Cimetrix Announces 2007 Year-End Financial Results

SALT LAKE CITY, March 31 /PRNewswire-FirstCall/ -- Cimetrix, Incorporated
(OTC Bulletin Board: CMXX), a leading provider of factory automation software
and solutions for the global semiconductor and electronics industries, today
reported financial results for the year ended December 31, 2007.
Total revenues for 2007 increased 15% year-over-year to $6,389,000 from
$5,556,000. The Company reported a net loss of $1,309,000, or $0.04 per basic
and diluted share in 2007, compared to a net loss of $1,149,000, or $0.04 per
basic and diluted share in 2006. Fourth quarter 2007 revenues were
$1,582,000, compared with fourth quarter 2006 revenues of $1,512,000 and third
quarter 2007 revenues of $1,630,000.
"Despite the current downturn in the semiconductor capital equipment
industry, we recorded year-over-year growth in revenue. We had a strong
increase in professional services revenues in 2007, which we believe will lead
to increases in software license revenue in future years. However, we
encountered a number of larger than anticipated costs during the fourth
quarter, which affected our performance," said Bob Reback, president and CEO.
"During the fourth quarter, a professional services project in our relatively
new Data Management Solution Center required significant added resources and
costs. Cimetrix made appropriate changes in project management and
procedures, along with the required investments, to ensure our customer's
success. In addition, as a public company, we were required to implement
Sarbanes-Oxley internal controls, which consumed more time and expense than
anticipated. Fortunately, both of these matters were mostly non-recurring
costs."
Highlights

-- Fulfillment of joint development project. Cimetrix met all major
milestones associated with a joint development project with a top tier
US based equipment supplier. This major equipment supplier will serve
as the beta and reference customer for a new Tool Control product line
that Cimetrix plans to introduce during 2008.
-- Continued success in Japanese market. Cimetrix continued working
closely with its exclusive distributor in Japan, CIM, Inc., to both win
new customers and expand relationships with existing customers.
Cimetrix and CIM obtained a number of important "design wins" for the
Company's CIM300 and CIMPortal connectivity products that should lead
to increases in software license revenue in future years.

Outlook for 2008
Cimetrix has clear evidence that the industry is experiencing a slowdown
in short term shipments and orders which will negatively affect our
performance in the first quarter of 2008. Longer term, software revenues are
poised to grow as new top tier customers gained over the past several years
increase shipments of equipment using Cimetrix software and as we continue to
expand our product line.
About Cimetrix Incorporated
Cimetrix designs, develops, markets, and supports factory automation
software for the global semiconductor and electronics industries. Cimetrix's
connectivity software allows equipment manufacturers to quickly implement the
SECS/GEM standards, with over 10,000 connections shipped worldwide. It also
provides solutions to meet the 300mm SEMI communications standards, with OEM
customer installations in all major 300mm fabs, and products designed for the
new Interface A standards. Cimetrix's PC-based motion control software is used
by leading equipment manufacturers for demanding robotic applications.
Cimetrix provides total solutions for its customers with engineering services
and passionate technical support. Major products include CIMConnect(TM),
CIM300(TM), CIMPortal and CODE(TM) (Cimetrix Open Development Environment).
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 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
Consolidated Balance Sheets
December 31,
ASSETS 2007 2006

Current assets:
Cash and cash equivalents $339,000 $313,000
Accounts receivable, net 1,035,000 1,337,000
Inventories 8,000 11,000
Prepaid expenses and other current assets 52,000 45,000
Total current assets 1,434,000 1,706,000

Property and equipment, net 165,000 177,000
Intangible assets, net 284,000 563,000
Goodwill 64,000 64,000
Other assets 29,000 28,000

$1,976,000 $2,538,000

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable $438,000 $153,000
Accrued expenses 602,000 378,000
Deferred revenue 328,000 614,000
Current portion of notes payable --
related parties, net 163,000 -
Current portion of notes payable, net 543,000 25,000
Total current liabilities 2,074,000 1,170,000

Long-term liabilities:
Notes payable -- related parties, net - 154,000
Notes payable, net 38,000 292,000
Total long-term liabilities 38,000 446,000

Total liabilities 2,112,000 1,616,000

Commitments and contingencies

Stockholders' equity:
Common stock; $.0001 par value,
100,000,000 shares authorized,
31,952,432 shares issued 3,000 3,000
Additional paid-in capital 32,004,000 31,753,000
Treasury stock, at cost (49,000) (49,000)
Accumulated deficit (31,094,000) (30,785,000)

Total stockholders' equity (136,000) 922,000

$1,976,000 $2,538,000

2007 2006
Revenues:
New software licenses $2,537,000 $2,783,000
Software license updates and product support 1,142,000 1,095,000
Total software revenues 3,679,000 3,878,000
Professional services 2,710,000 1,678,000

Total revenues 6,389,000 5,556,000

Operating costs and expenses:
Cost of revenues 3,189,000 2,275,000
Sales and marketing 1,266,000 1,234,000
Research and development 1,026,000 1,037,000
General and administrative 1,743,000 1,686,000
Depreciation and amortization 407,000 432,000

Total operating costs and expenses 7,631,000 6,664,000

Income (loss) from operations (1,242,000) (1,108,000)

Other income (expense):
Interest income 9,000 26,000
Interest expense (76,000) (72,000)
Gain on extinguishment of debt - -
Other income (expense) - 5,000

Total other expense, net (67,000) (41,000)

Income (loss) before income taxes (1,309,000) (1,149,000)

Provision for income taxes - -

Net income (loss) $(1,309,000) $(1,149,000)

Income (loss) per common share:
Basic $(0.04) $(0.04)
Diluted $(0.04) $(0.04)

Weighted average number of shares outstanding:
Basic 31,927,000 31,927,000
Diluted 31,927,000 31,927,000

SOURCE Cimetrix, Incorporated

Dave Faulkner of Cimetrix, Incorporated, +1-801-256-6500, Fax,
+1-801-256-6510, dave.faulkner@cimetrix.com; or Media & Analysts, Stew
Chalmers of Positio Public Relations, +1-408-453-2400, Fax, +1-408-453-2404,
stew@positio.com, for Cimetrix, Incorporated