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Cimatron Reports Revenues of $9.6M and Non-GAAP Operating Profit of $1.0M in Q3/11

GIVAT SHMUEL, Israel, November 10, 2011 — (PRNewswire) —

Cimatron Limited (NASDAQ and TASE: CIMT), a leading provider of integrated CAD/CAM software solutions for the toolmaking and manufacturing industries, today announced financial results for the third quarter and first nine months of 2011.

Highlights of Cimatron's results for these periods include the following:


Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, noted "We are very pleased to report strong results for the third quarter and first 9 months of 2011. The new license year-over-year revenue growth is especially satisfying when recalling that last year's Q3 was an exceptional third quarter in many ways. We are getting very positive feedback on the new product versions, both for CimatronE and for GibbsCAM. While economic uncertainty remains very high, early Q4 indications suggest we will be able to maintain our momentum and close a successful and profitable year," concluded Mr. Haran.

The following provides details on Cimatron's GAAP and non-GAAP results for the third quarter and first nine months of 2011:

GAAP:

Revenues for the third quarter of 2011 were $9.6 million, compared to $8.7 million recorded in the third quarter of 2010. For the first nine months of 2011, revenues were $28.5 million, compared to $25.1 million in the same period of 2010.

Gross Profit for the third quarter of 2011 was $8.3 million as compared to $7.3 million in the same period in 2010. Gross margin in the third quarter of 2011 constituted 87% of revenues, compared to a gross margin constituting 84% of revenues in the same quarter of 2010. For the first nine months of 2011, gross profit was $24.6 million, compared to $20.8 million during the same period of 2010. Gross margin for the nine months ended on September 30th, 2011 constituted 86% of revenues compared to a gross margin constituting 83% of revenues in the first nine months of 2010.

Operating profit in the third quarter of 2011 was $0.7 million as compared to $0.5 million in the third quarter of 2010. In the first nine months of 2011, Cimatron recorded an operating profit of $2.2 million as compared to $0.7 million in the first nine months of 2010.

Net Profit for the third quarter of 2011 was $0.0 million, or $0.00 per diluted share, compared to $0.3 million, or $0.04 per diluted share recorded in the same quarter of 2010. In the first nine months of 2011, net profit was $1.2 million, or $0.13 per diluted share, compared to $0.5 million, or $0.06 per diluted share, in the first nine months of 2010.

Non-GAAP:

Revenues for the third quarter of 2011 were $9.6 million, compared to $8.7 million recorded in the third quarter of 2010. For the first nine months of 2011, revenues were $28.5 million, compared to $25.1 million in the same period of 2010.

Gross Profit for the third quarter of 2011 was $8.5 million as compared to $7.5 million in the same period in 2010. Gross margin in the third quarter of 2011 constituted 88% of revenues, compared to a gross margin constituting 85% of revenues in the same quarter of 2010. For the first nine months of 2011, gross profit was $25.0 million, compared to $21.3 million in the same period of 2010. Gross margin for the nine months ended on September 30th, 2011 constituted 88% of revenues compared to a gross margin constituting 85% of revenues in the first nine months of 2010.

Operating profit in the third quarter of 2011 was $1.0 million as compared to $0.7 million in the third quarter of 2010. For the first nine months of 2011, Cimatron recorded an operating profit of $3.0 million as compared to $1.5 million for the first nine months of 2010.

Net Profit for the third quarter of 2011 was $0.8 million, or $0.09 per diluted share, compared to 0.9 million, or $0.10 per diluted share, recorded in the same quarter of 2010. For the first nine months of 2011, net profit was $2.9 million, or $0.31 per diluted share, compared to $1.4 million, or $0.15 per diluted share, for the first nine months of 2010.

Conference Call

Cimatron's management will host a conference call today, November 10th, 2011 at 9:00 EST, 16:00 Israel time. On the call, management will review and discuss the results, and will answer questions by investors.

To participate, please call one of the following teleconferencing numbers. Please begin placing your call at least 5 minutes before the conference call commences.

