786620--3/31/2006--CIMETRIX_INC

related topics
{customer, product, revenue}
{product, market, service}
{competitive, industry, competition}
{regulation, change, law}
{cost, operation, labor}
{acquisition, growth, future}
{personnel, key, retain}
{stock, price, operating}
{control, financial, internal}
{system, service, information}
The Company has a history of operating losses and its future liquidity is largely dependent on positive cash flows from operations. The semiconductor industry is highly cyclical. The Company is engaged in a highly competitive industry. The Company may experience delays or technical difficulties in the introduction of new products. The Company s business involves a lengthy sales cycle. The Company is dependent upon OEM customers. The Company s markets are characterized by rapid technological changes. The Company is highly dependent upon key personnel. The successful integration of the EFS business is key to the Company s future profitability. The growth of the Company s future sales and revenues is largely dependent upon industry adoption of Interface A. Future business acquisitions may be disruptive to the Company s business and dilute stockholder value. Continued compliance with regulatory and accounting requirements will be challenging and costly. The Company may incur significant stock-based compensation charges related to certain stock options and other stock-based compensation. The price of the Company s common stock has fluctuated in the past and may continue to fluctuate significantly in the future.

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