FOR
R IMMEDIA
ATE RELEA
ASE
Cimatroon Repoorts Revvenues of $9.9M
M and Noon-GAA
AP
Operatting Proofit of $11.1M in Q1 20122
- Business mom
mentum conttinues with 13% revenue increase oveer the first qu
uarter of last year,
on a coonstant curreency basis
- Declares divideend of NIS 0.78
0. (approxiimately US$00.204) per sh
hare
ASDAQ and
d TASE: CIM
MT), a
Givaat Shmuel, IIsrael, – Mayy 17th, 2012–– Cimatron Limited (NA
leadiing provideer of integrrated CAD//CAM softw
ware solutioons for thee toolmakinng and
manuufacturing inndustries, todday announceed financial results for thee first quarterr of 2012.
Highhlights of Cim
matron’s resuults for this pperiod includee the followiing:
Record first
f
quarterr non-GAAP
P operating aand net proffit of $1.1M and $1.0M,,
respectivvely
$0.11 noon-GAAP eaarnings per sshare
69% yeaar-over-yearr non-GAAP
P operating p
profit increaase in Q1 2012
17% yeaar-over-yearr new licensee revenue grrowth in Q1 2012, on a cconstant currrency
basis
$2.4M p
positive cash flow from operating
o
acctivities
Conccurrently witth the announncement of itts results, Cim
matron todayy also declareed a cash dividend
of NIS
N 0.78 (approximately U
US$0.204) peer share on ouutstanding orrdinary sharees, representiing a
totall dividend paayment of appproximately $1.9
$
million..
The dividend is ppayable on Juune 25, 2012 to shareholdders of recordd at the closee of business on
Junee 4, 2012.
Com
mmenting on the results, Danny Haraan, Presidentt and Chief E
Executive Officer of Cim
matron,
notedd “We are haappy to reporrt another strrong quarter. As global manufacturing
m
g activity conntinues
to exxpand, we arre able to groow our businness in all terrritories and across all prroduct lines. While
we rremain cautioous in light oof the recentt political devvelopments iin Europe, w
we are happyy to see
stronng business iin our key European
E
maarkets, namely Germany and Italy, aas well as inn North
Ameerica and Asiia.”
Conttact:
Ilan Erez, Chief F
Financial Offiicer
Cima
atron Ltd.
Tel.; 972-73-237--0114
E-ma
ail: ilane@cim
matron.com
1
“Wee believe thee strong yearr-over-year ggrowth of liccense sales rreflects our strong comppetitive
posittion in our taarget marketts, and our abbility to trannslate productt innovation into new buusiness.
Moreeover, we weere able to coonvert the revvenue growthh into strongg cash flow annd strong operating
profi
fit growth, m
making this quarter
q
the bbest-ever Q1 in terms off non-GAAP
P operating and
a net
profi
fit.” concludeed Mr. Harann.
The
e following
g provides
s details o
on Cimatro
on’s GAAP
P and non
n-GAAP re
esults
for the first quarter of 2
2012:
GAA
AP:
Reveenues for thhe first quartter of 2012 increased byy 11% to $99.9 million, from $8.9 million
m
recorrded in the fiirst quarter of 2011.
Gross Profit forr the first quuarter of 2012 was $8.5 million as coompared to $7.5 millionn in the
samee quarter of 2011. Grosss margin in the first quaarter of 20122 constitutedd 86% of revvenues,
comppared to 85%
% in the samee quarter of 22011.
Operating profi
fit increased by 110% inn the first quuarter of 2012, to $0.9 million, from
m $0.4
milliion in the firsst quarter of 22011.
Net Profit for the first quarteer of 2012 waas $0.8 millioon, or $0.09 per
p diluted shhare, comparred to a
p
of $0.3 million, or $$0.04 per diluuted share, reecorded in thhe same quartter of 2011.
net profit
Non
n-GAAP:
Reveenues for thhe first quartter of 2012 increased byy 11% to $99.9 million, from $8.9 million
m
recorrded in the fiirst quarter of 2011.
Gross Profit forr the first quuarter of 2012 was $8.6 million,
m
as ccompared to $7.7 millionn in the
m
in thee first quarteer of 2012 cconstituted 87%
8
of
correesponding quuarter of 2011. Gross margin
revennues, the sam
me as in the first
f
quarter of
o 2011.
Operating Profiit increased bby 69% in thhe first quarteer of 2012 to $1.1 millionn, from $0.7 million
m
in thhe first quarteer of 2011.
Net profit for thee first quarter of 2012 waas $1.0 millioon, or $0.11 pper diluted shhare, comparred to a
p
of $0.88 million, or $$0.08 per diluuted share, reecorded in thhe same quartter of 2011.
net profit
Conttact:
Ilan Erez, Chief F
Financial Offiicer
Cima
atron Ltd.
Tel.; 972-73-237--0114
E-ma
ail: ilane@cim
matron.com
2
Con
nference Calll
Cimaatron's manaagement willl host a confference call today, May 17th, 2012 aat 9:00 EDT,, 16:00
Israeel time. On the call, m
management w
will review and discusss the resultss, and will aanswer
quesstions by inveestors.
To participate,
p
pplease call onne of the following telecconferencing numbers. Pllease begin pplacing
yourr call at least 5 minutes beefore the connference call commences.
