Cimatron Reports Revenues of $10.2 million and Non-GAAP Operating Profit of $1.0 million in Q1 2013

 Cimatron Reports Revenues of $10.2 million and Non-GAAP Operating Profit of
                           $1.0 million in Q1 2013

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

-- 6% year-over-year increase in recurring maintenance revenues

PR Newswire

GIVAT SHMUEL, Israel, May 13, 2013

GIVAT SHMUEL, Israel, May 13, 2013 /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 13^th, 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     -          (12)
interest
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  1,728   -      1,728     1,693   -      1,693
expenses
 Selling, general and      6,326   (53)   6,273     5,886   (99)   5,787
administrative expenses (1)
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          -       -      -         (12)    -      (12)
noncontrolling interest
Net income attributable to   $ 604   $ 109  $ 713     $ 831   $ 155  $ 986
Cimatron's shareholders
Net income per share - basic $ 0.06         $ 0.08    $ 0.09         $ 0.11
and diluted
Weighted average number of
shares outstanding
Basic EPS (in             9,348          9,348     9,301          9,301
thousands)
Diluted EPS               9,358          9,358     9,318          9,318
(in thousands)
(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     $       $    11,903
 investments                                     9,426
 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          3,406        3,296
  severance pay fund
  Net property and equipment                     836          875
  Net other assets                               10,193       10,499
    Total assets                                 $        $    34,410
                                                 33,205
               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   $        $    34,410
                                                 33,205





CIMATRON LIMITED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(US Dollars in thousands)
                                       Additional  Accumulated    Retained                               Total
              Noncontrolling  Share    paid-in     other          earnings      Treasury  Comprehensive  shareholders'
              Interest        capital  capital     comprehensive  (accumulated  stock     income (loss)  equity
                                                   income (loss)  deficit)
Balance at    $         $     $         $        $        $                     $    
December 31,   28            313    18,906         (6)        (24)      (752)                   18,465
2012
Changes
during the
three months
ended March
31, 2013:
Net income    -                                                   604                     604            604
Cash
distribution                           (7,874)                                                           (7,874)
to
shareholders
Unrealized
gain on                                            8                                      8              8
derivative
instruments
Other                                            (114)                                  (114)          (114)
Foreign
currency                                           (66)                                   (66)           (66)
translation
adjustment
Total
comprehensive                                                                             432
income
Balance at    $         $     $         $        $        $                     $    
March 31,      28            313    11,032       (178)         580        (752)                   11,023
2013



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     (1,194)         (755)
expenses
Increase in inventory                           -               (21)
Increase in deposits with insurance companies   (110)           (118)
and severance pay fund
Increase in trade payables, accrued expenses    280             1,941
and other liabilities
Net cash provided by (used in) operating        (131)           2,353
activities
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                            (7,874)         -
shareholders
Proceeds from issuance of shares upon exercise  -               14
of options
Net cash provided by (used in) financing        (2,216)         676
activities
Net increase (decrease) in cash and cash        (2,389)         2,966
equivalents
Effect of exchange rate changes on cash         (88)            151
Cash and cash equivalents at beginning of       11,903          11,787
period
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

Website: http://www.cimatron.com
 
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