USA: +1-888-668-9141

International: +972-3-9180610

Israel: 03-9180610

For those unable to listen to the live call, a replay of the call will be available from the day after the call at the investor relations section of Cimatron's website, at: http://www.cimatron.com/

Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income included herein. Non-GAAP financial measures consist of GAAP financial measures adjusted to include recognition of deferred revenues of acquired companies and to exclude amortization of acquired intangible assets and deferred income tax, as well as certain business combination and other accounting entries. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. We believe that these non-GAAP measures help investors to understand our current and future operating performance, especially as our two most recent acquisitions have resulted in amortization and

non-cash items that have had a material impact on our GAAP results. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

About Cimatron

With over 28 years of experience and more than 40,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM software solutions for mold, tool and die makers as well as manufacturers of discrete parts. Cimatron is committed to providing comprehensive, cost-effective solutions that streamline manufacturing cycles and ultimately shorten product delivery time.

The Cimatron product line includes the CimatronE and GibbsCAM brands with software solutions for mold design, die design, electrode design, 2.5 to 5 Axis milling, wire EDM, turn, Mill-turn, rotary milling, multi-task machining, and tombstone machining. Cimatron's subsidiaries and extensive distribution network serve and support customers in the automotive, aerospace, medical, consumer plastics, electronics, and other industries in over 40 countries worldwide.

Cimatron's shares are publicly traded on the NASDAQ exchange and the TASE under the symbol CIMT. For more information, please visit Cimatron's web site at: http://www.cimatron.com

Safe Harbor Statement

This press release includes forward looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risk and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to Cimatron's plans, objectives and expected financial and operating results. The words "may," "could," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions or variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Cimatron's ability to control. The risks and uncertainties that may affect forward looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, marketing demand for Cimatron products and services, long sales cycles, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties related to Cimatron's business, refer to Cimatron's filings with the Securities and Exchange Commission. Cimatron cannot assess the impact of or the extent to which any single factor or risk, or combination of them, may cause. Cimatron undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

   
                              CIMATRON LIMITED
                         CONSOLIDATED STATEMENTS OF INCOME
             (US Dollars in thousands, except for per share data)

                                         Three months         Nine months
                                             ended               ended
                                         September 30,       September 30,
                                        2011       2010     2011        2010
   Total revenue                       9,619      8,745    28,488     25,061

   Total cost of revenue               1,288      1,419     3,906      4,242

   Gross profit                        8,331      7,326    24,582     20,819

   Research and development
   expenses, net                       1,654      1,493     4,708      4,322

   Selling, general and
   administrative expenses             5,928      5,354    17,654     15,771
   Operating income                      749        479     2,220        726

   Financial income (expenses),
   net                                 (163)        236        (9)        54

   Taxes on income                    (566)        (376)     (988)      (256)

   Other                                   1          1       (9)        (7)

   Net income                             21        340     1,214        517

   Less: Net (income) loss
   attributable to the
   noncontrolling interest               (14)       (20)       13      (19)

   Net income attributable to
   Cimatron's shareholders               $ 7      $ 320   $ 1,227      $ 498
   Net income per share - basic
   and diluted                        $ 0.00     $ 0.04    $ 0.13     $ 0.06

   Weighted average number of shares
   outstanding

       Basic EPS (in thousands)        9,300      8,961     9,235      9,014

       Diluted EPS (in thousands)      9,315      8,961     9,284      9,014


 


    
   
                                  CIMATRON LIMITED
                 RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
                (US Dollars in thousands, except for per share data)
  
                                    Three months ended September 30,

                                  2011                       2010
                       GAAP       Adj.    NON-GAAP    GAAP   Adj.   NON-GAAP
   Total
   revenue            9,619          -    9,619     8,745      -     8,745

   Total cost of
   revenue (1)        1,288       (147)   1,141     1,419   (147)    1,272

   Gross
   profit             8,331        147    8,478     7,326    147     7,473

   Research and
   development
   expenses, net      1,654          -    1,654     1,493      -     1,493

   Selling, general and
   administrative
   expenses (1)       5,928        (99)   5,829     5,354    (99)    5,255
   Operating
   income               749        246      995       479    246       725

