(By Balaseshan) CyberOptics Corp. (NASDAQ: CYBE) said it has completed a restructuring and staff reduction totaling about 10% of its global workforce, that is necessitated by further weakening of capital equipment markets.
This action was taken in response to continued softening of the electronics market, which has resulted in significantly reduced revenue during the first two months of the fourth quarter. Management currently anticipates fourth quarter revenue will range between $5.5 million and $6.0 million.
"The downturn in the global electronics market, which affected our operating results through the first nine months of 2012, has deepened considerably in the fourth quarter. All electronics manufacturers now appear to be deferring capital equipment orders and likely will continue doing so until global economic uncertainties are resolved and consumer confidence strengthens," said Kathleen Iverson, chief executive of CyberOptics.
Iverson indicated that the severance expense associated with the workforce reduction will approximate $550,000, and along with the weakened revenue, will result in a more significant net loss for the fourth quarter and full year than previously anticipated.
She explained that the loss and the market downturn could also require CyberOptics to record an allowance against its deferred tax asset for accounting purposes, further compounding the magnitude of the reported net loss.
"With cash reserves of roughly $30 million and a strong pipeline of new products under development, we are confident CyberOptics will emerge from the current period well-positioned to capitalize upon a strengthening electronics market," said Iverson.
CYBE closed Thursday's regular session at $7.45. The stock has been trading between $6.06 and $10.21 for the past 52 weeks.