Cimatron Reports Best Ever Third Quarter with Record Q3 Revenues, Operating Profit and Net Profit

 Cimatron Reports Best Ever Third Quarter with Record Q3 Revenues, Operating
                            Profit and Net Profit

PR Newswire

GIVAT SHMUEL, Israel, Nov. 12, 2013

GIVAT SHMUEL, Israel, Nov. 12,2013 /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 third quarter and first nine months of 2013.

Highlights of Cimatron's results for the third quarter of 2013 include the
following:

  o45% increase in y-o-y non-GAAP operating profit, to a Q3 record of $1.4
    million
  o62% increase in y-o-y non-GAAP net profit, to a Q3 record of $1.1 million
  oRecord Q3 revenues of $10.3 million, a 9% y-o-y increase (6% in constant
    currencies)
  o88% gross margin and 14% operating margin on a non-GAAP basis
  o$0.11 non-GAAP EPS
  o$12.9 million end of quarter net cash balance

Commenting on the results, Danny Haran, President and Chief Executive Officer
of Cimatron, noted, "We are very pleased to report Q3/13 as a record third
quarter in practically all parameters. In particular, we are pleased that the
year-over-year revenue growth in the quarter was translated to significant
year-over-year growth in operating and net profits.

"We remain faithful to our long term product strategy, striving to bring ever
more value to our customers via internal development as well as through new
third party partnerships. Our recent agreement with MachineWorks, to
incorporate their Polygonica software inside CimatronE, is a perfect example.
We believe that our enhanced investment in R&D, as well as in sales and
marketing, will support further revenue and profit growth going forward. In
parallel, we continue to explore M&A opportunities, where synergy can be found
in terms of product, technology or distribution channels," concluded Mr.
Haran.

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

GAAP:

Revenues for the third quarter of 2013 were $10.3 million, compared to $9.5
million recorded in the third quarter of 2012. For the first nine months of
2013, revenues were $31.5 million, compared to $30.0 million in the same
period of 2012.

Gross Profit for the third quarter of 2013 was $8.9 million, as compared to
$8.2 million in the same period in 2012. Gross margin in the third quarter of
2013 was 86% of revenues, compared to 87% in the third quarter of 2012. For
the first nine months of 2013, gross profit was $27.4 million, compared to
$26.4 million in the same period of 2012. Gross margin for the nine months
ended September 30, 2013 was 87% of revenues, compared to a gross margin of
88% of revenues for the first nine months of 2012.

The higher gross margin in the first nine months of 2012 as compared to the
parallel period of 2013 mainly reflect the agreement with the Office of Chief
Scientist in the Israeli Ministry of Industry, Trade and Labor (OCS), that was
announced last year. As a result of that agreement, the Company recorded an
additional one-time income of approximately $0.4 million in the second quarter
of 2012, reflected as a lower cost of revenue in the GAAP Statements of Income
for the first nine months of 2012. Such income was excluded from the non-GAAP
results for the first nine months of 2012, in order to ensure that comparisons
to comparable periods of previous years better reflect the results of ongoing
operations.

Operating Profit in the third quarter of 2013 increased 70% to $1.2 million,
as compared to $0.7 million in the same period of 2012. In the first nine
months of 2013, Cimatron recorded an operating profit of $3.4 million, the
same as in the first nine months of 2012.

Net Profit for the third quarter of 2013 increased 83% to $1.0 million, or
$0.10 per diluted share, compared to a net profit of $0.5 million, or $0.06
per diluted share, recorded in the same quarter of 2012. In the first nine
months of 2013, net profit was $2.6 million, or $0.27 per diluted share,
compared to a net profit of $2.4 million, or $0.25 per diluted share, in the
first nine months of 2012.

Non-GAAP:

Revenues for the third quarter of 2013 were $10.3 million, compared to $9.5
million recorded in the third quarter of 2012. For the first nine months of
2013, revenues were $31.5 million, compared to $30.0 million in the same
period of 2012.

Gross Profit for the third quarter of 2013 was $9.0 million, as compared to
$8.4 million in the same period of 2012. Gross margin in the third quarter of
2013 was 88% of revenues, compared to 89% in the third quarter of 2012. In the
first nine months of 2013, gross profit was $27.8 million, compared to $26.4
million in the first nine months of 2012. Gross margin for the nine months
ended September 30, 2013 was 88% of revenues, the same as in the first nine
months of 2012.

