Cimetrix (CMXX) 10-Q 2009 Q1 Quarterly report

Company Contact
Dave Faulkner
Cimetrix, Incorporated
Phone: (801) 256-6500
Fax: (801) 256-6510
dave.faulkner@cimetrix.com

Cimetrix Announces First Quarter 2009 Financial Results
Revenues increase 5% from prior sequential quarter

SALT LAKE CITY, UT — May 15, 2009 — Cimetrix, Incorporated(OTCBB: 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 first quarter ended March 31, 2009.

• Compared to the fourth quarter of 2008, Company revenues increased 5%. Software revenues decreased 6%from $458,000 to $430,000, whileprofessional servicesrevenues increased 20%.
• Total revenue for the first quarter declined 39% year-over-year from $1,355,000 in the first quarter of 2008 to$823,000 in the first quarter of 2009.
• Software revenue decreased over 56% from $989,000 in the same period last year to $430,000.
• The year-over-year professional services revenue increased 7% from $366,000 to $393,000.
• The Company reported a net loss of $324,000, or ($0.01) per basic and diluted share, in the first quarter,compared to a net loss of $379,000, or ($0.01) per basic and diluted share in the same period last year.

“The market for semiconductor 300mm capital equipment, our largest source of revenue for the past several years, virtually came to a stop in the first quarter of 2009. Customer shipments of 300mm equipment decreased more than 95% year-over-year. Fortunately, our efforts to promote the use of SEMI Standards in other markets, particularlythe solar-photovoltaic market, as well as our commitment to serving customers in Europe and Japan, have both contributed to an increase in Company revenue quarter-over-quarter.” saidBob Reback, Cimetrix’s president and chief executive officer.

Further, Mr. Reback added, “We have taken appropriate steps to seek break-even cash flow despite the reduced revenue rate of the last two quarters. Despite the challenging business environment, we have retained all of our key employees and are vigorously pursuing new business opportunities.

Mr. Reback concluded, “Although there is a long way to go before 300mm shipments return to any type of reasonably sustainable levels for many of our customers, we are hopeful that easing economic conditions will result in an upward trend from recent levels. Once the semiconductor capital equipment market recovers, we expect to be well positioned for generating strong profits during the next up cycle.”

Highlights

• Successful execution of professional services project to deliverSECS/GEMcapabilities on new equipmentfor a largesolar-photovoltaic manufacturingfacility
• Two design wins for Cimetrix software products, one in surface mount and the second in semiconductorassembly and packaging

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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.

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 recoveryofthe 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 c ontrol 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
		March 31, 2009			December 31,
ASSETS		(Unaudited)			2008
Current assets:
Cash and cash equivalents	$	25,000		$	15,000
Restricted Cash		-			121,000
Accounts receivable, net		450,000			407,000
Inventories		-			2,000
Prepaid expenses and other current assets		36,000			25,000
Total current assets		511,000			570,000
Property and equipment, net		36,000			57,000
Intangible assets, net		42,000			56,000
Goodwill		64,000			64,000
Other assets		20,000			29,000
	$	673,000		$	776,000
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	214,000		$	184,000
Accrued expenses		349,000			321,000
Deferred revenue		412,000			460,000
Current portion of notes payable and capital lease obligations		422,000			503,000
Total current liabilities		1,397,000			1,468,000
Long-term liabilities:
Notes payable – related parties, net		299,000			188,000
Long-term portion of notes payable and capital lease
obligations		455,000			335,000
Total long-term liabilities		754,000			523,000
Total liabilities		2,151,000			1,991,000
Commitments and contingencies
Stockholders’ deficit:
Common stock; $.0001 par value, 100,000,000 shares
authorized, 33,668,057,224 and 33,568,057 shares issued,
respectively		3,000			3,000
Additional paid-in capital		32,730,000			32,669,000
Treasury stock, 25,000 shares at cost		(49,000	)		(49,000	)
Accumulated deficit		(34,162,000	)		(33,838,000	)
Total stockholders’ deficit		(1,478,000	)		(1,215,000	)
	$	673,000		$	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
		March 31
		2009		2008
Revenues:
New software licenses	$	196,000		$	691,000
Software license updates and product support		234,000			298,000
Total software revenues		430,000			989,000
Professional services		393,000			366,000
Total revenues		823,000		1,355,000
Operating costs and expenses:
Cost of revenues		370,000			620,000
Sales and marketing		244,000			314,000
Research and development		172,000			252,000
General and administrative		304,000			475,000
Depreciation and amortization		25,000			54,000
Total operating costs and expenses		1,11500		1,715,000
Loss from operations		(292,000	)		(360,000	)
Other income (expense):
Interest and other income		-			1,000
Interest expense		(33,000	)		(20,000	)
Gain on sale of assets		1,000			-
Total other expense, net		(32,000	)		(19,000	)
Loss before income taxes		(324,000	)		(379,000	)
Provision for income taxes		-			-
Net loss	$	(324,000	)	$	(379,000	)
Loss per common share:
Basic	$	(0.01	)	$	(0.01	)
Diluted	$	(0.01	)		(0.01	)
Weighted average number of shares
outstanding:
Basic		33,761,000			32,495,000
Diluted		33,761,000			32,495,000
See accompanying notes to consolidated condensed financial statements

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