Cimatron Reports Net Profit for Q2 2010

Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. For more information, please visit the company 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 risks 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 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 that relate to the Company's business, refer to the Company's filings with the Securities and Exchange 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.

                                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,
                              2010          2009          2010          2009

    Total revenue            8,399         8,123        16,316        15,966
    Total cost of revenue    1,572         1,539         2,823         3,047
    Gross profit             6,827         6,584        13,493        12,919
    Research and development
     expenses, net           1,344         1,477         2,829         2,892
    Selling, general and
     administrative expenses 5,133         5,424        10,417        10,856
    Operating income (loss)    350          (317)          247          (829)
    Financial income
     (expenses), net          (130)          132          (182)           (9)
    Taxes on income             63            85           120           166
    Other                      (9)             -            (8)            3
    Net income (loss)          274          (100)          177          (669)
    Less: Net loss
     attributable to the
     noncontrolling interest     4            17             1            23
    Net income (loss)
     attributable to
     Cimatron's shareholders $ 278         $ (83)        $ 178        $ (646)
    Net income (loss)
     per share - basic and
     diluted                $ 0.03       $ (0.01)       $ 0.02       $ (0.07)
    Weighted average number
     of shares outstanding
    Basic EPS (in thousands) 9,048         9,181         9,041         9,202
    Diluted EPS (in
     thousands)              9,048         9,181         9,041         9,202



                            CIMATRON LIMITED
                RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
                  (US Dollars in thousands, except for per share data)

                                     Three months ended June 30,
                                 2010                          2009
                         GAAP    Adj.    NON-GAAP    GAAP     Adj.   NON-GAAP

    Total revenue       8,399       -       8,399   8,123        -       8,123
        Total  cost  of
        revenue  (1)                  1,572        (147)            1,425      1,539          (147)          1,392
        Gross  profit                6,827          147              6,974      6,584            147            6,731
        Research  and
          development
          expenses,  net            1,344              -              1,344      1,477                -          1,477
        Selling,
          general  and
          administrative
          expenses  (1)              5,133          (99)            5,034      5,424          (100)        5,324

        Operating  income
          (loss)                              350          246                  596      (317)            247            (70)
        Financial  income
        (expenses),  net            (130)            -                (130)      132                  -            132
        Taxes  on  income  (2)        63          (91)                (28)        85              (91)            (6)
        Other                                    (9)            -                    (9)          -                  -                -
        Net  income  (loss)          274          155                  429        (100)          156              56
        Less:  Net  loss
        attributable  to  the
        noncontrolling
        interest                                4              -                      4            17                -              17
        Net  income  (loss)
          attributable  to
          Cimatron's
          shareholders              $  278      $  155              $  433      $  (83)      $  156          $  73
        Net  income
          (loss)  per  share
          -  basic  and
          diluted                      $  0.03                            $  0.05  $  (0.01)                      $  0.01
        Weighted  average  number  of  shares  outstanding
          Basic  EPS
          (in  thousands)          9,048                              9,048      9,181                          9,181
        Diluted  EPS
        (in  thousands)            9,048                              9,048      9,181                          9,181


        (Table  Continued)


                                                                          Six  months  ended  June  30,
                                                                  2010                                                    2009
                                                  GAAP        Adj.        NON-GAAP        GAAP          Adj.      NON-GAAP

        Total  revenue            16,316              -            16,316    15,966                -        15,966
        Total  cost  of
        revenue  (1)                  2,823        (294)            2,529      3,047          (294)        2,753
        Gross  profit              13,493          294            13,787    12,919            294        13,213
        Research  and
          development
          expenses,  net            2,829              -                2,829      2,892              -          2,892
        Selling,
          general  and
          administrative
          expenses  (1)            10,417        (198)            10,219    10,856        (200)      10,656
        Operating  income
          (loss)                              247          492                    739        (829)        494            (335)
        Financial  income
        (expenses),  net            (182)            -                (182)            (9)            -                (9)
        Taxes  on  income  (2)      120        (182)                (62)          166        (180)            (14)
        Other                                    (8)            -                    (8)              3              -                  3
        Net  income  (loss)          177          310                  487          (669)        314            (355)
        Less:  Net  loss
        attributable  to  the
        noncontrolling
        interest                                1              -                      1              23              -                23
        Net  income  (loss)
          attributable  to
          Cimatron's
          shareholders              $  178      $  310              $  488      $  (646)    $  314        $  (332)
        Net  income
          (loss)  per  share
          -  basic  and
          diluted                      $  0.02                            $  0.05    $  (0.07)                    $  (0.04)
        Weighted  average  number  of  shares  outstanding
        Basic  EPS
          (in  thousands)          9,041                              9,041        9,202                          9,202
        Diluted  EPS
          (in  thousands)          9,041                              9,041        9,202                          9,202

        (1)  Non-GAAP  adjustment  to  exclude  non-cash  amortization  of  acquired
                intangible  assets.
        (2)  Non-GAAP  adjustment  to  exclude  the  effect  of  deferred  taxes.




