Cimetrix Announces Second Quarter 2007 Financial Results
- 22% increase in total revenues on strong growth in professional services
- Second consecutive quarter of positive net cash provided by operating activities
- Successful execution of several key customer projects by OEM Solution Center
- On time delivery of Integrated Yield Management capabilities by new Data Management Solution Center
SALT LAKE CITY, Utah - August 14, 2007 - Cimetrix, Inc. (OTC BB: CMXX), a leading provider of connectivity software and solutions for the global semiconductor and electronics industries, today reported financial results for its second quarter and six month period ended June 30, 2007.
Revenue in the second quarter increased 22% to $1,621,000 from $1,334,000 in the same quarter last year. The increase in total revenues can be attributed to an increase in software license updates and product support, and the continued growth of the Company's professional services team. As anticipated by industry projections, the semiconductor equipment industry experienced a reduction in unit shipments for the quarter. As a result, we experienced a decline in new software license revenue.
Revenues from professional services more than doubled year-over-year as Cimetrix has expanded its OEM Solution Center capabilities and is beginning to gain traction from its new Data Management Solution Center for end-user businesses.
Total operating costs and expenses in the second quarter increased ten percent from $1,651,000 to $1,823,000. The increase in operating expenses was primarily associated with the increase in the cost of revenues, which involved adding new staff to deliver professional services and to support the Company's software products. All other expense categories were essentially flat year-over-year, consistent with the Company's earlier expectations. Cimetrix reported a net loss of $221,000, or less than $0.01 per basic and diluted share, in the second quarter versus a net loss of $328,000, or $0.01 per basic and diluted share, in the same quarter a year ago. Included in the net loss was $113,000 in non-cash depreciation and amortization, $97,000 in non-cash charges a ssociated with the Company's adoption of SFAS 123R, share-based compensation, and $22,000 in interest expense.
"The global semiconductor capital equipment market experienced a cyclical adjustment in the second quarter, which impacted our sales revenue." noted Bob Reback, president and CEO of Cimetrix. "Despite this slowdown, we achieved our objective of year-over-year revenue growth and of greater significance is our customer's acceptance of our professional services team, whose success is being driven by our ability to deliver solutions on-time, on budget, while providing good value for our customers. In addition, we continue to lead in key new technologies, including the industry's transition to the Interface A standard. We expect the adoption of the new Interface A standards, combined with our continued investments in research and development, to further strengthen our leadership reputation and revenue growth opportunities."
Six Month Results
Six-month revenue increased 13% to $3,177,000 from $2,802,000 in the same period last year. Total operating costs and expenses increased 8% to $3,597,000 from $3,337,000. Cimetrix reported a net loss of $453,000, or $0.01 per basic and diluted share, versus a net loss of $553,000, or $0.02 per basic and diluted share, in the same period last year. Included in the net loss was $226,000 in non-cash depreciation and amortization, $202,000 in non-cash charges associated with the Company's adoption of SFAS 123R, share-based compensation, and $40,000 in interest expense. Net cash provided by operating activities was $50,000 for the six months ended June 30, 2007.
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. The comments made by the Company's senior management in regards to future developments are based on current expectations and involve risks and uncertainties that may adversely affect expected results including, but not limited to, the adoption by chip makers of the Interface A standards specified by SEMI, an independent industry trade group, market acceptance of the Company's products, 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.
Cimetrix Investor Resources and Financial Information
