Cimatron Reports Revenues of $9.9M and Non-GAAP Operating Profit of $1.1M in Q1 2012
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Cimatron Reports Revenues of $9.9M and Non-GAAP Operating Profit of $1.1M in Q1 2012

Business momentum continues with 13% revenue increase over the first quarter of last year, on a constant currency basis; Declares dividend of NIS 0.78 (approximately US$0.204) per share

GIVAT SHMUEL, Israel, May 17, 2012 — (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 first quarter of 2012.  

Highlights of Cimatron's results for this period include the following:

Concurrently with the announcement of its results, Cimatron today also declared a cash dividend of NIS 0.78 (approximately US$0.204) per share on outstanding ordinary shares, representing a total dividend payment of approximately $1.9 million.

The dividend is payable on June 25, 2012 to shareholders of record at the close of business on June 4, 2012.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, noted "We are happy to report another strong quarter. As global manufacturing activity continues to expand, we are able to grow our business in all territories and across all product lines. While we remain cautious in light of the recent political developments in Europe, we are happy to see strong business in our key European markets, namely Germany and Italy, as well as in North America and Asia."

"We believe the strong year-over-year growth of license sales reflects our strong competitive position in our target markets, and our ability to translate product innovation into new business. Moreover, we were able to convert the revenue growth into strong cash flow and strong operating profit growth, making this quarter the best-ever Q1 in terms of non-GAAP operating and net profit." concluded Mr. Haran.

The following provides details on Cimatron's GAAP and non-GAAP results for the first quarter of 2012:

GAAP:

Revenues for the first quarter of 2012 increased by 11% to $9.9 million, from $8.9 million recorded in the first quarter of 2011.

Gross Profit for the first quarter of 2012 was $8.5 million as compared to $7.5 million in the same quarter of 2011. Gross margin in the first quarter of 2012 constituted 86% of revenues, compared to 85% in the same quarter of 2011.

Operating profit increased by 110% in the first quarter of 2012, to $0.9 million, from $0.4 million in the first quarter of 2011.

Net Profit for the first quarter of 2012 was $0.8 million, or $0.09 per diluted share, compared to a net profit of $0.3 million, or $0.04 per diluted share, recorded in the same quarter of 2011.

Non-GAAP:

Revenues for the first quarter of 2012 increased by 11% to $9.9 million, from $8.9 million recorded in the first quarter of 2011.

Gross Profit for the first quarter of 2012 was $8.6 million, as compared to $7.7 million in the corresponding quarter of 2011. Gross margin in the first quarter of 2012 constituted 87% of revenues, the same as in the first quarter of 2011.

Operating Profit increased by 69% in the first quarter of 2012 to $1.1 million, from $0.7 million in the first quarter of 2011.

Net profit for the first quarter of 2012 was $1.0 million, or $0.11 per diluted share, compared to a net profit of $0.8 million, or $0.08 per diluted share, recorded in the same quarter of 2011.

Conference Call

Cimatron's management will host a conference call today, May 17th, 2012 at 9:00 EDT, 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: +1-888-281-1167
International: +972-3-9180644
Israel: +972(0)3-9180644

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 30 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, market 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 ended
                                                                     March 31,
                                                                 2012          2011
 
    Total revenue                                               9,886         8,894
 
    Total cost of revenue                                       1,418         1,345
 
    Gross profit                                                8,468         7,549
 
    Research and development expenses, net                      1,693         1,554
 
    Selling, general and administrative expenses                5,886         5,571
    Operating income                                              889           424
 
    Financial income, net                                         113           116
   
    Taxes on income                                              (174)         (227)
 
    Other                                                          15            (2)
 
    Net income                                                    843           311
 
    Less: Net (income) loss attributable to the
    noncontrolling interest                                       (12)           28
 
    Net income attributable to Cimatron's shareholders          $ 831         $ 339
    Net income per share - basic and diluted                   $ 0.09        $ 0.04
 
    Weighted average number of shares outstanding
 
              Basic EPS (in thousands)                          9,301         9,106
 
              Diluted EPS (in thousands)                        9,318         9,239


                                                     CIMATRON LIMITED
                                   RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
                                   (US Dollars in thousands, except for per share data)
 
                                                   Three months ended
                                                        March 31,
                                         2012                            2011
                               GAAP      Adj.      NON-GAAP    GAAP      Adj.    NON-GAAP
 
    Total revenue             9,886         -       9,886     8,894         -      8,894
 
    Total cost of revenue (1) 1,418      (147)      1,271     1,345      (147)     1,198
 
    Gross profit              8,468       147       8,615     7,549       147      7,696
 
    Research and development
 
    expenses, net             1,693         -       1,693     1,554         -      1,554
 
    Selling, general and administrative
 
    expenses (1)              5,886       (99)      5,787     5,571      (101)     5,470
    Operating income            889       246       1,135       424       248        672
 
    Financial income, net       113         -         113       116         -        116
 
