Cimatron Reports Revenues of $9.6M and Non-GAAP Operating Profit of $1.0M in Q3/11
GIVAT SHMUEL, Israel, November 10, 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 third quarter and first nine months of 2011.
Highlights of Cimatron's results for these periods include the following:
- $0.31 non-GAAP earnings per share for the first nine months of 2011
- 110% year-over-year non-GAAP net profit increase for the first nine months of 2011
- 15% year-over-year new license revenue growth in Q3/11, on a constant currency basis
Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, noted "We are very pleased to report strong results for the third quarter and first 9 months of 2011. The new license year-over-year revenue growth is especially satisfying when recalling that last year's Q3 was an exceptional third quarter in many ways. We are getting very positive feedback on the new product versions, both for CimatronE and for GibbsCAM. While economic uncertainty remains very high, early Q4 indications suggest we will be able to maintain our momentum and close a successful and profitable year," concluded Mr. Haran.
The following provides details on Cimatron's GAAP and non-GAAP results for the third quarter and first nine months of 2011:
GAAP:
Revenues for the third quarter of 2011 were $9.6 million, compared to $8.7 million recorded in the third quarter of 2010. For the first nine months of 2011, revenues were $28.5 million, compared to $25.1 million in the same period of 2010.
Gross Profit for the third quarter of 2011 was $8.3 million as compared to $7.3 million in the same period in 2010. Gross margin in the third quarter of 2011 constituted 87% of revenues, compared to a gross margin constituting 84% of revenues in the same quarter of 2010. For the first nine months of 2011, gross profit was $24.6 million, compared to $20.8 million during the same period of 2010. Gross margin for the nine months ended on September 30th, 2011 constituted 86% of revenues compared to a gross margin constituting 83% of revenues in the first nine months of 2010.
Operating profit in the third quarter of 2011 was $0.7 million as compared to $0.5 million in the third quarter of 2010. In the first nine months of 2011, Cimatron recorded an operating profit of $2.2 million as compared to $0.7 million in the first nine months of 2010.
Net Profit for the third quarter of 2011 was $0.0 million, or $0.00 per diluted share, compared to $0.3 million, or $0.04 per diluted share recorded in the same quarter of 2010. In the first nine months of 2011, net profit was $1.2 million, or $0.13 per diluted share, compared to $0.5 million, or $0.06 per diluted share, in the first nine months of 2010.
Non-GAAP:
Revenues for the third quarter of 2011 were $9.6 million, compared to $8.7 million recorded in the third quarter of 2010. For the first nine months of 2011, revenues were $28.5 million, compared to $25.1 million in the same period of 2010.
Gross Profit for the third quarter of 2011 was $8.5 million as compared to $7.5 million in the same period in 2010. Gross margin in the third quarter of 2011 constituted 88% of revenues, compared to a gross margin constituting 85% of revenues in the same quarter of 2010. For the first nine months of 2011, gross profit was $25.0 million, compared to $21.3 million in the same period of 2010. Gross margin for the nine months ended on September 30th, 2011 constituted 88% of revenues compared to a gross margin constituting 85% of revenues in the first nine months of 2010.
Operating profit in the third quarter of 2011 was $1.0 million as compared to $0.7 million in the third quarter of 2010. For the first nine months of 2011, Cimatron recorded an operating profit of $3.0 million as compared to $1.5 million for the first nine months of 2010.
Net Profit for the third quarter of 2011 was $0.8 million, or $0.09 per diluted share, compared to 0.9 million, or $0.10 per diluted share, recorded in the same quarter of 2010. For the first nine months of 2011, net profit was $2.9 million, or $0.31 per diluted share, compared to $1.4 million, or $0.15 per diluted share, for the first nine months of 2010.
