Revenues for the second quarter of 2005 were $5.03 million, compared to $6.10 million in the second quarter of 2004. Net loss for the second quarter of 2005 was $1.29 million, or $(0.17) per fully diluted share, compared to a net profit of $202 thousand, or $0.03 per fully diluted share in the second quarter of 2004.
Revenues for the first half of 2005 were $10.60 million, compared to $11.48 million in the first half of 2004. Net loss for the first half of 2005 was $2.27 million, or $(0.29) per fully diluted share, compared to a net profit of $212 thousands, or $0.03 per fully diluted share in the first half of 2004.
Commenting on the second quarter results, Danny Haran, President and Chief Executive Officer of Cimatron, said: "The main reason for the net loss in the second quarter of 2005 is the decrease in sales, attributed mainly to the challenging environment in the Euro Zone economy. We are taking measures to adjust our expense level to current market conditions. At the same time, we will continue to enhance our sales and marketing efforts worldwide."
Cimatron is the leading provider of integrated, quoting-to-delivery CAD/CAM solutions for the tooling industry. Cimatron is committed to providing mold, tool and die makers with comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time. Worldwide, more than 8,500 customers, with installations in the automotive, consumer plastics, and electronics industries, employ Cimatron's cutting-edge CAD/CAM solutions for manufacturing.
Founded in 1982, Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. Cimatron's subsidiaries and extensive distributor network are located in over 35 countries to serve customers worldwide with complete pre- and post-sales support.
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 the company's plans, objectives and expected financial and operating results. 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 cycle, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings, with the Securities and Exchanges Commission. 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 Ilan Erez, CFO Cimatron Ltd. +972-3-531-2121 Email Contact 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, 2005 2004 2005 2004 (Unaudited) (Unaudited) Total revenue 5,033 6,107 10,605 11,477 Total cost of revenue 1,043 1,238 2,114 2,344 Gross profit 3,990 4,869 8,491 9,133 Research and development expenses, net 1,285 1,309 2,756 2,553 Selling, general and administrative expenses 3,902 3,499 7,918 6,598 Operating income (loss) (1,197) 61 (2,183) (18) Net income (loss) $ (1,293) $ 202 $ (2,274) $ 212 Net income (loss) per share - basic and diluted $ (0.17) $ 0.03 $ (0.29) $ 0.03 Weighted average number of shares outstanding - basic and diluted EPS (in thousands) 7,835 7,835 7,835 7,835 CIMATRON LIMITED CONSOLIDATED BALANCE SHEETS (US Dollars in thousands) June 30, December 31, 2005 2004 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Total cash, cash equivalents and short-terms investments $ 7,832 $ 8,092 Other current assets 6,552 6,902 Total current assets 14,384 14,994 Deposits with insurance companies and severance pay fund 2,496 2,946 Long-term investments 815 - Net property and equipment 1,060 1,073 Total other assets 1,591 1,791 Total assets $ 20,346 $ 20,804 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Total current liabilities $ 6,903 $ 4,688 Accrued severance pay 2,834 3,268 Minority interest 32 - Total shareholders' equity 10,577 12,848 Total liabilities and shareholders' equity $ 20,346 $ 20,804