[ Back ]   [ More News ]   [ Home ]
Cimatron Reports 2008 Revenue and Net Income

Q4/08 Revenues of $10.5 Million and net Income of $553 Thousand on a Non-GAAP Basis $0.06 EPS in Q4/08, $0.23 EPS in 2008, on a Non-GAAP Basis

GIVAT SHMUEL, Israel, February 24 /PRNewswire-FirstCall/ -- Cimatron Limited (NASDAQ: CIMT), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced financial results for the fourth quarter and full year ended December 31, 2008.

Following the merger and acquisition transactions with Gibbs in early 2008 and with Microsystem in 2007, Cimatron's results in 2008 consolidate Gibbs' and Microsystem's annual financials for the first time.

Revenue on a non-GAAP basis in 2008 excludes the effect of business combination accounting rules on the acquired deferred maintenance revenue balance of Gibbs. Expenses on a non-GAAP basis exclude the non-cash amortization of acquired intangible assets of Microsystem and Gibbs, and the effect of deferred taxes.

The following provides further details on Cimatron's GAAP and non-GAAP figures in the fourth quarter and full year 2008:

GAAP:

Revenues for the fourth quarter of 2008 were $10.4 million, compared to $9.9 million recorded in the fourth quarter of 2007. Revenues for the year ended December 31, 2008 increased 43.1% to $41.0 million, compared to $28.6 million in 2007.

Gross Income for the fourth quarter of 2008 increased 8.0% to $8.3 million as compared to $7.7 million in the same period in 2007. Gross Income in 2008 increased 43.1% to $33.2 million as compared to $23.2 million in 2007. Gross margin in 2008 was 81%, same as in 2007.

Operating Income in the fourth quarter of 2008 was $652 thousand, compared to an operating income of $831 thousand in the fourth quarter of 2007. For 2008 Cimatron reports operating income of $526 thousand, compared to an operating income of $1.68 million in 2007.

Net Income for the fourth quarter of 2008 was $706 thousand, or $0.08 per diluted share, compared to net income of $965 thousand, or $0.12 per diluted share recorded in the same quarter of 2007. For 2008, net income was $724 thousand, or $0.08 per diluted share, compared to net income of $1.9 million, or $0.24 per diluted share in 2007.

Non-GAAP:

Revenues on a non-GAAP basis for the fourth quarter of 2008 were $10.5 million, representing 6.1% growth compared to $9.9 million recorded in the fourth quarter of 2007. Revenues for the year ended December 31, 2008 increased 45.9% to $41.8 million, compared to $28.6 million in 2007.

Gross Income on a non-GAAP basis for the fourth quarter of 2008 increased 10.9% to $8.5 million as compared to $7.7 million in the same period in 2007. Gross Income in 2008 increased 49.2% to $34.6 million as compared to $23.2 million in 2007. Gross margin in 2008 was 82.8%, compared to 81% in 2007.

Operating Income on a non-GAAP basis in the fourth quarter of 2008 was $977 thousand, compared to an operating income of $889 thousand in the fourth quarter of 2007. For 2008 Cimatron reports operating income of $2.3 million, compared to an operating income of $1.8 million in 2007.

Net Income on a non-GAAP basis for the fourth quarter of 2008 was $553 thousand, or $0.06 per diluted share, compared to a net income of $1 million, or $0.13 per diluted share recorded in the same quarter of 2007. For 2008, net income increased 9% to $2.2 million, or $0.23 per diluted share, compared to a net income of $2 million, or $0.25 per diluted share in 2007.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said, "While 2008 was overall a good year for Cimatron, the business slowed down significantly in Q4, which is traditionally the strongest quarter of each year. The weakness was evident across all market segments and most territories. Clearly, this is a direct reflection of the overall economic situation and the uncertainty in the manufacturing industry. We expect this weakness to continue well into 2009. In spite of the global slowdown, we are pleased to show profit in Q4, both on a GAAP and non-GAAP basis, due to tight budget control and expense reduction steps we took earlier in 2008. Concluding the first year of the Gibbs merger, we are satisfied with the synergy and the progress of selling GibbsCAM through the broader Cimatron distribution network. We believe that this, and progress made in other key product areas, such as 5-axes NC and Die Design, combined with our strong balance sheet and cash reserve, will allow us to cope with the challenges that lie ahead and take advantage of opportunities in our market." concluded Mr. Haran.

Conference Call

Cimatron's management will host a conference call tomorrow, February 25th, 2008 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: +1-866-345-5855
                               Israel: 03-9180609

For those unable to listen to the live call, a replay of the call will be available from the day after the call under 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 Operation (Non-GAAP basis). 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 accounting entries. The purpose of such adjustments is to give an indication of our performance exclusive of non-GAAP charges and other items that are considered by management to be outside 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 cash flow and 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 profits. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

About Cimatron

With over 25 years of experience and more than 40,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM 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, enable collaboration with outside vendors, and ultimately shorten product delivery time.

