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Introduction of new products and expansion of its customer base has CyberOptics well positioned for the recovery of the electronic assembly and semiconductor capital equipment markets

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Technology
Scientific & Technical Instruments
NASD: CYBE


Cyber Optics Corp.

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Steven Quist
Chief Executive Officer

Interview conducted by:
Walter Banks
Co-Publisher

CEOCFOinterviews.com
August 2002

Company Profile:

CyberOptics Corporation (Nasdaq NMS: CYBE) is a technology leader in optical process control sensors and inspection systems, which enable the global electronics industry to meet the rigorous competitive demands of virtually any digital application requiring quality printed circuit boards. The company’s product’s include laser alignment sensors for OEMs of robotic pick-and-place equipment; wafer mapping sensors for OEMs of wafer handling equipment used in the semiconductor fabrication process; and end-user inspection systems used by assemblers of printed circuit boards. CyberOptics’ sensors and inspection systems improve yields and manufacturing throughput, providing users with an economic advantage in highly competitive markets.  OEM Solutions

CyberOptics’ electronic assembly (EAS) sensors are incorporated into the robotic pick-and-place equipment used in the assembly process for printed circuit boards. After solder paste has been inspected and measured, small surface mount components and resistors are placed on the solder pads by robotic component placement equipment. CyberOptics' family of LaserAlign sensors is incorporated into the placement heads of this equipment to ensure accurate component placement at high production speeds. An intelligent sensor composed of a laser, optics, detectors, a microprocessor and software, LaserAlign quickly and accurately aligns each component while being transported by the pick-and-place arm for surface mount assembly. By facilitating component placements at higher speeds than conventional centering and vision systems, LaserAlign lowers the cost per component placement of robotic pick-and-place equipment. LaserAlign is currently used in the component placement equipment of the industry leaders serving the high-speed and mid-range SMT assembly market segments. Depending on equipment speeds and designs, this robotic equipment will utilize between one and sixteen LaserAlign sensors per machine. .

CyberOptics entered the semiconductor capital equipment market with the 1999 acquisition of HAMA Sensors, Inc, the leading designer and manufacturer of reflective sensors that improve the performance of the robotic wafer handling equipment of OEM customers. During the wafer fabrication process, silicon wafers are stored in slotted cassettes while being transported to various workstations. Robotic equipment removes the wafers from these cassettes at each workstation and inserts them into a fabrication tool. Upon completion of a process, the robotic arm re-inserts the wafers into the cassette for transport to the next station. CyberOptics’ wafer-mapping sensors inspect for the presence of silicon wafers in the slotted cassettes. They also determine if each high-value silicon wafer is properly aligned so it will not be damaged by the insertion of the next wafer. CyberOptics provides wafer mapping sensors to substantially all of the largest OEMs of robotic wafer handling equipment.

End-User Inspection Systems

CyberOptics', which pioneered the development of in-line, three-dimensional solder paste inspection, has the world’s largest installed base of these systems, which inspect solder paste quality before components are placed on the circuit board.It is estimated that upwards of 60% of all board defects are related to problems with solder paste quality. CyberOptics’ SE 300 provides full-board or 100% inspection capabilities. In addition to its greater operating speed than prior models, the SE 300 has enhanced optical capabilities, enabling it to inspect solder pads for the smallest components, including micro-BGAs. It is believed that  the technical capabilities of the SE 300 surpass those of any other solder paste inspection system currently on the market.

Over the past two years, CyberOptics has introduced additional automated optical inspection (AOI) systems based upon its proprietary Statistical Appearance Modeling TM technology. Electronics manufacturers have long been interested in AOI as a way to inspect printed circuit boards after all of the components have been placed and for checking joint quality after the soldering process. Conventional AOI technology has been plagued by serious shortcomings, including high rates of inaccurate readings or false calls and training difficulties.CyberOptics KS family of post-placement and post-reflow inspection systems are noted for their low rates of false calls and user friendliness. In January 2002, CyberOptics introduced two new high-resolution, full-color AOI systems. The KS 75 was developed for solder joint inspection after the reflow or component soldering process, which constitutes the largest segment of the AOI market. The KS 200 is designed for post-placement inspection of the smallest (.02 X 01 inch) components, which are no larger than a speck of pepper. With the introduction of these new systems, CyberOptics now offers a virtually complete range of solder paste, post-placement and post-reflow inspection solutions. CyberOptics believes that its full-service inspection capabilities will enable it to further increase its penetration of the growing inspection market. Going forward, the company believes inspection systems will be one of its primary growth drivers.

Interview Highlights:
- Who founded Cyber Optics, and at what university was he a professor?
- When did Cyber Optics become a public company?
- When did its founder start pointing the company towards the electronics industry?
- What markets are they now in?
- What is the outlook for the market place?

- Have they been successful given the current market climate?
- Where are they in global markets?
- What is the current market size and its growth potential?
- Where are the positioned in each market?
- What do they need to do to expand their presence in the marketplace?
- Are they well positioned for the recovery of the capital market?
- What is the key drives for growth in the marketplace?
- Which industry offers the greatest opportunity, consumer electronics, automobiles or medical?
- What is their sales and marketing strategy?
- What is the biggest global challenge?
- Do they invest heavily in new product development & R&D?
- Do they have any plans for restructuring and reduction of workforce?
- How has their product pipeline been built?
- What advantage does their products provide the electronic assembly and wafer fabrication for the semi-conductor industry?
- Are they considering any synergy between their end user business and individual components business?
- How does their products effect the economy and consumer spending?
- Do they have the cash and/or credit necessary to maintain their business until there is an upturn in the industry?

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