Cimetrix Announces Third Quarter 2007 Financial Results
- Third consecutive quarter of positive net cash provided by operating activities
- 31% increase in total revenues year-over-year
- Solid incremental growth in software revenues
SALT LAKE CITY, Utah - November 14, 2007 - Cimetrix, Inc. (OTC BB: CMXX), a leading provider of factory automation software and solutions for the global semiconductor and electronics industries, announced today financial results for its third quarter, fiscal year 2007.
The company posted total quarterly revenue of $1,630,000, up 31% from a year ago. This development can be attributed to an increase in new software licenses, software license updates and product support, as well as the continued growth of the Company's professional services business. Historically, the third quarter of the year is the slowest period for new software license revenue. However, Cimetrix obtained some robust machine shipments from its growing equipment maker customer base. Also during this quarter, Cimetrix strengthened its professional services team to better serve its customers. As a result, revenue from the professional services business unit more than doubled year-over-year as Cimetrix continues to expand its OEM Solution Center capabilities.
Total operating costs and expenses in the third quarter increased 18% percent to $1,835,000 from $1,560,000 in the year–ago quarter. This increase in operating expenses was primarily associated with the increase in the cost of revenues as well as general and administrative costs. Specifically, the increase in general and administrative costs was associated with initial expenses incurred while implementing internal controls for Sarbanes–Oxley 404 compliance — a requirement for Cimetrix this year. Sales and marketing had a nominal increase year–over–year, while research and development was flat, consistent with the Company's earlier expectations.
Cimetrix reported a net loss of $225,000, or less than $0.01 per basic and diluted share, in the third quarter versus a net loss of $325,000, or $0.01 per basic and diluted share, in the year–ago quarter. Included in the net loss was $118,000 in non–cash depreciation and amortization, $92,000 in non–cash charges associated with the Company's adoption of SFAS 123R, share–based compensation, and $22,000 in interest expense.
"We were generally satisfied with the growth and progress of our company, particularly our professional services group, and we achieved major milestones across the board in virtually every department," noted Bob Reback, president and CEO. "Our biggest challenge moving forward is managing the growth of our business while maintaining quality and customer relationships. In the third quarter, we faced some challenges as we implemented internal controls to comply with Sarbanes-Oxley 404, recruited additional staff to support our growth, and competed aggressively to win new business."
Nine Month Results
Nine–month revenue increased 19% to $4,807,000 from $4,045,000 in the same period last year. Total operating costs and expenses increased 11% to $5,432,000 from $4,897,000 in the year–ago period. Cimetrix reported a net loss of $678,000, or $0.02 per basic and diluted share, versus a net loss of $878,000, or $0.03 per basic and diluted share, for the first nine months of 2007. Included in the net loss was $344,000 in non–cash depreciation and amortization, $294,000 in non–cash charges associated with the Company's adoption of SFAS 123R, share–based compensation, and $61,000 in interest expense. Net cash provided by operating activities was $73,000 for the nine months ended September 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
