Cimatron Ltd. Reports Q4 And FY 2005 Results

GIVAT SHMUEL, Israel, February 21 /PRNewswire-FirstCall/ -- Cimatron Limited (NASDAQ: CIMT), a leading provider of integrated, quoting-to-delivery CAD/CAM solutions for the tooling industry, today announced financial results for the fourth quarter and full year ended December 31, 2005.

Revenues for the fourth quarter of 2005 were $5.42 million, compared to $6.40 million in the fourth quarter of 2004. Net loss for the fourth quarter of 2005 was $(1.72) million, or $(0.22) per fully diluted share, compared to a net loss of $(249) thousand, or $(0.03) per fully diluted share in the fourth quarter of 2004.

Revenues for the year ended December 31, 2005 were $20.92 million, compared to $23.16 million in 2004. Net loss in 2005 was $(4.59) million, or $(0.59) per fully diluted share, compared to a net loss of $(388) thousand, or $(0.05) per fully diluted share in 2004.

Danny Haran, President and Chief Executive Officer of Cimatron, said: "As we previously announced, during the fourth quarter of 2005 we completed the re-organization plan we began in the second half of the year. All costs relating to this reorganization were expensed in 2005, mostly in the fourth quarter. This plan included cost reductions on the one hand, but also additional investment in sales and marketing on the other hand. The reorganization did not have any effect on our R&D plans nor on our worldwide customer support and services."

"The Cimatron Quoting to Delivery strategy was well accepted in North America, resulting in positive revenues momentum - over 30% revenues growth in two years in North America. We also saw positive revenues momentum in the Asia Pacific region. We believe that this momentum, together with the August 2005 release of CimatronE version 7.0 featuring significant new solutions such as the NC Lite shop-floor solution, the first commercially available Micro Milling NC application, and advanced 5-axis milling, will help us to show better results in 2006 and beyond."

About Cimatron

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 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 the future performance and involve risks and uncertainties, many of which are beyond the company'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 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. The company 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.

    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       Year
                                                     ended          ended
                                                  December 31,  December 31,
                                               2005    2004      2005    2004

    Total revenue                             5,425   6,403    20,925  23,163

    Total cost of revenue                     1,885   1,252     4,935   4,601

    Gross profit                              3,540   5,151    15,990  18,562

    Research and development                    863   1,608     4,815   5,554
    expenses, net

    Selling, general and                      4,406   3,944    15,650  13,962
    administrative expenses

    Operating income (loss)                 (1,729)   (401)   (4,475)   (954)

    Net income (loss)                     $ (1,720) $ (249) $ (4,593) $ (388)

    Net income (loss) per share - basic    $ (0.22) $ (0.03) $ (0.59) $(0.05)
    and diluted

    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)

                                                                                                                      December    December
                                                                                                                          31,                31,
                                                                                                                          2005            2004

                                                                          ASSETS
        CURRENT  ASSETS:
              Total  cash,  cash  equivalents  and  short-terms                $  4,875      $  8,092
              investments
              Other  current  assets                                                                    5,377          6,902
                      Total  current  assets                                                          10,252        14,994

                      Deposits  with  insurance  companies  and                          2,219          2,946
                      severance  pay  fund

                      Long-term  investments                                                          2,195                  -

                      Net  property  and  equipment                                                    996          1,073

                      Total  other  assets                                                                    780          1,791
                              Total  assets                                                              $  16,442    $  20,804

                                                      LIABILITIES  AND  SHAREHOLDERS'
                                                                              EQUITY
        CURRENT  LIABILITIES:

              Total  current  liabilities                                                      $  5,924      $  4,688

              Accrued  severance  pay                                                                  2,532          3,268

              Minority  interest                                                                                  4                  -

              Total  shareholders'  equity                                                        7,982        12,848
                              Total  liabilities  and  shareholders'
                              equity                                                                          $  16,442    $  20,804

 


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