CyberOptics Corp. Reports Operating Results (10-Q)
Cyberoptics Corp. has a market cap of $73.45 million; its shares were traded at around $10.73 with and P/S ratio of 2.71. CYBE is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations: The global electronics market is starting to strengthen. We are seeing significant demand from manufacturers of SMT assembly equipment who purchase our alignment sensor products, and for our stand alone solder paste inspection and AOI systems, particularly from large original design manufacturers in China. We believe that these improving market conditions, the efficiencies in operations we have implemented, and the new products we have introduced and anticipate introducing in 2010, will lead to improved operating results and a return to profitability over the coming year. For the quarter ending March 31, 2010, we generated a profit of $0.04 per share on revenue of $12.3 million, a significant improvement when compared to the quarter ending March 31, 2009. In addition, we are forecasting a profit of $0.12 to $0.17 per share in the second quarter of 2010 on revenue of $16.0-$17.0 million.
Revenue from sales of our OEM alignment sensors increased by $3.7 million or 255% in the three months ended March 31, 2010 to $5.1 million, up from $1.4 million in the three months ended March 31, 2009. Revenue from sales of our stand alone SMT inspection systems products increased by $3.8 million or 169% in the three months ended March 31, 2010 to $6.0 million, up from $2.2 million in the three months ended March 31, 2009.
Our orders totaled $17.0 million in the three months ended March 31, 2010, compared to $10.7 million in the three months ended December 31, 2009 and $4.1 million in the three months ended March 31, 2009. Backlog totaled $11.7 million at March 31, 2010, $7.1 million at December 31, 2009 and $3.6 million at March 31, 2009. The scheduled shipment (or estimated timing of revenue for systems recognized upon acceptance) for backlog at March 31, 2010 is as follows:
Our cash and cash equivalents increased by $633,000 in the three months ended March 31, 2010 resulting from $692,000 of cash provided by operating activities, $272,000 of proceeds from maturities and sales of marketable securities, net of purchases, offset in part by purchases of capital assets of $331,000. Our cash and cash equivalents fluctuate in part because of maturities of marketable securities, and investment of cash balances in marketable securities, or from other sources of cash, in addition to marketable securities. Accordingly, we believe the combined balances of cash and marketable securities provide a more reliable indication of our available liquidity. Combined balances of cash and marketable securities increased by $274,000 to $22.2 million as of March 31, 2010 from $21.9 million as of December 31, 2009.
Operations used $3.1 million of cash in the three months ended March 31, 2009. Cash used by operations included a net loss of $2.4 million which included $801,000 of net non-cash expenses for depreciation and amortization, provision for doubtful accounts, foreign currency transactions and stock compensation costs. Changes in operating assets and liabilities using cash included increases in inventories of $804,000 and income tax refunds and deposits of $1.1 million and decreases in accounts payable of $968,000, advance customer payments of $34,000 and accrued expenses of $489,000. Accounts receivable decreased by $2.0 million in the three months ended March 31, 2009. The increase in inventory was due to lower sales resulting from the sluggish global economy and additional inventory purchases to manufacture our recently introduced SE500 solder paste inspection system. Income tax refunds and deposits were higher due to anticipated income tax refunds resulting from our first quarter loss. Accounts payable were lower due to a reduction in recent inventory purchases and the timing of vendor payments, reflecting our expectation for lower sales levels in 2009. The decrease in accrued expenses resulted from lower warranty accruals resulting from the lower level of sales and reductions in compensation related accruals due to our workforce reduction. The decrease in accounts receivable was due to the lower level of sales in the first quarter of 2009 compared to the fourth quarter of 2008.
Investing activities used $59,000 of cash in the three months ended March 31, 2010 compared to generating $906,000 of cash from investing activities in the same period last year. Changes in the level of investment in marketable securities, resulting from the purchases, sales and maturities of those securities generated $272,000 of cash in the three months ended March 31, 2010, compared to generating $1.1 million of cash in the same period last year. We used $331,000 of cash in the three months ended March 31, 2010 and $207,000 of cash in the three months ended March 31, 2009 for the purchase of fixed asset and capitalized patent costs.
Read the The complete Report