Cimatron Reports Revenues for Q1 2013
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Cimatron Reports Revenues for Q1 2013

-- Record Q1 for both software license revenues and maintenance revenues

(PRNewswire) —  Cimatron Limited (NASDAQ: 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 2013. 

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, noted, "We are pleased to report yet another record first quarter in terms of software license and maintenance revenues. Moreover, we are pleased with the healthy growth in our recurring maintenance revenues, indicating the increased confidence that our customers have in our software solutions, in realizing the benefits of staying updated with our latest product versions. While our overall year-over-year revenue growth was modest in the quarter, this was due mainly to license revenue recognition considerations that dictated deferring certain revenues. We believe that we will be able to recognize these later on this year.

We continue to explore the opportunities in software solutions for the field of additive manufacturing, more commonly known as 3D printing, and we are looking into how we can better serve customers who apply this emerging technology into their manufacturing processes. In line with our additive manufacturing strategy, we are also examining partnerships and M&A opportunities with companies that possess technologies related to this field.

Given the opportunities we see in some of our markets, we recently increased our investment in sales and marketing, with emphasis on the emerging markets and the territories that we have identified with stronger potential for further growth. We trust that these efforts, together with full adoption by customers of the new CimatronE and GibbsCAM product versions in all regions, will bear fruit in the coming quarters," concluded Mr. Haran.

The following provides details on Cimatron's GAAP and non-GAAP results for the first quarter of 2013:

GAAP:

Revenues for the first quarter of 2013 were $10.2 million, compared to $9.9 million recorded in the first quarter of 2012.

Gross Profit for the first quarter of 2013 was $8.8 million, as compared to $8.5 million in the same period in 2012. Gross margin in the first quarter of 2013 increased to 87% of revenues, compared to 86% in the first quarter of 2012.

Operating profit in the first quarter of 2013 was $0.8 million, as compared to $0.9 million in the same period in 2012.

Net Profit for the first quarter of 2013 was $0.6 million, or $0.06 per diluted share, compared to a net profit of $0.8 million, or $0.09 per diluted share, recorded in the same quarter of 2012. 

Non-GAAP:

Revenues for the first quarter of 2013 were $10.2 million, compared to $9.9 million recorded in the first quarter of 2012.

Gross Profit for the first quarter of 2013 was $9.0 million, as compared to $8.6 million in the same period in 2012. Gross margin in the first quarter of 2013 increased to 88% of revenues, compared to 87% in the first quarter of 2012.

Operating Profit in the first quarter of 2013 was $1.0 million, as compared to $1.1 million in the same period in 2012.

Net profit for the first quarter of 2013 was $0.7 million, or $0.08 per diluted share, compared to a net profit of $1.0 million, or $0.11 per diluted share, recorded in the same quarter of 2012.

Conference Call

Cimatron's management will host a conference call today, May 13th, 2013, 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: +1-888-668-9141

International: +972-3-9180610

Israel: 03-9180610

For those unable to listen to the live call, a replay of the call will be available beginning on the day after the call at the investor relations section of Cimatron's website, at: 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 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.

Company Contact:

Investor Relations contact

Ilan Erez, Chief Financial Officer

Ehud Helft/Kenny Green

Cimatron Ltd.

CCG Investor Relations

Tel.: 972-73-237-0114

Tel: (US) 1 646 201 9246

Email: ilane@cimatron.com

Email: Cimatron@ccgisrael.com

 

CIMATRON LIMITED


CONSOLIDATED STATEMENTS OF INCOME


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


















Three months ended








March 31,








2013


2012












Total revenue

10,158


9,886












Total cost of revenue

1,326


1,418












Gross profit

8,832


8,468












   Research and development expenses

1,728


1,693












   Selling, general and administrative expenses

6,326


5,886


Operating income 

778


889












   Financial income, net

16


113












   Taxes on income

(192)


(174)












   Other


2


15












Net income 

604


843












   Less: Net income attributable to the noncontrolling interest

-


(12)












Net income attributable to Cimatron's shareholders

$ 604


$ 831


Net income per share - basic and diluted

$ 0.06


$ 0.09












Weighted average number of shares outstanding















   Basic EPS (in thousands)


9,348


9,301












   Diluted EPS (in thousands)


9,358


9,318


 

CIMATRON LIMITED


RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION


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


























Three months ended








March 31,










2013






2012










GAAP


Adj.


NON-GAAP


GAAP


Adj.


