CyberOptics Corp. Reports Operating Results (10-Q)
CyberOptics Corporation is a leading provider of sensors and inspection systems that provide process yield and through-put improvement solutions for the global electronic assembly and semiconductor capital equipment markets. The Company's products are deployed on production lines that manufacture surface mount technology circuit boards and semiconductor process equipment. By increasing productivity and product quality our sensors and inspection systems enable electronics manufacturers to strengthen their competitive positions in highly price-sensitive markets. Headquartered in Minneapolis Minnesota they conduct worldwide operations through facilities in North America Asia and Europe. CyberOptics Corp. has a market cap of $32.3 million; its shares were traded at around $4.77 with and P/S ratio of 0.7. Highlight of Business Operations: Our first quarter results continued to be adversely affected by ongoing weakness in the global electronics market, and we expect this trend to continue at least into the second quarter of 2009. Revenues were $4.4 million in the quarter ended March 31, 2009, down 68% from $13.8 million in the same period last year. We lost $4.0 million from operations in the quarter ended March 31, 2009, down from operating income of $159,000 in the quarter ended March 31, 2008. For the quarter ending June 30, 2009, we are forecasting revenue of $4.5-$5.5 million and another significant loss from operations. Revenue in the quarter ending June 30, 2008 was $13.4 million.
Our revenues decreased by 68% to $4.4 million in the three months ended March 31, 2009 from $13.8 million in the three months ended March 31, 2008. The following table sets forth revenues by product line for the three month periods ended March 31, 2009 and 2008:
Revenues from electronic assembly OEM sensors decreased by 79% to $1.4 million in the three months ended March 31, 2009 from $6.8 million in the three months ended March 31, 2008. Revenues from electronic assembly SMT systems decreased by 60% to $2.2 million in three months ended March 31, 2009 from $5.6 million in the three months ended March 31, 2008.
Export revenue from electronic assembly sensors and SMT systems totaled $2.9 million, comprising 79% of electronic assembly revenue in the three months ended March 31, 2009, compared to $11.7 million or 95% of electronic assembly revenue in the three months ended March 31, 2008. Sales to international customers continue to be significant, as manufacturing of electronic components has migrated offshore, particularly to China and other areas of Asia.
Export revenue from semiconductor products totaled $208,000, comprising 31% of semiconductor revenue in the three months ended March 31, 2009, compared to $556,000 or 40% of semiconductor revenue in the three months ended March 31, 2008.
In response to the significant weakness in our markets and the global economy, and also due to our transition of a significant portion of our operations to Singapore, we will have reduced our workforce by 50 employees or 25% (over 30 in manufacturing and approximately 20 in development, sales and marketing) from the start of the fourth quarter of 2008 through the end of the second quarter of 2009. Other cost saving measures include salary reductions of 12% for all officer and internal director level positions, 10% for other employees with salaries exceeding $100,000 and a smaller percentage reduction for employees with salaries ranging between $35,000 and $100,000. In addition, we will also reduce spending for non-labor costs such as travel, supplies and the like. We anticipate that the workforce reductions, salary reductions and other cost saving measures, combined with savings from our transition to Singapore will provide aggregate annual expense savings by the middle of 2009 of almost $5.0 million per year, of which approximately $3.0 million will be operating expense savings and $2.0 million will be the factory cost savings discussed above under gross margin.
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