CyberOptics Reports Strong Second Quarter Operating Results

Rhea-AI Summary

CyberOptics Corporation (Nasdaq: CYBE) reported record sales for Q2 2022, totaling $27.6 million, a 9% increase from Q2 2021. Net income rose 41% to $4.4 million or $0.58 per diluted share. For the first half of 2022, sales increased 21% to $51.8 million, with net income climbing 75% to $8.0 million. Sales of WaferSense semiconductor sensors surged 35% year-over-year to $7.4 million. The backlog reached a record $55.5 million as customer demand grows, prompting expectations of continued strong performance.

Positive

• Q2 2022 sales of $27.6 million, up 9% from Q2 2021.
• Net income increased 41% to $4.4 million or $0.58 per diluted share.
• First half 2022 sales totaled $51.8 million, a 21% increase year-over-year.
• Net income for the first half rose 75% to $8.0 million or $1.05 per diluted share.
• Record sales of WaferSense semiconductor sensors increased 35% to $7.4 million.
• SQ3000™ Multi-Function inspection systems sales grew 33% year-over-year to $8.3 million.
• Backlog reached a record $55.5 million, indicating strong future demand.

Negative

• Sales of 3D and 2D sensors declined 4% year-over-year to $6.8 million, reflecting demand fluctuations.

Record Sales of Semiconductor Sensors and SQ3000™ Multi-Function Systems

MINNEAPOLIS--(BUSINESS WIRE)-- CyberOptics Corporation (Nasdaq: CYBE) today reported strong operating results for the second quarter and first six months of 2022.

For the second quarter of 2022:

• Sales totaled $27.6 million, up 9% from $25.2 million in the second quarter of 2021.
• Net income came to $4.4 million or $0.58 per diluted share, an increase of 41% from $3.1 million or $0.41 per diluted share in the year-earlier quarter. A strong gross margin, which benefited from an improved sales mix, drove a significant portion of the earnings growth in this year’s second quarter.

For the first six months of 2022:

• Sales totaled $51.8 million, up 21% from $42.9 million in the first six months of 2021.
• Net income was $8.0 million or $1.05 per diluted share, an increase of 75% from $4.6 million or $0.61 per diluted share a year ago.

Dr. Subodh Kulkarni, president and chief executive officer, commented, “CyberOptics reported strong sales and operating results for the second quarter of 2022 ending June 30, with sales at the upper end of our previously announced revenue guidance for this period. Our performance benefited from the robust, double-digit sales growth of high-margin WaferSense® semiconductor sensors as manufacturers continue to recognize significant value in these unique yield and process improvement products. Sales of 3D and 2D sensors and inspection systems were largely consistent with the strong levels recorded in last year’s second quarter.”

He continued, “Looking ahead, we are anticipating record operating results for full-year 2022. Driving CyberOptics’ performance is the steadily growing acceptance of our 3D MRS®-based sensors and inspection systems and semiconductor sensors. The competitive advantages of these advanced products are enabling CyberOptics to build leadership positions in our targeted semiconductor and high-end SMT capital equipment markets. This ongoing development bodes well for our long-term operating results.”

Sales of 3D and 2D sensors declined 4% year-over-year in the second quarter of 2022 to $6.8 million, reflecting normal fluctuations in sensor demand from its OEM customers. Within this category, sales of 3D MRS sensors increased 11% year-over-year to $4.8 million.

Sales of semiconductor sensors, principally the WaferSense line of products, increased 35% year-over-year to a record $7.4 million in the second quarter of 2022. Increasing customer awareness, combined with global demand for semiconductors, is driving the growth in WaferSense sales.

Sales of inspection and metrology systems increased 6% year-over-year to $13.3 million in the second quarter of 2022 from the robust level of $12.6 million in the year-earlier period. Second quarter sales of SQ3000™ Multi-Function inspection systems rose 33% year-over-year to a record $8.3 million as this MRS-based system continues to gain traction among existing and new customers. Second quarter systems sales also benefited from customer acceptances of $1.7 million of 3D MX3000™ Final Vision Inspection Systems for memory modules. During this year’s second quarter, CyberOptics received $5.4 million of new 3D MX orders from recurring customers that increased the Company’s MX backlog to a record $9.3 million.

CyberOptics’ backlog at June 30, 2022 reached a record $55.5 million, of which approximately $38.0 million is applicable to 2022 sales. Our second quarter backlog is up from $47.4 million at the end of this year’s first quarter and $45.3 million at June 30, 2021. The company is forecasting sales of $26.0 to $29.0 million for the third quarter of 2022 ending September 30, compared to the record sales of $27.8 million posted in the third quarter of 2021.

About CyberOptics

CyberOptics Corporation (www.cyberoptics.com) is a leading global developer and manufacturer of high-precision 3D sensing technology solutions. CyberOptics’ sensors are used for inspection and metrology in the SMT and semiconductor markets to significantly improve yields and productivity. By leveraging its leading edge technologies, the Company has strategically established itself as a global leader in high precision 3D sensors, allowing CyberOptics to further increase its penetration of key vertical markets. Headquartered in Minneapolis, Minnesota, CyberOptics conducts worldwide operations through its facilities in North America, Asia and Europe.

