Company ContactDave FaulknerCimetrix, IncorporatedPhone: (801) 256-6500Fax: (801) 256-6510dave.faulkner@cimetrix.com
Cimetrix Announces Second Quarter 2009 Financial Results
Increased Software Revenues Hint of Industry Recovery
SALT LAKE CITY, UT — August 14, 2009 — Cimetrix, Incorporated(OTC: CMXX) (www.cimetrix.com), a leading provider offactory automationandequipment control software solutionsfor the global semiconductor, photovoltaic, and electronics industries, today reported financial results for its second quarter ended June 30, 2009.
Software revenues increased 19% to $512,000 from $430,000 in the first quarter of this year, whileprofessionalservicesrevenues decreased 52%. Overall, Company revenues decreased 15% quarter-over-quarter.
Total revenue for the second quarter declined 30% year-over-year from $995,000 in 2008 to $701,000.
“Our software revenues increased from the first quarter of this year. We hope this indicates that semiconductor and other related electronics capital equipment markets are slowly starting to trend upwards. A number of new customer projects for professional services opportunities were quoted throughout the quarter. However, the majority of projects were delayed as end user customers remain cautious, impacting our second quarter services revenues.” saidBob Reback, Cimetrix’s president and chief executive officer.
Reback added, “During this challenging business environment, we continue to tightly control costs while supporting customers and pursuing new business.”
Highlights
Successful execution of professional services project to deliver vacuum robot cluster tool control project.
Continued success in the growingsolar-photovoltaic marketwith three new design wins for Cimetrix software products.
Six Month Results
Six-month revenue decreased 35% to $1,524,000 from $2,350,000 in the same period last year. Total operating costs and expenses decreased 37% to $1,965,000 from $3,108,000. Cimetrix reported a net loss of $508,000, or ($0.02) per basic and diluted share, versus a net loss of $819,000, or ($0.03) per basic and diluted share, in the same period last year.
About Cimetrix Incorporated
Cimetrix designs, develops, markets, and supports factory automation and equipment control software for the global semiconductor, photovoltaic, and electronics industries. A leading participant in SEMI standards development, Cimetrix’s connectivity software allows for quick implementation of theSECS/GEM,GEM300andEDAstandards.
The Company’s products can be found on virtually every tool type in nearly every semiconductor 300mm factory worldwide. The added-value of Cimetrix’s passionate support and professional services creates the industry’s only complete software solution. Key products include:
CIMControlFramework™
CIMConnect™
CIM300™
CIMPortal™
Cimetrix is an active member of Semiconductor Equipment and Materials International (SEMI), including the SEMI PV Group, and participates in various International SEMATECH Manufacturing Initiative (ISMI) programs.
For more information, please visitwww.cimetrix.com.
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Safe Harbor Statement:
The matters discussed in this news release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements about the Company’s prospects for future growth and results of operations are forward-looking statements. The comments made by the Company's senior management in regards to future revenue and results are based on current expectations and involve risks and uncertainties that may adversely affect expected results including but not limited to recovery of the economic markets into which the Company sells products, increased capital expenditures by semiconductor chip manufacturers, market acceptance of the Company’s products, the timing and degree of adoption of Interface A by the semiconductor industry, the ability of the Company to control its costs associated with providing products and services, the mix between products and services (which generally have higher associated costs of revenue) provided by the Company, the competitive position of the Company and its products, which include CODE, CIMConnect, CIM300 and CIMPortal product families, the economic climate in the markets in which the Company’s products are sold, technological improvements, and other risks discussed more fully in filings by the Company with the Securities and Exchange Commission. Many of these factors are beyond the control of the Company. Reference is made to the Company's most recent filing on Form 10-K, which further details such risk factors.
