EXHIBIT 99.2
Slide Presentation given at Annual Shareholder Meeting
The Company presented the following slides to attendees at the Annual
Shareholder Meeting on May 22, 2004:
Welcome to the Cimetrix Annual Shareholder Meeting
May 22, 2004
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Safe Harbor Statement
The matters discussed in this presentation 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 profitability, new product acceptance, M&A prospects,
target market growth and ability to win new OEM customers are forward-looking
statements. The comments made by the Company's senior management in regards to
future earnings involve risks and uncertainties including but not limited to the
pending sales of Cimetrix software, which include CODE, CIM300 and CIMConnect
product families, that could be effected by economic climate, technological
improvements, and other risks discussed more fully in filings by the Company
with the Securities and Exchange Commission. Reference is made to the Company's
most recent Forms 10K and 10Q, which detail such risk factors.
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Agenda
- ------
- - Shareholder Meeting
- - Management Presentations
- New CFO - Dennis Gauger
- Sales & Marketing - Dave Faulkner
- - State of the Company and Future Outlook - Bob Reback
- - Questions
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Finance
Dennis Gauger
Chief Financial Officer
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Recap of Sarbanes-Oxley Act
- - Enacted July 30, 2002.
- - SEC instructed to interpret provisions of the Act and issue final rules to
implement them.
- - Many final rules issued by SEC, some effective immediately, many
effective during last year and this year, and some effective on future
dates.
- - Accelerated filers defined.
- - Transparency emphasized, communications directly with the Board of Directors
by shareholders and employees.
- - Section 404, Certification of Internal Controls effective in 2005.
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Sales & Marketing
Dave Faulkner
Executive Vice President
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Who We Are
Machine control software for the world's toughest motion applications.
Connectivity software that connects the tool to the factory and the world.
Thousands of production installations by leading machine builders.
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Cimetrix Business Model
-----------------------
- - Initial Software Development Kit Sales to new OEMs
- - Service Engagements to assist our new OEMs
- - Annual Support Contracts
- - Per Machine Software License Revenues
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Cimetrix Products
-----------------
Machine Control Software
- - CODE (Cimetrix Open Development Environment)
- Open architecture machine control software for motion intensive, vision
guided applications
- CIMulation environment for application development
- CIMControl for mechanism control
- CoreMotion for software based motion loop closure for
analog or network based drive systems
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Cimetrix Products
-----------------
Connectivity Software
- - CIMConnect
- Second generation object-oriented products for OEM's to develop SECS/GEM,
XML or proprietary protocols
- - CIM300/CIM300Expert
- Object oriented based solutions for complying with SEMI 300 mm standards
- - CIMPortal
- New SEMI standards for better data flow
- - Other Products
- SECSConnect/TESTConnect, GEM Host Manager
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2003 Annual Results
- -------------------
(In thousands, audited)
Years Ended December 31,
- --------------------------------------------------------------------------------
2003 2002
- --------------------------------------------------------------------------------
Net Sales $ 3,340 $ 2,975
Expenses $ 4,271 $ 7,030
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Net income (loss) $ (931) $(4,055)
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[12% Sales Increase in a Tough Year]
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The Company presented a bar graph reporting:
Annual Sales
------------
Year Services & Support Software
---- ------------------ ---------
1995 $ 107,000 $ 184,000
1996 243,000 1,404,000
1997 808,000 1,264,000
1998 1,084,000 3,075,000
1999 732,000 3,121,000
2000 1,003,000 4,897,000
2001 1,141,000 2,934,000
2002 1,608,000 1,366,000
2003 1,484,000 1,855,000
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The Company presented a bar graph reporting:
Sales Forecast
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Year Services & Support Software
---- ------------------ ---------
1995 107,000 $ 184,000
1996 243,000 1,404,000
1997 808,000 1,264,000
1998 1,084,000 3,075,000
1999 732,000 3,121,000
2000 1,003,000 4,897,000
2001 1,141,000 2,934,000
2002 1,608,000 1,366,000
2003 1,485,000 1,855,000
2004 * 1,960,000* 2,540,000*
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* ESTIMATED
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Q1 2004 Results
- ---------------
(In thousands, unaudited)
Quarter Ended Mar. 31,
- --------------------------------------------------------------------------------
2004 2003
- --------------------------------------------------------------------------------
Net Sales $1,065 $ 909
Expenses $1,045 $1,035
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Net (loss) income $ 20 $ (126)
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[Return to Profitability and On Target for 2004 Plan!]
