FOR
R IMMEDIA
ATE RELEASE
Cim
matron Reports
s Revenues off $9.6M
M and
Non-G
GAAP O
Operatiing Pro
ofit of $1
1.0M in Q3/11
Giva
at Shmuel,, Israel, – Novemberr 10th, 2011– Cimatro
on Limited
d (NASDAQ
Q and
TAS
SE: CIMT), a leading provider off integrated
d CAD/CAM
M software solutions ffor the
financial re
toolm
making and
d manufactu
uring industrries, today announced
a
esults for the
e third
quarrter and first nine months of 2011.
High
hlights of Cimatron’s re
esults for the
ese periods include the
e following:

$0.31 no
on-GAAP earnings
e
pe
er share for the first n
nine months of 2011

110% ye
ear-over-ye
ear non-GA
AAP net pro
ofit increas
se for the
first nin
ne months of 2011

15% yea
ar-over-yea
ar new license revenu
ue growth in Q3/11, on
n a constan
nt
currenc
cy basis
mmenting on the results, Danny Haran, Pre
esident and
d Chief Exe
ecutive Officer of
Com
Cimatron, noted
d “We are vvery please
ed to report strong resu
ults for the third quarte
er and
first 9 months of 2011. T
The new lice
ense year-o
over-year re
evenue gro
owth is especially
satissfying when
n recalling tthat last year’s Q3 wa
as an excep
ptional third
d quarter in many
wayys. We are getting verry positive feedback o
on the new
w product vversions, bo
oth for
CimatronE and for GibbsC
CAM. While economic u
uncertainty remains ve
ery high, ea
arly Q4
indiccations suggest we will be able to
o maintain our momen
ntum and cllose a succcessful
and profitable yyear,” conclu
uded Mr. Ha
aran.
Conttact:
Ilan Erez, Chief F
Financial Offiicer
Cima
atron Ltd.
Tel.; 972-73-237--0114
ail: ilane@cim
matron.com
E-ma
1
e following
g provides
s details o
on Cimatro
on’s GAAP
P and non
n-GAAP re
esults
The
for the third quarter
q
an
nd first nin
ne months of 2011:
AP:
GAA
Rev
venues for the third q
quarter of 2
2011 were $9.6 million
n, compare
ed to $8.7 million
reco
orded in the
e third quartter of 2010.. For the firsst nine mon
nths of 2011, revenuess were
$28.5 million, co
ompared to
o $25.1 millio
on in the sa
ame period o
of 2010.
Gross Profit fo
or the third q
quarter of 20
011 was $8
8.3 million ass compared
d to $7.3 million in
od in 2010. Gross marg
gin in the th
hird quarterr of 2011 co
onstituted 8
87% of
the same perio
reve
enues, comp
pared to a gross
g
margin constitutin
ng 84% of rrevenues in the same q
quarter
of 2010. For th
he first nine months of 2011, grosss profit wass $24.6 milllion, compa
ared to
$20.8 million du
uring the sa
ame period of 2010. Gross
G
margin
n for the nin
ne months ended
on S
September 30th, 2011 constituted
d 86% of revenues
r
co
ompared to
o a gross m
margin
consstituting 83%
% of revenu
ues in the firrst nine mon
nths of 2010
0.
Ope
erating pro
ofit in the third quarter of 2011 was
w
$0.7 m
million as ccompared to
o $0.5
millio
on in the th
hird quarter of 2010. In
n the first niine months of 2011, C
Cimatron reccorded
an operating
o
prrofit of $2.2 million as ccompared to
o $0.7 millio
on in the first nine mon
nths of
2010
0.
Net Profit for the third qu
uarter of 20
011 was $0
0.0 million, or $0.00 p
per diluted share,
com
mpared to $0.3 million, or $0.04 per
p diluted share recorrded in the same quarter of
2010
0. In the first nine mo
onths of 201
11, net proffit was $1.2 million, or $0.13 per d
diluted
sharre, compare
ed to $0.5 m
million, or $0.06
$
per diluted share
e, in the firsst nine mon
nths of
2010
0.
