COMPANY CONTACT
Dave 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 Third Quarter Financial Results
SALT LAKE CITY, UT — November 14, 2008 — Cimetrix, Incorporated (OTC: CMXX), a leading provider of factory automation and tool control software and solutions for the global semiconductor and electronics industries, reported today financial results for its third quarter ended September 30, 2008.
Total revenue for the third quarter was $1,008,000 compared to $1,630,000 in the third quarter of 2007. Software revenue decreased from $1,040,000 in the same period last year to $677,000. The year-over-year professional services revenue also declined from $590,000 to $331,000. The Company reported a net loss of $312,000, or $0.01 per basic and diluted share, in the third quarter, compared to a net loss of $225,000, or $0.01 per basic and diluted share in the third quarter of 2007.
“Our results for the third quarter reflect the worsening market conditions and the weak global economy. The challenging environment for the semiconductor industry, in particular, has continued to delay factory expansion projects, significantly reducing capital equipment expenditures. As a result, our software license revenue associated with the shipment of equipment fell below even our reduced forecast,” said Bob Reback, Cimetrix’s president and chief executive officer. “However, quarter-over-quarter bookings for professional services and new Software Development Kits (SDKs) increased this quarter, resulting in a solid source of revenue as we enter into the fourth quarter. In addition, we restructured our Senior Note debt to be due in September of 2010, and have taken steps to tightly manage cash flow during this difficult economic environment.”
Highlights
| · | Improved Backlog for Professional Services. Cimetrix obtained and began work on several professional services projects, resulting in the strongest services backlog of the year and a solid revenue source for the fourth quarter of 2008. |
| · | Market Share Gains. Cimetrix continues to gain market share with its CIMConnect, CIM300 and CIMPortal connectivity products for SEMI Standards conformance. This quarter, the Company obtained six new customers in North America, Europe and Japan, which should provide runtime license revenue when the market improves. |
Nine Month Results
Nine-month revenue was $3,358,000 compared to $4,807,000 in the same period last year. Software revenues decreased to $2,366,000 from $2,700,000, while services revenues declined to $992,000 from $2,107,000. Total operating costs and expenses decreased 19% to $4,402,000 from $5,432,000. Cimetrix reported a net loss of $1,131,000, or $0.04 per basic and diluted share, versus a net loss of $678,000, or $0.02 per basic and diluted share, in the same period last year. Included in the net loss was $158,000 in non-cash depreciation and amortization, $376,000 in non-cash charges associated with the Company’s adoption of SFAS 123R, share-based compensation, and $88,000 in interest expense.
About Cimetrix Incorporated
Cimetrix designs, develops, markets, and supports factory automation and tool control software for the global semiconductor and electronics industries. A leading participant in SEMI standards development, Cimetrix’s connectivity software allows for quick implementation of the SECS/GEM, GEM 300 and EDA standards. The Company’s products can be found on virtually every tool type in nearly every 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 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 in periods of reduced revenues, 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 filings on Forms 10-K and 10-Q, which further details such risk factors.
# # #
| CIMETRIX INCORPORATED AND SUBSIDIARIES |
| Consolidated Condensed Statements of Operations |
| (Unaudited) |
| | | Three Months Ended | | | Nine Months Ended |
| | | September 30, | | | September 30, |
| | | 2008 | | | 2007 | | | 2008 | | 2007 |
| Revenues: | | | | | | | | | | |
| New software licenses | | | $437,000 | | | | $728,000 | | | | $1,583,000 | | | $1,838,000 |
| Software license updates and product support | | | 240,000 | | | | 312,000 | | | | 783,000 | | | 862,000 |
| Total software revenues | | | 677,000 | | | | 1,040,000 | | | | 2,366,000 | | | 2,700,000 |
| Professional services | | | 331,000 | | | | 590,000 | | | | 992,000 | | | 2,107,000 |