   Financial income
   (expenses), net     (163)         -     (163)      236      -       236

   Taxes on
   income (2)          (566)       565       (1)     (376)   308       (68)

   Other                  1          -        1         1      -         1

   Net income            21        811      832       340    554       894

   Less: Net (income)
  loss attributable
  to the
  noncontrolling
  interest              (14)         -      (14)      (20)     -       (20)

   Net income
   attributable to
   Cimatron's
   shareholders         $ 7      $ 811    $ 818     $ 320  $ 554     $ 874
   Net income per
   share - basic and
   diluted           $ 0.00              $ 0.09    $ 0.04           $ 0.10
  
   Weighted average
   number of shares
   outstanding

   Basic EPS (in
   thousands)         9,300               9,300     8,961            8,961

   Diluted EPS
   (in
    thousands)        9,315               9,315     8,961            8,961


 


   

                                CIMATRON LIMITED
                         CONSOLIDATED STATEMENTS OF INCOME
             (US Dollars in thousands, except for per share data)
                                   continued

                                Nine months ended September 30,
                                   2011                       2010
                       GAAP        Adj.    NON-GAAP    GAAP   Adj.   NON-GAAP

   Total
   revenue           28,488          -     28,488    25,061      -    25,061

   Total cost of
   revenue (1)        3,906       (441)     3,465     4,242   (441)    3,801

   Gross
   profit            24,582        441     25,023    20,819    441    21,260

   Research and
   development
   expenses, net      4,708          -      4,708     4,322      -     4,322

   Selling, general and
   administrative
   expenses (1)      17,654       (303)    17,351    15,771   (297)   15,474
   Operating
   income             2,220        744      2,964       726    738     1,464

   Financial income
   (expenses), net       (9)         -         (9)       54      -        54

   Taxes on
   income (2)          (988)       887       (101)     (256)   126     (130)

   Other                 (9)         -         (9)       (7)     -       (7)

   Net income         1,214      1,631      2,845       517    864     1,381

   Less: Net (income)
  loss attributable
  to the
  noncontrolling
  interest               13          -         13       (19)     -       (19)

   Net income
   attributable to
   Cimatron's                               
   shareholders     $ 1,227     $ 1,631   $ 2,858     $ 498  $ 864   $ 1,362
   Net income per
   share - basic and
   diluted           $ 0.13                $ 0.31    $ 0.06           $ 0.15

   Weighted average
   number of shares
   outstanding

   Basic EPS (in
   thousands)        9,235                 9,235      9,014            9,014

   Diluted EPS
   (in
   thousands)        9,284                 9,284      9,014            9,014
   (1) Non-GAAP adjustment to exclude non-cash amortization of acquired 
       intangible assets.
   (2) Non-GAAP adjustment to exclude the effect of deferred taxes and other 
       non-cash tax provisions.


 

   
                                        CIMATRON LIMITED
                                   CONSOLIDATED BALANCE SHEETS
                                     (US Dollars in thousands)

                                         September 30,        December 31,
                                                 2011                2010

                       ASSETS
   CURRENT ASSETS:
         Total cash, cash
         equivalents and
         short-term investments               $ 11,550          $ 10,221
         Trade receivables                       5,060             5,708
         Other current assets                    1,989             2,275
            Total current assets                18,599            18,204

            Deposits with insurance
            companies and severance
            pay fund                             3,149             3,279

            Net property and
            equipment                            1,044               949

            Total other assets                  11,796            12,469

               Total assets                   $ 34,588          $ 34,901

                       LIABILITIES AND
                       SHAREHOLDERS'
                       EQUITY
   CURRENT LIABILITIES:
         Short-term bank credit                   $ 91              $ 99
         Trade payables                          1,430             1,685
         Accrued expenses and
         other liabilities                       7,935             8,260
         Deferred revenues                       4,168             2,275
            Total current
            liabilities                         13,624            12,319

   LONG-TERM LIABILITIES:
         Accrued severance pay                   4,218             4,297
         Long-term loan                             53                98
         Deferred tax liability                    729             1,002
         Total long-term
         liabilities                             5,000             5,397

