Cimatron Reports Revenues of $10M in Q2/11 and Highest Ever Q2 Non-GAAP Net Profit of $1.3M

Declares Dividend of NIS 0.80 (Approximately US$0.23) per Share; $0.22 non-GAAP EPS in the First Six Months of 2011

Aug 04, 2011, 03:00 ET from Cimatron Ltd

GIVAT SHMUEL, Israel, August 4, 2011 /PRNewswire/ --


Cimatron Limited (NASDAQ and TASE: CIMT), a leading provider of integrated CAD/CAM software solutions for the toolmaking and manufacturing industries, today announced financial results for the second quarter and first half of 2011.  

Highlights of Cimatron's results for these periods include the following:

  • Q2/11 new licenses revenue up 41% year-over-year on a constant currency basis

  • Q2/11 recurring maintenance revenue represents 49% of total revenue, increased 6% year-over-year on a constant currency basis

  • Q2/11 non-GAAP operating profit increased 118% year-over-year  

  • $4.6 million positive cash flow from operating activities in the first half of 2011, a 18% year-over-year increase

  • Record cash balances of $14.5 million as of the end of June 2011

Concurrently with the announcement of its results, Cimatron today also declared a cash dividend of NIS 0.80 (approximately US$0.23) per share on outstanding ordinary shares, representing a total dividend payment of approximately $2.2 million.

The dividend is payable on September 12, 2011 to shareholders of record at the close of business on August 24, 2011.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said "We are pleased to report another strong quarter, with record cash reserves, and highest ever Q2 operating and net profits. Strong results from all territories and all product lines translated into healthy growth in revenues, particularly in new license sales. Customers all over the world realize the benefits of using our products for their enhanced performance and efficiency, and this leads to more new product sales and more maintenance revenue. As we have said time and again, much of the revenue growth finds its way to the bottom line, which resulted (in Q2) in the more than doubling of our operational and net profits on a year-over-year basis."

"Given the typical seasonality in our business, where the second half of the year is usually stronger than the first, we are optimistic about the remainder of 2011. New and exciting software versions were announced recently, both for CimatronE and for GibbsCAM, with hundreds of improvements in all areas. Together with the NC SuperBox, we are confident that these new versions will support additional growth in the coming quarters", concluded Mr. Haran.

Yossi Ben-Shalom, Chairman of the Board of Cimatron, added "We are very pleased with the excellent results of the company. We thank our management, employees, customers and partners for their continued trust and support. I am pleased that a dividend is being distributed to our investors for a second consecutive quarter."

The following provides details on Cimatron's GAAP and non-GAAP results for the second quarter and first six months of 2011:

GAAP:

Revenues for the second quarter of 2011 were $10.0 million, compared to $8.4 million recorded in the second quarter of 2010. For the first six months of 2011, revenues were $18.9 million, compared to $16.3 million in the same period of 2010.  

Gross Income for the second quarter of 2011 was $8.7 million as compared to $6.8 million in the same period in 2010. Gross margin in the second quarter of 2011 was 87% of revenues, compared to a gross margin of 81% in the second quarter of 2010. For the first six months of 2011, gross income was $16.3 million, compared to $13.5 million in the same period of 2010. Gross margin for the six months ended on June 30th, 2011 was 86% compared to a gross margin of 83% in the first six months of 2010.

Operating profit in the second quarter of 2011 was $1 million, compared to an operating profit of $0.4 million in the second quarter of 2010. In the first six months of 2011, Cimatron recorded an operating profit of $1.5 million, compared to an operating profit of $0.2 million in the first six months of 2010.  

Net Profit for the second quarter of 2011 was $0.9 million, or $0.09 per diluted share, compared to a net profit of $0.3 million, or $0.03 per diluted share recorded in the same quarter of 2010.  In the first six months of 2011 net profit was $1.2 million, or $0.13 per diluted share, compared to a net profit of $0.2 million, or $0.02 per diluted share, in the first six months of 2010.  

Non-GAAP:

Revenues for the second quarter of 2011 were $10.0 million, compared to $8.4 million recorded in the second quarter of 2010. For the first six months of 2011, revenues were $18.9 million, compared to $16.3 million in the same period of 2010.  

Gross Income for the second quarter of 2011 was $8.8 million as compared to $7.0 million in the same period in 2010. Gross margin in the second quarter of 2011 was 89% of revenues, compared to a gross margin of 83% in the second quarter of 2010. In the first six months of 2011, gross income was $16.5 million, compared to $13.8 million in the first six months of 2010. Gross margin for the six months ended on June 30th, 2011 was 88%, compared to 84% in the first six months of 2010.

Operating Profit in the second quarter of 2011 was $1.3 million, compared to an operating profit of $0.6 million in the second quarter of 2010. In the first six months of 2011, Cimatron recorded an operating profit of $2.0 million, compared to an operating profit of $0.7 million in the first six months of 2010.  

