Search:
 

Cimatron Reports Record Revenues of $12.2M and Record Non-GAAP Operating Profit of $2.2M in Q4/11

 
 

$40.7M Annual Revenues and $5.1M Record Annual Non-GAAP Operating Profit in 2011

GIVAT SHMUEL, Israel, February 29, 2012 /PRNewswire/ --

Cimatron Limited (NASDAQ and TASE: CIMT), a leading provider of integrated CAD/CAM software solutions for the toolmaking and manufacturing industries, today announced financial results for the fourth quarter and full year of 2011.  

Highlights of Cimatron's results for these periods include the following:

  • Record quarterly revenues and non-GAAP operating profit of $12.2M and $2.2M, respectively
  • Record Non-GAAP operating and net profit in full 2011 - $5.1M and $4.5M, respectively
  • $0.48 non-GAAP earnings per share in full year 2011
  • 54% year-over-year non-GAAP net profit increase in 2011
  • 20% year-over-year new license revenue growth in 2011, on a constant currency basis

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, noted "We are delighted with the Q4 and full year results. Strong license sales of both product lines, CimatronE and GibbsCAM, continue to push Cimatron to record results as the global manufacturing markets continue to stabilize. We remain committed to our long-term strategy of bringing best-in-class solutions for tool makers and discrete part manufacturers. We believe that our uncompromising commitment to end-user value and productivity is well rewarded by customer loyalty, resulting in all-time record maintenance revenues in 2011. There is still much to be done, and we look forward for another exciting year of innovation in 2012," concluded Mr. Haran.

The following provides details on Cimatron's GAAP and non-GAAP results for the fourth quarter and full year 2011:

GAAP:

Revenues for the fourth quarter of 2011 increased by 11% to $12.2 million, from $11 million recorded in the fourth quarter of 2010. In the full year ended December 31, 2011, revenues increased by 13% to $40.7 million, from $36.1 million in 2010.  

Gross Profit for the fourth quarter of 2011 was $10.7 million as compared to $9.4 million in the same quarter of 2010. Gross margin in the fourth quarter of 2011 constituted 88% of revenues, compared to 85% in the same quarter of 2010. In 2011 as a whole, gross profit was $35.3 million, compared to $30.2 million in 2010, and gross margin constituted 87% of revenues, compared to 84% in 2010.

Operating profit increased by 37% in the fourth quarter of 2011, to $1.9 million, from $1.4 million in the fourth quarter of 2010. In 2011 as a whole, operating profit increased by 94% to $4.1 million, from $2.1 million in 2010.  

Net Profit for the fourth quarter of 2011 was $1.4 million, or $0.15 per diluted share, compared to a net profit of $1.1 million, or $0.12 per diluted share, recorded in the same quarter of 2010.  In 2011 as a whole, net profit was $2.7 million, or $0.29 per diluted share, compared to $1.6 million, or $0.18 per diluted share, in 2010.  

Non-GAAP:

Revenues for the fourth quarter of 2011 increased by 11% to $12.2 million, from $11 million recorded in the fourth quarter of 2010. In the full year ended December 31, 2011, revenues increased by 13% to $40.7 million, from $36.1 million in 2010.  

Gross Profit for the fourth quarter of 2011 was $10.9 million, as compared to $9.5 million in the corresponding quarter of 2010. Gross margin in the fourth quarter of 2011 constituted 89% of revenues, compared to 86% in the same quarter of 2010. In 2011 as a whole, gross profit was $35.9 million, compared to $30.8 million in 2010, and gross margin constituted 88% of revenues, compared to 85% in 2010.

Operating Profit increased by 31% in the fourth quarter of 2011 to $2.2 million, from $1.7 million in the fourth quarter of 2010. In 2011 as a whole, the operating profit increased by 65% to $5.1 million, from $3.1 million in 2010.  

Net profit for the fourth quarter of 2011 was $1.6 million, or $0.18 per diluted share, compared to a net profit of $1.6 million, or $0.17 per diluted share, recorded in the same quarter of 2010. In 2011 as a whole, net profit increased by 54% to $4.5 million, or $0.48 per diluted share, compared to $2.9 million, or $0.32 per diluted share, in 2010.  

Conference Call

Cimatron's management will host a conference call today, February 29th, 2012 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: +972-3-9180609

Israel: 03-9180609

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 and other 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 30 years of experience and more than 40,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM software 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 and ultimately shorten product delivery time.