Non
n-GAAP:
Rev
venues for the third q
quarter of 2
2011 were $9.6 million
n, compare
ed to $8.7 million
reco
orded in the
e third quartter of 2010.. For the firsst nine mon
nths of 2011, revenuess were
$28.5 million, co
ompared to
o $25.1 millio
on in the sa
ame period o
of 2010.
Gross Profit fo
or the third q
quarter of 20
011 was $8
8.5 million ass compared
d to $7.5 million in
the same perio
od in 2010. Gross marg
gin in the th
hird quarterr of 2011 co
onstituted 8
88% of
reve
enues, comp
pared to a gross
g
margin constitutin
ng 85% of rrevenues in the same q
quarter
of 2010. For th
he first nine months of 2011, grosss profit wass $25.0 milllion, compa
ared to
$21.3 million in
n the same period of 2
2010. Grosss margin for the nine m
months end
ded on
September 30tth, 2011 co
onstituted 8
88% of revvenues com
mpared to a gross m
margin
consstituting 85%
% of revenu
ues in the firrst nine mon
nths of 2010
0.
Ope
erating pro
ofit in the third quarter of 2011 was
w
$1.0 m
million as ccompared to
o $0.7
millio
on in the th
hird quarter of 2010. Fo
or the first n
nine monthss of 2011, C
Cimatron reccorded
an o
operating prrofit of $3.0 million as ccompared to
o $1.5 millio
on for the firrst nine mon
nths of
2010
0.
Conttact:
Ilan Erez, Chief F
Financial Offiicer
Cima
atron Ltd.
Tel.; 972-73-237--0114
ail: ilane@cim
matron.com
E-ma
2
Net Profit for the third qu
uarter of 20
011 was $0
0.8 million, or $0.09 p
per diluted share,
com
mpared to 0.9 million, or
o $0.10 pe
er diluted sshare, recorrded in the same quarter of
2010
0. For the ffirst nine months of 20
011, net profit was $2.9
9 million, or $0.31 per d
diluted
sharre, compare
ed to $1.4 m
million, or $
$0.15 per diluted share
e, for the firsst nine mon
nths of
2010
0.
Con
nference Ca
all
Cimatron's man
nagement w
will host a conference
c
ccall today, N
November 1
10th, 2011 a
at 9:00
EST
T, 16:00 Isra
ael time. On
n the call, managementt will review and discusss the resultts, and
will answer
a
que
estions by in
nvestors.
To p
participate, please call one of the following te
eleconferen
ncing numbe
ers. Please begin
placcing your call at least 5 minutes before the con
nference ca
all commencces.
68-9141
USA:: +1-888-66
Internatio
onal: +972-3
3-9180610
Isra
ael: 03-9180610
For those unab
ble to listen to the live call, a replay of the call will be a
available fro
om the
day after the call at the investo
or relationss section of
o Cimatro
on's websitte, at:
w.cimatron.ccom
www
Recconciliation b
between ressults on a G
GAAP and Non-GAAP
P basis is prrovided in a table
imm
mediately following the Consolidated Statem
ments of Inccome includ
ded herein.. NonGAA
AP financia
al measuress consist o
of GAAP financial me
easures adjjusted to in
nclude
reco
ognition of d
deferred revvenues of a
acquired com
mpanies an
nd to exclud
de amortization of
acqu
uired intang
gible assetts and defferred incom
me tax, ass well as certain bussiness
com
mbination an
nd other acccounting enttries. The pu
urpose of su
uch adjustm
ments is to g
give an
indiccation of ou
ur performa
ance exclusive of non-cash charg
ges and oth
her items th
hat are
conssidered by management to be outtside of ourr core opera
ating resultss. Our non-GAAP
finan
ncial measu
ures are no
ot meant to
o be consid
dered in iso
olation or ass a substitu
ute for
com
mparable GA
AAP measu
ures, and sh
hould be read in conjunction with our consollidated
finan
ncial statem
ments prepared in accorrdance with GAAP.