Net profit for the second quarter of 2011 was $1.3 million, or $0.14 per diluted share, compared to a net profit of $0.4 million, or $0.05 per diluted share recorded in the same quarter of 2010.  In the first six months of 2011 net profit was $2.0 million, or $0.22 per diluted share, compared to a net profit of $0.5 million, or $0.05 per diluted share, in the first six months of 2010.  

Conference Call

Cimatron's management will host a conference call today, August 4th, 2011 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: +972-3-9180644
Israel: 03-9180644

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 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 exchange and the TASE 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        Six months ended
                                June 30,                  June 30,
                                  2011          2010        2011        2010

    Total revenue                9,975         8,399       18,869     16,316

    Total cost of revenue        1,273         1,572        2,618      2,823

    Gross profit                 8,702         6,827       16,251     13,493

    Research and development
    expenses, net                1,500         1,344        3,054      2,829

    Selling, general and
    administrative expenses      6,155         5,133       11,726     10,417
    Operating income             1,047           350        1,471        247

    Financial income
    (expenses), net                 38          (130)         154       (182)

    Taxes on income               (195)           63         (422)       120

    Other                           (8)           (9)         (10)        (8)

    Net income                     882           274        1,193        177

    Less: Net (income) loss
    attributable to the
    noncontrolling interest         (1)            4           27          1

    Net income attributable
    to Cimatron's shareholders   $ 881         $ 278      $ 1,220      $ 178
    Net income per share -
    basic and diluted           $ 0.09        $ 0.03       $ 0.13     $ 0.02

    Weighted average number of shares outstanding

     Basic EPS (in thousands)    9,298         9,048        9,202      9,041

     Diluted EPS (in thousands)  9,314         9,048        9,276      9,041



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

                                     Three months ended
                                         June 30,
                                2011                          2010
                        GAAP    Adj.    NON-GAAP      GAAP   Adj.   NON-GAAP

    Total revenue      9,975      -        9,975     8,399      -      8,399

    Total cost of
    revenue (1)        1,273   (147)       1,126     1,572   (147)     1,425

    Gross profit       8,702    147        8,849     6,827    147      6,974

    Research and
    development
    expenses, net      1,500      -        1,500     1,344      -      1,344

    Selling, general
    and administrative
    expenses (1)       6,155   (103)       6,052     5,133    (99)     5,034
    Operating income   1,047    250        1,297       350    246        596

    Financial income
    (expenses), net       38      -           38      (130)     -       (130)

    Taxes on income (2) (195)   150          (45)       63    (91)       (28)

    Other                 (8)     -           (8)       (9)     -         (9)

    Net income           882    400        1,282       274    155        429

    Less: Net (income)
    loss attributable
    to the
    noncontrolling
    interest              (1)     -           (1)        4      -          4

    Net income
    attributable to
    Cimatron's
    shareholders       $ 881  $ 400      $ 1,281     $ 278  $ 155      $ 433
    Net income per
    share - basic
    and diluted       $ 0.09              $ 0.14     $ 0.03           $ 0.05

    Weighted average number of shares outstanding

     Basic EPS
     (in thousands)    9,298               9,298      9,048            9,048

     Diluted EPS
     (in thousands)    9,314               9,314      9,048            9,048

    (1) Non-GAAP adjustment to exclude non-cash amortization of acquired
        intangible assets.
    (2) Non-GAAP adjustment to exclude the effect of deferred taxes.     Continued
                                     Six months ended
                                         June 30,
                                2011                          2010
                        GAAP    Adj.    NON-GAAP      GAAP   Adj.   NON-GAAP
    Total revenue     18,869      -       18,869    16,316      -     16,316
    Total cost of
    revenue (1)        2,618    (294)     2,324      2,823   (294)     2,529
    Gross profit      16,251     294     16,545     13,493    294     13,787
    Research and
    development
    expenses, net      3,054       -      3,054      2,829      -      2,829
    Selling, general
    and administrative
    expenses (1)      11,726    (204)    11,522     10,417   (198)    10,219 
  
    Operating income   1,471     498      1,969        247    492        739

    Financial income
    (expenses), net      154       -        154       (182)     -       (182)

    Taxes on income (2) (422)    322       (100)       120   (182)       (62)

    Other                (10)      -        (10)        (8)     -         (8)

    Net income         1,193     820      2,013        177    310        487

    Less: Net (income)
    loss attributable
    to the
    noncontrolling
    interest              27       -         27          1      -          1

    Net income
    attributable to
    Cimatron's
    shareholders     $ 1,220   $ 820    $ 2,040      $ 178  $ 310      $ 488
    Net income per
    share - basic
    and diluted       $ 0.13             $ 0.22     $ 0.02            $ 0.05