    Taxes on income (2)        (174)      (91)       (265)     (227)      172        (55)
 
    Other                        15         -          15        (2)        -         (2)
 
    Net income                  843       155         998       311       420        731
 
    Less: Net (income) loss 
     attributable to the 
     noncontrolling interest    (12)        -         (12)       28         -         28
 
    Net income attributable 
     to Cimatron's 
     shareholders             $ 831     $ 155       $ 986     $ 339     $ 420      $ 759
    Net income per share - 
     basic and diluted       $ 0.09                $ 0.11    $ 0.04               $ 0.08
 
    Weighted average number of shares outstanding
 
        Basic EPS 
         (in thousands)       9,301                 9,301     9,106                9,106
 
        Diluted EPS 
         (in thousands)       9,318                 9,318     9,239                9,239
 


(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)
 
                                                         March 31,     December 31,
                                                           2012            2011
 
    ASSETS
    CURRENT ASSETS:
    Total cash, cash equivalents and 
    short-term investments                               $ 14,904      $ 11,787
    Trade receivables                                       6,102         5,840
    Other current assets                                    1,836         1,452
    Total current assets                                   22,842        19,079
 
    Deposits with insurance companies and 
    severance pay fund                                      3,187         3,069
 
    Net property and equipment                                944         1,009
 
    Total other assets                                     11,232        11,365
 
    Total assets                                         $ 38,205      $ 34,522
 
    LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES:
    Short-term bank credit                                  $ 730          $ 87
    Trade payables                                          1,226         1,072
    Accrued expenses and other liabilities                  7,799         9,048
    Deferred revenues                                       5,270         2,403
    Total current liabilities                              15,025        12,610
 
    LONG-TERM LIABILITIES:
    Accrued severance pay                                   4,310         4,135
    Long-term loan                                              6             6
    Deferred tax liability                                    548           639
    Total long-term liabilities                             4,864         4,780
 
    Total shareholders' equity                             18,316        17,132
    Total liabilities and shareholders' equity           $ 38,205      $ 34,522
 


                                       CIMATRON LIMITED
                        STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                   (US Dollars in thousands)
 
                                                                                           
               Non-           Additional Accumulated   Retained            Compre-  Total
           controlling  Share   paid-in     other      earnings   Treasury hensive share-
             Interest  capital  capital comprehensive (accumulated  Stock  income holders'
                                        income (loss)  deficit)            (loss)  equity
                                                    
    Balance at
     December 31,
     2011      $ (131) $ 313  $ 18,999   $ (446)    $ (851)     $ (752)           $ 17,132

    Changes
     during the
     three months
     ended March
     31, 2012:
    Net income     12                                  831                 843         843

    Exercise of
     share options         -        14                                                  14

    Unrealized
     loss on
     derivative
     instruments                            215                            215         215

    Other                                   112                            112         112

    Foreign
     currency
     translation
     adjustment                               -                              -           -

    Total
     comprehensive
     income                                                              1,170

    Balance at
     March 31,
     2012      $ (119) $ 313  $ 19,013   $ (119)     $ (20)     $ (752)           $ 18,316
 


                                         CIMATRON LIMITED
                                     STATEMENTS OF CASH FLOWS
                                    (US Dollars in thousands)
 
                                                                           Three months
                                                                               ended
                                                                             March 31,
                                                                         2012        2011
 
    Cash flows from operating activities:
    Net income                                                          $ 843       $ 311
 
    Adjustments to reconcile net income
    to net cash provided by operating activities:
    Depreciation and amortization                                         337         375
    Increase (decrease) in accrued severance pay                          218          (8)
    Deferred taxes, net                                                   (92)        170
 
    Changes in assets and liabilities:
    Increase in accounts receivable and prepaid expenses                 (755)       (282)
    Decrease (increase) in inventory                                      (21)         17
    Increase in deposits with insurance companies 
     and severance pay fund                                              (118)        (20)
    Increase in trade payables, accrued expenses and 
     other liabilities                                                  1,941         715
    Net cash provided by operating activities                           2,353       1,278
 
    Cash flows from investing activities:
    Purchase of property and equipment                                    (63)        (45)
    Net cash used in investing activities                                 (63)        (45)
 
    Cash flows from financing activities:
    Short-term bank credit                                                663         456
    Long-term bank credit                                                  (1)          -
    Proceeds from issuance of shares upon exercise of options              14         728
    Net cash provided by financing activities                             676       1,184
 
    Net increase in cash and cash equivalents                           2,966       2,417
    Effect of exchange rate changes on cash                               151         342
    Cash and cash equivalents at beginning of period                   11,787      10,221
    Cash and cash equivalents at end of period                       $ 14,904    $ 12,980
 
    Appendix A - Non-cash transactions
    Purchase of property on credit                                        $ 8         $ 6


 

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


SOURCE Cimatron Ltd

Contact:
Cimatron Ltd