CyberOptics Corporation (CYBE) Q3 2021 Earnings Conference Call October 27, 2021 4:30 PM ET Company Participants Subodh Kulkarni - President & Chief Executive Officer Jeff Bertelsen - Chief Financial Officer & Chief Operating Officer Conference Call Participants Greg Palm - Craig-Hallum Capital Group Dick Ryan - Colliers Jaeson Schmidt - Lake Street Operator Good day ladies and gentlemen and welcome to the CyberOptics Third Quarter 2021 Earnings Call. Today's conference is being recorded. At this time I'd l ...

Sales Performance - Worldwide sales for the three months ended July 31, 2021 were $646,858, an increase of 20.2% from $538,181 in the comparable period of 2020, driven by a 20.2% increase in organic sales volume [101]. - For the nine months ended July 31, 2021, worldwide sales were $1,762,962, an increase of 12.8% from $1,562,575 in the comparable period of 2020, driven by an 11.6% increase in organic sales volume [113]. - Sales outside the United States accounted for 68.8% of total sales in the three months ended July 31, 2021, compared to 65.9% in the same period of 2020 [102]. - Sales in the Asia Pacific region for the nine months ended July 31, 2021 increased by 24.3% to $510,609, driven by a 21.1% organic sales volume increase [114]. - Sales of the Industrial Precision Solutions segment for the nine months ended July 31, 2021 were $932,640, an increase of 11.7% from $835,038 in the comparable period of 2020 [120]. - Sales of the Advanced Technology Solutions segment for the nine months ended July 31, 2021 were $830,322, an increase of 14.1% from $727,537 in the comparable period of 2020 [122]. Profitability - Gross profit margin increased to 56.5% for the three months ended July 31, 2021, up from 52.2% in the comparable period of 2020, primarily due to favorable sales volume leverage and product mix [104]. - Operating profit for the three months ended July 31, 2021 was $188,276, representing an increase of 67.9% from $112,055 in the same period of 2020, with an operating margin of 29.1% [106]. - Operating profit for the nine months ended July 31, 2021 was $463,692, an increase of 48.6% from $312,177 in the same period of 2020, with an operating margin of 26.3% [117]. - Net income for the three months ended July 31, 2021 was $142,182, or $2.42 per diluted share, a 63.5% increase in net income and a 62.4% increase in diluted earnings per share compared to the same period of 2020 [108]. Cash Flow and Investments - Cash provided by operations during the nine months ended July 31, 2021, was $375,456, an increase from $309,958 for the same period in 2020 [129]. - Cash used in investing activities was $22,997 for the nine months ended July 31, 2021, significantly lower than $163,192 used in the comparable period of 2020 [130]. - Cash used in financing activities was $388,126 for the nine months ended July 31, 2021, compared to $75,404 in the same period of 2020 [131]. Future Outlook - Backlog entering the fourth quarter of fiscal year 2021 is approximately $700 million, or 70% above the prior year [134]. - The company expects full-year sales growth in fiscal 2021 to be approximately 11% to 12% over fiscal year 2020 [135]. - Full year 2021 earnings per diluted share is forecasted in the range of $7.75 to $7.95, representing a strong second half with year-over-year sales growth of 14% and earnings growth of 47% [135]. Tax and Debt - The effective tax rate for the three and nine months ended July 31, 2021, was 21.2% and 20.8%, respectively, compared to 8.9% and 16.0% for the same periods in 2020 [125]. - The decrease of $83,072 in pension obligations was primarily due to pension contributions during the second and third quarters of 2021 [132]. - Long-term debt decreased by $278,221 primarily due to the full repayment of the term loan due 2024 [132]. - The company was in compliance with all debt covenants at July 31, 2021 [133].

CyberOptics Corporation (CYBE) Q2 2021 Results Earnings Conference Call July 28, 2021 4:30 PM ET Company Participants Subodh Kulkarni - President and Chief Executive Officer Jeff Bertelsen - Chief Operating Officer, Vice President, Finance and Chief Financial Officer Conference Call Participants Greg Palm - Craig-Hallum Capital Group Richard Ryan - Colliers Securities Jaeson Schmidt - Lake Street Capital Orin Hirschman - AIGH Investment Partners Operator Good day and welcome to the CyberOptics Second Quarte ...

