SOURCE: Cimetrix Inc.

Cimetrix Inc.

October 28, 2014 16:30 ET

Cimetrix Announces Third Quarter 2014 Financial Results

SALT LAKE CITY, UT--(Marketwired - Oct 28, 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 third quarter of 2014.

Third Quarter Financial Results

  • Total software revenue was $1,556,000, up 6% from the second quarter and up 50% compared to the third quarter in 2013
  • Total revenue was $1,620,000 up 2% from the second quarter, and up 49% compared to the third quarter of 2013
  • Income before taxes was $132,000, compared to $116,000 in the second quarter of 2014 and a ($149,000) loss in the third quarter of 2013.

Management Comments
Commenting on the quarterly results, Bob Reback, president and chief executive officer of Cimetrix stated, "We are pleased to report another quarter of growth in revenue and income that is consistent with prior guidance. We obtained five design wins during the quarter that contributed to the growth in software revenue. In addition, design wins gained over the prior years helped drive software revenue associated with machine shipments."

Fourth Quarter 2014 Outlook
Mr. Reback concluded, "Both industry analysts and the majority of our customers continue to state they are expecting to maintain growth on a quarter-to-quarter basis. As we have stated consistently throughout the year, we expect to remain profitable on a quarterly basis while providing solid double-digit revenue growth year-over-year. We will continue to execute to our plan by focusing on satisfying our growing customer base, improving our current product lines, and investing in R&D for future 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 the Semiconductor Equipment and Materials International (SEMI), including the SEMI 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 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)  
             
    September 30,     December 31,  
ASSETS   2014     2013  
Current assets:                
  Cash   $ 1,615,000     $ 887,000  
  Accounts receivable, net     715,000       797,000  
  Inventories     36,000       56,000  
  Prepaid expenses and other current assets     85,000       72,000  
  Deferred tax asset - current portion     250,000       144,000  
    Total current assets     2,701,000       1,956,000  
                 
Property and equipment, net     68,000       48,000  
Goodwill     64,000       64,000  
Deferred tax asset - long-term portion     960,000       1,194,000  
Other assets     6,000       6,000  
                 
    $ 3,799,000     $ 3,268,000  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current liabilities:                
  Accounts payable   $ 132,000     $ 56,000  
  Accrued expenses     335,000       178,000  
  Deferred revenue     305,000       273,000  
                 
    Total liabilities     772,000       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     33,867,000       33,774,000  
  Treasury stock: 25,000 shares at cost     (49,000 )     (49,000 )
  Accumulated deficit     (30,795,000 )     (30,968,000 )
    Total stockholders' equity     3,027,000       2,761,000  
    $ 3,799,000     $ 3,268,000  
                 
                 
                     
CIMETRIX INCORPORATED AND SUBSIDIARIES  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(Unaudited)  
                     
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2014   2013     2014   2013  
Revenues:                            
  New software licenses   $ 1,277,000   $ 810,000     $ 3,586,000   $ 2,887,000  
  Software license updates and product support     279,000     224,000       858,000     729,000  
    Total software revenues     1,556,000     1,034,000       4,444,000     3,616,000  
  Professional services     64,000     55,000       237,000     190,000  
                             
    Total revenues     1,620,000     1,089,000       4,681,000     3,806,000  
                               
Operating costs and expenses:                            
  Cost of revenues     578,000     495,000       1,629,000     1,636,000  
  Sales and marketing     315,000     211,000       840,000     709,000  
  Research and development     223,000     268,000       774,000     665,000  
  General and administrative     365,000     251,000       1,111,000     858,000  
  Depreciation and amortization     9,000     16,000       28,000     50,000  
                             
    Total operating costs and expenses     1,490,000     1,241,000       4,382,000     3,918,000  
                             
Income (loss) from operations     130,000     (152,000 )     299,000     (112,000 )
                             
Other income:                            
  Interest income     1,000     -       1,000     1,000  
  Gain on sale of property and equipment     -     2,000       -     2,000  
  Other income     1,000     1,000       1,000     8,000  
                             
    Total other income     2,000     3,000       2,000     11,000  
                             
Income (loss) before income taxes     132,000     (149,000 )     301,000     (101,000 )
                             
Provision (benefit) for income taxes     45,000     (59,000 )     128,000     (1,429,000 )
                             
Net income (loss)   $ 87,000   $ (90,000 )   $ 173,000   $ 1,328,000  
                             
                             
Net income (loss) per common share:                            
  Basic   $ 0.00   $ (0.00 )   $ 0.00   $ 0.03  
  Diluted   $ 0.00   $ (0.00 )   $ 0.00   $ 0.03  
                             
                             
Weighted average number of shares outstanding:                            
  Basic     45,227,000     45,227,000       45,227,000     45,499,000  
  Diluted     45,920,000     45,227,000       45,899,000     46,124,000