CyberOptics Corp. (NASDAQ:CYBE) Q1 2019 Earnings Conference Call - Final Transcript

Apr 24, 2019 • 04:30 pm ET


CyberOptics Corp. (NASDAQ:CYBE) Q1 2019 Earnings Conference Call - Final Transcript


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Good day, and welcome to the CyberOptics First Quarter 2019 Earnings Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Dr. Subodh Kulkarni, President and CEO of CyberOptics. Please go ahead, sir.

Subodh K. Kulkarni

Good afternoon, and thanks for taking the time to participate in CyberOptics' First Quarter 2019 Earnings Conference Call.

Joining me is Jeff Bertelsen, our CFO and Chief Operating Officer, who will review our operating results in some detail following my overview of our recent performance. We will then be pleased to answer your questions at the conclusion of our remarks.

In keeping with Regulation FD, we have made forward-looking statements regarding our outlook in this afternoon's earnings release. These forward-looking statements reflect our outlook for future results, which is subject to a number of risks that are discussed in our Form 10-K for the year ended December 31, 2018, and other filings with the Securities and Exchange Commission. We urge you to review these discussions of risk factors.

Turning now to CyberOptics' first quarter performance. Our operating results were consistent with our previously issued guidance for this period. Sales totaled almost $15 million for the first quarter of 2019 ended March 31, up 6% from $14.1 million in the first quarter of 2018. First quarter earnings were $495,000 or $0.07 per diluted share compared to the net loss of $173,000 or $0.02 per share in last year's first quarter.

Our improved first quarter results was generated by higher sales of 3D MRS-enabled SQ3000 automated optical inspection, or AOI systems; MX600 sales; and record quarterly sales of semiconductor sensors, primarily consisting of our WaferSense family of products.

The performance of these products more than offset the anticipated reduction in sales of 3D and 2D OEM sensors due to near-term weakness in the SMT and semiconductor markets. Sales of sensors, inspection and metrology systems based on 3D MRS technology came to $4.3 million in the first -- in the year's first quarter, virtually unchanged from the year earlier period due to softness in OEM sensor sales. These products, in addition to our semiconductor sensors, accounted for 57% of total first quarter revenue, up from 53% in last year's first quarter.

We are confident that our family of 3D MRS-enabled products and WaferSense sensors are providing CyberOptics with a significant competitive advantage and strong growth opportunities in our targeted markets. This suite of technologically advanced products is forecasted to drive our sales growth and profitability in 2019 and beyond.

Now I'll briefly review our first quarter performance by product line. Bucking the trend of weak SMT and semiconductor market conditions, first quarter sales of 3D MRS-enabled SQ3000 AOI systems, including the SQ3000 CMM that incorporates AOI with metrology functionality, grew 12% year-over-year to $2.5 million. In aggregate, total sales of inspection and metrology systems increased 20% year-over-year to $7.1 million.

The steadily growing acceptance of the SQ3000 is being generated by competitive advantages of our 3D MRS technology platform, which is enabling us