CyberOptics Corporation has announced sales of $12.4 million for the third quarter of 2019 ended September 30, down 26% from $16.7 million in the third quarter of 2018. The company also reported a net loss of $353,000 in this year’s third quarter, compared to earnings of $1.1 million in the third quarter of 2018.
Dr. Subodh Kulkarni, president and chief executive officer, commented: “This year’s third quarter was a difficult period for CyberOptics as we continued facing the headwinds of weak conditions in the surface mount technology (SMT) and semiconductor capital equipment markets as well as the uncertainty of trade relations with China. Weighing on our performance were sharp declines in sales of legacy inspection systems and OEM sensors. However, our family of semiconductor sensors posted higher sales in the third quarter of 2019 on both a year-over-year and quarterly sequential basis.”
He continued: “During the third quarter of 2019, we received an order of $1.3 million for 3D SQ3000 CMM automated optical inspection (AOI) systems for use in the production of micro LED technology based displays, an emerging market that represents a promising growth opportunity for CyberOptics. Shipments of this order will occur through the second quarter of 2020. And given that our MRS-based Nano Resolution sensor has been well received in the markets for semiconductor wafer level and advanced packaging inspection and metrology, we are adding sales and field engineering resources to pursue opportunities for this important new product. We believe inspection and metrology for semiconductor wafer level and advanced packaging applications represent promising long-term growth opportunities.”
Sales of sensors and inspection and metrology systems based on 3D MRS technology declined to $4.5 million in the third quarter of 2019 from $6.4 million in the year-earlier period. These MRS-based products, combined with semiconductor sensors, accounted for 66% of total revenue in the third quarter of 2019, up from 59% in the year-earlier period. Sales of legacy sensors and systems, excluding MX600 memory module inspection systems, fell 47% year-over-year in the third quarter of 2019.
Sales of semiconductor sensors increased 6% year-over-year in the third quarter of 2019 to $3.7 million and increased by 18% on a sequential quarterly basis. Sales of these yield and productivity enhancing sensors are forecasted to post more than 10% year-over-year sales growth in this year’s fourth quarter.
Sales of inspection and metrology systems declined 29% year-over-year in the third quarter of 2019 to $5.5 million. Within this category, sales of 3D MRS-enabled SQ3000 inspection systems fell 24% year-over-year to $3.3 million. However, sales of 3D MRS-enabled SQ3000 inspection systems increased by 14% year-over-year for the first nine months of 2019, and 3D MRS-enabled SQ3000 sales growth is forecasted to exceed 20% for all of 2019. Slow sales of legacy products are expected to result in lower year-over-year sales of inspection and metrology systems in this year’s fourth quarter.
Sales of 3D and 2D sensors fell 41% year-over-year in the third quarter of 2019 to $3.2 million, with sales of 3D MRS-enabled sensors down 30% year-over-year. Due to ongoing market weakness, 3D and 2D sensor sales are forecasted to decline in the fourth quarter of 2019 both sequentially and on a year-over-year basis.
CyberOptics ended the third quarter of 2019 with an order backlog of $14.4 million, up from $13.0 million at the end of the second quarter.
Looking ahead, CyberOptics believes the third quarter of 2019 marked the trough of the downturn in the SMT and semiconductor capital equipment markets and that industry conditions will strengthen as the company progresses through 2020. CyberOptics also believes that its industry-leading 3D MRS and semiconductor sensor technologies have positioned the company to capitalize upon a full range of opportunities in its targeted markets.
For more information: www.cyberoptics.com