The Cimatron product line includes the CimatronE and GibbsCAM brands with solutions for mold design, die design, electrodes design, 2.5 to 5 axes 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 is publicly traded on the NASDAQ exchange under the symbol CIMT. For more information, please visit the company 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 the company'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 the future performance and involve risks and uncertainties, many of which are beyond the company'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 cycle, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings with the Securities and Exchanges Commission. The company 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 ended      Twelve months ended
                                     December 31,             December 31,
                                     2008     2007        2008         2007

    Total revenue                  10,404    9,881      40,975       28,640
    Total cost of revenue           2,142    2,230       7,769        5,440
    Gross profit                    8,262    7,651      33,206       23,200
    Research and development
    expenses, net                   1,657    1,137       6,930        4,281
    Selling, general and
    administrative expenses         5,953    5,683      25,750       17,243
    Operating income                  652      831         526        1,676
    Financial income
    (expenses), net.                 (207)      91         (80)         353
    Taxes on Income                   263       73         237            -
    Other                              (2)     (30)         41         (106)
    Net income                      $ 706    $ 965       $ 724      $ 1,923
    Net income per share
    - basic and diluted            $ 0.08   $ 0.12      $ 0.08       $ 0.24

    Weighted average number of shares outstanding

    Basic EPS (in thousands)        9,274    7,884       9,341        7,866

    Diluted EPS (in thousands)      9,274    7,921       9,360        7,910


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

                                     Three months ended December 31,
                                      2008                   2007
                             GAAP    Adj. NON-GAAP    GAAP   Adj.  NON-GAAP

    Total revenue (1)      10,404     77    10,481   9,881     -      9,881

    Total cost of
    revenue (2)             2,142   (148)    1,994   2,230     -      2,230

    Gross profit            8,262    225     8,487   7,651     -      7,651

    Research and
    development
    expenses, net           1,657      -     1,657   1,137     -      1,137

    Selling, general
    and administrative
    expenses (2)            5,953   (100)    5,853   5,683   (58)     5,625

    Operating income          652    325       977     831    58        889

    Financial income
    (expenses), net.         (207)     -      (207)     91     -         91

    Taxes on Income
    (3)                       263   (478)     (215)     73   (22)        51

    Other                      (2)     -        (2)    (30)    -        (30)

    Net income              $ 706 $ (153)    $ 553   $ 965  $ 36    $ 1,001

    Net income per
    share - basic and
    diluted                $ 0.08           $ 0.06  $ 0.12           $ 0.13

    Weighted average
    number of shares
    outstanding

        Basic EPS (in
        thousands)          9,274            9,274   7,884            7,884

        Diluted EPS (in
        thousands)          9,274            9,274   7,921            7,921



    (Table Continued)

                                      Twelve months ended December 31,
                                     2008                      2007
                             GAAP     Adj. NON-GAAP    GAAP   Adj. NON-GAAP

    Total revenue (1)      40,975     821    41,796  28,640          28,640

    Total cost of
    revenue (2)             7,769    (588)    7,181   5,440           5,440

    Gross profit           33,206   1,409    34,615  23,200          23,200

    Research and
    development
    expenses, net           6,930             6,930   4,281           4,281

    Selling, general
    and administrative
    expenses (2)           25,750    (400)   25,350  17,243   (95)   17,148

    Operating income          526   1,809     2,335   1,676    95     1,771

    Financial income
    (expenses), net.          (80)              (80)    353             353

    Taxes on Income (3)       237    (358)     (121)      -   (22)      (22)

    Other                      41                41    (106)           (106)


    Net income              $ 724   1,451     2,175   1,923  $ 73   $ 1,996

    Net income per
    share - basic and
    diluted                $ 0.08            $ 0.23  $ 0.24          $ 0.25

    Weighted average number of shares outstanding

        Basic EPS (in
        thousands)          9,341             9,341   7,866           7,866


        Diluted EPS (in
        thousands)          9,360             9,360   7,910           7,910



    (1) Non-GAAP adjustment related to Gibbs' assumed
    support contracts that will not be recognized on a GAAP
    basis in fiscal 2008 or thereafter due to business
    combination accounting rules.

    (2) Non-GAAP adjustment to exclude non-cash amortization
    of acquired intangible assets.

    (3) Non-GAAP adjustment to exclude the effect of
    deferred taxes.



                       CIMATRON LIMITED
                  CONSOLIDATED BALANCE SHEETS
                   (US Dollars in thousands)

                                                        December  December
                                                             31,      31,
                                                           2008      2007

                           ASSETS
    CURRENT ASSETS:
       Total cash, cash equivalents and short-term      $ 5,727  $ 9,026
       investments
       Trade receivables                                  7,108    7,308
       Other current assets                               2,697    1,467
       Total current assets                              15,532   17,801

       Deposits with insurance companies and              2,719    2,703
       severance pay fund

    LONG-TERM INVESTMENTS:
       Marketable investments                                 -    1,158
       Net property and equipment                         1,312    1,337
       Total other assets                                14,307    4,328
       Total assets                                    $ 33,870 $ 27,327


              LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES:
       Short-term bank credit                             $ 155    $ 791
       Trade payables                                     1,865    2,258
       Accrued expenses and other liabilities             7,348    7,889
       Deferred revenues                                  2,348      742
       Total current liabilities                         11,716   11,680

    LONG-TERM LIABILITIES:
       Accrued severance pay                              3,933    3,929
       Long-term loan                                       293      403
       Deferred tax liability                             1,729      282
       Total long-term liabilities                        5,955    4,614

       Minority interest                                     (4)      63

       Total shareholders' equity                        16,203   10,970
       Total liabilities and shareholders' equity      $ 33,870 $ 27,327
                                                              -        -



    Contact:
    Ilan Erez, Chief Financial Officer  Yael Nevat,
    Cimatron Ltd.                       Commitment-IR.com
    Tel.; 972-3-531-2121                Tel: +972-9-714 8866,
    E-mail: ilane@cimatron.com               +972-50-762-6215
                                        E-mail: yael@commitment-IR.com