NON-GAAP




















Total revenue 

10,158


-


10,158


9,886


-


9,886




















Total cost of revenue (1)

1,326


(147)


1,179


1,418


(147)


1,271




















Gross profit

8,832


147


8,979


8,468


147


8,615




















   Research and development expenses

1,728


-


1,728


1,693


-


1,693




















   Selling, general and administrative expenses (1)

6,326


(53)


6,273


5,886


(99)


5,787


Operating income 

778


200


978


889


246


1,135




















   Financial income, net

16


-


16


113


-


113




















   Taxes on income (2)

(192)


(91)


(283)


(174)


(91)


(265)




















   Other 

2


-


2


15


-


15




















Net income 

604


109


713


843


155


998




















   Less: Net income attributable to the noncontrolling interest

-


-


-


(12)


-


(12)




















Net income attributable to Cimatron's shareholders

$ 604


$ 109


$ 713


$ 831


$ 155


$ 986


Net income per share - basic and diluted 

$ 0.06




$ 0.08


$ 0.09




$ 0.11




















Weighted average number of shares outstanding































   Basic EPS (in thousands)


9,348




9,348


9,301




9,301




















   Diluted EPS (in thousands)


9,358




9,358


9,318




9,318










































































(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.


























 

CIMATRON LIMITED


CONSOLIDATED BALANCE SHEETS


(US Dollars in thousands)




















March 31,


December 31,









2013


2012


















ASSETS






CURRENT ASSETS:







Total cash, cash equivalents and short-term investments


$            9,426


$        11,903



Trade receivables


6,843


6,049



Other current assets


2,501


1,788




Total current assets


18,770


19,740


























Deposits with insurance companies and severance pay fund


3,406


3,296















Net property and equipment


836


875















Net other assets


10,193


10,499
















Total assets


$          33,205


$        34,410


















LIABILITIES AND SHAREHOLDERS' EQUITY






CURRENT LIABILITIES:







Short-term bank credit


$            5,729


$                1



Trade payables


1,129


1,169



Accrued expenses and other liabilities


5,784


7,204



Deferred revenues


4,725


2,843




Total current liabilities


17,367


11,217













LONG-TERM LIABILITIES:







Accrued severance pay


4,631


4,453



Deferred tax liability


184


275



   Total long-term liabilities


4,815


4,728














Total shareholders' equity


11,023


18,465





Total liabilities and shareholders' equity


$          33,205


$        34,410













 

 

CIMATRON LIMITED

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY 

(US Dollars in thousands)

























Accumulated other comprehensive income (loss)






Comprehensive income (loss)




Noncontrolling Interest


Share capital


Additional paid-in capital



Retained earnings (accumulated deficit)


Treasury stock



Total shareholders' equity


Balance at December 31, 2012

$                28


$         313


$     18,906


$                   (6)


$               (24)


$        (752)




$         18,465


Changes during the three months ended March
31, 2013:

















Net income

-








604




604


604


Cash distribution to shareholders





(7,874)










(7,874)


Unrealized gain on derivative instruments







8






8


8


Other  







(114)






(114)


(114)


Foreign currency translation adjustment







(66)






(66)


(66)


Total comprehensive income













432




Balance at March 31, 2013

$                28


$         313


$     11,032


$               (178)


$              580


$        (752)




$         11,023



















 

CIMATRON LIMITED


STATEMENTS OF CASH FLOWS


(US Dollars in thousands)














three months ended






March 31,






2013


2012










Cash flows from operating activities:





Net income 



$           604


$           843










Adjustments to reconcile net income 





   to net cash provided by (used in) operating activities:





Depreciation and amortization


293


337


Increase in accrued severance pay

86


218


Deferred taxes, net



(90)


(92)










Changes in assets and liabilities:





Increase in accounts receivable and prepaid expenses

(1,194)


(755)


Increase in inventory



-


(21)


Increase in deposits with insurance companies and severance pay fund

(110)


(118)


Increase in trade payables, accrued expenses and other liabilities

280


1,941


Net cash provided by (used in) operating activities

(131)


2,353










Cash flows from investing activities:





Proceeds from sale of property and equipment

7


-


Purchase of property and equipment

(49)


(63)


Net cash used in investing activities

(42)


(63)


















Cash flows from financing activities:





Short-term bank credit


5,658


663


Long-term bank credit


-


(1)


Cash distribution to shareholders




(7,874)


-


Proceeds from issuance of shares upon exercise of options 

-


14


Net cash provided by (used in) financing activities

(2,216)


676


















Net increase (decrease) in cash and cash equivalents

(2,389)


2,966


Effect of exchange rate changes on cash

(88)


151


Cash and cash equivalents at beginning of period

11,903


11,787


Cash and cash equivalents at end of period

$        9,426


$      14,904










Appendix A - Non-cash transactions





Purchase of property on credit


$              5


$              8










 

SOURCE Cimatron Limited

Contact:
Cimatron Limited
Web: http://www.cimatron.com