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."
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