MINNEAPOLIS – CyberOptics reported sales of $16 million for the second quarter, up 6% year-over-year.

Net income was $1.6 million, an increase of 245% compared to the second quarter of 2019.

“We are pleased with CyberOptics’ overall performance in this year’s second quarter, despite the impact of the Covid-19 pandemic on our sales,” said Subodh Kulkarni, Ph.D., president and CEO. “Approximately $1.5 million of customer acceptances for SQ3000 multi-function inspection systems were pushed out to this year’s third quarter as a result of travel restrictions and the inability to gain access to customers’ factories due to quarantine measures. None of the affected orders were cancelled, and all are expected to be booked as revenue in the third quarter. If these orders had been accepted as scheduled, total second quarter sales would have been at the upper end of our previously issued guidance for this period.

“Given the demonstrated advantages of our multi-reflection suppression-enabled 3-D technology, we believe CyberOptics has attained first-mover status in the high-growth micro LED inspection and metrology market. Prior to the end of the second quarter, CyberOptics received a $2.5 million order for SQ3000 multi-function systems for micro LED applications. This order is scheduled to be recognized as revenue in the third quarter. Additional micro LED-related orders are anticipated during the second half of 2020.

“CyberOptics ended the second quarter of 2020 with an order backlog of $24.8 million, which includes micro LED-related orders for SQ3000 systems and $4.9 million of 2-D MX600 orders for memory module inspection systems. Backlog was consistent with Mar. 31 and up significantly from a year ago. We are forecasting sales of $19.5 million to $21.5 million for the third quarter of 2020 ending Sept. 30.”

Earnings in the second quarter included a tax benefit of $340,000 from excess tax deductions for employee stock option exercises. In addition, total operating expenses in this year’s second quarter benefited approximately $276,000 from jobs support credit measures implemented by the Singapore government, and from lower travel, trade show and other costs, all due to the Covid-19 pandemic. CyberOptics anticipates operating expenses in the third quarter will increase and be comparable to the level in the first quarter.

Sales of sensors and inspection and metrology systems based on 3-D MRS technology increased 30% year-over-year to $7.7 million in the second quarter. These MRS-based products, combined with semiconductor sensors, accounted for 71% of total revenue in the period, compared to 60% of total revenue in the year-earlier period.

Sales of inspection and metrology systems declined 23% year-over-year to $7.7 million, due largely to delayed customer acceptances resulting from the Covid-19 pandemic. Sales of SQ3000 multi-function systems increased to $4.7 million. The company received one order for a 2-D MX600 memory module inspection system during the second quarter. Consistent with delivery schedules, no MX sales were recorded in the second quarter. Approximately $4 million of MX systems are expected to ship in the third quarter. Sales of inspection and metrology systems are expected to grow strongly in the third quarter.

Sales of 3-D and 2-D sensors increased 137% year-over-year to $4.7 million in the second quarter, partly reflecting weak sensor sales in the second quarter of 2019. Growth in the current quarter was driven by sales of 3-D MRS-enabled sensors, which rose 170% year-over-year to $3 million. Sales of 3-D and 2-D sensors are expected to decline modestly on a sequential basis in this year’s third quarter.

Sales of semiconductor sensors in the second quarter increased 15% year-over-year to $3.6 million. Third quarter sales of these yield and process improvement products are forecasted to grow modestly on both a sequential and year-over-year basis.

“We believe our technologies have positioned CyberOptics to take maximum advantage of attractive opportunities in our served markets. For this reason, we are optimistic about our future growth prospects.”

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