SALT LAKE CITY, UT - November 12, 2013 - 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 its third quarter and nine months that ended September 30, 2013 as follows:
Third Quarter 2013 Financial Results
Software revenue was $1,034,000, down 11% from Q3 2012 and down 16% from Q2 2013
Services revenue was $55,000, down 62% from Q3 2012 and down 35% from Q2 2013
Total revenue was $1,089,000, down 17% % from Q3 2012 and down 17% from Q2 2013
Net loss was ($90,000)
Loss from operations was ($152,000), compared to income of $3,000 in Q3 2012
Nine Month 2013 Financial Results
Software revenue was $3,616,000, down 2% from the first nine months of 2012
Services revenue was $190,000, down 69% from the first nine months of 2012
Total revenue was $3,806,000, down 12% from the first nine months of 2012
Net income for the first nine months of 2013 was $1,328,000, which included a one-time benefit of $1,366,000 associated with the recording of the Company's deferred tax asset compared to $48,000 net income in the first nine months of 2012
Loss from operations was ($112,000), compared to income of $53,000 in the first nine months of 2012
Third Quarter 2013 Highlights
Connectivity Design Wins at Major OEMs. During the third quarter, the Company received a new design win for SECSConnectTM software from a major disk drive manufacturer, and two wins for CIMConnectTM software.
New Cimetrix EDA/Interface A Connectivity Software. The Company delivered the next generation software to develop connectivity that complies with SEMI EDA/Interface A standards. The new product, CIMPortalTM Plus, is based upon the award-winning CIMPortal software, and offers semiconductor equipment manufacturers the features they need to support the latest revisions to the Interface A Standards, while reducing the time and effort required to develop equipment models.
New WTWRI (Wait Time Waste Reference Implementation) Application Delivered to SEMATECH. The WTWRI application processes data collected from production equipment and automatically calculates the values of the standard Time Elements. Factory industrial engineers can use this application to quantify active and waiting times for production material, identify areas of waste, and see how to improve equipment throughput and factory cycle time. While this application is initially intended for semiconductor manufacturing, it could be used in many other industries.
Management's Comments
Commenting about the third quarter, Bob Reback, president and chief executive officer of Cimetrix stated, "At the beginning of 2013, many industry analysts predicted a down year, with an upturn in the semiconductor equipment industry starting in the third quarter. While we were hoping that timing would hold true, we found that many of our customers were experiencing delays in orders from the fabs, and the result was that we did not get the new designs and runtime licenses we forecasted. We operate in a cyclical industry, and that is why we are prepared for periods when there is a lag in the industry.
"On the positive side for this quarter, we completed a major upgrade of CIMPortal, our EDA/Interface A connectivity software. CIMPortal Plus delivers new features and capabilities to give chip makers the capability to determine when and how much data to collect, making equipment data collection much more efficient. The launch of CIMPortal Plus reinforces our leadership in software for Interface A. In addition, we continue to leverage our close collaboration with SEMATECH and leading chip makers as we invest in R&D projects for new product opportunities."
Fourth Quarter 2013 Outlook
Our customers have reported an increase in machine shipments in the fourth quarter, which has given us a strong start to the quarter, plus we expect to close a number of significant new design wins that slipped out of the third quarter that will lead to healthy SDK revenue. Cimetrix believes we will return to profitability in Q4, and all indications are this up cycle will continue into 2014.
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, GEM 300, 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 CIMControlFrameworkTM, CIMConnectTM, CIM300TM, and CIMPortalTM 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 filings on Form 10-K and 10-Q, which further detail such risk factors.
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www.cimetrix.com/Q3-2013
