SALT LAKE CITY, UT -- (Marketwired) -- 05/13/14 -- 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 first quarter of 2014.
First Quarter 2014 Financial Results
- Total software revenue for the quarter was $1,419,000, up 5% year-over-year and also up 5% compared to Q4 2013.
- Total revenue, including Professional Services, was $1,473,000, up 5% year-over-year.
- Revenue from software license updates and product support continues to increase year-over-year as we gain design wins and grow our customer base.
- Income before income taxes for the quarter was $53,000 compared to $30,000 in Q1 2013.
Management Comments
Commenting on the quarterly results, Bob Reback, president and chief executive officer of Cimetrix, stated, "The semiconductor equipment market is a very cyclical industry. Our business model is to continue to invest in product development during the down cycles, while remaining profitable, and then build revenue and profit during the upcycles. All indications are we are in an upcycle for 2014, which should be a good year for Cimetrix as we deliver higher levels of customer shipments. We remain focused on satisfying our customers, continually improving our products, research and development activities and gaining new design wins.
"What is particularly exciting is our continued success in gaining new design wins for all of our product lines worldwide. We believe we have the best products in the industry and are pleased when customers entrust us with their selection of our products. During this upcycle, we are increasing our investments in R&D to pursue new product opportunities to expand our business."
First Quarter 2014 Highlights
- Continuing design win momentum. Five new design wins, including key wins in North America, Japan and Korea. The effect of winning new designs is to build a long-term revenue stream for runtime licenses once the customer begins shipping the equipment.
- Major new design wins for CIMControlFramework™ equipment automation software. Gaining traction in equipment control software with new design wins for CIMControlFramework, the leading product of choice for equipment makers that want robust software functionality and fastest time-to-market.
- Increasing adoption of EDA/Interface A. Supported one of the world's largest chip makers in integrating EDA/Interface A requirements into its equipment procurement specifications. The Company is also working with customers to adopt EDA/Interface A for data collection and analysis applications.
Second Quarter 2014 Outlook
Information from industry analysts and from our customers indicates 2014 should be a good year. We expect to remain profitable on a quarterly basis and provide solid double-digit revenue growth year-over-year.
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 CIMPortal™ Plus. 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 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)
March 31, December 31,
ASSETS 2014 2013
------------ ------------
Current assets:
Cash $ 749,000 $ 887,000
Accounts receivable, net 1,003,000 797,000
Inventories 52,000 56,000
Prepaid expenses and other current assets 97,000 72,000
Deferred tax asset - current portion 182,000 144,000
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Total current assets 2,083,000 1,956,000
Property and equipment, net 52,000 48,000
Goodwill 64,000 64,000
Deferred tax asset - long-term portion 1,150,000 1,194,000
Other assets 6,000 6,000
------------ ------------
$ 3,355,000 $ 3,268,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 69,000 $ 56,000
Accrued expenses 116,000 178,000
Deferred revenue 331,000 273,000
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Total liabilities 516,000 507,000
------------ ------------
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 33,805,000 33,774,000
Treasury stock: 25,000 shares at cost (49,000) (49,000)
Accumulated deficit (30,921,000) (30,968,000)
------------ ------------
Total stockholders' equity 2,839,000 2,761,000
------------ ------------
$ 3,355,000 $ 3,268,000
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CIMETRIX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31,
-------------------------
2014 2013
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Revenues:
New software licenses $ 1,105,000 $ 1,115,000
Software license updates and product support 314,000 234,000
------------ ------------
Total software revenues 1,419,000 1,349,000
Professional services 54,000 50,000
------------ ------------
Total revenues 1,473,000 1,399,000
------------ ------------
Operating costs and expenses:
Cost of revenues 502,000 583,000
Sales and marketing 257,000 266,000
Research and development 283,000 191,000
General and administrative 368,000 315,000
Depreciation and amortization 10,000 17,000
------------ ------------
Total operating costs and expenses 1,420,000 1,372,000
------------ ------------
Income from operations 53,000 27,000
------------ ------------
Other income (expenses):
Other income - 3,000
------------ ------------
Total other expenses, net - 3,000
------------ ------------
Income before income taxes 53,000 30,000
Provision for income taxes 6,000 1,000
------------ ------------
Net income $ 47,000 $ 29,000
============ ============
Net income per common share:
Basic $ 0.00 $ 0.00
============ ============
Diluted $ 0.00 $ 0.00
============ ============
Weighted average number of shares outstanding:
Basic 45,227,000 45,746,000
Diluted 45,852,000 46,373,000
