Cimatron Reports its Highest-Ever Revenues and Operating Profit in Q4/10
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Cimatron Reports its Highest-Ever Revenues and Operating Profit in Q4/10

$11M in Quarterly Revenues and $1.7M non-GAAP Quarterly Operating Profit; Record Revenues in China and South Korea and Strong Growth in North America Lead to Revenues of $36.1M and non-GAAP Operating Profit of $3.1M in Full Year 2010

GIVAT SHMUEL, Israel, February 8, 2011 — (PRNewswire) — 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 2010.

    Financial highlights

    - 2010 new licenses revenue up 30% year-over-year on a constant
    currency basis

    - $1.6M non-GAAP net profit in Q4/10, an increase of 63% year-over-year

    - $4.8 million positive cash flow from operating activities in 2010,
    a 275% year-over-year increase

    - $10.2M cash balance at end of 2010

    - 32 Cent non-GAAP EPS in 2010

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said, "We are very pleased with the record fourth quarter results and the overall strong 2010 results. As the global economic recovery continues, excellent results from key territories have made this possible. As we said many times before, and very well evidenced by the 2010 results, the vast majority of any additional revenues find their way to our bottom line. Early January sales figures suggest the continuation of that momentum into 2011, where we expect further developments, both on the product side and the sales channels", concluded Mr. Haran.

The following provides details on Cimatron's GAAP and non-GAAP results for the fourth quarter and full year 2010:

The financial figures in this press release are unaudited. The Company believes that adjustments, if any, resulting from the audit process would be immaterial. The Company plans to release its audited financial statements for 2010 via a Report on Form 6-K in March 2011.

GAAP:

Revenues for the fourth quarter of 2010 increased 12.8% to $11.0 million, compared to $9.8 million recorded in the fourth quarter of 2009. In the full year ended December 31, 2010, revenues increased 9.5% to $36.1 million, compared to $33.0 million in 2009.

Gross Profit for the fourth quarter of 2010 was $9.4 million as compared to $8.0 million in the same period in 2009. Gross margin in the fourth quarter of 2010 was 85% of revenues, compared to a gross margin of 82% in the same quarter of 2009. In 2010, gross profit was $30.2 million, compared to $26.8 million in the same period of 2009. Gross margin in 2010 was 84% compared to a gross margin of 81% in 2009.

Operating profit in the fourth quarter of 2010 was $1.4 million, compared to an operating profit of $0.8 million in the fourth quarter of 2009, an increase of 82%. In 2010, Cimatron recorded an operating profit of $2.1 million, compared to an operating loss of $(1.0) million in 2009.

Net Profit for the fourth quarter of 2010 was $1.1 million, or $0.12 per diluted share, compared to a net profit of $1.4 million, or $0.15 per diluted share recorded in the same quarter of 2009. In 2010 net profit was $1.6 million, or $0.18 per diluted share, compared to a net profit of $14 thousand, or $0.00 per diluted share, in 2009.

Non-GAAP:

Revenues for the fourth quarter of 2010 increased 12.8% to $11.0 million, compared to $9.8 million recorded in the fourth quarter of 2009. In the full year ended December 31, 2010, revenues increased 9.5% to $36.1 million, compared to $33.0 million in 2009.

Gross Profit for the fourth quarter of 2010 was $9.5 million as compared to $8.2 million in the same period in 2009. Gross margin in the fourth quarter of 2010 was 86% of revenues, compared to a gross margin of 84% in the same quarter of 2009. In 2010, gross profit was $30.8 million, compared to $27.4 million in 2009. Gross margin in 2010 was 85%, compared to 83% in 2009.

Operating Profit in the fourth quarter of 2010 was $1.7 million, compared to an operating profit of $1.0 million in the fourth quarter of 2009, an increase of 62%. In 2010, Cimatron reports an operating profit of $3.1 million, compared to operating profit of $31 thousand in 2009.

Net profit for the fourth quarter of 2010 increased 63% to $1.6 million, or $0.17 per diluted share, compared to a net profit of $1.0 million, or $0.10 per diluted share recorded in the same quarter of 2009.