Our managem
ment regularly uses o
our supplem
mental non
n-GAAP financial mea
asures
interrnally to understand, manage a
and evaluatte our bussiness and make ope
erating
deciisions. We believe
b
thatt these non--GAAP mea
asures help
p investors tto understan
nd our
current and futu
ure operatin
ng performa
ance, especially as our two most re
ecent acquissitions
have
e resulted in
n amortization and
Conttact:
Ilan Erez, Chief F
Financial Offiicer
Cima
atron Ltd.
Tel.; 972-73-237--0114
ail: ilane@cim
matron.com
E-ma
3
non--cash itemss that have had
h a mate
erial impact on our GAA
AP results. These
T
non-GAAP
finan
ncial measu
ures may difffer materia
ally from the
e non-GAAP
P financial measures
m
ussed by
othe
er companie
es.
Abo
out Cimatro
on
With
h over 28 ye
ears of expe
erience and more than 40,000 insta
allations wo
orldwide,
Cimatron is a le
eading proviider of integ
grated, CAD
D/CAM softw
ware solutions for mold, tool
and die makerss as well as manufacturrers of discrrete parts. C
Cimatron is committed
c
tto
provviding comp
prehensive, cost-effectivve solutionss that stream
mline manuffacturing cyycles
and ultimately shorten
s
prod
duct deliveryy time.
The Cimatron p
product line includes the
e CimatronE
E and GibbssCAM brand
ds with softw
ware
solu
utions for mo
old design, die
d design, electrode design, 2.5 to 5 Axis millling, wire E
EDM,
turn, Mill-turn, rrotary milling
g, multi-taskk machining
g, and tombsstone mach
hining. Cima
atron's
subssidiaries and
d extensive
e distribution
n network se
erve and support customers in the
auto
omotive, aerrospace, me
edical, conssumer plastics, electron
nics, and oth
her industrie
es in
overr 40 countrie
es worldwid
de.
Cimatron's sharres are publicly traded on the NAS
SDAQ excha
ange and th
he TASE under
the symbol
s
CIM
MT. For more
e informatio
on, please vvisit Cimatro
on’s web site
e at:
http
p://www.cim
matron.com
m
Safe
e Harbor Sttatement
This
s press rele
ease includ
des forward
d looking statements,
s
, within the
e meaning o
of the
Priv
vate Securiities Litigattion Reform
m Act of 199
95, which a
are subjectt to risk and
d
unc
certainties tthat could c
cause actu
ual results tto differ ma
aterially fro
om those
antiicipated. Su
uch statem
ments may rrelate to Cim
imatron’s p
plans, objec
ctives and
expected finan
ncial and op
perating re
esults. The words "ma
ay," "could
d," "would,""
“willl,” "believe
e," "anticip
pate," "estim
mate," "exp
pect," "inte
end," "plan,," and simiilar
exprressions or variations
s thereof arre intended
d to identify
fy forward-llooking
stattements. Investors are
e cautioned
d that any s
such forwa
ard-looking
g statementts are
not guarantees
s of future performan
nce and inv
volve risks and
a
uncerttainties, ma
any of
whic
ch are beyo
ond Cimatrron’s ability
y to contro
ol. The risks
s and unce
ertainties th
hat
may
y affect forw
ward lookin
ng stateme
ents include
e, but are n
not limited to: currenc
cy
fluc
ctuations, g
global econ
nomic and p
political co
onditions, marketing
m
d
demand forr
Cim
matron prod
ducts and s
services, lo
ong sales cy
ycles, new
w product de
evelopmen
nt,
assiimilating fu
uture acquiisitions, ma
aintaining rrelationship
ps with cus
stomers an
nd
parttners, and increased
i
c
competition. For more
re details ab
bout the ris
sks and
unc
certainties rrelated to C
Cimatron’s business, refer to Cim
matron’s fil
ilings with the
t
Sec
curities and
d Exchange
e Commission. Cimatrron cannott assess the
e impact off or
the extent to which
w
any s
single facto
or or risk, o
or combination of them
m, may cau
use.
