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-FirstCall/ -- 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: [email protected]
SOURCE Cimatron Ltd
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