In 2010, net profit increased to $2.9 million, or $0.32 per diluted share, compared to a net profit of $46 thousand, or $0.01 per diluted share, in 2009.

Conference Call

Cimatron's management will host a conference call today, February 8th, 2011 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: +1-888-407-2553

                          International: +972-3-9180610

                               Israel: 03-9180610

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 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 over 28 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 and ultimately shorten product delivery time.

The Cimatron product line includes the CimatronE and GibbsCAM brands with 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 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.

                                     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,
                           2010           2009         2010            2009
                         -------       -------       -------        --------
    Total revenue        11,013         9,762        36,074          32,957

    Total cost of
    revenue               1,634         1,719         5,876           6,186
                         -------       -------       -------        --------
    Gross profit          9,379         8,043        30,198          26,771

    Research and
    development
    expenses, net         1,692          1,347        6,014           5,736

    Selling, general
    and administrative
    expenses              6,282          5,923       22,053          21,992
                         -------       -------       -------        --------
    Operating income
    (loss)                1,405            773        2,131            (957)

    Financial income,
    net                      43             38           97              19

    Taxes on income        (401)           639         (657)            949

    Other                     1            (41)          (6)            (41)
                         -------       -------       -------        --------

    Net income (loss)     1,048          1,409        1,565             (30)

    Less: Net (income)
    loss attributable
    to the
    noncontrolling
    interest                 45            (18)          26              44
                         -------       -------       -------        --------
    Net income
    attributable to
    Cimatron's
    shareholders        $ 1,093        $ 1,391      $ 1,591            $ 14
                        ========       ========     ========        ========
    Net income per
    share - basic and
    diluted              $ 0.12         $ 0.15       $ 0.18          $ 0.00
                        ========       ========     ========        ========
    Weighted average
    number of shares
    outstanding

    Basic EPS
    (in thousands)        8,959          9,128        9,000           9,156
                        ========       ========     ========        ========
    Diluted EPS
    (in thousands)        8,983          9,128        9,000           9,156
                        ========       ========     ========        ========

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

                                      Three months ended
                                          December 31,
                               2010                      2009
                      GAAP      Adj.   NON-GAAP     GAAP     Adj.  NON-GAAP

    Total revenue      11,013    -       11,013     9,762      -     9,762

    Total cost of
    revenue (1)        1,634   (147)      1,487     1,719   (147)    1,572
                      ------   -----      ------    ------   -----   -----

    Gross profit       9,379    147       9,526     8,043    147     8,190

    Research and
    development
    expenses, net      1,692      -       1,692     1,347      -     1,347

    Selling, general
    and administrative
    expenses (1)       6,282    (99)      6,183     5,923   (100)    5,823
                       ------   -----      ------    ------   -----   -----
    Operating income
    (loss)             1,405    246       1,651       773    247     1,020

    Financial income,
    net                   43      -          43        38      -        38

    Taxes on
    income (2)          (401)   221        (180)      639   (726)      (87)

    Other (3)              1      -           1       (41)    43         2
                       ------   -----      ------    ------   -----   -----

    Net income (loss)  1,048    467       1,515     1,409   (436)      973

    Less: Net (income)
    loss attributable
    to the
    noncontrolling
    interest              45      -          45       (18)     -       (18)
                       ------   -----      ------    ------   -----   -----

    Net income
    attributable to
    Cimatron's
    shareholders     $ 1,093  $ 467     $ 1,560   $ 1,391 $ (436)    $ 955
                     =======  ======    ========   ======= =======   ======
    Net income
    per share -
    basic and
    diluted           $ 0.12             $ 0.17    $ 0.15           $ 0.10
                     =======            ========   =======          ======
    Weighted
    average
    number of
    shares
    outstanding

    Basic EPS
    (in thousands)     8,959              8,959     9,128            9,128
                     =======             ========   =======          ======
    Diluted EPS
    (in thousands)     8,983              8,983     9,128            9,128
                     =======             ========   =======          ======

    (1) Non-GAAP adjustment to exclude non-cash amortization
    of acquired intangible assets.
    (2) Non-GAAP adjustment to exclude the effect of deferred taxes.
    (3) Non-GAAP adjustment to exclude loss from discontinued operations.



