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 Nine months ended
September 30, September 30,
2008 2007 2008 2007
Total revenue 9,864 7,915 30,571 18,759
Total cost of
revenue 1,711 1,533 5,627 3,210
Gross profit 8,153 6,382 24,944 15,549
Research and
development expenses,
net 1,683 1,037 5,273 3,144
Selling, general and
administrative
expenses 6,451 4,895 19,797 11,560
Operating income
(loss) 19 450 (126) 845
Financial Income, net. 92 117 127 262
Taxes on Income (33) (69) (26) (73)
Other 33 (12) 43 (76)
Net income $ 111 $ 486 $ 18 $ 958
Net income per
share - basic and
diluted $ 0.01 $ 0.06 $ 0.00 $ 0.12
Weighted average
number of shares
outstanding
Basic EPS (in
thousands) 9,329 7,902 9,357 7,860
Diluted EPS (in
thousands) 9,385 7,919 9,362 7,900
CIMATRON LIMITED
RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
(US Dollars in thousands, except for per share data)
Three months ended
September 30,
2008 2007
GAAP Adj. NON-GAAP GAAP Adj. NON-GAAP
Total revenue (1) 9,864 248 10,112 7,915 - 7,915
Total cost of
revenue (2) 1,711 (147) 1,564 1,533 - 1,533
Gross profit 8,153 395 8,548 6,382 - 6,382
Research and
development
expenses, net 1,683 - 1,683 1,037 - 1,037
Selling, general
and administrative
expenses(2) 6,451 (100) 6,351 4,895 (37) 4,858
Operating income
(loss) 19 495 514 450 37 487
Financial Income,
net. 92 - 92 117 - 117
Taxes on Income (3) (33) 40 7 (69) - (69)
Other 33 - 33 (12) - (12)
Net income $ 111 $ 535 $ 646 $ 486 $ 37 $ 523
Net income per
share - basic and
diluted $ 0.01 $ 0.07 $ 0.06 $ 0.07
Weighted average
number of shares
outstanding
Basic EPS (in
thousands) 9,329 9,329 7,902 7,902
Diluted EPS (in
thousands) 9,385 9,385 7,919 7,919
(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 deferred taxes related to business
combination accounting rules.
CIMATRON LIMITED
RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION (Cont.)
(US Dollars in thousands, except for per share data)
Nine months ended
September 30,
2008 2007
GAAP Adj. NON-GAAP GAAP Adj. NON-GAAP
Total revenue (1) 30,571 743 31,314 18,759 18,759
Total cost of
revenue (2) 5,627 (441) 5,186 3,210 3,210
Gross profit 24,944 1,184 26,128 15,549 15,549
Research and
development
expenses, net 5,273 5,273 3,144 3,144
Selling, general
and administrative
expenses (2) 19,797 (300) 19,497 11,560 (57) 11,503
Operating income
(loss) (126) 1,484 1,358 845 57 902
Financial Income,
net. 127 127 262 262
Taxes on Income (3) (26) 118 92 (73) (73)
Other 43 43 (76) (76)
Net income $ 18 $ 1,602 1,620 958 $ 57 1,015
Net income per
share - basic and
diluted $ 0.00 $ 0.17 $ 0.12 $ 0.13
Weighted average
number of shares
outstanding
Basic EPS (in
thousands) 9,357 9,357 7,860 7,860
Diluted EPS (in
thousands) 9,362 9,362 7,900 7,900
(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 deferred taxes related to business
combination accounting rules.
