CyberOptics Announces Workforce Reduction; Further Deterioration in Electronics Markets Causes Company To Reduce Third Quarter Financial Guidance.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Sept. 27, 2001

CyberOptics Corporation (Nasdaq:CYBE) today announced it has implemented a workforce reduction totaling approximately 10% of its total worldwide employment due to further weakness in its electronic assembly and semiconductor capital equipment markets. This action, which follows a 10% workforce reduction earlier this year, primarily affects production-related employees.

Reflecting continued deterioration in its global electronics markets, the Company also reduced its financial guidance for the third quarter of 2001 ending September 30. Revenues, previously forecasted in the vicinity of $8.0 million, are now anticipated at approximately $6.0 million. Due to positive impacts on its tax provision, the Company's third quarter net loss, including approximately $165,000 of workforce reduction costs, is expected to remain consistent with the previously forecasted net loss of $0.22 to $0.28 per diluted share. The third quarter tax provision will include benefits of approximately $500,000 resulting from tax strategies related to export sales, and the impact of reduced earnings expectations.

The Company will release its third quarter operating results and discuss its fourth quarter outlook in the fourth week of October.

Steven M. Quist, president and chief executive officer, commented: "The recently implemented workforce reduction, which was necessitated by continued weakening in our targeted electronics markets, places manufacturing expenses into better balance with anticipated business volumes. Supported by our ample cash reserves, we are continuing to invest in key product development initiatives despite the current economic environment. For this reason, we believe CyberOptics will emerge from this difficult period as a company that is strongly positioned with a broader customer base for renewed growth and profitability. Our confidence in CyberOptics' future is undiminished."

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 electronic assembly equipment and semiconductor fabrication equipment markets.

Statements regarding the Company's anticipated performance in 2001 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 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, the current scrutiny by regulatory bodies of accounting treatment of acquired in-process R&D and other factors set forth in the Company's filings with the Securities and Exchange Commission.