CIMATRON LIMITED

RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION

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

Three months ended

Nine months ended

September,

September,

2013

2012

2013

2012

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

Total revenue 

10,301

-

10,301

9,463

-

9,463

31,498

-

31,498

29,957

-

29,957

Total cost of revenue 

1,405

1,258

1,218

1,071

4,122

3,681

3,570

3,548

Non-cash amortization of acquired intangible assets

(147)

(147)

(441)

(441)

One-time income from OCS agreement

419

Gross profit

8,896

147

9,043

8,245

147

8,392

27,376

441

27,817

26,387

22

26,409

   Research and development expenses (1)

1,790

(3)

1,787

1,613

-

1,613

5,276

(3)

5,273

4,935

-

4,935

   Selling, general and administrative expenses

5,891

5,861

5,918

5,819

18,694

18,579

18,019

17,723

Non-cash amortization of acquired intangible assets

-

(99)

(85)

(296)

Stock-based compensation

(30)

-

(30)

-

Operating income 

1,215

180

1,395

714

246

960

3,406

559

3,965

3,433

318

3,751

   Financial income (expenses), net

15

-

15

41

-

41

(9)

-

(9)

(51)

-

(51)

   Taxes on income (2)

(265)

(34)

(299)

(199)

(90)

(289)

(834)

(125)

(959)

(999)

28

(971)

   Other 

(1)

-

(1)

(18)

-

(18)

4

-

4

(7)

-

(7)

Net income 

964

146

1,110

538

156

694

2,567

434

3,001

2,376

346

2,722

   Less: Net income attributable to the noncontrolling interest

(9)

-

(9)

(15)

-

(15)

(6)

-

(6)

(24)

-

(24)

Net income attributable to Cimatron's shareholders

$ 955

$ 146

$ 1,101

$ 523

$ 156

$ 679

$ 2,561

$ 434

$ 2,995

$ 2,352

$ 346

$ 2,698

Net income per share - basic and diluted 

$ 0.10

$ 0.11

$ 0.06

$ 0.07

$ 0.27

$ 0.32

$ 0.25

$ 0.29

Weighted average number of shares outstanding

Basic EPS (in thousands)

9,727

9,727

9,314

9,314

9,480

9,480

9,308

9,308

Diluted EPS (in thousands)

9,740

9,740

9,331

9,331

9,488

9,488

9,325

9,325

(1) Non-GAAP adjustment to exclude stock-based compensation

(2) Non-GAAP adjustment to exclude the effect of deferred taxes and other tax provisions.