EXHIBIT 99.1
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@positio.com
Phone: (408) 453-2400
Fax: (408) 453-2405
FOR IMMEDIATE RELEASE
Cimetrix Reports First Quarter Financial Results
SALT LAKE CITY, Utah - May 16, 2005--Cimetrix, Inc. (OTCBB: CMXX), a leading
provider of factory automation software for the global semiconductor and
electronics industries, today reported financial results for its first quarter
ended March 31, 2005.
Sales in the first quarter increased 8% to $1,153,000 from $1,065,000 in the
same quarter last year. Revenue included $779,000 in software and $374,000 in
services and support - both up over prior year levels. The sales increase, which
was achieved in spite of the expected decline in capital expenditures throughout
the semiconductor industry, included shipments of its new connectivity product
CIMPortal(TM) to three major original equipment manufacturers (OEMs) in the
quarter.
Total costs and expenses increased nearly 25% in the first quarter from the
prior year period as the Company invested in three initiatives expected to
contribute to future growth, including expenditures on its new CIMPortal product
family, development of the Japanese market and growing a complementary
professional services organization. Cimetrix's commitment to being the industry
leader for the new Semiconductor Equipment and Materials International (SEMI)
Interface A standard led to a 46% increase in research and development expense
as the Company continued its investment in the CIMPortal product family. This
product line enables OEM customers to efficiently collect, manage and route
critical equipment data to factory applications using the new SEMI standard
named Interface A. As leading chip makers increase their requirements for
on-demand access to key equipment data, Cimetrix expects its new CIMPortal
product family to contribute to the Company's goal of accelerating growth over
the next few years. Selling, marketing and customer support expense increased
69% during the first quarter with the Company investing additional resources in
its customer support capability and invested in marketing activities for the
Japanese market. General and administrative costs increased slightly due to
added headcount to support the Company's planned expansion. Cost of sales
declined by 31% year-over-year as the Company was able to decrease its unfunded
investments in OEM account development.
As a result of the increase in total costs and expenses, Cimetrix reported a net
loss of $99,000, or less than one cent per basic and diluted share, in the first
quarter versus net income of $20,000, or less than one cent per basic and
diluted share, in the same quarter a year ago. The Company said that while it
will continue to invest in growth initiatives throughout 2005, it expects to
achieve full year profitability as those investments begin to generate sales
later in the year.
To help fund these new growth initiatives, Cimetrix strengthened its balance
sheet in the first quarter with the addition of $2.0 million in new equity
capital from two strategic investors. Cash and cash equivalents increased more
than three-fold to $2,720,000 in the quarter from $868,000 at year end. Current
assets nearly doubled to $4,015,000 from $2,033,000. The Company's current ratio
is better than 2:1. Working capital was more than $2.0 million at March 31,
2005, and total stockholders' equity increased to $1,722,000 compared to a
stockholders' deficit of $198,000 at year-end.
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"Cimetrix continued to make good progress in the first quarter despite the
anticipated slowdown in semiconductor capital spending," said Bob Reback,
president and CEO. "Our financial results were generally in line with
management's internal forecasts. We continue to expect full-year revenue growth
and profitability, but our quarter-to-quarter results may fluctuate as we
introduce our new CIMPortal product line and invest in other growth initiatives,
while riding the general capital equipment procurement cycles. Cimetrix is
committed to being the leading global connectivity solution provider for our
growing base of semiconductor 300 mm OEM customers, which is why we are
investing in some key growth initiatives to meet the needs of leading worldwide
chip makers. We believe this strategy will deliver benefits to our customers and
shareholders for many years to come."
First Quarter Highlights
o Cimetrix extended its year-over-year revenue momentum in the first
quarter with an 8% increase over the same quarter a year ago.
o After retiring a portion of its long-term debt in 2004, the Company
added $2.0 million in new equity capital in the first quarter. That
capital will be used to fund product and sales initiatives and for
general working capital purposes.
o Cimetrix added four new OEM customers in the first quarter. That
compares with 12 new OEMs added in all of 2004. With more than 40 OEMs
shipping equipment with Cimetrix software, the Company is well
represented among equipment makers.
o Cimetrix strengthened its management team and realigned two key
departments to support anticipated growth. The Company now has
dedicated teams both for research and development as well as
professional services and customer support. This realignment is
expected to yield long-term benefits by creating operational
efficiencies and new sources of revenue.
