequential growth for semiconductor inspection machines. CyberOptics added that it is encouraged by initial acceptance of its new SE600 SPI system.

Iverson forecast sales of $7 million to $8 million and a net loss for the fourth quarter 2013. "Since we do not anticipate a material near-term recovery in sales, we will be strengthening our commitment to cost control to minimize losses and cash consumption and our focus on market support for our product lines.”

Executive chairman Dr. Subodh Kulkarni said: “Currently the largest issue we face is in the AOI market, which accounts for approximately two-thirds of the total inspection systems market. Customer acceptance of the QX600 AOI inspection system, which is expected to address market segments outside the laptop PC space, has been slower than anticipated, as competitors stress the importance of 3D versus 2D AOI.

"We are developing disruptive 3D technologies for AOI and SPI, which we expect to be market-ready by the start of 2015," he added. "We are confident that CyberOptics is pursuing the correct strategic direction of both supporting the market position of our current, high value products and leveraging our capacity to bring world class products and technology to the marketplace.”