To the Cimetrix community of clients, partners, shareholders and employees,
Cimetrix had another year of solid progress during 2016. Financial results were in-line with expectations, as Cimetrix continued to achieve profitability every quarter with full-year revenue in the $6M to $7M range.
Our key highlights include:
Cimetrix continued to enhance its reputation for product quality and the highest levels of customer support in the industry, receiving consistently excellent feedback from our client base.
Cimetrix continued to invest in building great products with new releases of all our product lines. Substantial improvements were made in both new features and internal testing that will benefit our clients for many years.
Cimetrix gained additional “design wins” for its products in North America, Europe and Japan, where the company has an established presence. In addition, Cimetrix won important new clients in China and Korea.
Cimetrix strengthened its organization as we added a number of new employees in business development, software engineering and technical support functions. The Company continued to invest in employee development, education and continuous improvement. We believe the concepts and training we’ve received in lean and agile processes will enable Cimetrix to build better products and more efficiently provide our clients with the highest levels of service.
Cimetrix made a number of key investments that we believe will lead to future long-term growth. We strengthened our local sales and technical support in a number of Asian countries. We developed a number of new product prototypes in collaboration with key clients leading to the introduction of an exciting new Cimetrix product in 2016. Several other new products are in development and have the potential to significantly expand our markets.
Cimetrix also held its first shareholder meeting since going private in late 2014, which provided a forum to explain to shareholders why the Company took that important step, the progress we’ve made since going private, and our future plans. As a result of generating positive cash flow from operations, Cimetrix was able to continue providing liquidity for shareholders that contacted the Company. Prior to going private, the Company had over 4.5M shares outstanding, adjusted for stock splits. As of December 31, 2016, the Company had fewer than 3.9M shares outstanding. This means that every current shareholder’s ownership percentage has increased by over 15%.
Going forward, industry analysts predict an increase in semiconductor capital equipment spending for 2017. In addition, we are seeing increased traction for the relatively new SEMI Standards for Equipment Data Acquisition (EDA), also known as Interface A. We believe these trends will enable us to achieve short-term incremental increases in revenue that support continued operations on a profitable basis and investments in new products and markets that will lead to longer-term step function increases in revenue.
We will continue to focus on satisfying our worldwide base of clients, improving our efficiencies and effectiveness, and executing our plan to expand the markets for Cimetrix products for long-term growth.
From all of us at Cimetrix, we thank our clients for the trust they have placed in our products and our team. We also thank our shareholders for their patience and support.
Robert H. Reback
President and Chief Executive Officer