    (table continued)

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

                                     Twelve months ended
                                        December 31,
                               2010                           2009
                      GAAP      Adj.   NON-GAAP     GAAP     Adj.  NON-GAAP

    Total revenue     36,074        -      36,074    32,957      -   32,957

    Total cost of
    revenue (1)        5,876     (588)      5,288     6,186   (588)   5,598
                     -------     -----      ------   -------  -----   -----

    Gross profit      30,198      588      30,786    26,771    588   27,359

    Research and
    development
    expenses, net      6,014        -       6,014     5,736      -    5,736

    Selling, general
    and administrative
    expenses (1)      22,053     (396)     21,657    21,992   (400)  21,592
                      -------     -----      ------   -------  -----   -----
    Operating income
    (loss)             2,131      984       3,115      (957)   988       31

    Financial income,
    net                   97        -          97        19      -       19

    Taxes on
    income (2)          (657)     347        (310)      949   (999)     (50)

    Other (3)             (6)       -          (6)      (41)    43        2
                      -------     -----      ------   -------  -----   -----

    Net income (loss)  1,565    1,331       2,896       (30)    32        2

    Less: Net (income)
    loss attributable
    to the
    noncontrolling
    interest              26        -          26        44      -        44
                      -------     -----      ------   -------  -----   -----
    Net income
    attributable to
    Cimatron's
    shareholders     $ 1,591  $ 1,331     $ 2,922      $ 14    $ 32     $ 46
                     =======   ======     ========    ======    =====   =====
    Net income
    per share -
    basic and
    diluted           $ 0.18               $ 0.32    $ 0.00           $ 0.01
                     =======   ======     ========    ======    =====   =====
    Weighted
    average
    number of
    shares
    outstanding

    Basic EPS
    (in thousands)      9,000               9,000     9,156            9,156
                      =======              ======    ======            =====
    Diluted EPS
    (in thousands)      9,000               9,000     9,156            9,156
                      =======              ======    ======            =====
    (1) Non-GAAP adjustment to exclude non-cash amortization
    of acquired intangible assets.
    (2) Non-GAAP adjustment to exclude the effect of deferred taxes.
    (3) Non-GAAP adjustment to exclude loss from discontinued operations.





                                CIMATRON LIMITED
                             CONSOLIDATED BALANCE SHEETS
                              (US Dollars in thousands)

                                        December 31,          December 31,
                                        ------------          ------------
                                               2010                  2009
                                         ============          ==========
                                                         ASSETS
    CURRENT ASSETS:
          Total cash, cash equivalents
          and short-term investments         $ 10,221             $ 6,684
          Trade receivables                     5,708               5,422
          Other current assets                  2,275               3,308
                                              -------              -------
                 Total current assets          18,204              15,414
                                              -------              -------
                 Deposits with insurance
                 companies and severance
                 pay fund                       3,279               2,935
                                              -------              -------
                 Net property and equipment       949               1,046
                                              -------              -------
                 Total other assets            12,469              13,285
                                              -------              -------
                         Total assets        $ 34,901            $ 32,680
                                             ========            =========

                                        LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES:
          Short-term bank credit                 $ 99               $ 456
          Trade payables                        1,685               1,064
          Accrued expenses and
          other liabilities                     8,260               6,991
          Deferred revenues                     2,275               2,397
                                                -------           -------
                 Total current liabilities     12,319              10,908
                                                -------           -------

    LONG-TERM LIABILITIES:
          Accrued severance pay                 4,297               4,104
          Long-term loan                           98                 204
          Deferred tax liability                1,002               1,365
                                                -------           -------
          Total long-term liabilities           5,397               5,673
                                                -------           -------
          Total shareholders' equity           17,185              16,099
                                                -------           -------
          Total liabilities and
          shareholders' equity               $ 34,901            $ 32,680
                                             ========            ========


                                       CIMATRON LIMITED
                          STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                    (US Dollars in thousands)



