CyberOptics Corporation Announces Fourth Quarter Sales and Earnings.

MINNEAPOLIS--(BUSINESS WIRE)--Feb. 11, 1997--CyberOptics Corporation (NASDAQ/NMS: CYBE) today reported net income of $416,000 or $.08 per share on revenues of $6,712,000 for the fourth quarter of 1996. Operating results for the current quarter were down from earnings of $1,926,000 or $.32 per share on revenues of $10,527,000 in the fourth quarter of 1995, which was the strongest three-month period in the Company's history due to the unprecedented rate of Surface Mount Technology (SMT) production capacity expansion throughout 1995.

For the full year, net income came to $2,180,000 or $.38 per share, compared to $4,831,000 or $.95 per share in 1995. Revenues totaled $28,062,000 in 1996, compared to $30,518,000 last year.

Fourth quarter operating results improved in comparison to the $356,000 net loss reported in the third quarter of 1996. This is partly attributable to the receipt of several additional sensor and solder paste inspection system orders which were shipped during this period. The Company's performance also benefited from a reduction in general and administrative expense, due partly to overhead reductions implemented in the third quarter.

Dr. Steven K. Case, president, said the Company's fourth quarter sales could be a preliminary indication that the SMT market, which was weak throughout 1996 due to global over-capacity, is entering the very early stages of a new round of capacity expansion. However, he cautioned that any such rebound may not become fully evident until later in the coming year.

Case said the Company's full-year 1996 performance was particularly affected by sharply reduced sales of Laser Align sensors to OEMs of large-capacity pick-and-place assembly equipment. This weakness was partially offset by increased demand for LaserAlign among OEMs of mid-range SMT equipment as well as by increased sales of solder paste inspection systems. He added that the Company's non- contact process control sensors remain an integral part of the high- speed assembly equipment of all current OEM customers.

The outlook for the Company's non-contact solder paste inspection systems is promising. The Company believes a significant proportion of the SMT production line capacity added in the high-growth years of 1994 and 1995 is being operated without any means of quality inspection. The Company is also optimistic about the sales prospects of its laser-based measurement systems for industrial applications, which represent an opportunity to diversify CyberOptics' business mix.

Both factors make the company believe 1997 is currently shaping up as a year of improved sales and earnings. Reflecting its confidence in the future, the Company intends to maintain research and development expenditures at relatively high levels as work proceeds on a variety of next-generation products for the SMT and industrial measurement markets.

CyberOptics is a worldwide leader in the field of non-contact process management, based on proprietary laser and vision technologies and software. The Company's measurement and inspection products strengthen the yields, operating efficiencies and quality control of manufacturing that involves high-precision, wet or fragile components as well as high-speed processes.

Statements regarding the Company's anticipated performance in 1997 are forward-looking and therefore involve risks and uncertainties, including but not limited to: market conditions in the global electronics industry, competitive products and technologies, and other factors that are set forth in the Company's filings with the Securities and Exchange Commission. -0-

CyberOptics Corporation


Statements of Income
(In thousands, except per
share amounts)                Three Months Ended      Year Ended
                                    Dec. 31,            Dec. 31,
                                1996       1995     1996     1995

Revenue                         $6,712  $10,527    $28,062  $30,518
Cost of revenue                  3,290    5,229     13,739   14,485
   Gross margin                  3,422    5,298     14,323   16,033
Research and development
  expenses                       1,527    1,357      5,937    4,143
Selling, general and
  administrative expenses        1,798    1,652      7,501    5,433
   Income from operations           97    2,289        885    6,457
Interest income                    499      507      2,275      624
   Income before income taxes      596    2,796      3,160    7,081
Provision for income taxes         180      870        980    2,250
   Net income                     $416   $1,926     $2,180   $4,831
Net income per share
  (primary and fully diluted)    $0.08    $0.32      $0.38    $0.95
Weighted average common and
  common equivalent
  shares outstanding             5,482    5,980      5,735    5,104

Condensed Balance Sheets
                                    Dec. 31, 1996     Dec. 31, 1995
Assets
Cash and cash equivalents                $3,453              $8,718
Marketable securities                    21,356              10,146
Accounts receivable, net                  5,031               8,514
Inventories                               3,768               3,874
Other current assets                      1,635               1,473
   Total current assets                  35,243              32,725

Marketable securities                    12,500              21,000
Equipment and furnishings, net            2,495                 943
Capitalized patent cost, net                 78                  72
   Total assets                         $50,316             $54,740

Liabilities and Stockholders' Equity
Accounts payable                         $1,191                $737
Income taxes payable                        233                 898
Accrued expenses                          1,424               2,368
   Total current liabilities              2,848               4,003

Stockholders' equity:
 Common stock, no par value, 25,000 shares
 authorized, 5,216 and 5,612 shares issued
 and outstanding, respectively           37,209              42,658
      Retained earnings                  10,259               8,079
   Total stockholders' equity            47,468              50,737
   Total liabilities and
    stockholders' equity                $50,316             $54,740


Backlog Shipment Schedule:
   1st Quarter 1997                       3,403
   2nd Quarter 1997                         984
  Total backlog                          $4,387

CONTACT: Jack Beagan, V.P. Operations

and Acting CFO 

Scott Larson, Controller

612/542-5000

FAX: [phone]

Internet: [e-mail]