Cimetrix Announces Second Quarter 2008 Financial Results
SALT LAKE CITY, UT - Aug 14, 2008 - Cimetrix, Incorporated (OTC: CMXX), a leading provider of factory connectivity and equipment automation software and solutions for the global semiconductor, photovoltaic and electronics industries, reported today financial results for its second quarter ended June 30, 2008.
Total revenues for the second quarter decreased 39% year-over-year to $995,000 from $1,621,000. The revenue mix included $700,000 in software sales and $295,000 in professional services. Total software revenues decreased 9% year-over-year. Services revenues, however, decreased 65% as many customers delayed spending plans on new projects until market conditions improve.
The Company reported a net loss of $440,000, or $0.01 per basic and diluted share, in the second quarter, compared to a net loss of $221,000, or $0.00 per basic and diluted share in the second quarter of 2008.
"As reported earlier, we had a number of budgeted projects with new customers scheduled to start earlier in the year that were delayed due to industry and economic conditions. This caused a significant decrease in revenues associated with professional services for the second quarter, " said Bob Reback, president and CEO. "In April, we made appropriate adjustments to bring our cost structure in-line with anticipated lower quarterly revenues. These modifications allowed us to generate positive cash from operations during the second quarter."
Six Month Results
Six-month revenue decreased 26% to $2,350,000 from $3,177,000 in the same period last year. Software revenues increased slightly to $1,689,000 from $1,660,000, while services revenues declined to $661,000 from $1,517,000. Total operating costs and expenses decreased 14% to $3,108,000 from $3,597,000. Cimetrix reported a net loss of $819,000, or $0.03 per basic and diluted share, versus a net loss of $453,000, or $0.01 per basic and diluted share, in the same period last year. Included in the net loss was $108,000 in non-cash depreciation and amortization, $229,000 in non-cash charges associated with the Company’s adoption of SFAS 123R, share-based compensation, and $62,000 in interest expense.
Highlights
- Increase in Software Revenues. In spite of the severe year-over-year decline in semiconductor capital equipment expenditures, Cimetrix’s software revenues for the first six months were up year-over-year. This increase can be attributed to the growing base of equipment suppliers using Cimetrix products.
- Successful delivery of CIMControlFramework™ Cimetrix announced the availability of a new and innovative next generation tool control solution, CIMControlFramework, which is the result of a joint development project with Axcelis Technologies. Axcelis will ship its new Integra RS tool with CIMControlFramework in the third quarter.
- First shipments to Photovoltaic market. The photovoltaic market continues to grow, attempting to harness solar power into cost-effective alternative energy. The related processes contain silicon or thin film based substrates similar to semiconductor manufacturing. Over a year ago, Cimetrix began investigating the applicability of its products in the photovoltaic market and has since taken an active role in the connectivity standards meetings. This quarter, the Company is pleased to announce the successful implementation and use of its connectivity products by a customer in this new market.
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