Conference Call
Cimatron's management will host a conference call today, November 10th, 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: +1-888-668-9141
International: +972-3-9180610
Israel: 03-9180610
For those unable to listen to the live call, a replay of the call will be available 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 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, 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 Nine months
ended ended
September 30, September 30,
2011 2010 2011 2010
Total revenue 9,619 8,745 28,488 25,061
Total cost of revenue 1,288 1,419 3,906 4,242
Gross profit 8,331 7,326 24,582 20,819
Research and development
expenses, net 1,654 1,493 4,708 4,322
Selling, general and
administrative expenses 5,928 5,354 17,654 15,771
Operating income 749 479 2,220 726
Financial income (expenses),
net (163) 236 (9) 54
Taxes on income (566) (376) (988) (256)
Other 1 1 (9) (7)
Net income 21 340 1,214 517
Less: Net (income) loss
attributable to the
noncontrolling interest (14) (20) 13 (19)
Net income attributable to
Cimatron's shareholders $ 7 $ 320 $ 1,227 $ 498
Net income per share - basic
and diluted $ 0.00 $ 0.04 $ 0.13 $ 0.06
Weighted average number of shares
outstanding
Basic EPS (in thousands) 9,300 8,961 9,235 9,014
Diluted EPS (in thousands) 9,315 8,961 9,284 9,014
CIMATRON LIMITED
RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
(US Dollars in thousands, except for per share data)
Three months ended September 30,
2011 2010
GAAP Adj. NON-GAAP GAAP Adj. NON-GAAP
Total
revenue 9,619 - 9,619 8,745 - 8,745
Total cost of
revenue (1) 1,288 (147) 1,141 1,419 (147) 1,272
Gross
profit 8,331 147 8,478 7,326 147 7,473
Research and
development
expenses, net 1,654 - 1,654 1,493 - 1,493
Selling, general and
administrative
expenses (1) 5,928 (99) 5,829 5,354 (99) 5,255
Operating
income 749 246 995 479 246 725
Financial income
(expenses), net (163) - (163) 236 - 236
Taxes on
income (2) (566) 565 (1) (376) 308 (68)
Other 1 - 1 1 - 1
Net income 21 811 832 340 554 894
Less: Net (income)
loss attributable
to the
noncontrolling
interest (14) - (14) (20) - (20)
Net income
attributable to
Cimatron's
shareholders $ 7 $ 811 $ 818 $ 320 $ 554 $ 874
Net income per
share - basic and
diluted $ 0.00 $ 0.09 $ 0.04 $ 0.10
Weighted average
number of shares
outstanding
Basic EPS (in
thousands) 9,300 9,300 8,961 8,961
Diluted EPS
(in
thousands) 9,315 9,315 8,961 8,961
CIMATRON LIMITED
CONSOLIDATED STATEMENTS OF INCOME
(US Dollars in thousands, except for per share data)
continued
Nine months ended September 30,
2011 2010
GAAP Adj. NON-GAAP GAAP Adj. NON-GAAP
Total
revenue 28,488 - 28,488 25,061 - 25,061
Total cost of
revenue (1) 3,906 (441) 3,465 4,242 (441) 3,801
Gross
profit 24,582 441 25,023 20,819 441 21,260
Research and
development
expenses, net 4,708 - 4,708 4,322 - 4,322
Selling, general and
administrative
expenses (1) 17,654 (303) 17,351 15,771 (297) 15,474
Operating
income 2,220 744 2,964 726 738 1,464
Financial income
(expenses), net (9) - (9) 54 - 54
Taxes on
income (2) (988) 887 (101) (256) 126 (130)
Other (9) - (9) (7) - (7)
Net income 1,214 1,631 2,845 517 864 1,381
Less: Net (income)
loss attributable
to the
noncontrolling
interest 13 - 13 (19) - (19)
Net income
attributable to
Cimatron's
shareholders $ 1,227 $ 1,631 $ 2,858 $ 498 $ 864 $ 1,362
Net income per
share - basic and
diluted $ 0.13 $ 0.31 $ 0.06 $ 0.15
Weighted average
number of shares
outstanding
Basic EPS (in
thousands) 9,235 9,235 9,014 9,014
Diluted EPS
(in
thousands) 9,284 9,284 9,014 9,014
(1) Non-GAAP adjustment to exclude non-cash amortization of acquired
intangible assets.
