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
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: [email protected]
SOURCE Cimatron Ltd
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