Operating Profit in the third quarter of 2013 increased 45% to $1.4 million,
as compared to $1.0 million in the same period in 2012. In the first nine
months of 2013, Cimatron recorded an operating profit of $4.0 million,
compared to an operating profit of $3.8 million in the first nine months of
2012.

Net Profit for the third quarter of 2013 increased 62% to $1.1 million, or
$0.11 per diluted share, compared to a net profit of $0.7 million, or $0.07
per diluted share, recorded in the same quarter of 2012. In the first nine
months of 2013, net profit was $3.0 million, or $0.32 per diluted share,
compared to a net profit of $2.7 million, or $0.29 per diluted share, in the
first nine months of 2012.

Conference Call

Cimatron's management will host a conference call today, November 12, 2013, 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: +1-888-668-9141
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. These non-GAAP
financial measures may differ materially from the non-GAAP financial measures
used by other companies.

About Cimatron

With over 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.



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,
                                         2013       2012     2013      2012
Total revenue                            10,301     9,463    31,498    29,957
Total cost of revenue                    1,405      1,218    4,122     3,570
Gross profit                             8,896      8,245    27,376    26,387
 Research and development expenses     1,790      1,613    5,276     4,935
 Selling, general and administrative   5,891      5,918    18,694    18,019
expenses
Operating income                        1,215      714      3,406     3,433
 Financial income (expenses), net      15         41       (9)       (51)
 Taxes on income                       (265)      (199)    (834)     (999)
 Other                                 (1)        (18)     4         (7)
Net income                              964        538      2,567     2,376
 Less: Net income attributable to the  (9)        (15)     (6)       (24)
noncontrolling interest
Net income attributable to Cimatron's    $ 955      $ 523    $ 2,561   $ 2,352
shareholders
Net income per share - basic and diluted $ 0.10     $ 0.06   $ 0.27    $ 0.25
Weighted average number of shares
outstanding
       Basic EPS (in thousands)          9,727      9,314    9,480     9,308
       Diluted EPS (in thousands)        9,740      9,331    9,488     9,325



CIMATRON LIMITED
RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
(US Dollars in thousands, except for per share data)
               Three months ended                               Nine months ended
               September,                                       September,
               2013                     2012                    2013                     2012
               GAAP    Adj.   NON-GAAP  GAAP   Adj.   NON-GAAP  GAAP    Adj.   NON-GAAP  GAAP    Adj.   NON-GAAP
Total revenue 10,301  -      10,301    9,463  -      9,463     31,498  -      31,498    29,957  -      29,957
Total cost of  1,405          1,258     1,218         1,071     4,122          3,681     3,570          3,548
revenue
  Non-cash
  amortization
  of acquired          (147)                   (147)                    (441)                    (441)
  intangible
  assets
  One-time
  income from                                                                                    419
  OCS
  agreement
Gross profit   8,896   147    9,043     8,245  147    8,392     27,376  441    27,817    26,387  22     26,409
 Research
and            1,790   (3)    1,787     1,613  -      1,613     5,276   (3)    5,273     4,935   -      4,935
development
expenses (1)
 Selling,
general and    5,891          5,861     5,918         5,819     18,694         18,579    18,019         17,723
administrative
expenses
  Non-cash
  amortization
  of acquired          -                       (99)                     (85)                     (296)
  intangible
  assets
  Stock-based          (30)                    -                        (30)                     -
  compensation
Operating      1,215   180    1,395     714    246    960       3,406   559    3,965     3,433   318    3,751
income
 Financial
income         15      -      15        41     -      41        (9)     -      (9)       (51)    -      (51)
(expenses),
net
 Taxes on    (265)   (34)   (299)     (199)  (90)   (289)     (834)   (125)  (959)     (999)   28     (971)
income (2)
 Other      (1)     -      (1)       (18)   -      (18)      4       -      4         (7)     -      (7)
Net income    964     146    1,110     538    156    694       2,567   434    3,001     2,376   346    2,722
 Less: Net
income
attributable   (9)     -      (9)       (15)   -      (15)      (6)     -      (6)       (24)    -      (24)
to the
noncontrolling
interest
Net income
attributable   $ 955   $ 146  $ 1,101   $ 523  $ 156  $ 679     $       $ 434  $ 2,995   $       $ 346  $ 2,698
to Cimatron's                                                   2,561                    2,352
shareholders
Net income per                          $
share - basic  $ 0.10         $ 0.11    0.06          $ 0.07    $ 0.27         $ 0.32    $ 0.25         $ 0.29
and diluted
Weighted
average number
of shares
outstanding
  Basic EPS
  (in          9,727          9,727     9,314         9,314     9,480          9,480     9,308          9,308
  thousands)
  Diluted EPS
  (in          9,740          9,740     9,331         9,331     9,488          9,488     9,325          9,325
  thousands)
(1) Non-GAAP adjustment to exclude
stock-based compensation
(2) Non-GAAP adjustment to exclude the
effect of deferred taxes and other tax
provisions.



