Cimatron Reports $11 Million Revenues in Q1/14, Marking Record First Quarter Revenues, Operating Profit and Cash Flow

 Cimatron Reports $11 Million Revenues in Q1/14, Marking Record First Quarter
                   Revenues, Operating Profit and Cash Flow

PR Newswire

GIVAT SHMUEL, Israel, May 14, 2014

GIVAT SHMUEL, Israel, May 14, 2014 /PRNewswire/ --Cimatron Limited (NASDAQ:
CIMT), a leading provider of integrated CAD/CAM software solutions for the
toolmaking and manufacturing industries, today announced its financial results
for the first quarter of 2014.

Highlights of Cimatron's results for the first quarter of 2014 include the
following:

  o40% year-over-year increase in non-GAAP operating profit, to a Q1 record
    of $1.4 million
  oRecord Q1 revenues of $11 million, an 8% year-over-year increase (6.3% on
    constant currency basis)
  o16^th consecutive quarter with year-over-year revenue growth on a constant
    currency basis
  o$3.2 million cash flow from operating activities; End of quarter net cash
    balance of $16.1 million or $1.50 per share

Commenting on the results, Danny Haran, President and Chief Executive Officer
of Cimatron, noted, "We are very pleased to report Q1 2014 as a record first
quarter. In particular, we are pleased that the year-over-year revenue growth
of 8% in the quarter was translated to 40% year-over-year growth in operating
profit, reflecting once again the strong operating leverage inherent in our
business model.

"The solid growth in both revenues and operating profit, as well as the strong
positive cash flow, will enable us to continue investing in product
development and pursuing additional opportunities for expanding our
distribution network, while continuing to look for M&A opportunities.

"We recently held two large reseller meetings, one for the GibbsCAM product
line and one for the CimatronE product line, where the upcoming versions of
both products were presented and welcomed with enthusiasm. We have a lot to
look forward to in the 2014 versions, which include exciting developments for
manufacturing, tool making and additive manufacturing," concluded Mr. Haran.

The following provides details on Cimatron's GAAP and non-GAAP results for the
first quarter  of 2014:

GAAP:
Revenues for the first quarter of 2014 increased by 8% to $11.0 million, from
$10.2 million recorded in the first quarter of 2013.

Gross Profit for the first quarter of 2014 was $9.5 million, as compared to
$8.8 million in the same period in 2013. Gross margin in the first quarter of
2014 constituted 86% of revenues, compared to 87% in the first quarter of
2013.

Operating Profit in the first quarter of 2014 increased by 38% to $1.1
million, from $0.8 million in the corresponding quarter of 2013.

Net Profit for the first quarter of 2014 was $0.7 million, or $0.06 per
diluted share, compared to a net profit of $0.6 million, or $0.06 per diluted
share, recorded in the same quarter of 2013.

Non-GAAP:
Revenues for the first quarter of 2014 increased by 8% to $11.0 million, from
$10.2 million recorded in the first quarter of 2013.

Gross Profit for the first quarter of 2014 was $9.6 million, as compared to
$9.0 million in the same period of 2013. Gross margin in the first quarter of
2014 constituted 88% of revenues, the same as in the first quarter of 2013.

Operating Profit in the first quarter of 2014 increased by 40% to $1.4
million, from $1.0 million in the corresponding quarter of 2013.

Net Profit for the first quarter of 2014 was $0.9 million, or $0.08 per
diluted share, compared to net profit of $0.7 million, or $0.08 per diluted
share, recorded in the same quarter of 2013.

Conference Call
Cimatron's management will host a conference call today, May 14, 2014, 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: +1-888-407-2553
International: +972-3-9180610
Israel: 03-9180610

For those unable to listen to the live call, a replay of the call will be
available 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, stock based
compensation 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.

Company Contact:          Investor Relations contact
Ilan Erez, Chief Financial Officer           Ehud Helft/Kenny Green
Cimatron Ltd. GK Investor Relations
Tel.; 972-73-237-0114                  Tel: (US) 1 646 201 9246
Email: ilane@cimatron.com                   Email: Cimatron@gkir.com

CIMATRON LIMITED
CONSOLIDATED STATEMENTS OF INCOME
(US Dollars in thousands, except for per share data)
                                                            Three months ended
                                                            March 31,
                                                            2014       2013
Total revenue                                               10,963     10,158
Total cost of revenue                                       1,503      1,326
Gross profit                                                9,460      8,832
 Research and development expenses                        1,915      1,728
 Selling, general and administrative expenses             6,474      6,326
Operating income                                           1,071      778
 Financial income (expenses), net                         (39)       16
 Taxes on income                                          (350)      (192)
 Other                                                    (21)       2
Net income                                                 661        604
 Less: Net income attributable to the noncontrolling      (10)       -
interest
Net income attributable to Cimatron's shareholders          $ 651      $ 604
Net income per share - basic and diluted                    $ 0.06     $ 0.06
Weighted average number of shares outstanding
         Basic EPS (in thousands)                           10,731     9,348
         Diluted EPS (in thousands)                         10,731     9,358



