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Cimetrix Homepage
Cimetrix Acquires EFS Solutions for $1.25 Million
Deal Positions Company as a Leader in the
Semiconductor Data Management Market
SALT LAKE CITY, Utah – October 4, 2005 – Cimetrix, Inc.
(OTCBB: CMXX), a leading provider of factory automation software and
solutions for the global semiconductor and electronics industries, today
announced that it has completed the acquisition of EFS Solutions, Inc., a
privately held engineering services firm. Cimetrix paid approximately $1.25
million, including $640,000 in stock and $614,000 in cash. The consideration
is subject to a post closing adjustment based on the assets and liabilities
of EFS as of closing.
EFS Solutions, which will integrate with Cimetrix’s Global Services Data
Management Solution Center, provides specialty engineering services for
semiconductor companies. These services primarily include yield and
manufacturing data management solutions that help semiconductor companies
reduce their costs and improve their processes. EFS was founded in 2003 by
former employees of the TRW Manufacturing Solutions Yield Management
Practice to provide essentially the same type of yield management services
as the group provided at TRW prior to TRW exiting the business. EFS has
steadily increased its revenues every year, with projected revenue of
approximately $1.5 to $1.8 million in 2006. The acquisition is expected to
be accretive to earnings and is subject only to the completion and filing of
the required audited financial statements of EFS.
"This acquisition, which underscores our commitment to combine organic
and M&A growth, is an ideal fit for Cimetrix," said Bob Reback, president
and CEO of Cimetrix. "In addition to significantly expanding our revenues
and strengthening our bottom line, EFS brings a complementary service
offering and customer base that dovetails nicely with our Global Services
operations, opening the door to cross selling opportunities that will
benefit both organizations." Currently, Cimetrix’s Global Services operation
caters primarily to fab equipment suppliers while EFS is strong at the wafer
fabs, a market that Cimetrix will now have better access to for its software
solutions.
"We are excited to join forces with Cimetrix", said Bill Reid, founder
and president of EFS Solutions. "The combination of our companies will
create a more formidable and well-rounded organization that’s better able to
serve our customers and our respective shareholders."
Among semiconductor companies there is an increasing need for greater
access to quality data throughout product life cycles. EFS Solutions’
expertise is in assisting semiconductor companies to define, collect and use
data throughout the manufacturing process, which ultimately provides higher
quality final products at lower costs. This expertise is complementary to
Cimetrix’s expertise as a recognized leader in connectivity products that
enable manufacturing equipment to communicate with factory systems. "This is
a win-win agreement for both companies, as Cimetrix is intimately involved
in architecting manufacturing equipment to supply quality data, while EFS
Solutions has expertise in helping semiconductor companies make beneficial
use of the data," said Kourosh Vahdani, vice president of global services
for Cimetrix. "As we continue to focus our efforts in providing our
customers’ customers with specific manufacturing data management solutions,
the EFS addition will be a key catalyst to our future success formula."
"While this acquisition is justified by the professional services
business alone, our hope is that one plus one can equal three," Reback
added. "With our joint expertise and market synergies, and the new Interface
A standard recently approved by Semiconductor Equipment and Materials
International (SEMI) to provide greater access to quality data from
manufacturing equipment, there may be the potential to mutually identify new
business opportunities."
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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 and Interface A standards, with over 10,000
connections shipped worldwide, and provides solutions to meet the 300mm
SEMI communications standards, with OEM customer installs in all major
300mm fabs. 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™, CIM300™,
CIMPortal™ and CODE™ (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 and EFS’ prospects for future growth and profitability are
forwardlooking statements. The comments made by the Company's senior
management in regards to future developments are based on current
expectations and involve risks and uncertainties that may adversely affect
expected results including but not limited to market acceptance of the
Company’s and EFS’ products and services subsequent to the transaction,
the ability of the Company to retain the services of the personnel
currently involved with EFS, the ability of the Company to successfully
integrate the operations of EFS, the delivery of the audited financial
statements of EFS prior to the date such financial statements are required
to be filed by the Company, the implementation of performance requirements
by SEMI, an independent industry trade group, the competitive position of
the Company and EFS and their products and services, the economic climate
in the markets in which the Company’s and EFS’ products and services are
sold, technological improvements in the industry, 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 Forms
10-K and 10-Q, which detail such risk factors.
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