CIMATRON LIMITED
CONSOLIDATED BALANCE SHEETS
(US Dollars in thousands)
                                              September 30,    December 31,
                                              2013             2012
               ASSETS
CURRENT ASSETS:
 Total cash, cash equivalents and short-term  $            $    11,903
 investments                                  12,914
 Trade receivables                            5,457            6,049
 Other current assets                         2,033            1,788
  Total current assets                        20,404           19,740
  Deposits with insurance companies and       3,624            3,296
  severance pay fund
  Net property and equipment                  964              875
  Net other assets                            10,057           10,499
    Total assets                              $            $    34,410
                                              35,049
               LIABILITIES AND SHAREHOLDERS'
               EQUITY
CURRENT LIABILITIES:
 Short-term bank credit                       $         $       
                                              21              1
 Trade payables                               1,023            1,169
 Accrued expenses and other liabilities       5,059            7,204
 Deferred revenues                            4,802            2,843
  Total current liabilities                   10,905           11,217
LONG-TERM LIABILITIES:
 Accrued severance pay                        4,889            4,453
 Deferred tax liability                       127              275
  Total long-term liabilities               5,016            4,728
 Total shareholders' equity                   19,128           18,465
    Total liabilities and shareholders'       $            $    34,410
    equity                                    35,049



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
nine months
ended
 September
30, 2013:
Net income    6                                                   2,561                   2,567          2,567
Cash
distribution                           (7,916)                                                           (7,916)
to
shareholders
Issuance of                   28       5,758                                                             5,786
shares
Issuance of
restricted                    9                                                                          9
shares
Stock based                            80                                                                80
compensation
Other                                            73                                     73             73
Foreign
currency                                           64                                     64             64
translation
adjustment
Total
comprehensive                                                                             2,704
income
Balance at    $         $     $         $        $        $                     $    
September 30,  34            350    16,828       131         2,537         (752)                   19,128
2013

CIMATRON LIMITED
STATEMENTS OF CASH FLOWS
(US Dollars in thousands)
                                                Nine months ended
                                                September 30,
                                                2013            2012
Cash flows from operating activities:
Net income                                     $    2,567  $    2,376
Adjustments to reconcile net income
 to net cash provided by operating
activities:
Depreciation and amortization                   796             1,007
Increase in accrued severance pay               415             63
Stock based compensation                        33              -
Deferred taxes, net                             (115)           (272)
Changes in assets and liabilities:
Decrease in accounts receivable and prepaid     332             1,051
expenses
Increase (decrease) in inventory                12              (2)
Increase in deposits with insurance companies   (328)           (63)
and severance pay fund
Decrease in trade payables, accrued expenses    (425)           (1,587)
and other liabilities
Net cash provided by operating activities       3,287           2,573
Cash flows from investing activities:
Proceeds from sale of property and equipment    -               1
Purchase of property and equipment              (346)           (243)
Net cash used in investing activities           (346)           (242)
Cash flows from financing activities:
Short-term bank credit                          20              (40)
Long-term bank credit                           (3)             (7)
Cash distribution to shareholders               (7,916)         (1,863)
Proceeds from issuance of shares upon exercise  47              40
of options
Proceeds from issuance of restricted shares     9               -
Proceeds from issuance of shares               5,786           -
Net cash used in financing activities           (2,057)         (1,870)
Net increase in cash and cash equivalents       884             461
Effect of exchange rate changes on cash         127             28
Cash and cash equivalents at beginning of       11,903          11,787
period
Cash and cash equivalents at end of period      $   12,914   $   12,276
Appendix A - Non-cash transactions
      Purchase of property on credit            $         $      
                                                7              5



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

SOURCE Cimatron

Website: http://www.cimatron.com
 
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