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2004 Outlook
------------
- - On Target for Plan of $4.5M in Sales
- - Strong Market Momentum and Customer Activity in Communications
- Passionate Customer Support
- World Class Products
- Professional Organization
- Great Referrals
- - New Products fueling growth
- CIM300Expert
- CIMPortal
- -Promotion through Positio, SEMICON, Sales Team
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State of the Company
and Future Outlook
Bob Reback
President and CEO
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Company Goals for 2003
----------------------
- - Improve and Increase Operating Profitability.
- - Continue to Satisfy our Expanded Base of OEM Customers and assist them in
Shipping Machines with Cimetrix Software.
- - Gain 13 new major OEM Design Wins.
- - Introduce two New Products applicable to our current customer base.
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The Company presented a bar graph reporting:
Major OEM Accounts "Shipping"
-----------------------------
1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ----
0 1 1 5 16 23
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The Company presented a bar graph reporting:
Major OEM Customers
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1995 1996 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ---- ---- ----
0 1 1 2 2 7 16 27 35
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The Company presented a bar graph reporting:
Net Loss
--------
2001 2002 2003
---- ---- ----
Net Loss $(5,620,000) $(4,055,000) $(931,000)
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2003 Accomplishments
--------------------
- - Re-establish top-line growth
*Revenue increased 12% in difficult industry environment
- - Improve and increase operating profitability.
*Significant reduction in net loss
- - Continue to satisfy our expanded base of OEM customers and assist them in
shipping machines with Cimetrix Software.
*+7 Major OEM's Shipping (23 of 35)
- - Gain 13 new major OEM design wins.
*8 New Major OEM Design Wins
- - Introduce 2 new products for our current customer base.
*CIM300Expert in Production
*CIMPortal beta installed at AMD
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The Company presented a bar graph reporting:
Q1 2004 Revenue Growth
----------------------
Q1 '03 Q1 '04
--------------------------
Revenue $ 909,000 $ 1,065,000
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The Company presented a bar graph reporting:
Q1 2004 Earnings Growth
-----------------------
Q1 '03 Q1 '04
--------------------------
Net income (loss) $ (126,000) $ 20,000
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Q1 Highlights
-------------
- - Sales increased 17% over prior year period.
- - Positive net income.
- - Added three 3 major OEM customers.
- - Strengthened management team and board.
- - Resolved lawsuit in April.
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Growth Strategy
---------------
- - Short term:
- Service organic demand
- Ride growth in semiconductor 300mm capital equipment
- Incremental new OEM customers
- Incremental complementary products
- Japanese market
- - Medium/Long term:
- Continued organic growth
- M&A program
- Outsource model for increased capacity
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Management Team
---------------
- - Bob Reback, President and CEO
20+ years factory automation, TI, Fanuc Robotics
- - Dennis Gauger, CFO
25+ years finance, CPA, Partner Deloitte & Touche
- - Dave Faulkner, EVP Sales and Marketing
25+ years factory automation, GE, GE Fanuc
- - Mike Feaster, VP Software Development
14+ years software engineering & management,Century Software
- - Steve Sorensen Ph.D., Founder and VP
20+ years motion control, software
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Board of Directors
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- - Bob Reback, President and CEO
- - Scott Chandler
20+ years executive management, including CFO and CEO of public
companies, raised $2 billion
- - Alan Weber
25+ years factory automation, semiconductor, software management
including TI, SEMATECH and KLA-Tencor
- - Mike Thompson
25+ years manufacturing, automation, executive including TI,
AutoSimulations, Brooks and SetPoint
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Goals for 2004
--------------
- - Maintain reputation as "best products in the industry" by keeping products up
to date with standards and new features.
- - Maintain reputation as "best support in the industry" by continuing to satisfy
our expanded base of OEM customers and assisting them in shipping machines
with Cimetrix software.
- - Sales objective of $4.5M.
- - Sustained profitability.
- - Gain 12 new 300mm design wins.
- - Introduce CIMPortal products for both OEM and Fab customers.
- - Expand presence in Japanese market.
- - Initiate investor relations program.
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Investment Rationale
--------------------
- - Poised for sales growth and sustained profitability
- - World-class software and services, blue chip customers
- - Recovery underway in key semiconductor sector
- - Resolved outstanding legal issues
- - Strong management team, lean operating philosophy
- - Under-followed status attractive to early investors
- - Focus on building shareholder value
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Questions?
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