Revenues increased 34% to $11.7 million from $8.7 million in the third quarter of 2013. Completed in mid-March, the acquisition of Laser Design, Inc. (LDI), a Minneapolis-based 3D metrology company, contributed $1.3 million to CyberOptics’ consolidated third quarter revenue.
Reflecting the revenue growth, the third quarter operating loss narrowed to $514,000, from $961,000 in the year-earlier period.
CyberOptics’ third quarter net loss totaled $448,000 or $.07 per share, compared to $774,000 or $.11 per share in the third quarter of 2013.
Dr. Subodh Kulkarni, president and chief executive officer, commented: “This represents CyberOptics’ fourth consecutive quarter of improved year-over-year operating results and allows us to reaffirm our previously-reported 2014 goal of organic double-digit sales growth and a significantly reduced net loss. CyberOptics’ progress throughout 2014 also makes us confident of attaining our longer-term goal of sustainable profitable growth.”
He continued: “Sales of SMT sensors increased 42% from last year’s third quarter, reflecting solid demand from OEM customers. Sales of inspection systems rose 4% year-over-year and sales of semiconductor products, principally the WaferSense product line, were up 8% from last year’s third quarter.”
Kulkarni said: “Since 3D inspection is the high-growth segment of the electronic assembly, semiconductor and industrial markets, we are strategically repositioning CyberOptics as a developer and manufacturer of high-precision 3D sensors. Toward this end, development of our breakthrough Multi-Reflection Suppression (MRS) 3D technology continued in the third quarter. This sensor technology will be deployed in our new 3D AOI system, which is designed to expand CyberOptics’ presence in the smart phone and tablet markets as well as other high-precision applications. In these areas, identifying defects has become highly critical due to smaller electronics packaging and increasing component density on circuit boards, which are driving the need for precision 3D inspection. Beta testing and demonstrations of our new 3D AOI system have started, and reflecting positive customer responses, we have already received a pre-launch order. As planned, we expect to formally launch our 3D AOI system during the first quarter of 2015. In addition to pursuing new OEM opportunities with our MRS 3D technology, we also are incorporating this technology into LDI’s Auto Gage Scanning System, used in a wide range of industrial applications. Introduction of the 3D MRS-equipped Auto Gage is planned for early 2015.”
He stated: “We delivered our first system for inspecting memory modules, the MX600, in the third quarter and anticipate customer acceptance in late 2014 or early 2015. We see the memory module market as a promising opportunity that could generate at least $3 million in sales during 2015, depending upon the continued strength of the memory market. In addition, initial sales of our recently introduced system for inspecting the conformal coating on circuit boards are expected in the fourth quarter.”
Kulkarni concluded: “We expect to report double-digit year-over-year organic sales growth and a reduced loss in the fourth quarter. More importantly, the new technology we have developed and the new products we are about to introduce causes us to be very optimistic about our performance in 2015.”