                                                        Accumulated
                                           Additional   other
                  Noncontrolling   Share    paid-in     comprehensive
                     Interest     capital   capital     income (loss)
    Balance at
    December 31,
    2009             $ (48)       $ 304    $ 18,204       $ 75
                    =======       ======   ========       =====
    Changes
    during the
    twelve months
    ended
    Deptember 31,
    2010:
    Net income
    (loss)             (26)
    Exercise of
    share options                     -          11
    Unrealized
    loss on
    derivative
    instruments                                            (79)
    Other                                                  207
    Stock option
    compensation                                 60
    Investment in
    treasury
    stock
    Foreign
    currency
    translation
    adjustment                                            (468)
                    -------   --------    ---------     ----------
    Total
    comprehensive
    income
    Balance at
    December 31,
    2010             $ (74)       $ 304    $ 18,275     $ (265)


    (table continued)


                                       CIMATRON LIMITED
                          STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                    (US Dollars in thousands)






                     Retained
                     Earnings                                 Total
                     (accumulated  Treasury   Comprehensive   shareholders'
                     deficit)      stock      income (loss)   equity
    Balance at
    December 31,
    2009               $ (1,894)   $ (542)                      $ 16,099
                       ==========   =======                     =========
    Changes
    during the
    twelve months
    ended
    Deptember 31,
    2010:
    Net income
    (loss)                1,591                    1,565           1,565
    Exercise of
    share options                                                     11
    Unrealized
    loss on
    derivative
    instruments                                      (79)            (79)
    Other                                            207             207
    Stock option
    compensation                                                      60
    Investment in
    treasury
    stock                            (210)                          (210)
    Foreign
    currency
    translation
    adjustment                                      (468)           (468)
                      --------     -------       ---------         -------
    Total                                          1,225
                                                 =========
    comprehensive
    income
    Balance at
    December 31,
    2010                 $ (303)   $ (752)                      $ 17,185


                                               CIMATRON LIMITED
                                           STATEMENTS OF CASH FLOWS
                                           (US Dollars in thousands)

                                                      Twelve months
                                                      ended
                                                      December 31,
                                                      -------------
                                                     2010        2009

    Cash flows from operating activities:

    Net income (loss)                                  $ 1,565       $ (30)

    Adjustments to reconcile net income (loss)
    to net cash provided by operating activities:
    Depreciation and amortization                        1,512       1,575
    Increase in accrued severance pay                      228         138
    Gain from sale of property and equipment, net            8           -
    Stock option compensation                               60          73
    Loss on disposal of businesses -
    discontinued operations                                  -          43
    Deferred taxes, net                                    406        (984)

    Changes in assets and liabilities:
    Decrease (increase) in accounts
    receivable and prepaid expenses                       (583)      1,854
    Decrease (increase) in inventory                        13         (15)
    Increase in deposits with insurance
    companies and severance pay fund                      (344)       (216)
    Increase (decrease) in trade payables, accrued
    expenses and other liabilities                       1,908      (1,164)
                                                         ------      ------
    Net cash provided by operating activities            4,773       1,274
                                                         ------      ------
    Cash flows from investing activities:
    Purchase of property and equipment                    (384)       (262)
    Cash and cash equivalents disposed of
    discontinued operations                                  -         (46)
                                                         ------      ------
    Net cash used in investing activities                 (384)       (308)
                                                         ------      ------
    Cash flows from financing activities:
    Short-term bank credit                                (340)        301
    Long-term bank credit                                  (98)       (104)
    Proceeds from issuance of shares upon
    exercise of options                                     11           -
    Investment in treasury stock                          (210)       (153)
                                                          -----       -----
    Net cash used in (provide by) financing activities    (637)         44
                                                          -----       -----
    Net increase in cash and cash equivalents            3,752       1,010
    Effect of exchange rate changes on cash               (215)        (53)
    Cash and cash equivalents at beginning of period     6,684       5,727
                                                         ------      ------
    Cash and cash equivalents at end of period        $ 10,221     $ 6,684
                                                      =========    ========
    Appendix A - Non-cash transactions
                 Purchase of property on credit           $ 68        $ 10
                                                      =========    =========



    Contact:

    Ilan Erez, Chief Financial Officer
    Cimatron Ltd.
    Tel.; +972-73-237-0114
    E-mail: ilane@cimatron.com


SOURCE Cimatron Ltd

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