CyberOptics Corp. (NASDAQ:CYBE) Q3 2019 Earnings Conference Call - Final Transcript
Oct 23, 2019 • 04:30 pm ET
Please standby. Good day and welcome to the CyberOptics Third Quarter 2019 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Dr Subodh Kulkarni, President and CEO of CyberOptics. Please go ahead, sir.
Subodh K. Kulkarni
Thank you. Good afternoon and thanks for participating in CyberOptics third 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.
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 and semiconductor capital equipment markets as well as the uncertainty of trade relations with China. Weighing on our performance for a sharp declines in sales of legacy inspection systems and OEM sensors. Despite near-term headwinds, we are continuing to invest in research and development to further strengthen our ability to capitalize on strong growth opportunities for our 3D MRS-enabled sensors, inspection and metrology systems and semiconductor sensors. In all our confidence in CyberOptics' future is undiminished. CyberOptics reported 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.
We also reported a net loss of $353,000 or $0.05 per share in this year's third quarter, compared to earnings of $1.1 million or $0.15 per diluted share in the third quarter of 2018. 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. This MRS-based products, combined with semiconductor sensors accounted for 66% of total revenue in 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.
Turning now to an overview of our product lines. Our family of semiconductor sensors bugged the prevailing market weakness by posting 6% year-over-year sales growth to $3.7 million in the third quarter of 2019. And increased by 18% on a sequential quarterly basis. This yield and productivity enhancing sensors are forecasted to post double-digit year-over-year 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.