Cimatron Reports Improved Fourth Quarter Results; Positive Net Income in Q4 and Year End 2002
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Cimatron Reports Improved Fourth Quarter Results; Positive Net Income in Q4 and Year End 2002

GIVAT SHMUEL, Israel, Feb. 26 /PRNewswire-FirstCall/ -- Cimatron Ltd. , a leading developer of CAD/CAM solutions for the tooling industry, today announced a net profit $34K for the fourth quarter 2002 compared with a net loss of $1.128 million for the fourth quarter of 2001. For the full year 2002, net profit was $10K compared with a net loss of $5.658 million for 2001.

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,
Email Contact