EXHIBIT 99.2
PRESS RELEASE
Company Contacts:
David Faulkner
Cimetrix, Inc.
dave.faulkner@cimetrix.com
Phone: (801) 256-6500
Fax: (801) 256-6510
Agency Contact:
Stew Chalmers
Positio Public Relations
stew@positiopr.com
Phone: (408) 453-2400
Fax: (408) 453-2405
FOR IMMEDIATE RELEASE
Cimetrix Reports Second Quarter Financial Results
Second Consecutive Profitable Quarter on Increased Sales;
Four New Major OEM Customers in Quarter Raises Year-To-Date Total to Seven;
Company Affirms Guidance of 35% Revenue Growth, Full-Year Profitability
SALT LAKE CITY, Utah -- August 16, 2004 Cimetrix, Inc. (OTCBB: CMXX), a
leading provider of factory automation software for the global semiconductor and
electronics industries, today reported financial results for its second quarter
and six-month period ended June 30, 2004.
Second Quarter Results
Cimetrix reported net income of $22,000, or less than one cent per share, in the
second quarter versus a net loss of $165,000, or $0.01 per basic and diluted
share, in the same quarter a year ago. It was Cimetrix's second consecutive
profitable quarter.
Net sales in the quarter increased to $999,000 from $981,000 in the same quarter
last year. Software revenue increased 27% to $551,000 from $433,000 in the
comparable quarter last year, more than offsetting a decline in services and
support revenue to $448,000 from $548,000 in the same period last year. The
decline in service and support revenue was attributable to the fact that in the
second quarter of 2003 the Company recognized an unusually high amount of
services revenue due to a large, one-time services contract with a key customer.
Total operating expenses declined by 15% to $910,000 from $1.1 million. This
decline reflected management's commitment to carefully managing its cost
structure in order to sustain profitability. General and administrative,
research and development, and selling, marketing and customer support expenses
all declined versus year-ago levels. The only increase in operating expenses was
in the cost of sales category as the Company invested employee and other
resources in the development of major OEM customer relationships originating in
the fourth quarter of 2003 and the first two quarters of 2004.
Cimetrix closed the quarter with cash and cash equivalents of $1.2 million.
Working capital at June 30, 2004 was $1.2 million, which is up $200,000, or 20%,
since the beginning of the year.
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Six-Month Results
For the six-month period Cimetrix reported net income of $42,000, or less than
one cent per basic and diluted share, versus a net loss of $291,000, or $0.01
per basic and diluted share, in the same period a year ago. On a year-to-date
basis, the Company has generated approximately $200,000 in cash from operations.
Net sales advanced 9% at mid-year to $2.1 million versus $1.9 million in the
comparable period of 2003. Software revenue increased nearly 30% to $1.3 million
from $1.0 million, while services and support revenue declined to $778,000 from
$898,000, again reflecting the impact of a large, one-time services contract
during the same period a year ago.
Total operating expenses were reduced by approximately 7% to $1.9 million in the
first six months and included cost reductions in all expense categories except
cost of sales.
"Our financial plan in the first half of this year was to transition to
profitability while laying the groundwork for accelerated sales and earnings
growth in the second half," said Bob Reback, president and CEO. "We are pleased
with our results and attribute them to the hard work and dedication of employees
at all levels of our organization. We have a talented, committed team that
shares a collective belief in our technology, our products and our future
prospects."
"During the second quarter we added four new major OEM customers, and we
continue to expand an already impressive group of OEM partners who are actively
shipping our products," Reback added. "These OEMs selected our solutions because
we offer strong performance advantages in the form of time to market, cost of
ownership and conformance to standards. We believe that with this large and
growing stable of OEMs in place, we will begin to experience accelerating
revenue as the semiconductor and related advanced process control industries
continue to rebound."
Reback said that despite uncertain growth rates in the semiconductor industry,
the Company expects organic revenue growth of approximately 35% and overall
profitable results in 2004.
