CyberOptics Corp. (NASDAQ:CYBE) Q2 2020 Earnings Conference Call - Final Transcript

Jul 23, 2020 • 09:00 am ET


CyberOptics Corp. (NASDAQ:CYBE) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, and welcome to the CyberOptics' Second Quarter 2020 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.

Subodh Kulkarni

Thank you. Good morning, and thanks for participating in CyberOptics Second Quarter 2020 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 morning'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, 2019, and other filings with the Securities and Exchange Commission. We urge you to review these discussions of risk factors.

We reported sales of $16 million for the second quarter of 2020 ended June 30, an increase of 6% from $15 million in the second quarter of 2019 and net income for the second quarter of 2020 was $1.6 million or $0.22 per diluted share, up from $464,000 or $0.06 per diluted share in the year earlier period. We are pleased with CyberOptics overall performance in this year's second quarter despite the impact of COVID-19 pandemic on our sales.

Approximately $1.5 million of customer acceptances for SQ3000 Multi-Function inspection systems were pushed out to this year's third quarter as a result of travel restrictions and the inability to gain access to customers' factories due to quarantine measures. None of the affected orders were canceled, and all are expected to be booked as revenue in the third quarter. If these orders had been accepted as scheduled, total second quarter sales would have been at the upper end of our previously issued guidance for this period.

Sales of sensors and inspection and metrology systems based on 3D MRS technology increased 30% year-over-year to $7.7 million in the second quarter of 2020. This MRS-based products, combined with semiconductor sensors, accounted for 71% of total revenue in the second quarter of 2020 compared to 60% of total revenue in the year earlier period.

Turning now to a brief overview of our product families. Sales of inspection and metrology systems declined 23% year-over-year to $7.7 million in the second quarter of 2020, due largely to the delayed customer acceptances resulting from the COVID-19 pandemic. Sales of SQ3000 Multi-Function systems increased modestly to $4.7 million from the level posted in the second -- last year's second quarter. We believe CyberOptics has attained first-mover status in the high-growth micro LED inspection and metrology market, given previous SQ3000 Multi-Function systems orders for use in this application.

We received an additional $2.5 million SQ3000 order for micro LED applications just prior to the end of second quarter. Revenue recognition of this order is scheduled