Cim
matron unde
ertakes no obligation to publicly
y update orr revise any
y forward
look
king statem
ments, whether as a re
esult of new
w informatiion, future events or
othe
erwise.
Conttact:
Ilan Erez, Chief F
Financial Offiicer
Cima
atron Ltd.
Tel.; 972-73-237--0114
ail: ilane@cim
matron.com
E-ma
4
CIMATRON LIMITED
CONSOLIDATED STATEMENTS OF INCOME
(US Dollars in thousands, except for per share data)
Three months ended
September 30,
2011
2010
Nine months ended
September 30,
2011
2010
Total revenue
9,619
8,745
28,488
25,061
Total cost of revenue
1,288
1,419
3,906
4,242
Gross profit
8,331
7,326
24,582
20,819
Research and development expenses, net
1,654
1,493
4,708
4,322
Selling, general and administrative expenses
5,928
5,354
17,654
15,771
749
479
2,220
726
Financial income (expenses), net
(163)
236
Taxes on income
(566)
(376)
Operating income
Other
Net income
Less: Net (income) loss attributable to the noncontrolling interest
Net income attributable to Cimatron's shareholders
1
1
21
340
(14)
(20)
(9)
54
(988)
(256)
(9)
(7)
1,214
13
517
(19)
$7
$ 320
$ 1,227
$ 498
$ 0.00
$ 0.04
$ 0.13
$ 0.06
Basic EPS (in thousands)
9,300
8,961
9,235
9,014
Diluted EPS (in thousands)
9,315
8,961
9,284
9,014
Net income per share - basic and diluted
Weighted average number of shares outstanding
CIMATRON LIMITED
RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
(US Dollars in thousands, except for per share data)
Three months ended
September 30,
2011
Adj.
GAAP
Total revenue
9,619
Total cost of revenue (1)
1,288
Gross profit
NON-GAAP
2010
Adj.
GAAP
9,619
8,745
(147)
1,141
1,419
8,331
147
8,478
Research and development expenses, net
1,654
-
Selling, general and administrative expenses (1)
5,928
Operating income
749
-
Nine months ended
September 30,
(99)
246
28,488
(147)
1,272
3,906
7,326
147
7,473
1,654
1,493
-
5,829
5,354
995
479
Financial income (expenses), net
(163)
-
(163)
(566)
565
(1)
Net income
Less: Net (income) loss attributable to the noncontrolling interest
Net income attributable to Cimatron's shareholders
1
4,242
(441)
3,801
24,582
441
25,023
20,819
441
21,260
1,493
4,708
-
4,708
4,322
-
4,322
17,654
(303)
17,351
15,771
725
2,220
744
2,964
726
-
236
(68)
340
554
894
1,214
(14)
-
(14)
(20)
-
(20)
13
$7
$ 811
Basic EPS (in thousands)
9,300
Diluted EPS (in thousands)
9,315
$ 554
1
(9)
(988)
832
$ 0.09
-
NON-GAAP
3,465
5,255
308
2010
Adj.
(441)
811
$ 0.00
-
GAAP
25,061
1
$ 320
NON-GAAP
246
236
(376)
$ 818
Net income per share - basic and diluted
(99)
2011
Adj.