| | | | | | | | | | | | | | | |
| Total revenues | | | 1,008,000 | | | | 1,630,000 | | | | 3,358,000 | | | 4,807,000 |
| | | | | | | | | | | | | | | |
| Operating costs and expenses: | | | | | | | | | | | | | | |
| Cost of revenues | | | 383,000 | | | | 739,000 | | | | 1,440,000 | | | 2,172,000 |
| Sales and marketing | | | 292,000 | | | | 302,000 | | | | 875,000 | | | 890,000 |
| Research and development | | | 195,000 | | | | 259,000 | | | | 677,000 | | | 765,000 |
| General and administrative | | | 374,000 | | | | 417,000 | | | | 1,252,000 | | | 1,261,000 |
| Depreciation and amortization | | | 50,000 | | | | 118,000 | | | | 158,000 | | | 344,000 |
| | | | | | | | | | | | | | | |
| Total operating costs and expenses | | | 1,294,000 | | | | 1,835,000 | | | | 4,402,000 | | | 5,432,000 |
| | | | | | | | | | | | | | | |
| Loss from operations | | | (286,000 | ) | | | (205,000 | ) | | | (1,044,000 | ) | | (625,000 |
| | | | | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | | | |
| Interest and other income | | | - | | | | 2,000 | | | | 1,000 | | | 8,000 |
| Interest expense | | | (26,000 | ) | | | (22,000 | ) | | | (88,000 | ) | | (61,000 |
| | | | | | | | | | | | | | | |
| Total other expense | | | (26,000 | ) | | | (20,000 | ) | | | (87,000 | ) | | (53,000 |
| | | | | | | | | | | | | | | |
| Loss before income taxes | | | (312,000 | ) | | | (225,000 | ) | | | (1,131,000 | ) | | (678,000 |
| | | | | | | | | | | | | | | |
| Provision for income taxes | | | - | | | | - | | | | - | | | - |
| | | | | | | | | | | | | | | |
| Net loss | | | $(312,000 | ) | | | $(225,000 | ) | | | $(1,131,000 | ) | | $(678,000 |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Loss per common share: | | | | | | | | | | | | | | |
| Basic | | | $(0.01 | ) | | | $(0.01 | ) | | | $(0.04 | ) | | $(0.02 |
| Diluted | | | $(0.01 | ) | | | $(0.01 | ) | | | $(0.04 | ) | | $(0.02 |
| | | | | | | | | | | | | | | |
Weighted average number of shares outstanding: | | | | | | | | | | | | | | |
| Basic | | | 32,843,000 | | | | 31,927,000 | | | | 32,258,000 | | | 31,927,000 |
| Diluted | | | 32,843,000 | | | | 31,927,000 | | | | 32,258,000 | | | 31,927,000 |
| | | |
| CIMETRIX INCORPORATED AND SUBSIDIARIES |
| Consolidated Condensed Balance Sheets |
| |
ASSETS | | September 30, 2008 (Unaudited) | | | December 31, 2007 |
| Current assets: | | | | | |
| Cash and cash equivalents | | | $37,000 | | | | $339,000 |
| Accounts receivable, net | | | 584,000 | | | | 1,035,000 |
| Inventories | | | 7,000 | | | | 8,000 |
| Prepaid expenses and other current assets | | | 29,000 | | | | 52,000 |
| Total current assets | | | 657,000 | | | | 1,434,000 |
| | | | | | | | |
| Property and equipment, net | | | 112,000 | | | | 165,000 |
| Intangible assets, net | | | 196,000 | | | | 284,000 |
| Goodwill | | | 64,000 | | | | 64,000 |
| Other assets | | | 29,000 | | | | 29,000 |
| | | | | | | | |
| | | | $1,058,000 | | | | $1,976,000 |
| | | | | | | | |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT |
| Current liabilities: | | | | | | | |
| Accounts payable | | | $159,000 | | | | $438,000 |
| Accrued expenses | | | 283,000 | | | | 602,000 |
| Deferred revenue | | | 295,000 | | | | 328,000 |
| Notes payable – related parties, net | | | 0 | | | | 163,000 |
| Current portion of notes payable and capital lease obligations | | | 577,000 | | | | 543,000 |
| Total current liabilities | | | 1,314,000 | | | | 2,074,000 |
| | | | | | | | |
| Long-term liabilities: | | | | | | | |
| Notes payable – related parties, net | | | 162,000 | | | | 0 |
Long-term portion of notes payable and capital lease obligations | | | 340,000 | | | | 38,000 |
| Total long-term liabilities | | | 502,000 | | | | 38,000 |
| | | | | | | | |
| Total liabilities | | | 1,816,000 | | | | 2,112,000 |
| | | | | | | | |
| Commitments and contingencies | | | | | | | |
| | | | | | | | |
| Stockholders’ deficit: | | | | | | | |
Common stock; $.0001 par value, 100,000,000 shares authorized, 33,018,224 and 31,952,432 shares issued, respectively | | | 3,000 | | | | 3,000 |
| Additional paid-in capital | | | 32,513,000 | | | | 32,004,000 |
| Treasury stock, 25,000 shares at cost | | | (49,000 | ) | | | (49,000 |
| Accumulated deficit | | | (33,225,000 | ) | | | (32,094,000 |
| Total stockholders’ deficit | | | (758,000 | ) | | | (136,000 |
| | | | | | | | |
| | | | $1,058,000 | | | | $1,976,000 |