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) The company presents unaudited condensed consolidated financial statements and key accounting policies for the period ended April 30, 2021 [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The company reported significant growth in sales, operating profit, and net income for the three and six months ended April 30, 2021 Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Three Months Ended April 30, 2021 | Three Months Ended April 30, 2020 | Six Months Ended April 30, 2021 | Six Months Ended April 30, 2020 | |:---|:---:|:---:|:---:|:---:| | Sales | $589,538 | $529,478 | $1,116,104 | $1,024,394 | | Operating Profit | $166,391 | $125,029 | $275,416 | $200,122 | | Net Income | $124,144 | $92,079 | $201,726 | $144,083 | | Diluted EPS | $2.12 | $1.58 | $3.44 | $2.47 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to $3.59 billion while shareholders' equity increased to $1.95 billion as of April 30, 2021 Balance Sheet Summary (in thousands) | Account | April 30, 2021 | October 31, 2020 | |:---|:---:|:---:| | Cash and cash equivalents | $133,320 | $208,293 | | Total current assets | $949,425 | $1,020,612 | | Goodwill | $1,720,990 | $1,713,354 | | Total assets | $3,594,910 | $3,674,656 | | Total current liabilities | $385,267 | $363,089 | | Long-term debt | $829,044 | $1,067,952 | | Total liabilities | $1,644,553 | $1,915,665 | | Total shareholders' equity | $1,950,357 | $1,758,991 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow was $247.7 million, with significant cash used for debt repayment, dividends, and share repurchases Cash Flow Summary for Six Months Ended (in thousands) | Activity | April 30, 2021 | April 30, 2020 | |:---|:---:|:---:| | Net cash provided by operating activities | $247,714 | $218,179 | | Net cash used in investing activities | ($13,681) | ($27,731) | | Net cash used in financing activities | ($310,333) | ($30,987) | | Effect of exchange rate changes on cash | $1,327 | ($4,370) | | **Net (decrease) increase in cash** | **($74,973)** | **$155,091** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail key accounting policies, recent acquisitions and divestitures, segment realignment, and other financial items - On February 1, 2021, the company completed the sale of its screws and barrels product line, which was part of the Industrial Precision Solutions segment; an impairment charge of **$87.4 million** was recorded in 2020 related to this divestiture[42](index=42&type=chunk)[44](index=44&type=chunk) - The company acquired vivaMOS Ltd. in September 2020 for **$17.2 million** and Fluortek, Inc. in June 2020 for **$125.3 million**; both acquisitions are reported in the Advanced Technology Solutions segment[40](index=40&type=chunk)[41](index=41&type=chunk) - The company realigned its structure from three to two operating segments in Q2 2020: **Industrial Precision Solutions (IPS)** and **Advanced Technology Solutions (ATS)**[76](index=76&type=chunk) Segment Operating Profit (in thousands) | Segment | Three Months Ended April 30, 2021 | Three Months Ended April 30, 2020 | Six Months Ended April 30, 2021 | Six Months Ended April 30, 2020 | |:---|:---:|:---:|:---:|:---:| | Industrial Precision Solutions | $104,283 | $76,454 | $187,686 | $132,858 | | Advanced Technology Solutions | $76,585 | $58,689 | $123,786 | $90,976 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses strong financial performance driven by organic sales growth and provides an optimistic outlook for fiscal year 2021 - The company continues to operate all production facilities during the COVID-19 pandemic, supporting critical infrastructure sectors; while facing some manufacturing inefficiencies and supply chain disruptions, the company's **diversification has provided resilience**[99](index=99&type=chunk) Full Year 2021 Outlook | Metric | Forecast Range | |:---|:---:| | Full Year Sales Growth (vs. 2020) | 8% to 10% | | Full Year Diluted EPS | $7.20 to $7.50 | [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Sales grew significantly due to strong organic volume, while profitability improved from higher sales and a favorable divestiture impact - Gross margin for Q2 2021 increased to **57.3%** from 54.7% YoY, with **1.8 percentage points** of the improvement attributed to the divestiture of the screws and barrel product line[104](index=104&type=chunk) Q2 2021 Sales Growth Components | Component | Contribution | |:---|:---:| | Organic Sales Volume | +10.4% | | Currency Translation | +3.7% | | Acquisitions/Divestitures (Net) | -2.8% | | **Total Sales Growth** | **+11.3%** | H1 2021 Sales Growth Components | Component | Contribution | |:---|:---:| | Organic Sales Volume | +7.0% | | Currency Translation | +3.3% | | Acquisitions/Divestitures (Net) | -1.3% | | **Total Sales Growth** | **+9.0%** | [Financial Condition](index=27&type=section&id=Financial%20Condition) Strong operating cash flow was primarily used for net debt repayment of $250.1 million, dividends, and share repurchases - Long-term debt decreased by **$238.9 million** from October 31, 2020, mainly due to the full repayment of the term loan due in 2024[130](index=130&type=chunk) - Pension obligations decreased by **$56.5 million**, primarily due to pension contributions made during the second quarter of 2021[130](index=130&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Market risk exposures for interest rates and foreign currency exchange rates have not materially changed since the 2020 Form 10-K - Information regarding financial instruments sensitive to interest rate and foreign currency exchange rate changes has **not materially changed** since the 2020 Form 10-K[136](index=136&type=chunk) [Controls and Procedures](index=28&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were **effective** as of April 30, 2021[137](index=137&type=chunk) - There were **no changes** in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[138](index=138&type=chunk) [PART II – OTHER INFORMATION](index=29&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=29&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company refers to the 'Contingencies' note for legal matters, which are not expected to have a material adverse effect - For discussion of legal matters, the report refers to the Contingencies note in the financial statements[141](index=141&type=chunk) [Risk Factors](index=29&type=section&id=ITEM%201A.%20RISK%20FACTORS) The report refers to the 2020 Form 10-K for risk factors, noting they may be exacerbated by the COVID-19 pandemic - The company advises that risk factors disclosed in the 2020 Form 10-K should be considered, and notes that the **COVID-19 pandemic may exacerbate these risks**[142](index=142&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased 114,598 common shares in Q2 2021, with $422.3 million remaining available for future repurchases - As of April 30, 2021, approximately **$422.3 million remained available** for share repurchases under the company's authorized programs[143](index=143&type=chunk) Common Stock Repurchases (Q2 2021) | Period | Total Shares Purchased | Average Price Paid per Share | |:---|:---:|:---:| | February 2021 | 50,527 | $186.48 | | March 2021 | 36,834 | $198.57 | | April 2021 | 27,237 | $205.45 | | **Total** | **114,598** | **-** | [Exhibits](index=30&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including agreements, plans, and required officer certifications

INVESTOR PRESENTATION May 25, 2021 I NASDAQ: NDSN May 25, 2021 I Nasdaq: NDSN The Nordson E400 applicator with EcoBead applies adhesive to juice carton packaging line. Safe Harbor Statement Click to edit title Under the Private Securities Litigation Reform Act of 1995 Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as "may," "will," "should, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-7977 NORDSON CORPORATION (Exact name of registrant as specified in its charter) ________________________________________________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-7977 NORDSON CORPORATION (Exact name of Registrant as specified in its charter) Ohio (State of incorporation) 28601 Clemens Road Westlak ...

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-7977 NORDSON CORPORATION (Exact name of registrant as specified in its charter) 28601 Clemens Road Westlake, Ohio 44145 (Address of ...

OR ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2020 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) For the transition period from to Commission file number 0-7977 NORDSON CORPORATION (Exact name of registrant as specified in its charter) 28601 Clemens Road Westlake, Ohio 44145 (Address of principal executive offices) (Zip Code) Ohio 34-0590250 (State of incorporation) (I.R.S. ...

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-7977 NORDSON CORPORATION (Exact name of registrant as specified in its charter) 28601 Clemens Road Westlake, Ohio 44145 (Address ...