CIMATRON LIMITED
RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
(US Dollars in thousands, except for per share data)
                              Three months ended
                              March,
                                      2014                     2013
                              GAAP    Adj.   NON-GAAP  GAAP    Adj.   NON-GAAP
Total revenue                10,963  -      10,963    10,158  -      10,158
Total cost of revenue (1)     1,503   (147)  1,356     1,326   (147)  1,179
Gross profit                  9,460   147    9,607     8,832   147    8,979
 Research and development   1,915   (12)   1,903     1,728   -      1,728
expenses (2)
 Selling, general and       6,474          6,337     6,326          6,273
administrative expenses
           Non-cash
           amortization of            -                        (53)
           acquired
           intangible assets
           Stock-based                (137)                    -
           compensation
Operating income             1,071   296    1,367     778     200    978
 Financial income           (39)    -      (39)      16      -      16
(expenses), net
 Taxes on income (3)        (350)   (83)   (433)     (192)   (91)   (283)
 Other                     (21)    -      (21)      2       -      2
Net income                   661     213    874       604     109    713
 Less: Net income
attributable to the           (10)    -      (10)      -       -      -
noncontrolling interest
Net income attributable to    $ 651   $ 213  $ 864     $ 604   $ 109  $ 713
Cimatron's shareholders
Net income per share - basic  $ 0.06         $ 0.08    $ 0.06         $ 0.08
and diluted
Weighted average number of
shares outstanding
   Basic EPS (in thousands)   10,731         10,731    9,348          9,348
   Diluted EPS (in thousands) 10,731         10,731    9,358          9,358
(1) Non-GAAP adjustment to exclude non-cash amortization of
acquired intangible assets
(2) Non-GAAP adjustment to exclude stock-based
compensation
(3) Non-GAAP adjustment to exclude the effect of deferred taxes and
other non-current tax provisions.



CIMATRON LIMITED
CONSOLIDATED BALANCE SHEETS
(US Dollars in thousands)
                                                March 31,      December 31,
                                                2014           2013
                   ASSETS
CURRENT ASSETS:
 Total cash, cash equivalents and short-term    $          $    13,052
 investments                                    16,614
 Trade receivables                              6,792          6,838
 Other current assets                           2,832          2,434
   Total current assets                         26,238         22,324
   Deposits with insurance companies and        3,719          3,725
   severance pay fund
   Net property and equipment                   973            977
   Net other assets                             10,272         10,407
       Total assets                             $          $    37,433
                                                41,202
                   LIABILITIES AND
                   SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
 Short-term bank credit                         $        $       
                                                535           5
 Trade payables                                 973            1,356
 Accrued expenses and other liabilities         6,128          6,297
 Deferred revenues                              6,058          2,974
   Total current liabilities                    13,694         10,632
LONG-TERM LIABILITIES:
 Accrued severance pay                          5,091          5,018
 Deferred tax liability                         9              69
  Total long-term liabilities                 5,100          5,087
 Total shareholders' equity                     22,408         21,714
       Total liabilities and shareholders'      $          $    37,433
       equity                                   41,202



CIMATRON LIMITED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(US Dollars in thousands)
                                                   Accumulated
              Noncontrolling  Share    Additional  other          Retained  Treasury  Comprehensive  Total
              Interest        capital  paid-in     comprehensive  earnings  stock     income        shareholders'
                                       capital     income                                           equity
Balance at    $         $     $         $        $      $                     $    
December 31,   33            350    17,172        88                (752)                   21,714
2013                                                              4,823
Changes
during the
three months
ended March
31, 2014:
Net income    10                                                  651                 661            661
Stock based                            149                                                           149
compensation
Other       (43)                                 (109)                              (152)          (152)
Foreign
currency                                           36                                 36             36
translation
adjustment
Total
comprehensive                                                                         545
income
Balance at    $         $     $         $        $      $                     $    
March 31,        -          350    17,321        15                (752)                   22,408
2014                                                              5,474



CIMATRON LIMITED
STATEMENTS OF CASH FLOWS
(US Dollars in thousands)
                                                  Three months ended
                                                  March 31,
                                                  2014           2013
Cash flows from operating activities:
Net income                                       $         $     
                                                  661            604
Adjustments to reconcile net income
 to net cash provided by (used in) operating
activities:
Depreciation and amortization                     239            293
Increase in accrued severance pay                 62             86
Stock based compensation                          149            -
Deferred taxes, net                               (77)           (90)
Changes in assets and liabilities:
Increase in accounts receivable and prepaid       (258)          (1,194)
expenses
Decrease in inventory                             5              -
Decrease (increase) in deposits with insurance    6              (110)
companies and severance pay fund
Increase in trade payables, accrued expenses and  2,425          280
other liabilities
Net cash provided by (used in) operating          3,212          (131)
activities
Cash flows from investing activities:
Proceeds from sale of property and equipment      -              7
Purchase of property and equipment                (65)           (49)
Net cash used in investing activities             (65)           (42)
Cash flows from financing activities:
Short-term bank credit                            509            5,658
Purchase of non-controlling interest              (92)           -
Cash distribution to                              -              (7,874)
shareholders
Net cash provided by (used in) financing          417            (2,216)
activities
Net increase (decrease) in cash and cash          3,564          (2,389)
equivalents
Effect of exchange rate changes on cash           (2)            (88)
Cash and cash equivalents at beginning of period  13,052         11,903
Cash and cash equivalents at end of period        $   16,614  $   
                                                                 9,426
Appendix A - Non-cash transactions
 Purchase of property on credit $         $      
                                                  20            5





SOURCE Cimatron

Website: http://www.cimatron.com
 
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