o The Company expanded on its leadership role in the semiconductor
industry's Interface A standard initiative. During the first quarter,
Cimetrix introduced its Interface A solution, CIMPortal, to more than
20 Japanese semiconductor equipment companies. The demonstration was
well received and is a key aspect of the Company's growing efforts to
penetrate the important Japanese marketplace. Interface A allows
chipmakers access to more complete and useful data for applications in
equipment diagnostics and advanced process control. Specifically, it
enhances data and information sharing between fab equipment, factory
information and control systems. Cimetrix shipped CIMPortal to three
major OEM customers during the first quarter, which were in addition
to the four new major OEM customers identified above.
2005 Outlook
Cimetrix expects to continue growing its revenue base while maintaining
profitability in 2005 despite industry analyst expectations for a 5-10 percent
decline in semiconductor capital equipment spending for the year. The Company
hopes to counteract the broader industry trend by adding new customers,
introducing new products and remaining focused on providing passionate customer
service and support. Because Cimetrix is a relatively small company that is
continuing to invest in new product and market development, quarter-to-quarter
revenue and earnings results may vary but annual revenue and earnings guidance
of continued growth and profitability should be attainable.
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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 and Interface A standards, with over 10,000 connections
shipped worldwide, and provides 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, 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 profitability are forward-looking statements. The comments
made by the Company's senior management in regards to future revenue and
earnings are based on current expectations and involve risks and uncertainties
that may adversely affect expected results including but not limited to market
acceptance of the Company's products, the implementation of performance
requirements by SEMI, an independent industry trade group, 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 filings on Forms 10-K and 10-Q,
which detail such risk factors.
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Consolidated Statement of Operations
Three Months Ended
March 31,
2005 2004
---- ----
Sales
Software $ 779,000 $ 735,000
Services and support 374,000 330,000
----------- -----------
Total net sales $ 1,153,000 $ 1,065,000
---------- ----------
Operating Expenses
Cost of sales 107,000 154,000
General and administrative 372,000 351,000
Selling, marketing and customer support 426,000 252,000
Research and development 310,000 213,000
----------- -----------
Total costs and expenses 1,215,000 970,000
----------- -----------
Income (loss) from operations (62,000) 95,000
-------------- -----------
Other income (expense)
Interest income 12,000 2,000
Interest expense (49,000) (83,000)
Other income (expense) - 6,000
----------- -----------
Total other expense (37,000) (75,000)
------------ ------------
Income (loss) before income taxes (99,000) 20,000
Provision for income taxes - -
----------- -----------
Net income (loss) $ (99,000) $ 20,000
============ ===========
Income (loss) per common share
Basic $ * $ *
=========== ===========
Diluted $ * $ *
=========== ===========
Weighted average shares outstanding
Basic 29,292,000 27,627,000
========== ===========
Diluted 29,292,000 27,798,000
========== ==========
*Less than one cent per share
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Consolidated Balance Sheets
March 31, December 31,
2005 2004
---- ----
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $ 2,720,000 $ 868,000
Marketable securities - -
Accounts receivable, net 1,261,000 1,081,000
Prepaid expenses and other current assets 38,000 84,000
------------- -------------
Total current assets 4,019,000 2,033,000
Technology, net 217,000 229,000
Property and equipment, net 149,000 82,000
Other assets 30,000 14,000
------------- -------------
Total assets $ 4,415,000 $ 2,358,000
============= =============
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Accounts payable $ 259,000 $ 114,000
Accrued expenses 259,000 298,000
Deferred revenue 572,000 548,000
Current portion of long-term debt 908,000 905,000
------------- -------------
Total current liabilities 1,998,000 1,865,000
Long-term debt, net of current portion 695,000 691,000
------------- -------------
Total liabilities 2,693,000 2,556,000
------------- -------------
Stockholders' equity (deficit):
Common stock, $.0001 par value, 100,000,000
shares authorized; 30,344,317 and 27,844,317
shares issued 3,000 3,000
Additional paid-in capital 30,797,000 28,778,000
Treasury stock, at cost (49,000) (49,000)
Accumulated deficit (29,029,000) (28,930,000)
-------------- --------------
Total stockholders' equity (deficit) 1,722,000 (198,000)
------------- --------------
Total liabilities and stockholders' deficit $ 4,415,000 $ 2,358,000
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