CIMATRON LIMITED

RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION

(US Dollars in thousands, except for per share data)

Three months ended

Six months ended

June 30,

June 30,

2013

2012

2013

2012

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

Total revenue 

11,039

-

11,039

10,608

-

10,608

21,197

-

21,197

20,494

-

20,494

Total cost of revenue 

1,391

1,244

934

1,206

2,717

2,423

2,352

2,477

Non-cash amortization of acquired intangible assets

(147)

(147)

(294)

(294)

One-time income from OCS agreement

419

419

Gross profit

9,648

147

9,795

9,674

(272)

9,402

18,480

294

18,774

18,142

(125)

18,017

   Research and development expenses

1,758

-

1,758

1,629

-

1,629

3,486

-

3,486

3,322

-

3,322

   Selling, general and administrative expenses (1)

6,477

(32)

6,445

6,215

(98)

6,117

12,803

(85)

12,718

12,101

(197)

11,904

Operating income 

1,413

179

1,592

1,830

(174)

1,656

2,191

379

2,570

2,719

72

2,791

   Financial expenses, net

(40)

-

(40)

(205)

-

(205)

(24)

-

(24)

(92)

-

(92)

   Taxes on income (2)

(377)

-

(377)

(626)

209

(417)

(569)

(91)

(660)

(800)

118

(682)

   Other 

3

-

3

(4)

-

(4)

5

-

5

11

-

11

Net income 

999

179

1,178

995

35

1,030

1,603

288

1,891

1,838

190

2,028

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

3

-

3

3

-

3

3

-

3

(9)

-

(9)

Net income attributable to Cimatron's shareholders

$ 1,002

$ 179

$ 1,181

$ 998

$ 35

$ 1,033

$ 1,606

$ 288

$ 1,894

$ 1,829

$ 190

$ 2,019

Net income per share - basic and diluted 

$ 0.11

$ 0.13

$ 0.11

$ 0.11

$ 0.17

$ 0.20

$ 0.20

$ 0.22

Weighted average number of shares outstanding

Basic EPS (in thousands)

9,362

9,362

9,309

9,309

9,355

9,355

9,305

9,305

Diluted EPS (in thousands)

9,362

9,362

9,329

9,329

9,360

9,360

9,323

9,323

(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 tax provisions.