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

Cimatron's shares are publicly traded on the NASDAQ exchange and the TASE under the symbol CIMT. For more information, please visit Cimatron's 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 risk and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to Cimatron'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 Cimatron'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, market demand for Cimatron products and services, long sales cycles, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties related to Cimatron's business, refer to Cimatron's filings with the Securities and Exchange Commission. Cimatron 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          Twelve months ended
                                            December 31,                December 31,
                                         2011           2010         2011            2010
 
    Total revenue                      12,226         11,013       40,714          36,074
 
    Total cost of revenue               1,477          1,634        5,383           5,876
 
    Gross profit                       10,749          9,379       35,331          30,198
 
    Research and development expenses, 
    net                                 2,031          1,692        6,739           6,014
 
    Selling, general and administrative 
    expenses                            6,799          6,282       24,453          22,053
    Operating income                    1,919          1,405        4,139           2,131
 
    Financial income (expenses), net     (186)            43         (195)             97
 
    Taxes on income                      (339)          (401)      (1,327)           (657)
 
    Other                                   3              1           (6)             (6)
 
    Net income                          1,397          1,048        2,611           1,565
 
    Less: Net (income) loss 
    attributable to the
    noncontrolling interest                44             45           57              26
 
    Net income attributable to 
    Cimatron's shareholders           $ 1,441        $ 1,093      $ 2,668         $ 1,591
    Net income per share - 
    basic and diluted                  $ 0.15         $ 0.12       $ 0.29          $ 0.18
 
    Weighted average number of 
    shares outstanding
 
      Basic EPS (in thousands)          9,300          8,959        9,252           9,000
 
      Diluted EPS (in thousands)        9,315          8,983        9,292           9,000


                                            CIMATRON LIMITED
                            RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
                            (US Dollars in thousands, except for per share data)
 
                                       Three months ended                          
                                          December 31,                              
                                    2011                          2010                
                        GAAP      Adj.       NON-GAAP    GAAP      Adj.    NON-GAAP 
 
    Total revenue        12,226        -         12,226    11,013        -     11,013 
 
    Total cost of
    revenue (1)           1,477     (147)         1,330     1,634     (147)     1,487
 
    Gross profit         10,749      147         10,896     9,379      147      9,526
 
     Research and
     development
     expenses, net        2,031        -          2,031     1,692        -      1,692 
 
     Selling,general
     and administrative
     expenses (1)         6,799      (99)         6,700     6,282      (99)     6,183 
    Operating income      1,919      246          2,165     1,405      246      1,651  
 
     Financial income
     expenses),net         (186)       -           (186)       43        -         43  
 
     Taxes on
     income (2)            (339)     (44)          (383)     (401)     221       (180) 
 
    Other                     3        -              3         1        -          1  
 
    Net income            1,397      202          1,599     1,048      467      1,515   
 
      Less: Net(income)
      loss attributable
      to the noncontrolling
      interest               44        -             44        45        -         45  
 
    Net income attributable
    to Cimatron's
    shareholders        $ 1,441    $ 202        $ 1,643   $ 1,093    $ 467    $ 1,560  
    Net income per
    share - basic        $ 0.15                  $ 0.18    $ 0.12              $ 0.17 
    Net income per
    share - diluted      $ 0.15                  $ 0.18    $ 0.12              $ 0.17  
 
    Weighted average number
    of shares outstanding
 
     Basic EPS
     (in thousands)      9,300                   9,300     8,959               8,959 
 
     Diluted EPS
     (in thousands)      9,315                   9,315     8,983               8,983 
    (table continued)
                                    Twelve months ended
                                         December 31,
                                    2011                          2010
                        GAAP      Adj.       NON-GAAP    GAAP      Adj.    NON-GAAP
 
    Total revenue        40,714        -        40,714      36,074        -     36,074
 
    Total cost of
    revenue (1)           5,383     (588)        4,795       5,876     (588)     5,288
 
    Gross profit         35,331      588        35,919      30,198      588     30,786
 
     Research and
     development
     expenses, net        6,739        -         6,739       6,014        -      6,014
 
     Selling,general
     and administrative
     expenses (1)        24,453     (402)       24,051      22,053     (396)    21,657
    Operating income      4,139      990         5,129       2,131      984      3,115
 
     Financial income
    (expenses),net         (195)       -          (195)         97        -         97
 
     Taxes on income(2)  (1,327)     843          (484)       (657)     347       (310)
 
     Other                   (6)       -            (6)         (6)       -         (6)
  
    Net income            2,611    1,833         4,444       1,565    1,331      2,896
 
     Less: Net(income)
     loss attributable
     to the noncontrolling
     interest                57        -            57          26        -         26
 
    Net income
    attributable
    to Cimatron's
    shareholders        $ 2,668  $ 1,833       $ 4,501     $ 1,591  $ 1,331    $ 2,922
    Net income per
    share - basic        $ 0.29                 $ 0.49      $ 0.18              $ 0.32
    Net income per
    share -
    diluted              $ 0.29                 $ 0.48      $ 0.18              $ 0.32
 
    Weighted average 
    number of shares
    outstanding
      Basic EPS
      (in thousands)      9,252                  9,252       9,000               9,000
      Diluted EPS
      (in thousands)      9,292                  9,292       9,000               9,000

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


                                                       CIMATRON LIMITED
                                                  CONSOLIDATED BALANCE SHEETS
                                                   (US Dollars in thousands)
 
                                                    December 31,              December 31,
                                                         2011                      2010
 
         ASSETS 
                                                       
    CURRENT ASSETS:
     Total cash, cash equivalents and 
     short-term investments                            $ 11,787                  $ 10,221
     Trade receivables                                    5,840                     5,708
     Other current assets                                 1,452                     2,275
      Total current assets                               19,079                    18,204
 
