Cimatron Reports Net Profit for Q2 2010

$3.9 Million Positive Cash Flow From Operating Activities in the First Half of 2010, a 19% Year-Over-Year Increase; Operating Results in the First Six Months of 2010 Improved by $1.1M Year-Over-Year

GIVAT SHMUEL, Israel, August 10, 2010 — (PRNewswire) — Cimatron Limited (NASDAQ: CIMT) ("Cimatron" or the "Company"), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced financial results for the second quarter of 2010.

The following provides details on Cimatron's GAAP and non-GAAP results for the second quarter and first six months of 2010:

GAAP:

Revenues for the second quarter of 2010 were $8.4 million, compared to $8.1 million recorded in the second quarter of 2009. For the first six months of 2010, revenues were $16.3 million, compared to $16.0 million in the same period of 2009.

Gross Income for the second quarter of 2010 was $6.8 million as compared to $6.6 million in the same period in 2009. Gross margin in the second quarter of 2010 was 81% of revenues, same as in the second quarter of 2009. For the first six months of 2010, gross income was $13.5 million, compared to $12.9 million in the same period of 2009. Gross margin for the six months ended on June 30th, 2010 was 83% compared to a gross margin of 81% in the first six months of 2009.

Operating profit in the second quarter of 2010 was $350 thousand, compared to an operating loss of $(317) thousand in the second quarter of 2009. In the first six months of 2010, Cimatron recorded an operating profit of $247 thousand, compared to an operating loss of $(829) thousand in the first six months of 2009.

Net Profit for the second quarter of 2010 was $278 thousand, or $0.03 per diluted share, compared to a net loss of $(83) thousand, or $(0.01) per diluted share recorded in the same quarter of 2009. In the first six months of 2010 net profit was $178 thousand, or $0.02 per diluted share, compared to a net loss of $(646) thousand, or $(0.07) per diluted share, in the first six months of 2009.

Non-GAAP:

Revenues for the second quarter of 2010 were $8.4 million, compared to $8.1 million recorded in the second quarter of 2009. For the first six months of 2010, revenues were $16.3 million, compared to $16.0 million in the same period of 2009.

Gross Income for the second quarter of 2010 was $7.0 million as compared to $6.7 million in the same period in 2009. Gross margin in the second quarter of 2010 was 83% of revenues, same as in the second quarter of 2009. In the first six months of 2010, gross income was $13.8 million, compared to $13.2 million in the first six months of 2009. Gross margin for the six months ended on June 30th, 2010 was 84%, compared to 83% in the first six months of 2009.

Operating Profit in the second quarter of 2010 was $596 thousand, compared to an operating loss of $(70) thousand in the second quarter of 2009. In the first six months of 2010, Cimatron reports an operating profit of $739 thousand, compared to operating loss of $(335) thousand in the first six months of 2009.

Net profit for the second quarter of 2010 was $433 thousand, or $0.05 per diluted share, compared to a net profit of $73 thousand, or $0.01 per diluted share recorded in the same quarter of 2009. In the first six months of 2010, net profit was $488 thousand, or $0.05 per diluted share, compared to a net loss of $(332) thousand, or $(0.04) per diluted share, in the first six months of 2009.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said "We are very pleased with the second quarter results. The market trends from the first quarter continue and even intensify to some extent. We see improvement over last year and over the first quarter of 2010, in spite of less favorable currency exchange rates. Market conditions in most key territories seem to be improving, although the short-term economic outlook is still unclear. The budget control measures that we took during 2009 now translate directly to our bottom line, as we expected. We remain committed to investing and promoting our two product lines, CimatronE and GibbsCAM, and keep looking for additional M&A opportunities", concluded Mr. Haran.

Conference Call

Cimatron's management will host a conference call tomorrow, August 11th, 2010 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 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 25 years of experience and more than 40,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM 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, enable collaboration with outside vendors, and ultimately shorten product delivery time.

The Cimatron product line includes the CimatronE and GibbsCAM brands with solutions for mold design, die design, electrodes design, 2.5 to 5 axes 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.

1 | 2 | 3  Next Page »



Review Article Be the first to review this article
SolidCAM: Check out hundreds of success stories & testimonials


Editorial
Jeff RoweJeff's MCAD Blogging
by Jeff Rowe
The CAx Cloud Becoming More Than Vapor
Jobs
Application Engineer for DesignPoint Solutions at Clark, NJ
GIS Analyst for RAMTeCH at Stillwater, MN
Senior Project Manager for RAMTeCH at Stillwater, MN
Geospatial Sales Manager, Sr. for Harris Corporation at Palm Bay, FL
Upcoming Events
SOLIDWORKS Electrical Hands-on Test Drive - GoEngineer/Santa Clara at GoEngineer - Santa Clara 3350 Scott Blvd. Bldg 44 Santa Clara CA - Apr 7, 2015
SOLIDWORKS Hands on Test Drive - Santa Ana - GoEngineer at GoEngineer - Santa Ana 1231 E. Dyer Road, Ste 150 Santa Ana CA - Apr 10, 2015
SOLIDWORKS Handson Test Drive - San Diego - GoEngineer at GoEngineer - San Diego 16880 West Bernardo Drive, Suite #140 San Diego CA - Apr 10, 2015
SOLIDWORKS Hands on Test Drive - Salt Lake City - GoEngineer at GoEngineer - Salt Lake City 1787 Fort Union Blvd. Suite #100 Salt Lake City UT - Apr 10, 2015
Delcam: PartMaker FeatureCAM PowerMILL Decam for Solidwork Vortex
Application Engineer



Internet Business Systems © 2015 Internet Business Systems, Inc.
595 Millich Dr., Suite 210, Campbell, CA 95008
+1 (408) 850-9202 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy Advertise