                                              CIMATRON  LIMITED
                                  CONSOLIDATED  BALANCE  SHEETS
                                    (US  Dollars  in  thousands)

                                                                                                              June  30,    December  31,
                                                                                                                    2010                    2009

                                                      ASSETS
        CURRENT  ASSETS:
              Total  cash,  cash  equivalents  and  short-term          $  9,229              $  6,684
              investments
              Trade  receivables                                                                  5,375                  5,422
              Other  current  assets                                                            3,085                  3,308
                      Total  current  assets                                                  17,689                15,414
                      Deposits  with  insurance  companies  and                  2,903                  2,935
                      severance  pay  fund
                      Net  property  and  equipment                                            805                  1,046
                      Total  other  assets                                                      12,663                13,285
                              Total  assets                                                      $  34,060            $  32,680


                                                      LIABILITIES  AND  SHAREHOLDERS'
                                                      EQUITY
        CURRENT  LIABILITIES:
              Short-term  bank  credit                                                          $  82                  $  456
              Trade  payables                                                                        1,484                  1,064
              Accrued  expenses  and  other  liabilities                        6,715                  6,991
              Deferred  revenues                                                                  5,450                  2,397
                      Total  current  liabilities                                        13,731                10,908

        LONG-TERM  LIABILITIES:
              Accrued  severance  pay                                                          3,970                  4,104
              Long-term  loan                                                                            132                      204
              Deferred  tax  liability                                                        1,184                  1,365
              Total  long-term  liabilities                                              5,286                  5,673

              Total  shareholders'  equity                                              15,043                16,099
                              Total  liabilities  and  shareholders'        $  34,060            $  32,680
                              equity




                                                          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,  2009        $  (48)          $  304      $  18,204                  $  75

        Changes  during  the  six  months
        ended  June  30,  2010:
        Net  income  (loss)                                    (1)
        Exercise  of  share  options                                            -                  11
        Unrealized  loss  on  derivative                                                                              (292)
        instruments
        Other                                                                                                                              (109)
        Stock  option  compensation                                                                29
        Investment  in  treasury  stock
        Foreign  currency  translation                                                                                (672)
        adjustment
        Total  comprehensive  loss
        Balance  at  June  30,  2010                $  (49)          $  304      $  18,244              $  (998)




                                                            Retained    Treasury  Comprehensive                    Total
                                                            earnings          stock                income    shareholders'
                                                        (accumulated                                (loss)                  equity
                                                              deficit)

        Balance  at  December
        31,  2009                                      $  (1,894)  $  (542)                                        $  16,099

        Changes  during  the  six  months
        ended  June  30,  2010:
        Net  income  (loss)                              178                                      177                        177
        Exercise  of  share                                                                                                          11
        options
        Unrealized  loss  on  derivative                                                (292)                    (292)
        instruments
        Other                                                                                                (109)                    (109)
        Stock  option                                                                                                                    29
        compensation
        Investment  in  treasury                                  (200)                                                (200)
        stock
        Foreign  currency  translation                                                  (672)                    (672)
        adjustment
        Total  comprehensive  loss                                                          (896)
        Balance  at  June  30,  2010      $  (1,716)  $  (742)                                        $  15,043




                                                                      CIMATRON  LIMITED
                                                            STATEMENTS  OF  CASH  FLOWS
                                                            (US  Dollars  in  thousands)

                                                                                                                            Six  months
                                                                                                                                  ended
                                                                                                                                June  30,
                                                                                                                      2010                  2009

        Cash  flows  from  operating  activities:
        Net  income                                                                                        $  177              $  (669)
        (loss)
        Adjustments  to  reconcile  net  loss
        to  net  cash  provided  by  operating  activities:
        Depreciation                                                                                        777                    832
        and
        amortization
        Increase  (decrease)  in  accrued  severance  pay                        (81)                    62
        Stock  option                                                                                          29                      36
        compensation
        Deferred                                                                                            (127)                  (165)
        taxes,  net
        Changes  in
        assets  and
        liabilities:
        Decrease  (increase)  in  accounts  receivable  and                (391)                    953
        prepaid  expenses
        Decrease                                                                                                    1                  (148)
        (increase)  in
        inventory
        Decrease  (increase)  in  deposits  with  insurance                      32                  (125)
        companies  and  severance  pay  fund
        Increase  in  trade  payables,  accrued  expenses                    3,513                2,534
        and  other  liabilities
        Net  cash  provided  by  operating  activities                          3,930                3,310
        Cash  flows  from  investing  activities:
        Purchase  of  property  and  equipment                                          (55)                  (166)
        Net  cash  used  in  investing  activities                                    (55)                  (166)
        Cash  flows  from  financing  activities:
        Short-term  bank                                                                              (358)                    (39)
        credit
        Long-term                                                                                            (61)                  (101)
        bank
        credit
        Proceeds  from  issuance  of  shares  upon  exercise                      11                        -
        of  options
        Investment  in                                                                                  (200)                    (95)
        treasury  stock
        Net  cash  used  in  financing  activities                                  (608)                  (235)
        Net  increase  in  cash  and  cash  equivalents                          3,267                2,909
        Effect  of  exchange  rate  changes  on  cash                              (722)                    (41)
        Cash  and  cash  equivalents  at  beginning  of                          6,684                5,727
        period
        Cash  and  cash  equivalents  at  end  of  period                    $  9,229            $  8,595
        Appendix  A  -  Non-cash  transactions
        Purchase  of  property  on  credit                                                  $  17                    $  5


        Contact:
        Ilan  Erez,  Chief  Financial  Officer
        Cimatron  Ltd.
        Tel:  +972-3-531-2121
        E-mail:  ilane@cimatron.com

 




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