(2) Non-GAAP adjustment to exclude the effect of deferred taxes and other
non-cash tax provisions.
CIMATRON LIMITED
CONSOLIDATED BALANCE SHEETS
(US Dollars in thousands)
September 30, December 31,
2011 2010
ASSETS
CURRENT ASSETS:
Total cash, cash
equivalents and
short-term investments $ 11,550 $ 10,221
Trade receivables 5,060 5,708
Other current assets 1,989 2,275
Total current assets 18,599 18,204
Deposits with insurance
companies and severance
pay fund 3,149 3,279
Net property and
equipment 1,044 949
Total other assets 11,796 12,469
Total assets $ 34,588 $ 34,901
LIABILITIES AND
SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES:
Short-term bank credit $ 91 $ 99
Trade payables 1,430 1,685
Accrued expenses and
other liabilities 7,935 8,260
Deferred revenues 4,168 2,275
Total current
liabilities 13,624 12,319
LONG-TERM LIABILITIES:
Accrued severance pay 4,218 4,297
Long-term loan 53 98
Deferred tax liability 729 1,002
Total long-term
liabilities 5,000 5,397
Total shareholders'
equity 15,964 17,185
Total liabilities and
shareholders' equity $ 34,588 $ 34,901
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,
2010 $ (74) $ 304 $ 18,275 $ (265)
Changes during the nine months ended
September 30, 2011:
Net income
(loss) (13)
Cash dividend paid
Exercise of share options 9 724
Unrealized loss on derivative
instruments (296)
Other 75
Foreign currency translation
adjustment 269
Total comprehensive income
Balance at
September
30, 2011 $ (87) $ 313 $ 18,999 $ (217)
CIMATRON LIMITED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(US Dollars in thousands)
continued
Retained
earnings Comprehensive Total
(accumulated Treasury income shareholders'
deficit) stock (loss) equity
Balance at
December 31,
2010 $ (303) $ (752) $ 17,185
Changes during the nine
months ended
September 30, 2011:
Net income
(loss) 1,227 1,214 1,214
Cash
dividend
paid (3,216) (3,216)
Exercise of share options 733
Unrealized loss on derivative
instruments (296) (296)
Other 75 75
Foreign currency translation
adjustment 269 269
Total comprehensive income 1,262
Balance at
September
30, 2011 $ (2,292) $ (752) $ 15,964
CIMATRON LIMITED
STATEMENTS OF CASH FLOWS
(US Dollars in thousands)
Nine months
ended
September 30,
2011 2010
Cash flows from operating activities:
Net income $ 1,214 $ 517
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 1,042 1,131
Decrease in accrued severance pay (56) (7)
Loss from sale of property and
equipment, net - 5
Stock option compensation - 45
Deferred taxes, net 561 176
Changes in assets and
liabilities:
Decrease in accounts receivable and
prepaid expenses 23 114
Decrease (increase) in
inventory (6) 3
Decerase (increase) in deposits with
insurance companies and severance pay
fund 130 (191)
Increase in trade payables, accrued
expenses and other liabilities 1,210 2,540
Net cash provided by operating
activities 4,118 4,333
Cash flows from investing activities:
Purchase of property and equipment (282) (271)
Net cash used in investing activities (282) (271)
Cash flows from financing activities:
Short-term bank credit (5) (367)
Long-term bank credit (35) (66)
Cash dividend paid (3,216) -
Proceeds from issuance of shares upon
exercise of options 733 11
Investment in treasury stock - (210)
Net cash provided by financing
activities (2,523) (632)
Net increase in cash and cash
equivalents 1,313 3,430
Effect of exchange rate changes on
cash 16 59
Cash and cash equivalents at
beginning of period 10,221 6,684
Cash and cash equivalents at end of
period $ 11,550 $ 10,173
Appendix A - Non-cash transactions
Purchase of property
on credit $ 119 $ 28
Contact:
Ilan Erez, Chief Financial Officer
Cimatron Ltd.
Tel.; +972-73-237-0114
E-mail: [email protected]
SOURCE Cimatron Ltd
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