      Deposits with insurance companies 
      and severance pay fund                              3,069                     3,279
 
      Net property and equipment                          1,009                       949
 
      Total other assets                                 11,365                    12,469
 
        Total assets                                   $ 34,522                  $ 34,901
 
        LIABILITIES AND SHAREHOLDERS' EQUITY
                                           
    CURRENT LIABILITIES:
     Short-term bank credit                                $ 87                      $ 99
     Trade payables                                       1,072                     1,685
     Accrued expenses and other liabilities               9,048                     8,260
     Deferred revenues                                    2,403                     2,275
      Total current liabilities                          12,610                    12,319
 
    LONG-TERM LIABILITIES:
     Accrued severance pay                                4,135                     4,297
     Long-term loan                                           6                        98
     Deferred tax liability                                 639                     1,002
      Total long-term liabilities                         4,780                     5,397
 
    Total shareholders' equity                           17,132                    17,185
       Total liabilities and 
       shareholders' equity                            $ 34,522                  $ 34,901
 


                                          CIMATRON LIMITED
                           STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                     (US Dollars in thousands)
 
                                                                          
                                                                   Accumulated 
                                                                     other                                                       
                                              Additional         comprehensive           
               Noncontrolling     Share        paid-in               income 
                 Interest         capital       capital              (loss) 
               
    Balance at
    December 31,
    2010            $ (74)         $ 304       $ 18,275             $ (265)
    Changes
    during the
    twelve months
    ended
    December 31,
    2011:
    Net income
    (loss)            (57)                               
    Cash dividend
    paid                                             
    Exercise of
    share options                      9            724           
    Unrealized
    loss on
    derivative
    instruments                                                       (431) 
    Other                                                             (109)
    Foreign
    currency
    translation
    adjustment                                                         359 
    Total
    comprehensive
    income                                           
    Balance at
    December 31,
    2011           $ (131)         $ 313       $ 18,999             $ (446)
    (table continued)
                                           
                                                                       
                  Retained               
                  earnings                 Comprehensive       Total                
                (accumulated    Treasury      income       shareholders'
                  deficit)        stock        (loss)         equity
               
    Balance at
    December 31,
    2010            $ (303)      $ (752)                     $ 17,185
    Changes
    during the
    twelve months
    ended
    December 31,
    2011:
    Net income
    (loss)           2,668                      2,611           2,611
    Cash dividend
    paid            (3,216)                                    (3,216)
    Exercise of
    share options                                                 733
    Unrealized
    loss on
    derivative
    instruments                                  (431)           (431)
    Other                                        (109)           (109)
    Foreign
    currency
    translation
    adjustment                                    359             359
    Total
    comprehensive
    income                                      2,430
    Balance at
    December 31,
    2011            $ (851)      $ (752)                     $ 17,132


                                                CIMATRON LIMITED
                                            STATEMENTS OF CASH FLOWS
                                           (US Dollars in thousands)
 
                                                                      Twelve months
                                                                         ended
                                                                       December 31,
                                                                  2011          2010
 
    Cash flows from operating activities:
                                                                                                          
    Net income                                                  $ 2,611       $ 1,565
 
    Adjustments to reconcile net income
     to net cash provided by operating activities:
    Depreciation and amortization                                 1,376         1,512
    Increase (decrease) in accrued severance pay                   (135)          228
    Loss from sale of property and equipment, net                     -             8
    Stock option compensation                                         -            60
    Deferred taxes, net                                             504           406
 
    Changes in assets and liabilities:
    Decrease in accounts receivable and prepaid expenses           (222)         (583)
    Decrease in inventory                                            (2)           13
    Decrease (increase) in deposits with insurance 
    companies and severance pay fund                                210          (344)
    Increase in trade payables, accrued 
    expenses and other liabilities                                  228         1,908
    Net cash provided by operating activities                     4,570         4,773
 
    Cash flows from investing activities:
    Purchase of property and equipment                             (428)         (384)
    Net cash used in investing activities                          (428)         (384)
 
    Cash flows from financing activities:
    Short-term bank credit                                          (10)         (340)
    Long-term bank credit                                           (87)          (98)
    Cash dividend paid                                           (3,216)            -
    Proceeds from issuance of shares 
    upon exercise of options                                        733            11
    Investment in treasury stock                                      -          (210)
    Net cash used in financing activities                        (2,580)         (637)
 
    Net increase in cash and cash equivalents                     1,562         3,752
    Effect of exchange rate changes on cash                           4          (215)
    Cash and cash equivalents at beginning of period             10,221         6,684
                                                                                                          
    Cash and cash equivalents at end of period                 $ 11,787      $ 10,221
 
    Appendix A - Non-cash transactions
             Purchase of property on credit                        $ 19          $ 68


Contact:
Ilan Erez, Chief Financial Officer      
Cimatron Ltd.        
Tel.; +972-73-237-0114    
E-mail: ilane@cimatron.com

SOURCE Cimatron Ltd

Back to top