SOURCE: Cimetrix Inc.

Cimetrix Inc.

August 12, 2014 16:30 ET

Cimetrix Announces Second Quarter 2014 Financial Results

25% Increase in New Software License Revenue Driving Company's Momentum

SALT LAKE CITY, UT--(Marketwired - Aug 12, 2014) -  Cimetrix Incorporated (OTCQB: CMXX) (www.cimetrix.com), a leading provider of factory automation and equipment control software solutions for the global semiconductor, photovoltaic, LED, and other electronics industries, today reported financial results for the second quarter of 2014.

Second Quarter 2014 Financial Results

  • Total software revenue was $1,469,000, up 19% compared to the second quarter of 2013 and up 4% compared to the first quarter of 2014
  • Total revenue was $1,588,000, an increase of 20% compared to the second quarter of 2013 and up 8% compared to the first quarter of 2014
  • Income before taxes was $116,000

Six Month 2014 Financial Results

  • Total software revenue was $2,888,000, up 12% compared to the first half of 2013
  • Total revenue was $3,061,000, up 13% compared to the first half of 2013
  • Income before taxes was $169,000, up from $48,000 in the prior year period

Management Comments

Commenting on the quarterly results, Bob Reback, president and chief executive officer of Cimetrix, stated, "We are pleased to report strong year-over-year revenue growth that was better than the industry average. Particularly gratifying is the gain in market share as we captured eleven design wins for our products worldwide, which enabled us to report revenue growth better than the industry. As expected, our profitability is also growing during this up cycle, even as we increase investments in both continual improvements for higher customer satisfaction and R&D for new products."

Second Quarter 2014 Highlights

  • Continuing design win momentum. Eleven new design wins for Cimetrix factory connectivity and equipment control products worldwide. These design wins help develop the Company's long-term runtime license revenue stream once customers begin shipping the equipment.
  • Larger market for CIMControlFramework™ equipment automation software. Market feedback suggests more equipment makers are open to buying versus building equipment control software, and Cimetrix's string of design wins confirms that its flagship CIMControlFramework product is the best solution to get OEMs to market faster with a higher level of sophisticated functionality.
  • Increasing adoption of EDA/Interface A. The industry continues to adopt this SEMI connectivity standard to collect equipment data to increase productivity and reduce costs. The Company's CIMPortal™ Plus and EDAConnect products are aligned to support this demand for OEMs and semiconductor fabs. In addition, the Company announced the availability of its ECCE Plus EDA Reference Client to support the testing of EDA/Interface A connectivity.

Third Quarter 2014 Outlook

Mr. Reback concluded, "We continue to see indications from industry analysts that 2014 will be a year of solid growth. While this is not the case for all of our customers, our broad customer base and the investments we have made to support our customers bolster our position to attain continued growth. Consequently, we are able to reiterate our expectation to remain profitable on a quarterly basis while providing solid double-digit revenue growth year-over-year. We will also continue to aggressively pursue new business opportunities to position the Company for sustainable long-term growth."

About Cimetrix Incorporated

Cimetrix (OTCQB: CMXX) develops and supports factory automation software products for the global semiconductor, photovoltaic, LED, and other electronics industries. Cimetrix factory connectivity software allows for rapid and reliable implementation of the SEMI SECS/GEM, GEM300, PV2, and EDA standards. Our flexible equipment control framework software is the latest technology that enables equipment suppliers to design and implement their supervisory control, material handling, operator interface, platform and process control, and automation requirements of manufacturing facilities. Cimetrix products can be found in virtually every 300mm semiconductor factory worldwide and include CIMControlFramework™, CIMConnect™, CIM300™, and CIMPortalPlus. The added value of Cimetrix passionate Support and Professional Services delivers an outstanding solution for precision equipment companies worldwide.

Cimetrix is an active member in both Semiconductor Equipment and Materials International (SEMI), including the SEMI PV Group, and SEMATECH.

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 the strength 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 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 filing on Form 10-K, which further details such risk factors.

   
   
CIMETRIX INCORPORATED AND SUBSIDIARIES  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(Unaudited)  
             
    June 30,     December 31,  
ASSETS   2014     2013  
Current assets:                
  Cash   $ 1,200,000     $ 887,000  
  Accounts receivable, net     899,000       797,000  
  Inventories     44,000       56,000  
  Prepaid expenses and other current assets     96,000       72,000  
  Deferred tax asset - current portion     250,000       144,000  
    Total current assets     2,489,000       1,956,000  
                 
Property and equipment, net     53,000       48,000  
Goodwill     64,000       64,000  
Deferred tax asset - long-term portion     1,005,000       1,194,000  
Other assets     6,000       6,000  
                 
    $ 3,617,000     $ 3,268,000  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current liabilities:                
  Accounts payable   $ 61,000     $ 56,000  
  Accrued expenses     231,000       178,000  
  Deferred revenue     415,000       273,000  
                 
    Total liabilities     707,000       507,000  
                 
Commitments and contingencies                
                 
Stockholders' equity:                
  Common stock: $.0001 par value, 100,000,000 shares authorized, 45,042,006 and 45,042,006 shares issued, respectively     4,000       4,000  
  Additional paid-in capital     33,837,000       33,774,000  
  Treasury stock: 25,000 shares at cost     (49,000 )     (49,000 )
  Accumulated deficit     (30,882,000 )     (30,968,000 )
    Total stockholders' equity     2,910,000       2,761,000  
    $ 3,617,000     $ 3,268,000  
                 
   
   
CIMETRIX INCORPORATED AND SUBSIDIARIES  
CONDENSED CONSOLIDATED STATEMENTS OF INCOME  
(Unaudited)  
                     
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2014   2013     2014   2013  
Revenues:                    
  New software licenses   $ 1,204,000   $ 962,000     $ 2,309,000   $ 2,077,000  
  Software license updates and product support     265,000     271,000       579,000     505,000  
    Total software revenues     1,469,000     1,233,000       2,888,000     2,582,000  
  Professional services     119,000     85,000       173,000     135,000  
                             
    Total revenues     1,588,000     1,318,000       3,061,000     2,717,000  
                             
Operating costs and expenses:                            
  Cost of revenues     549,000     558,000       1,051,000     1,141,000  
  Sales and marketing     268,000     232,000       525,000     498,000  
  Research and development     268,000     206,000       551,000     397,000  
  General and administrative     378,000     292,000       746,000     607,000  
  Depreciation and amortization     9,000     17,000       19,000     34,000  
                             
    Total operating costs and expenses     1,472,000     1,305,000       2,892,000     2,677,000  
                             
Income from operations     116,000     13,000       169,000     40,000  
                             
Other income (expenses):                            
  Interest income     -     1,000       -     1,000  
  Other income     -     4,000       -     7,000  
                             
    Total other income, net     -     5,000       -     8,000  
                             
Income before income taxes     116,000     18,000       169,000     48,000  
                             
Provision (benefit) for income taxes     77,000     (1,371,000 )     83,000     (1,370,000 )
                             
Net income   $ 39,000   $ 1,389,000     $ 86,000   $ 1,418,000  
                             
                             
Net income per common share:                            
  Basic   $ 0.00   $ 0.03     $ 0.00   $ 0.03  
  Diluted   $ 0.00   $ 0.03     $ 0.00   $ 0.03  
                             
Weighted average number of shares outstanding:                            
  Basic     45,227,000     45,530,000       45,227,000     45,718,000  
  Diluted     45,908,000     46,144,000       45,888,000     46,338,000