         Total shareholders'
         equity                                 15,964            17,185
               Total liabilities and
               shareholders' equity           $ 34,588          $ 34,901



 


                                     CIMATRON LIMITED
                       STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                (US Dollars in thousands)

                                                                 Accumulated                                                                                                                                    
                                                  Additional          other
                          Noncontrolling   Share     paid-in   comprehensive
                               Interest  capital   capital      income (loss)

   Balance at
   December 31,
   2010                        $ (74)    $ 304       $ 18,275        $ (265)
   Changes during the nine months ended
   September 30, 2011:
   Net income
   (loss)                        (13)
   Cash dividend paid
   Exercise of share options                 9            724
   Unrealized loss on derivative
   instruments                                                         (296)
   Other                                                                 75
   Foreign currency translation
   adjustment                                                           269
   Total comprehensive income
   Balance at
   September
   30, 2011                    $ (87)    $ 313       $ 18,999        $ (217)


                                     CIMATRON LIMITED
                       STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                (US Dollars in thousands)

                                       continued  

                                                                             
                        Retained
                        earnings               Comprehensive          Total
                    (accumulated     Treasury       income    shareholders'
                         deficit)       stock        (loss)          equity
   Balance at
   December 31,                              
   2010                 $ (303)        $ (752)                     $ 17,185
   Changes during the nine
    months ended
   September 30, 2011:
   Net income
   (loss)                1,227                        1,214           1,214
   Cash
   dividend
   paid                 (3,216)                                      (3,216)
   Exercise of share options                                            733
   Unrealized loss on derivative
   instruments                                         (296)           (296)
   Other                                                 75              75
   Foreign currency translation
   adjustment                                           269             269
   Total comprehensive income                         1,262
   Balance at
   September                                 
   30, 2011            $ (2,292)       $ (752)                     $ 15,964



 

                                       CIMATRON LIMITED                      
                                   STATEMENTS OF CASH FLOWS
                                   (US Dollars in thousands)
 
                                                      Nine months
                                                          ended
                                                       September 30,
                                                     2011           2010
 
    Cash flows from operating activities:
    Net income                                     $ 1,214         $ 517
 
    Adjustments to reconcile net income
    to net cash provided by operating
    activities:
    Depreciation and amortization                    1,042         1,131
    Decrease in accrued severance pay                  (56)           (7)
    Loss from sale of property and
    equipment, net                                       -             5
    Stock option compensation                            -            45
    Deferred taxes, net                                561           176
 
    Changes in assets and
    liabilities:
    Decrease in accounts receivable and
    prepaid expenses                                    23           114
    Decrease (increase) in
    inventory                                           (6)            3
    Decerase (increase) in deposits with
    insurance companies and severance pay
    fund                                               130          (191)
    Increase in trade payables, accrued
    expenses and other liabilities                   1,210          2,540
    Net cash provided by operating
    activities                                       4,118          4,333
 
    Cash flows from investing activities:
    Purchase of property and equipment                (282)          (271)
    Net cash used in investing activities             (282)          (271)
 
    Cash flows from financing activities:
    Short-term bank credit                              (5)          (367)
    Long-term bank credit                              (35)           (66)
    Cash dividend paid                              (3,216)             -
    Proceeds from issuance of shares upon
    exercise of options                                733             11
    Investment in treasury stock                         -           (210)
    Net cash provided by financing
    activities                                      (2,523)          (632)
 
    Net increase in cash and cash
    equivalents                                      1,313          3,430
    Effect of exchange rate changes on
    cash                                                16             59
    Cash and cash equivalents at
    beginning of period                             10,221          6,684
    Cash and cash equivalents at end of
    period                                        $ 11,550       $ 10,173
 
    Appendix A - Non-cash transactions
                       Purchase of property
                       on credit                     $ 119           $ 28
 


 

Contact:
Ilan Erez, Chief Financial Officer
Cimatron Ltd.
Tel.; +972-73-237-0114
E-mail: Email Contact


SOURCE Cimatron Ltd

Contact:
Cimatron Ltd
.