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| | | | | | | |
| CIMETRIX INCORPORATED AND SUBSIDIARIES |
| Consolidated Condensed Balance Sheets |
| |
| June 30, 2009
(Unaudited) | | December 31,
2008 |
| ASSETS | | | | | | | |
| Current assets: | | | | | | | |
| Cash and cash equivalents | $ | 15,000 | | | $ | 15,000 | |
| Restricted cash | | - | | | | 121,000 | |
| Accounts receivable, net | | 250,000 | | | | 407,000 | |
| Inventories | | - | | | | 2,000 | |
| Prepaid expenses and other current assets | | 22,000 | | | | 25,000 | |
| Total current assets | | 287,000 | | | | 570,000 | |
| |
| Property and equipment, net | | 25,000 | | | | 57,000 | |
| Intangible assets, net | | 29,000 | | | | 56,000 | |
| Goodwill | | 64,000 | | | | 64,000 | |
| Other assets | | 20,000 | | | | 29,000 | |
| |
| | $ | 425,000 | | | $ | 776,000 | |
| |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | |
| Current liabilities: | | | | | | | |
| Accounts payable | $ | 181,000 | | | $ | 184,000 | |
| Accrued expenses | | 403,000 | | | | 321,000 | |
| Deferred revenue | | 290,000 | | | | 460,000 | |
| Current portion of notes payable and capital lease obligations | | 289,000 | | | | 503,000 | |
| Current portion of notes payable – related party | | 100,000 | | | | - | |
| Total current liabilities | | 1, 263,000 | | | | 1,468,000 | |
| |
| Long-term liabilities: | | | | | | | |
| Notes payable – related parties, net | | 359,000 | | | | 188,000 | |
| Long-term portion of notes payable and capital lease | | | | | | | |
| obligations | | 456,000 | | | | 335,000 | |
| Total long-term liabilities | | 815,000 | | | | 523,000 | |
| |
| Total liabilities | | 2,078,000 | | | | 1,991,000 | |
| |
| Commitments and contingencies | | | | | | | |
| |
| Stockholders’ deficit: | | | | | | | |
| Common stock; $.0001 par value, 100,000,000 shares | | | | | | | |
| authorized, 33,668,057 and 33,568,057 shares issued, | | | | | | | |
| respectively | | 3,000 | | | | 3,000 | |
| Additional paid-in capital | 32,739,000 | | | | 32,669,000 | |
| Treasury stock, 25,000 shares at cost | | (49,000 | ) | | | (49,000 | ) |
| Accumulated deficit | (34,346,000 | ) | | | (33,838,000 | ) |
| Total stockholders’ deficit | | (1,653,000 | ) | | | (1,215,000 | ) |
| |
| | $ | 425,000 | | | $ | 776,000 | |
| |
| See accompanying notes to consolidated condensed financial statements |
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| | | | | | | | | | | | | | | |
| CIMETRIX INCORPORATED AND SUBSIDIARIES |
| Consolidated Condensed Statements of Operations |
| (Unaudited) |
| |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| | |
| | 2009 | | 2008 | | 2009 | | 2008 |
| Revenues: | | | | | | | | | | | | | | | |
| New software licenses | $ | 308,000 | | | $ | 455,000 | | | $ | 505,000 | | | $ | 1,146,000 | |
| Software license updates and product support | | 204,000 | | | | 245,000 | | | | 437,000 | | | | 543,000 | |
| Total software revenues | | 512,000 | | | | 700,000 | | | | 942,000 | | | | 1,689,000 | |
| Professional services | | 189,000 | | | | 295,000 | | | | 582,000 | | | | 661,000 | |
| |
| Total revenues | | 701,000 | | | | 995,000 | | | | 1,524,000 | | | | 2,350,000 | |
| |
| Operating costs and expenses: | | | | | | | | | | | | | | | |
| Cost of revenues | | 247,000 | | | | 437,000 | | | | 617,000 | | | | 1,057,000 | |
| Sales and marketing | | 178,000 | | | | 269,000 | | | | 421,000 | | | | 583,000 | |
| Research and development | | 121,000 | | | | 230,000 | | | | 293,000 | | | | 482,000 | |
| General and administrative | | 280,000 | | | | 403,000 | | | | 585,000 | | | | 878,000 | |
| Depreciation and amortization | | 24,000 | | | | 54,000 | | | | 49,000 | | | | 108,000 | |
| |
| Total operating costs and expenses | | 850,000 | | | 1,393,000 | | | | 1,965,000 | | | | 3,108,000 | |
| |
| Loss from operations | | (149,000 | ) | | | (398,000 | ) | | | (441,000 | ) | | | (758,000 | ) |
| |
| Other income (expense): | | | | | | | | | | | | | | | |
| Interest and other income | | - | | | | - | | | | - | | | | 1,000 | |
| Interest expense | | (35,000 | ) | | | (42,000 | ) | | | (68,000 | ) | | | (62,000 | ) |
| Gain on sale of assets | | - | | | | - | | | | 1,000 | | | | - | |
| |
| Total other expense, net | | (35,000 | ) | | | (42,000 | ) | | | (67,000 | ) | | | (61,000 | ) |
| |
| Loss before income taxes | | (184,000 | ) | | | (440,000 | ) | | | (508,000 | ) | | | (819,000 | ) |
| |
| Provision for income taxes | | - | | | | - | | | | - | | | | - | |
| |
| Net loss | $ | (184,000 | ) | | $ | (440,000 | ) | | $ | (508,000 | ) | | $ | (819,000 | ) |
| |
| |
| Loss per common share: | | | | | | | | | | | | | | | |
| Basic | $ | (0.01 | ) | | $ | (0.01 | ) | | $ | (0.02 | ) | | $ | (0.03 | ) |
| Diluted | $ | (0.01 | ) | | $ | (0.01 | ) | | $ | (0.02 | ) | | $ | (0.03 | ) |
| |
| Weighted average number of shares | | | | | | | | | | | | | | | |
| outstanding: | | | | | | | | | | | | | | | |
| Basic | 33,810,000 | | | 32,007,000 | | | 33,784,000 | | | 31,967,000 | |
| Diluted | 33,810,000 | | | 32,007,000 | | | 33,784,000 | | | 31,967,000 | |
| |
| See accompanying notes to consolidated condensed financial statements |
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