CIMATRON LIMITED
CONSOLIDATED BALANCE SHEETS
(US Dollars in thousands)
September 30, December 31,
2008 2007
ASSETS
CURRENT ASSETS:
Total cash, cash equivalents and
short-term investments $ 6,623 $ 9,026
Trade receivables 6,984 7,308
Other current assets 2,780 1,467
Total current assets 16,387 17,801
Deposits with insurance companies
and severance pay fund 3,121 2,703
LONG-TERM INVESTMENTS:
Marketable investments - 1,158
Net property and equipment 1,427 1,337
Total other assets 14,156 4,328
Total assets $ 35,091 $ 27,327
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit $ 118 $ 791
Trade payables 1,547 2,258
Accrued expenses and other liabilities 7,605 7,889
Deferred revenues 4,010 742
Total current liabilities 13,280 11,680
LONG-TERM LIABILITIES:
Accrued severance pay 4,399 3,929
Long-term loan 352 403
Deferred tax liability 1,820 282
Total long-term liabilities 6,571 4,614
Minority interest 16 63
Total shareholders' equity 15,224 10,970
Total liabilities and
shareholders' equity $ 35,091 $ 27,327
CIMATRON LIMITED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Share Additional Accumulated Retained
capital paid-in other earnings
capital comprehensive (accumulated
income (loss) deficit)
Balance at
December 31, 2007 $ 265 $ 13,530 $ (34) $ (2,632)
Changes during the nine
months ended September
30, 2008:
Net income 18
Issuance of shares 39 4,248
Exercise of share options 14
Unrealized gain on available
for-sale securities 88
Vesting of employee stock
options 92
Investment in treasury stock
Foreign currency
translation adjustment - - (92) -
Total
comprehensive loss
Balance at
September 30, 2008 $ 304 $ 17,792 $ 54 $ (2,614)
(US Dollars in thousands)
(continued)
CIMATRON LIMITED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Total
Treasury Comprehensive shareholders'
stock income (loss) equity
Balance at December
31, 2007 $ (159) $ 10,970
Changes during the
nine months ended
September 30, 2008:
Net income 18 18
Issuance of shares 4,287
Exercise of share options 14
Unrealized gain on
available for-sale securities 88 88
Vesting of employee
stock options 92
Investment in treasury stock (153) (153) (153)
Foreign currency
translation adjustment - (92) (92)
Total comprehensive loss (139)
Balance at September
30, 2008 $ (312) $ 15,224
(US Dollars in thousands)
CIMATRON LIMITED
STATEMENTS OF CASH FLOWS
(US Dollars in thousands)
Nine months ended
September 30,
2008 2007
Cash flows from operating activities:
Net income $ 18 $ 958
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 1,105 561
Increase (decrease) in accrued severance pay 470 (183)
Vesting of employee stock options 92 88
Equity in losses (earnings) of affiliates 88 51
Minority interest in earnings (losses) of
consolidated subsidiaries (47) 37
Deferred taxes, net 46 -
Changes in assets and liabilities:
Decrease (increase) in accounts receivable
and prepaid expenses 2,626 649
Decrease (increase) in inventory 24 32
Decrease (increase) in deposits with insurance
companies and severance pay fund (418) (2)
Increase (decrease) in debts to related parties 23 25
Increase (decrease) in trade payables, accrued
expenses and other liabilities (501) 794
Net cash provided by operating activities 3,526 3,010
Cash flows from investing activities:
Proceeds from sale of property and equipment 2 -
Proceeds from sale and redemption of bonds 1,245 250
Purchase of property and equipment (359) (437)
Additional payment for acquisition of
subsidiary (1,250) -
Acquisition of newly-consolidated subsidiaries
(Appendix A) (4,765) 301
Net cash provied by (used in) investing
activities (5,127) 114
Cash flows from financing activities:
Short-term bank credit (674) 4
Long-term bank credit (39) 32
Proceeds from issuance of shares upon exercise
of options 14 88
Investment in treasury stock (153) -
Net cash provided by (used in) financing
activities (852) 124
Net increase (decrease) in cash and cash
equivalents (2,453) 3,248
Effect of exchange rate changes on cash 50 39
Cash and cash equivalents at beginning of
period 9,026 5,597
Cash and cash equivalents at end of period $ 6,623 $ 8,884
CIMATRON LIMITED
STATEMENTS OF CASH FLOWS
(US Dollars in thousands)
Nine months ended
September 30,
2008 2007
Appendix A - Acquisition of subsidiary,
net of cash acquired
Working capital - excluding cash (714)
Goodwill 3,647
Other intangible assets 5,432
Property and equipment 158
Tax Asset 529
9,052
Issuance of shares (4,287)
$ 4,765
Appendix B - Non-cash transactions
Purchase of property on credit $ 43 $ 35
Contact:
Ilan Erez, Chief Financial Officer
Cimatron Ltd.
Tel.: +972-3-531-2121
E-mail: yael@commitment-IR.com
Yael Nevat,
Commitment-IR.com
Tel: +972-9-714 8866, +972-50-762-6215
E-mail: ilane@cimatron.com