28,488
1
21
-
-
GAAP
8,745
Taxes on income (2)
Other
NON-GAAP
887
(9)
$ 874
$ 1,227
$ 0.04
$ 0.10
9,300
8,961
9,315
8,961
-
1,631
$ 1,631
(9)
-
25,061
(297)
15,474
738
1,464
54
-
(101)
(256)
126
(9)
(7)
2,845
517
864
13
(19)
-
-
$ 864
54
(130)
(7)
1,381
(19)
$ 2,858
$ 498
$ 1,362
$ 0.13
$ 0.31
$ 0.06
$ 0.15
8,961
9,235
9,235
9,014
9,014
8,961
9,284
9,284
9,014
9,014
Weighted average number of shares outstanding
(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)
September 30,
2011
December 31,
2010
$
$
ASSETS
CURRENT ASSETS:
Total cash, cash equivalents and short-term investments
Trade receivables
Other current assets
Total current assets
11,550
5,060
1,989
10,221
5,708
2,275
18,599
18,204
Deposits with insurance companies and severance pay fund
3,149
3,279
Net property and equipment
1,044
949
11,796
12,469
Total other assets
Total assets
$
34,588
$
34,901
$
91
1,430
7,935
4,168
13,624
$
99
1,685
8,260
2,275
12,319
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term bank credit
Trade payables
Accrued expenses and other liabilities
Deferred revenues
Total current liabilities
LONG-TERM LIABILITIES:
Accrued severance pay
Long-term loan
Deferred tax liability
4,218
53
729
4,297
98
1,002
Total long-term liabilities
5,000
5,397
Total shareholders’ equity
15,964
17,185
Total liabilities and shareholders’ equity
$
34,588
$
34,901
CIMATRON LIMITED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(US Dollars in thousands)
Balance at December 31, 2010
Changes during the nine months
September 30, 2011:
Net income (loss)
Cash dividend paid
Exercise of share options
Unrealized loss on derivative instruments
Other
Foreign currency translation adjustment
Total comprehensive income
Balance at September 30, 2011
Noncontrolling
Interest
$
(74)
Share
capital
$
304
Additional
paid-in
capital
$
18,275
Accumulated
other
comprehensive
income (loss)
$
(265)
Retained
earnings
(accumulated
deficit)
$
(303)
Treasury
stock
$
(752)
Comprehensive
income (loss)
Total
shareholders’
equity
$
17,185
ended
(13)
1,227
(3,216)
9
1,214
724
(296)
75
269
$
(87)
$
313
1,214
(3,216)
733
(296)
75
269
$
18,999
$
(217)
(296)
75
269
1,262
$
(2,292)
$
(752)
$
15,964
CIMATRON LIMITED
STATEMENTS OF CASH FLOWS
(US Dollars in thousands)
Nine months ended
September 30,
2011
2010
Cash flows from operating activities:
Net income
$
1,214
$
517
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization
Decrease in accrued severance pay
Loss from sale of property and equipment, net
Stock option compensation
Deferred taxes, net
1,042
(56)
561
1,131
(7)
5
45
176
Changes in assets and liabilities:
Decrease in accounts receivable and prepaid expenses
Decrease (increase) in inventory
Decerase (increase) in deposits with insurance companies and severance pay fund
Increase in trade payables, accrued expenses and other liabilities
Net cash provided by operating activities
23
(6)
130
1,210
4,118
114
3
(191)
2,540
4,333
(282)
(282)
(271)
(271)
Cash flows from financing activities:
Short-term bank credit
Long-term bank credit
Cash dividend paid
Proceeds from issuance of shares upon exercise of options
Investment in treasury stock
Net cash provided by financing activities
(5)
(35)
(3,216)
733
(2,523)
(367)
(66)
11
(210)
(632)
Net increase in cash and cash equivalents
Effect of exchange rate changes on cash
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
$
1,313
16
10,221
11,550
$
3,430
59
6,684
10,173
Appendix A - Non-cash transactions
Purchase of property on credit
$
119
$
28
Cash flows from investing activities:
Purchase of property and equipment
Net cash used in investing activities