·	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.

·

Five new customer design wins. 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.

·	$1.4 million valuation of deferred tax asset. Stockholders’ equity significantly increased.

·	New CIMConnect Service Release. We have shipped the new CIMConnect service release to customers, which adds new features and enhancements, as well as supporting changes to SEMI connectivity standards.

 

CIMETRIX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
		June 30, 2013				December 31,
ASSETS		(Unaudited)				2012
Current assets:
Cash		$	924,000			$	1,027,000
Accounts receivable, net			794,000				642,000
Inventories			7,000				16,000
Prepaid expenses and other current assets			116,000				102,000
Deferred tax asset - current portion			78,000				-
Total current assets			1,919,000				1,787,000
Property and equipment, net			67,000				81,000
Goodwill			64,000				64,000
Deferred tax asset - long-term portion			1,288,000				-
Other assets			6,000				20,000
Total assets		$	3,344,000			$	1,952,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	44,000			$	49,000
Accrued expenses			181,000				230,000
Deferred revenue			369,000				338,000
Total current liabilities			594,000				617,000
Total liabilities			594,000				617,000
Commitments and contingencies
Stockholders’ equity:
Common stock; $.0001 par value, 100,000,000 shares
authorized, 45,042,006 and 45,567,006 shares issued,
respectively			4,000				4,000
Additional paid-in capital			33,727,000				33,683,000
Treasury stock, 25,000 shares at cost			(49,000	)			(49,000	)
Accumulated deficit			(30,932,000	)			(32,303,000	)
Total stockholders’ equity			2,750,000				1,335,000
		$	3,344,000			$	1,952,000

CIMETRIX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2013				2012				2013				2012
Revenues:
New software licenses		$	962,000			$	1,106,000			$	2,077,000			$	2,074,000
Software license updates and product support			271,000				216,000				505,000				458,000
Total software revenues			1,233,000				1,322,000				2,582,000				2,532,000
Professional services			85,000				95,000				135,000				473,000
Total revenues			1,318,000				1,417,000				2,717,000				3,005,000
Operating costs and expenses:
Cost of revenues			558,000				569,000				1,141,000				1,313,000
Sales and marketing			232,000				239,000				498,000				510,000
Research and development			206,000				232,000				397,000				450,000
General and administrative			292,000				325,000				607,000				648,000
Depreciation and amortization			17,000				16,000				34,000				31,000
Total operating costs and expenses			1,305,000				1,381,000				2,677,000				2,952,000
Income from operations			13,000				36,000				40,000				53,000
Other income (expenses):
Interest income			1,000				-				1,000				-
Interest expense			-				(3,000	)			-				(3,000	)
Other income			4,000				-				7,000				-
Total other income (expenses), net			5,000				(3,000	)			8,000				(3,000	)
Income before income taxes			18,000				33,000				48,000				50,000
Provision for income taxes (benefit)			(1,371,000	)			4,000				(1,370,000	)			6,000
Net income		$	1,389,000			$	29,000			$	1,418,000			$	44,000
Net income per common share:
Basic		$	0.03			$	0.00			$	0.03			$	0.00
Diluted		$	0.03			$	0.00			$	0.03			$	0.00
Weighted average number of shares
outstanding:
Basic			45,530,000				45,722,000				45,718,000				45,710,000
Diluted			46,144,000				46,353,000				46,338,000				45,710,000