    Weighted average number of shares outstanding

     Basic EPS
     (in thousands)    9,202              9,202      9,041             9,041

     Diluted EPS
     (in thousands)    9,276              9,276      9,041             9,041




  
                          CIMATRON LIMITED
                      CONSOLIDATED BALANCE SHEETS
                      (US Dollars in thousands)

                                                     June 30,    December 31,
                                                        2011            2010

         ASSETS
    CURRENT ASSETS:
         Total cash, cash equivalents
         and short-term investments                 $ 14,493        $ 10,221
         Trade receivables                             5,155           5,708
         Other current assets                          2,329           2,275
                     Total current assets             21,977          18,204

                     Deposits with insurance
                     companies and severance pay fund  3,408           3,279

                     Net property and equipment          879             949

                     Total other assets               12,294          12,469

                                    Total assets    $ 38,558        $ 34,901

                            LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES:
         Short-term bank credit                         $ 97            $ 99
         Trade payables                                1,468           1,685
         Accrued expenses and other liabilities        7,301           8,260
         Deferred revenues                             5,775           2,275
                     Total current liabilities        14,641          12,319

    LONG-TERM LIABILITIES:
         Accrued severance pay                         4,507           4,297
         Long-term loan                                   57              98
         Deferred tax liability                          820           1,002
         Total long-term liabilities                   5,384           5,397

         Total shareholders' equity                   18,533          17,185
                                    Total liabilities
                                    and shareholders'
                                    equity          $ 38,558        $ 34,901



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

                                                          Accumulated other
                 Noncontrolling  Share    Additional    comprehensive income
                   Interest     capital paid-in capital      (loss)

    Balance at
    December 31,
    2010               $ (74)     $ 304        $ 18,275               $ (265)
    Changes
    during the
    six months
    ended June
    30, 2011:
    Net income
    (loss)               (27)
    Cash dividend
    paid
    Exercise of
    share options                     9             724
    Unrealized
    income (loss)
    on derivative
    instruments                                                          (51)
    Other                                                                323
    Foreign
    currency
    translation
    adjustment                                                           358
    Total
    comprehensive
    income
    Balance at
    June 30, 2011     $ (101)     $ 313         $ 18,999               $ 365

    Continued.

                                                 Comprehensive
                                                 income (loss)
                     Retained
                     earnings                                      Total
                   (accumulated    Treasury                     shareholders'
                     deficit)       stock                          equity
    Balance at
    December 31,
    2010              $ (303)       $ (752)                         $ 17,185
    Changes
    during the
    six months
    ended June
    30, 2011:
    Net income
    (loss)             1,220                            1,193          1,193
    Cash dividend
    paid             (1,208)                                          (1,208)
    Exercise of
    share options                                                        733
    Unrealized
    income (loss)
    on derivative
    instruments                                           (51)           (51)
    Other                                                 323            323
    Stock option
    compensation                                                           0
    Investment in
    treasury
    stock                                                                  0
    Foreign
    currency
    translation
    adjustment                                            358            358
    Total
    comprehensive
    income                                              1,823
    Balance at
    June 30, 2011    $ (291)         $ (752)                        $ 18,533

 

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

                                                          Six months ended
                                                              June 30,
                                                          2011        2010

    Cash flows from operating activities:
    Net income                                         $ 1,193       $ 177

    Adjustments to reconcile net income
    to net cash provided by operating activities:
    Depreciation and amortization                          692         777
    Increase (decrease) in accrued severance pay           195         (81)
    Stock option compensation                                -          29
    Deferred taxes, net                                    319        (127)

    Changes in assets and liabilities:
    Decrease (increase) in accounts receivable
    and prepaid expenses                                    80        (391)
    Decrease in inventory                                   19           1
    Decerase (increase) in deposits with insurance
    companies and severance pay fund                      (129)         32
    Increase in trade payables, accrued expenses
    and other liabilities                                2,274       3,513
    Net cash provided by operating activities            4,643       3,930

    Cash flows from investing activities:
    Purchase of property and equipment                     (87)        (55)
    Net cash used in investing activities                  (87)        (55)

    Cash flows from financing activities:
    Short-term bank credit                                  (4)       (358)
    Long-term bank credit                                  (43)        (61)
    Cash dividend paid                                  (1,208)          -
    Proceeds from issuance of shares upon
    exercise of options                                    733          11
    Investment in treasury stock                             -        (200)
    Net cash provided by financing activities             (522)       (608)

    Net increase in cash and cash equivalents            4,034       3,267
    Effect of exchange rate changes on cash                238        (722)
    Cash and cash equivalents at beginning of period    10,221       6,684
    Cash and cash equivalents at end of period          14,493       9,229

    Appendix A - Non-cash transactions
                         Purchase of property on credit   $ 28        $ 17


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


SOURCE Cimatron Ltd