Exhibit 99.1
Press Release
Company Contact:
David Faulkner
Cimetrix Incorporated
Phone: (801) 256-6500
Fax: (801) 256-6510
dave.faulkner@cimetrix.com
Media & Analysts Contact:
Stew Chalmers
Positio Public Relations
Phone: (408) 453-2400
Fax: (408) 453-2404
stew@positio.com
FOR IMMEDIATE RELEASE
Cimetrix Announces First Quarter Financial Results
SALT LAKE CITY, UT — May 15, 2008 — Cimetrix, Incorporated (OTC: CMXX), a leading provider of factory automation software and solutions for the global semiconductor and electronics industries, today reported financial results for its first quarter ended March 31, 2008.
Total revenues for the first quarter decreased 13% year-over-year to $1,355,000 from $1,556,000. The revenue mix included $989,000 in software sales and $366,000 in professional services. Total software revenues increased 11% year-over-year, as the Company obtained two important design wins for its connectivity software products. Services revenues, however, decreased 45% as many customers delayed spending plans on new projects until market conditions improve.
The Company reported a net loss of $379,000, or $0.01 per basic and diluted share, in the first quarter, compared to a net loss of $232,000, or $0.01 per basic and diluted share in the first quarter of 2007.
“We had a number of budgeted projects with repeat customers scheduled to start during the first quarter that were ‘pushed out’ due to industry and economic conditions. As a result of the predicted softness in capital expenditures in the semiconductor industry for the remainder of the year, we have taken steps to bring our cost structure in-line with anticipated lower quarterly revenues, which are more fully described in our quarterly SEC filing. In addition, we continue to look at other cost saving measures as we ride out the industry downturn,” said Bob Reback, president and CEO. “We were very pleased to earn two important new customers during the quarter, which contributed to a year-over-year increase in software revenues.”
Highlights
· Two Major Design Wins. Cimetrix was selected as a key supplier by two US based semiconductor equipment suppliers, which will each use certain connectivity products as well as focused professional services to assist in their product usage.
· Successful delivery of Data Management solution. Cimetrix’s Data Management System Framework was deployed into production at a semiconductor integrated device manufacturer. This first deployment instance should serve as a valuable reference customer for new business opportunities involving Integrated Yield Management Systems.
About Cimetrix Incorporated
Cimetrix designs, develops, markets, and supports factory automation software for the global semiconductor and electronics industries. Cimetrix’s connectivity software allows equipment manufacturers to quickly implement the SECS/GEM standards, with over 10,000 connections shipped worldwide. It also provides solutions to meet the 300mm SEMI communications standards, with OEM customer installations in all major 300mm fabs, and products designed for the new Interface A standards. Cimetrix’s PC-based motion control software is used by leading
equipment manufacturers for demanding robotic applications. Cimetrix provides total solutions for its customers with engineering services and passionate technical support. Major products include CIMConnect™, CIM300™, CIMPortal and CODE™ (Cimetrix Open Development Environment). For more information, please visit www.cimetrix.com.
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 reductions or delays in capital expenditures by semiconductor chip manufacturers, the economic climate in the markets in which the Company’s products are sold, the ability of the Company to control its costs associated with providing products and services, market acceptance of the Company’s products, the timing and degree of adoption of Interface A by the semiconductor industry, 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 detail such risk factors.
CIMETRIX INCORPORATED AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
(Unaudited)
| | Three Months Ended | |
| | March 31, | |
| | 2008 | | 2007 | |
Revenues: | | | | | |
New software licenses | | $ | 691,000 | | $ | 606,000 | |
Software license updates and product support | | 298,000 | | 284,000 | |
Total software revenues | | 989,000 | | 890,000 | |
Professional services | | 366,000 | | 666,000 | |
| | | | | |
Total revenues | | 1,355,000 | | 1,556,000 | |
| | | | | |
Operating costs and expenses: | | | | | |
Cost of revenues | | 620,000 | | 680,000 | |
Sales and marketing | | 314,000 | | 290,000 | |
Research and development | | 252,000 | | 257,000 | |
General and administrative | | 475,000 | | 434,000 | |
Depreciation and amortization | | 54,000 | | 113,000 | |
| | | | | |
Total operating costs and expenses | | 1,715,000 | | 1,774,000 | |
| | | | | |
Income (loss) from operations | | (360,000 | ) | (218,000 | ) |
| | | | | |
Other income (expense): | | | | | |
Interest income | | 1,000 | | 4,000 | |
Interest expense | | (20,000 | ) | (18,000 | ) |
Gain on extinguishment of debt | | — | | — | |
Other income (expense) | | — | | — | |
| | | | | |
Total other expense, net | | (19,000 | ) | (14,000 | ) |
| | | | | |
Income (loss) before income taxes | | (379,000 | ) | (232,000 | ) |
| | | | | |
Provision for income taxes | | — | | — | |
| | | | | |
Net income (loss) | | $ | (379,000 | ) | $ | (232,000 | ) |
| | | | | |
Income (loss) per common share: | | | | | |
Basic | | $ | (0.01 | ) | $ | (0.01 | ) |
Diluted | | $ | (0.01 | ) | $ | (0.01 | ) |
| | | | | |
Weighted average number of shares outstanding: | | | | | |
Basic | | 31,927,000 | | 31,927,000 | |
Diluted | | 31,927,000 | | 31,927,000 | |
CIMETRIX INCORPORATED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
| | March 31, | | December 31, | |
| | 2008 | | 2007 | |
| | (Unaudited) | | | |
ASSETS | | | | | |
| | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 280,000 | | $ | 339,000 | |
Accounts receivable, net | | 972,000 | | 1,035,000 | |
Inventories | | 8,000 | | 8,000 | |
Prepaid expenses and other current assets | | 53,000 | | 52,000 | |
Total current assets | | 1,313,000 | | 1,434,000 | |
| | | | | |
Property and equipment, net | | 142,000 | | 165,000 | |
Intangible assets, net | | 255,000 | | 284,000 | |
Goodwill | | 64,000 | | 64,000 | |
Other assets | | 29,000 | | 29,000 | |
| | | | | |
| | $ | 1,803,000 | | $ | 1,976,000 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | |
| | | | | |
Current liabilities: | | | | | |
Accounts payable | | $ | 290,000 | | $ | 438,000 | |
Accrued expenses | | 464,000 | | 602,000 | |
Deferred revenue | | 343,000 | | 328,000 | |
Notes payable - related parties, net | | 163,000 | | 163,000 | |
Notes payable and current portion of long-term liabilities, net | | 969,000 | | 543,000 | |
Total current liabilities | | 2,229,000 | | 2,074,000 | |
| | | | | |
Long-term liabilities: | | | | | |
Notes payable, net | | 36,000 | | 38,000 | |
Total long-term liabilities | | 36,000 | | 38,000 | |
| | | | | |
Total liabilities | | 2,265,000 | | 2,112,000 | |
| | | | | |
Commitments and contingencies | | | | | |
| | | | | |
Stockholders’ equity: | | | | | |
Common stock; $.0001 par value, 100,000,000 shares authorized, 31,952,432 shares issued | | 3,000 | | 3,000 | |
Additional paid-in capital | | 32,057,000 | | 32,004,000 | |
Treasury stock, at cost | | (49,000 | ) | (49,000 | ) |
Accumulated deficit | | (32,473,000 | ) | (32,094,000 | ) |
| | | | | |
Total Stockholders’ Deficit | | (462,000 | ) | (136,000 | ) |
| | | | | |
| | $ | 1,803,000 | | $ | 1,976,000 | |
