Cimetrix Announces 2007 Year-End Financial Results
SALT LAKE CITY, UT - March 31, 2008 - Cimetrix, Incorporated (OTC BB: CMXX), a leading provider of SEMI connectivity standards software and solutions for the global semiconductor and electronics industries, today reported financial results for the year ended December 31, 2007.
Total revenues for 2007 increased 15% year-over-year to $6,389,000 from $5,556,000. The Company reported a net loss of $1,309,000, or $0.04 per basic and diluted share in 2007, compared to a net loss of $1,149,000, or $0.04 per basic and diluted share in 2006. Fourth quarter 2007 revenues were $1,582,000, compared with fourth quarter 2006 revenues of $1,512,000 and third quarter 2007 revenues of $1,630,000.
"Despite the current downturn in the semiconductor capital equipment industry, we recorded year-over-year growth in revenue. We had a strong increase in professional services revenues in 2007, which we believe will lead to increases in software license revenue in future years. However, we encountered a number of larger than anticipated costs during the fourth quarter, which affected our performance," said Bob Reback, president and CEO. "During the fourth quarter, a professional services project in our relatively new Data Management Solution Center required significant added resources and costs. Cimetrix made appropriate changes in project management and procedures, along with the required investments, to ensure our customer's success. In addition, as a public company, we were required to implement Sarbanes-Oxley internal controls, which consumed more time and expense than anticipated. Fortunately, both of these matters were mostly non-recurring costs."
Highlights
- Fulfillment of joint development project. Cimetrix met all major milestones associated with a joint development project with a top tier US based equipment supplier. This major equipment supplier will serve as the beta and reference customer for a new Tool Control product line that Cimetrix plans to introduce during 2008.
- Continued success in Japanese market. Cimetrix continued working closely with its exclusive distributor in Japan, CIM, Inc., to both win new customers and expand relationships with existing customers. Cimetrix and CIM obtained a number of important "design wins" for the Company's CIM300 and CIMPortal connectivity products that should lead to increases in software license revenue in future years.
Outlook for 2008
Cimetrix has clear evidence that the industry is experiencing a slowdown in short term shipments and orders which will negatively affect our performance in the first quarter of 2008. Longer term, software revenues are poised to grow as new top tier customers gained over the past several years increase shipments of equipment using Cimetrix software and as we continue to expand our product line.
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 the SECS/GEM, GEM300 and EDA standards.
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:
Cimetrix is an active member of Semiconductor Equipment and Materials International (SEMI), the International SEMATECH Manufacturing Initiative (ISMI) as well as the PV Group. 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 recovery of the 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 control 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 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.
Cimetrix Investor Resources and Financial Information
