Micha Ronen, Chief Financial Officer of Cimatron, commented, "Cimatron's positive 2002 results are in line with our consistent improvements after three successive years of losses (last profitable year was 1998). Cimatron succeeded in turning 2002 into a break even year, which is due, in part, to operational amendments and continued investment in our marketing channels."
Fourth quarter revenues increased by 17.7% to $5.891 million, compared with revenues of $5 million for the third quarter of 2002, and $6.861 million in Q4 2001, a decrease of 14.1%. Revenues for the full year 2002 were $21.628 million, a decrease of 5.8%, compared with $22.954 million in 2001. The quarterly gross profit in Q4 2002 was $4.514 million (76.6% of revenues), compared with $4.297 million (62.6% of revenues) in Q4 2001, in keeping with the Company's improved gross profit of $16.611 million in 2002 (76.8% of revenues), compared with $15.640 million in 2001 (68.1% of revenues).
The efficiency measures taken by the Company were reflected in overall operating expenses. R&D and SG&A expenses were down by 7.5% to $4.715 million in Q4 2002, compared with $5.099 million for the same quarter in 2001.
For the full year 2002, R&D and SG&A expenses were down by 15.3% to $17.232 million, compared with $20.337 million for 2001.
As a result of the improved gross margin and the overall decrease in expenses, the operating income for Q4 2002 was $49K, compared with an operating loss of $1.052 million in Q4 2001. For the full year 2002, operating loss was $371K compared with an operating loss of $4.947 million for 2001.
Nitzan Sapir, President and CEO of Cimatron, commented, "In 2002, we focused on enhancing and strengthening our flagship solution, Cimatron E, and we launched our new QuickNC solution worldwide. Despite a minor decrease in revenue, we continued to invest in our marketing channels. We established two new subsidiaries, in China and in the UK, added new Cimatron distributors in Poland and in Mexico, and formed a new joint venture with JY Solutec, Korea's largest moldmaker. Faced with worldwide recession and uncertain times, Cimatron's positive results for 2002 mark a turning point for the company, and we are confident that they will boost our business opportunities and prospects."
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission.
Company Contact: Micha Ronen, CFO Cimatron Ltd. Phone: +972-3-531-2121 Email: Email Contact CIMATRON LIMITED CONSOLIDATED BALANCE SHEETS (in thousands) December 31, December 31, 2002 2001 (audited) (audited) ASSETS CURRENT ASSETS: Total Cash, cash equivalents and short-terms investments $8,094 $8,974 Other current assets 7,005 6,957 Total current assets 15,099 15,931 Deposits with insurance companies and severance pay fund 2,638 2,642 Net property and equipment 997 1,287 Investment in affiliate 43 -- Total other assets 2,594 2,995 Total assets $21,371 $22,855 LIABILITIES AND SHAREHOLDERS' EQUITY Total current liabilities 4,238 5,091 Accrued severance pay 2,974 3,222 Total shareholders' equity 14,159 14,542 Total liabilities and shareholders' equity $21,371 $22,855 CIMATRON LIMITED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) Three months ended Year ended December 31, December 31, 2002 2001 2002 2001 (unaudited) (audited) Total revenue $5,891 $6,861 $21,628 $22,954 Total cost of revenue 1,377 2,564* 5,017 7,314* Gross profit 4,514 4,297 16,611 15,640 Research and development expenses, net 1,428 1,703* 5,562 7,626* Restructuring costs (250) 250 (250) 250 Selling, general and administrative expenses 3,287 3,396* 11,670 12,711* Operating income (loss) 49 (1,052) (371) (4,947) Net income (loss) $34 $(1,128) $10 $(5,658) Net income (loss) per share -- $(0.14) -- $(0.71) *Reclassified Weighted average number of shares outstanding 7,921 8,001 7,981 8,001
CONTACT: Micha Ronen, CFO of Cimatron Ltd., +972-3-531-2121,