MINNEAPOLIS -- CyberOptics reported fourth-quarter sales of $12.1 million, up 17% sequentially and 7.9% year-over-year. For the period ended Dec. 31, net income was $5.2 million, including non-cash income of $3.7 million, up from $626,000 or in the third quarter and $794,000 last year.

Revenue and earnings exceeded company guidance.
Cash from operations was $1.61 million.

For the year, the maker of vision gear for electronics manufacturing reported sales of $42.2 million, down 27% from $58 million in 2004. Net income dropped 32.5% to $7.2 million, from $10.6 million in 2004. Cash and marketable securities rose to $41.1 million, from $39.5 million at the end of the third quarter and $40.3 million at the end of 2004.

In a press statement, president and chief executive Kathleen P. Iverson said the improvements were driven by "growing demand for both new and existing products." Sales to primary OEM customers rose, as did revenues from its incremental OEM customer, DEK. The firm's new solder paste inspection system was also well-recevied, the company said.

Iverson said fourth-quarter bookings were up 58% sequentially to $15 million and the company ended the quarter with backlogs of $6.9 million, up 72% from the third quarter.

CyberOptics guided for earnings of nine to 12 cents per share on sales of $13 million to $14 million.