Statements regarding the Company’s anticipated performance are forward-looking and therefore involve risks and uncertainties, including but not limited to: a possible world-wide recession or depression resulting from the economic consequences of the COVID-19 pandemic; the negative effect on our revenue and operating results of the COVID-19 crisis on our customers and suppliers and the global supply chain; market conditions in the global SMT and semiconductor capital equipment industries; trade relations between the United States and China and other countries; the timing of orders and shipments of our products, particularly our 3D MRS SQ3000 and SQ3000+ Multi-Function systems and MX systems for memory module inspection; increasing price competition and price pressure on our product sales, particularly our inspection and metrology systems; the level of orders from our OEM customers; the availability of parts required to meet customer orders; unanticipated product development challenges; the effect of world events on our sales, the majority of which are from foreign customers; rapid changes in technology in the electronics and semiconductor markets; product introductions and pricing by our competitors; the success of our 3D technology initiatives; the market acceptance of our SQ3000 and SQ3000+ Multi-Function systems and products for semiconductor inspection and metrology; costly and time consuming litigation with third parties related to intellectual property infringement; the negative impact on our customers and suppliers due to past and future terrorist threats and attacks and any acts of war; the impact of lower gross margin MX3000 orders on our consolidated gross margin percentage in any future period; risks related to cancellation or renegotiation of orders we have received; and other factors set forth in the Company’s filings with the Securities and Exchange Commission.

Second Quarter 2022 Conference Call and Replay

CyberOptics will review its second quarter operating results in a conference call at 4:30 P.M. Eastern today. Investors can access the live call by dialing toll-free 800-289-0720 prior to the start of the call and providing the conference ID: 1776006. A webcast of the live conference call, which will be archived for 30 days, can be heard by visiting the investor relations section of the CyberOptics website, www.cyberoptics.com. A replay of the conference call, available one hour after the call, can be accessed by dialing 888-203-1112 and providing the conference ID: 1776006. The replay will be available for 30 days.

CyberOptics Corporation
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenue	$27,569		$25,204		$51,815		$42,936
Cost of revenue	14,159		14,095		26,811		23,448
Gross margin	13,410		11,109		25,004		19,488
Research and development expenses	3,069		2,753		5,998		5,514
Selling, general and administrative expenses	5,359		4,695		10,060		8,583
Income from operations	4,982		3,661		8,946		5,391
Interest income and other	39		38		124		60
Income before income taxes	5,021		3,699		9,070		5,451
Provision for income taxes	632		590		1,090		901
Net income	$4,389		$3,109		$7,980		$4,550
Net income per share - Basic	$0.59		$0.43		$1.08		$0.62
Net income per share - Diluted	$0.58		$0.41		$1.05		$0.61
Weighted average shares outstanding - Basic	7,404		7,299		7,398		7,296
Weighted average shares outstanding - Diluted	7,603		7,517		7,592		7,490
Condensed Consolidated Balance Sheets
					June 30, 2022		Dec. 31, 2021
					(Unaudited)
Assets
Cash and cash equivalents					$8,876		$13,684
Marketable securities					11,794		7,327
Accounts receivable, net					28,050		19,821
Inventories					29,645		27,602
Other current assets					2,916		1,672
Total current assets					81,281		70,106
Marketable securities					16,081		17,281
Intangibles and goodwill, net					1,708		1,741
Equipment and leasehold improvements, net					3,281		3,174
Right-of-use assets (operating leases)					1,752		2,052
Deferred tax assets					3,509		3,668
Total assets					$107,612		$98,022
Liabilities and Stockholders' Equity
Accounts payable					$12,894		$10,275
Accrued expenses					4,491		5,017
Current operating lease liabilities					870		864
Total current liabilities					18,255		16,156
Other liabilities					368		391
Long-term operating lease liabilities					1,934		2,369
Total liabilities					20,557		18,916
Total stockholders' equity					87,055		79,106
Total liabilities and stockholders' equity					$107,612		$98,022

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220727005090/en/

Jeffrey A. Bertelsen, Chief Financial Officer

763-542-5000

Carla Furanna, Vice President of Global Marketing

952-820-5837

Source: CyberOptics Corporation

FAQ

What were CyberOptics' Q2 2022 sales figures?

CyberOptics reported Q2 2022 sales of $27.6 million, a 9% increase from the previous year.

How much net income did CyberOptics earn in Q2 2022?

Net income for Q2 2022 was $4.4 million, which translates to $0.58 per diluted share.

What is CyberOptics' sales forecast for Q3 2022?

CyberOptics forecasts Q3 2022 sales between $26.0 million and $29.0 million.

How did CyberOptics' backlog change in Q2 2022?

The backlog increased to a record $55.5 million in Q2 2022, up from $47.4 million in Q1 2022.

What contributed to CyberOptics' sales growth in Q2 2022?

Sales growth was driven by increased demand for WaferSense semiconductor sensors and SQ3000 inspection systems.