Exhibit 99

CyberOptics Reports Second Quarter Operating Results



Minneapolis, MNJuly 23, 2008CyberOptics Corporation (Nasdaq: CYBE) today reported operating results for the second quarter of 2008 ended June 30:



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        Consolidated sales totaled $13,391,000, down modestly from $13,807,000 in this years first quarter and $13,974,000 in the second quarter of 2007. Sales for the current quarter exceeded CyberOptics previously-issued financial guidance for this period.




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        CyberOptics reported an operating loss of $733,000, compared to operating income of $159,000 in the first quarter and $1,274,000 in the second quarter of 2007.




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        CyberOptics net loss came to $269,000 or $0.03 per diluted share, which included approximately $550,000 of pre-tax costs related to the previously announced transition of inspection systems-related R&D and manufacturing to Singapore. Results for the second quarter also included a write-down of $166,000 related to an available for sale equity investment, CyberOptics only such investment on which no further write-downs are
anticipated. CyberOptics reported net income of $427,000 or $0.05 per diluted share in this years first quarter and $1,198,000 or $0.13 per diluted share in last years second quarter.




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        CyberOptics ended the second quarter of 2008 with cash and marketable securities of $45,713,000, compared to $47,740,000 at the end of the first quarter and $52,618,000 at the beginning of 2008.




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        During this years second quarter, cash totaling $1,964,000 was used to repurchase approximately 210,000 CyberOptics shares under previously announced buyback authorizations. All authorizations have been canceled due to the implementation of a $15 million modified Dutch auction tender offer for CyberOptics common stock. The Dutch tender commenced June 30 and will expire on July 29, unless extended by CyberOptics.




Kathleen P. Iverson, president and chief executive officer, commented: Our operating results were driven by higher than forecasted sales of inspection systems, which increased 10% from this years first quarter to $6,112,000. This solid growth helped offset continued pricing pressures on these products in Asia, the impact of the Singapore transition costs and the equity investment write-down. Sales of electronic assembly sensors were at forecasted levels in the second quarter, while sales of our WaferSense family of wireless sensors for semiconductor manufacturing almost doubled from the year-earlier level to $430,000.



She continued: We are very encouraged by the progress of our systems business, which is benefiting from a variety of factors, including the continued miniaturization of electronic components, which is making automated inspection a necessity for ensuring product quality. This growing need has helped free our systems business from being solely reliant upon expansions in SMT production capacity, since a substantial portion of our systems business involves the retrofitting of existing production lines with our solder paste or AOI inspection systems, or both. Reflecting this positive trend, we added 10 new systems customers during the second quarter, in addition to receiving a significant order for our Flex Ultra automated optical inspection (AOI) systems from an Asian original design manufacturer. We anticipate continued growth opportunities for our systems business going forward.



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Iverson added: At this time, we are anticipating sharply lower sales of electronic assembly sensors in the third quarter across all of our OEM customers, reflecting what we believe to be the onset of a period of slowing growth in new SMT production capacity due to weakening global economic conditions. This development is expected to be offset partly by our forecast for the continued growth of our inspection systems business. For the third quarter of 2008 ending September 30, we are forecasting sales of $11.5 to $12.5 million and a net loss of $0.12 to $0.17 per diluted share, which will include pre-tax Singapore transition costs of approximately $600,000. Our third quarter guidance also incorporates continued gross margin pressures due to high system sales, which carry a lower gross margin, in addition to ongoing investment in higher performing and cost-reduced next generation systems and inspection
technologies.



The transition of systems-related R&D to Singapore is scheduled for completion by late 2008 as planned. CyberOptics has maintained its Minneapolis-based systems R&D during the establishment of an R&D operation in Singapore, which has resulted in duplicated R&D costs. Total R&D spending is expected to decrease starting at the end of the fourth quarter as the transition process nears completion and the Minneapolis R&D function for systems is phased out. Sensor-related product development will remain at CyberOptics Minneapolis headquarters. Manufacturing of a next-generation solder paste inspection system is scheduled to commence in Singapore later this year, while all systems manufacturing should be transitioned to Singapore during the first half of 2009. The realignment of the systems business, which is forecasted to yield significant cost savings, will result in a more effective
and focused R&D effort that should position CyberOptics for generating higher levels of profitable growth over the next few years.



Steven K. Case, chairman and founder, said: As we have stated previously, CyberOptics has been aggressively pursuing several promising inspection opportunities with OEM and end user customers. Three of these opportunities are nearing the contract phase, while another is in the proposal stage. The R&D efforts related to these projects are creating new technologies designed to lower the cost of inspection and provide faster production through-put speeds, better ease of use, and improved resolution for inspecting progressively smaller electronic components. At the same time, our next-generation solder paste inspection system, which incorporates a cost-reduced platform, should relieve some of the margin pressure on our inspection business, while providing for continued revenue growth. We believe the various product development initiatives currently underway will position CyberOptics for stronger
operating results as the global electronics industry returns to a growth footing.



