CyberOptics Announces Reduction in Worldwide Workforce; Measure Aimed at Accelerating Return to Profitability.Business Editors CyberOptics Corporation (Nasdaq:CYBE) today announced an approximate 20% reduction of its worldwide workforce due to persistently sluggish conditions in the electronics assembly and semiconductor capital equipment markets. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. savings from this workforce reduction are expected to total approximately $3.5 million. As a result, this measure will significantly reduce CyberOptics' breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations cost structure and accelerate the Company's return to profitability. Further streamlining CyberOptics' operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. also positions the Company to optimize optimize - optimisation its performance once industry conditions strengthen. A one-time charge related to this action will be incurred in the second quarter of 2002 ending June 30. Steven M. Quist, chief executive officer, commented: "Although business conditions have improved moderately, this difficult action, which has affected many excellent employees, reflects the delayed recovery of our markets. R&D, which remained relatively unaffected during the past year, has been included in this measure, since development of a range of new and upgraded sensor A device that measures or detects a real-world condition, such as motion, heat or light and converts the condition into an analog or digital representation. An optical sensor detects the intensity or brightness of light, or the intensity of red, green and blue for color systems. and system products has largely been completed. As a result, CyberOptics is well positioned for the next round of industry growth, and we do not expect our performance to be affected by reduced R&D expenditures. Development is continuing on a number of new products of strategic importance." Quist continued: "To make a personal contribution to our cost reduction effort, I have taken a 50% salary reduction effective immediately. Moreover, a variety of cost-saving measures instituted last year is continuing, including the 10% salary reduction for officers. However, in a step to retain key employees, last year's 5% salary reductions for employees below officer level have been reinstated." The Company will review these cost reduction measures in greater detail during its second quarter conference call scheduled for late July. CyberOptics Corporation, a recognized worldwide leader in optical technology, designs and manufactures a growing range of yield and through-put enhancement tools for the SMT (1) (Surface Mount Technology) See surface mount. (2) (Station ManagemenT) An FDDI network management protocol that provides direct management. Only one node requires the software. SMT - Station Management electronic assembly equipment and semiconductor fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. equipment markets. Statements regarding the Company's anticipated performance in 2002 are forward-looking and therefore involve risks and uncertainties, including but not limited to: market conditions in the global SMT and semiconductor capital equipment industries, the level of orders from our OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers, the timing and commercial success of new product introductions, the effect of world events on our sales, the majority of which are from foreign customers, product introductions and pricing by our competitors, and other factors set forth in the Company's filings with the Securities and Exchange Commission. |
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