SALT LAKE CITY, UT — (Marketwired) — 08/12/13 — (OTCQB: CMXX) (), a leading provider of and for the global , , , and other electronics , today reported financial results for the second quarter of 2013.
Total software revenue was $1,223,000, down 7% from the second quarter of 2012 revenue of $1,322,000, and down 9% from Q1 2013 revenue of $1,349,000.
Total revenue was $1,318,000, down 7% from the second quarter of 2012 revenue of $1,417,000 and down 6% from Q1 2013 total revenue of $1,399,000.
Software support revenue was $271,000, up 25% from the second quarter of 2012 revenue of $216,000 and up 16% from Q1 2013 revenue of $234,000.
Professional services revenue was $85,000, in-line with our corporate strategy.
Net income for the second quarter of 2013 was $1,389,000, which included a one-time benefit of $1,366,000 associated with the recording of the Company-s deferred tax asset.
Software revenue of $2,582,000 was up 2% from the first half of 2012.
Software support revenue of $505,000 was up 10% year-over-year.
Professional Services revenue was down 71% to $135,000 from $473,000 in the first half of 2012, reflecting the Company-s strategy of focusing on new product development and encouraging customers to use the Cimetrix worldwide network of systems integrators for engineering services.
Total revenue of $2,717,000 was down 10% from total revenue of $3,005,000 in the first half of 2012, primarily due to the decline in professional services revenue.
Net income was $1,418,000, including the one-time benefit of $1,366,000 associated with recording the Company-s deferred tax asset, compared to $44,000 in the first half of 2012.
“Our second quarter results were in-line with expectations. We are pleased to obtain five new design wins, indicating that companies consistently want to use Cimetrix products as they develop new systems,” stated , president and chief executive officer. “As expected, runtime license revenue associated with customer machine shipments increased from the first quarter. However, SDK license revenue decreased from the high number of design wins achieved during the first quarter. The net result was new software licenses revenue decreased 14% quarter-to-quarter. The increase in software license updates and product support on a quarter-to-quarter basis, as well as year-over-year, is a strong indicator of a growing customer base of OEM-s that have been designing new systems with Cimetrix products.”
“Lastly, since the industry downturn that occurred during 2008 and 2009, we modified our business model and have been profitable for 16 consecutive quarters. Because of this track record and likelihood of continued profitability, and after careful and conservative analysis, the second quarter results include a $1.4 million valuation of the deferred tax asset.”
The Company was awarded five new design wins for its factory connectivity software design kits (SDKs) from companies in North America and Asia. The customers are developing equipment for 300mm semiconductor wafer fabrication and for equipment outside of the semiconductor industry. These wins are expected to provide new runtime license revenue beginning in 2014 and continuing for many years.
Stockholders- equity significantly increased.
We have shipped the new CIMConnect service release to customers, which adds new features and enhancements, as well as supporting changes to connectivity standards.
Industry analysts, particularly from SEMI, have been maintaining that 2013 will be a flat-to-slightly down year for semiconductor equipment, with the expectation that there will be a recovery in 2014. We believe Cimetrix is well-positioned for the long-term, and we are maintaining our focus on new product development, disciplined cost controls, and earning new customers.
Cimetrix (OTCQB: CMXX) develops and supports factory automation software products for the global semiconductor, photovoltaic, LED, and other electronics industries. Cimetrix software allows for rapid and reliable implementation of the , , , and standards. Our flexible 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 , , , and . The added value of Cimetrix passionate and delivers an outstanding solution for precision equipment companies worldwide.
Cimetrix is an active member in both Semiconductor Equipment and Materials International (), including the SEMI PV Group, and .
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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.
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