About CyberOptics

Founded in 1984, CyberOptics Corporation is a leading provider of sensors and inspection systems that provide process yield and through-put improvement solutions for the global electronic assembly and semiconductor capital equipment markets. Our products are deployed on production lines that manufacture surface mount technology circuit boards and semiconductor process equipment. By increasing productivity and product quality, our sensors and inspection systems enable electronics manufacturers to strengthen their competitive positions in highly price-sensitive markets. Headquartered in Minneapolis, Minnesota, we conduct worldwide operations through facilities in North America, Asia and Europe.



Statements regarding the Companys anticipated performance 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; increasing price competition and price pressure on our product sales, particularly our SMT systems; the level of orders from our OEM customers; the availability of parts required for meeting customer orders; the effect of world events on our sales, the majority of which are from foreign customers; product introductions and pricing by our competitors; unanticipated costs or delays associated with the transition of engineering and
manufacturing for SMT Systems to Singapore; a change in our anticipated timing of Assembleons transition away from our alignment sensors, success of anticipated new OEM and end user opportunities  and other factors set forth in the Companys filings with the Securities and Exchange Commission.




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For additional information, contact:

Jeffrey A. Bertelsen, Chief Financial Officer

763/542-5000



Richard G. Cinquina

Equity Market Partners

904/415-1415



Second Quarter Conference Call and Replay
CyberOptics will review its second quarter operating results in a conference call at 4:30 pm Eastern today. Investors can access a live webcast of the conference call by visiting the investor relations section of the CyberOptics website,www.cyberoptics.com. The webcast will be archived for 30 days. A replay of the conference call can be heard through July 30 by dialing 303-590-3000 and providing the 11112078 confirmation code.






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CyberOptics Corporation





Condensed Consolidated Statements of Operations (Unaudited)(In thousands, except per share amounts)

        

        Three Months Ended June 30,

        

        Six Months Ended June 30,2008

        

        2007

        

        2008

        

        2007Revenue

        

        $

        13,391

        

        $

        13,974

        

        $

        27,198

        

        $

        27,715Cost of revenue

        

        

        7,469

        

        

        6,880

        

        

        14,837

        

        

        13,489Gross profit

        

        

        5,922

        

        

        7,094

        

        

        12,361

        

        

        14,226Selling, general and administrative expenses

        

        

        3,865

        

        

        3,573

        

        

        7,295

        

        

        7,154Research and development expenses

        

        

        2,560

        

        

        2,201

        

        

        5,172

        

        

        4,533Severance and transition expenses

        

        

        185

        

        

        

        

        

        378

        

        

        Amortization of intangibles

        

        

        45

        

        

        46

        

        

        90

        

        

        91Income (loss) from operations

        

        

        (733

        )

        

        1,274

        

        

        (574

        )

        

        2,448Interest income and other

        

        

        245

        

        

        559

        

        

        763

        

        

        1,118Income (loss) before income taxes

        

        

        (488

        )

        

        1,833

        

        

        189

        

        

        3,566Provision (benefit) for income taxes

        

        

        (219

        )

        

        635

        

        

        31

        

        

        1,215Net income (loss)

        

        $

        (269

        )

        $

        1,198

        

        $

        158

        

        $

        2,351Net income (loss) per share  Basic

        

        $

        (0.03

        )

        $

        0.13

        

        $

        0.02

        

        $

        0.26Net income (loss) per share  Diluted

        

        $

        (0.03

        )

        $

        0.13

        

        $

        0.02

        

        $

        0.26Weighted average shares outstanding  Basic

        

        

        8,283

        

        

        8,901

        

        

        8,433

        

        

        8,890Weighted average shares outstanding  Diluted

        

        

        8,283

        

        

        8,988

        

        

        8,471

        

        

        8,980








Condensed Consolidated Balance Sheets (Unaudited)June 30, 2008

        

        Dec. 31, 2007AssetsCash and cash equivalents

        

        $

        11,309

        

        $

        18,864Marketable securities

        

        

        11,337

        

        

        11,953Accounts receivable, net

        

        

        10,791

        

        

        9,781Inventories

        

        

        10,235

        

        

        10,640Other current assets

        

        

        2,113

        

        

        1,466Deferred tax assets

        

        

        2,575

        

        

        2,575Total current assets

        

        

        48,360

        

        

        55,279Marketable securities

        

        

        23,067

        

        

        21,801Intangible and other assets, net

        

        

        6,260

        

        

        6,276Fixed assets, net

        

        

        2,243

        

        

        1,944Other assets

        

        

        198

        

        

        Deferred tax assets

        

        

        1,739

        

        

        1,739Total assets

        

        $

        81,867

        

        $

        87,039Liabilities and Stockholders EquityAccounts payable

        

        $

        3,922

        

        $

        3,209Accrued expenses

        

        

        3,617

        

        

        4,131Total current liabilities

        

        

        7,539

        

        

        7,340Other liabilities

        

        

        1,599

        

        

        1,583Total liabilities

        

        

        9,138

        

        

        8,923Total stockholders equity

        

        

        72,729

        

        

        78,116Total liabilities and stockholders equity

        

        $

        81,867

        

        $

        87,039Backlog Schedule:3rd Quarter 2008

        

        $

        4,6034th Quarter 2008 and thereafter

        

        

        869Total backlog

        

        $

        5,472


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