Second Quarter Highlights
o Reported second consecutive profitable quarter on increased sales.
o Added four new major OEM customers, raising to seven the total number
of major OEMs the Company has added during the first six months of the
year.
o Announced a strategic partnership with Brooks Automation (Nasdaq-BRKS)
to combine Cimetrix SECS/GEM/300mm connectivity standards software and
support with Brooks' OEM system automation products. Brooks' products
and services are used in virtually every semiconductor fab in the
world.
o Commenced beta testing of its CIMPortal(TM) Interface A solution,
which supports the semiconductor industry's drive to improve
productivity and increase yields from their manufacturing tools and
processes. Beta testing partners include semiconductor OEMs, end
users, and advanced process control (APC) platform providers.
o Delivered CIMPortal software in support of Wonderware's extension of
its ArchestrA(R) software architecture into advanced process control
applications for the semiconductor industry. Wonderware, a unit of
Invensys Systems, Inc., has software licenses with 100,000
manufacturing plants, or approximately 30% of all large plants
worldwide.
o Implemented strong corporate governance policies in compliance with
Sarbanes-Oxley and in conjunction with the addition of new chief
financial officer Dennis P. Gauger.
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About Cimetrix Incorporated
Cimetrix (OTCBB: CMXX) 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, and provides best in class solutions to meet the 300mm SEMI
communications standards, with OEM customer installs in all major 300mm fabs.
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 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 profitability are forward-looking statements. The comments
made by the company's senior management in regards to future revenue and
earnings involve risks and uncertainties including but not limited to market
acceptance of the Company's products, 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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Consolidated Condensed Statement of Operations
(In thousands, expect per share and share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- -----------------------
2004 2003 2004 2003
---- ---- ---- ----
SALES
Software $ 551 $ 433 $ 1,286 $ 992
Services and support 448 548 778 898
-------- ---------- ---------- --------
Total net sales 999 981 2,064 1,890
-------- ---------- ---------- --------
OPERATING EXPENSES
Cost of sales 236 187 390 256
Selling, marketing and customer support 270 319 522 622
Research and development 202 219 415 483
General and administrative 202 341 553 647
-------- ---------- ---------- --------
Total operating expenses 910 1,066 1,880 2,008
-------- ---------- ---------- --------
INCOME (LOSS) FROM OPERATIONS 89 (85) 184 (118)
-------- ----------- ---------- ---------
OTHER INCOME (EXPENSES)
Interest and other income 2 1 10 3
Interest expense (69) (81) (152) (176)
--------- ----------- ----------- ---------
Total other income (expenses) (67) (80) (142) (173)
--------- ----------- ----------- ---------
INCOME (LOSS) BEFORE INCOME TAXES 22 (165) 42 (291)
PROVISION FOR INCOME TAXES - - - -
-------- ----------- ---------- ---------
NET INCOME (LOSS) $ 22 $ (165) 42 (291)
======== =========== ========== =========
INCOME (LOSS) PER
COMMON SHARE:
BASIC $ - $ (.01) $ - $ (.01)
== ===== === =====
DILUTED $ - $ (.01) $ - $ (.01)
== ===== === =====
WEIGHTED AVERAGE SHARES
OUTSTANDING:
BASIC 27,660,000 25,513,000 27,643,000 24,784,000
========== ========== ========== ==========
DILUTED 27,839,000 25,513,000 27,818,000 24,784,000
========== ========== ========== ==========
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Consolidated Balance Sheets
(In thousands, except share amounts)
ASSETS
June 30, December 31,
2004 2003
------- ------------
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 1,169 $ 1,389
Marketable securities 33 234
Accounts receivable, net 1,179 920
Inventories 7 7
Prepaid expenses and other current assets 54 89
------------ ------------
Total Current Assets 2,442 2,639
Property and equipment, net 54 84
Technology, net 252 276
Other assets 24 33
------------ ------------
$ 2,772 $ 3,032
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable $ 155 $ 167
Accrued expenses 311 192
Deferred revenue 810 562
Current portion of long-term debt 11 752
------------ ------------
Total Current Liabilities 1,287 1,673
LONG TERM DEBT, net of current portion 1,860 1,865
------------ ------------
Total Liabilities 3,147 3,538
------------ ------------
STOCKHOLDERS' DEFICIT
Common stock, $.0001 par value: 100,000,000
shares authorized, 27,832,871 shares issued 3 3
Additional paid-in capital 28,723 28,634
Treasury stock, at cost (49) (49)
Accumulated deficit (29,052) (29,094)
------------ ------------
Total Stockholders' Deficit (375) (506)
------------ ------------
$ 2,772 $ 3,032
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