USA
A: +1-888-281-1167
Internatiional: +972-33-9180644
Isrrael: 03-91800644
For tthose unablee to listen to the live call,, a replay of the call will be availablee from the daay after
the call
c at the invvestor relationns section off Cimatron's website,
w
at: w
www.cimatroon.com
Recoonciliation between
b
resuults on a G
GAAP and non-GAAP basis is prrovided in a table
imm
mediately folllowing the Consolidatedd Statementss of Incomee included herein.
h
Non--GAAP
finanncial measurres consist oof GAAP ffinancial measures adjussted to incluude recognittion of
deferrred revenuees of acquireed companiees and to exxclude amorrtization of aacquired intaangible
assetts and deferrred income tax, as well as certain bbusiness com
mbination and other accoounting
entriies. The purppose of such adjustments is to give ann indication oof our perform
mance excluusive of
non--cash chargess and other items
i
that arre consideredd by manageement to be outside
o
of ouur core
operrating results. Our non-G
GAAP financiial measures are not meaant to be connsidered in isolation
or ass a substitutee for comparrable GAAP measures, aand should bbe read in coonjunction with
w our
conssolidated finaancial statements preparedd in accordannce with GAA
AP.
Our managemennt regularly uuses our suppplemental nnon-GAAP fi
financial meaasures internnally to
undeerstand, mannage and evaaluate our buusiness and m
make operatting decisionns. We believve that
thesee non-GAAP
P measures help investtors to understand our current andd future operating
perfoormance, esppecially as ouur two most rrecent acquissitions have rresulted in am
mortization annd
non--cash items thhat have hadd a material im
mpact on ourr GAAP resuults. These noon-GAAP finnancial
meassures may differ materially from the non-GAAP
n
fi
financial meaasures used byy other comppanies.
About Cimatron
n
Withh 30 years off experience aand more thaan 40,000 insstallations woorldwide, Cim
matron is a leeading
provvider of integrated, CAD/C
CAM softwaare solutions for mold, toool and die maakers as welll as
manuufacturers off discrete parrts. Cimatron is committedd to providinng comprehennsive, costeffecctive solutionns that stream
mline manufaacturing cyclees and ultimaately shortenn product deliivery
time.
Conttact:
Ilan Erez, Chief F
Financial Offiicer
Cima
atron Ltd.
Tel.; 972-73-237--0114
E-ma
ail: ilane@cim
matron.com
3
The Cimatron prooduct line includes the CiimatronE andd GibbsCAM
M brands withh software
wire EDM, tuurn,
soluttions for molld design, diee design, elecctrode designn, 2.5 to 5 Axxis milling, w
Mill-turn, rotary milling, mullti-task machhining, and toombstone machining. Cim
matron's
subsidiaries and eextensive disstribution nettwork serve aand support ccustomers in the automotiive,
aerospace, mediccal, consumerr plastics, eleectronics, andd other indusstries in over 40 countriess
worlldwide.
Cimaatron's shares are publiclyy traded on thhe NASDAQ
Q exchange aand the TASE
E under the ssymbol
CIM
MT. For more information, please visit Cimatron’s web site at: h
http://www.cimatron.coom
Safee Harbor Statement
Thiss press releasse includes fo
forward lookiing statemen
nts, within th
he meaning of
o the Privatee
Secu
urities Litigaation Reform Act of 19955, which are subject
s
to rissk and uncerrtainties thatt could
causse actual resu
ults to differ materially ffrom those an
nticipated. S
Such statemen
nts may relaate to
Cimaatron’s plans, objectives and expecteed financial aand operatin
ng results. Th
he words "m
may,"
"cou
uld," "wouldd," “will,” "bbelieve," "an
nticipate," "estimate,"
"
"
"expect,"
"in
ntend," "plan
n,"
and similar exprressions or vaariations theereof are inteended to iden
ntify forwardd-looking
utioned that aany such forrward-lookin
ng statementss are not
stateements. Invesstors are cau
guarrantees of fu
uture perform
mance and in
nvolve risks aand uncertaiinties, many of which aree
beyoond Cimatron
n’s ability to control. Thee risks and u
uncertaintiess that may aff
ffect forwardd
lookking statemen
nts include, bbut are not liimited to: cu
urrency fluctu
uations, globbal economicc and
polittical conditioons, market ddemand for C
Cimatron prooducts and services,
s
longg sales cycless, new
prodduct developm
ment, assimiilating futuree acquisition
ns, maintainiing relationsh
hips with
custoomers and partners, andd increased coompetition. For
F more deetails about th
he risks and
unceertainties rellated to Cimaatron’s busin
ness, refer too Cimatron’ss filings with the Securitiies and
Exch
hange Comm
mission. Cim
matron cannoot assess the iimpact of orr the extent too which any single
factoor or risk, orr combination
n of them, m
may cause. Ciimatron unddertakes no oobligation to
publlicly update oor revise anyy forward loooking statements, whetheer as a resultt of new
inforrmation, futu
ure events orr otherwise.
Conttact:
Ilan Erez, Chief F
Financial Offiicer
Cima
atron Ltd.
Tel.; 972-73-237--0114
E-ma
ail: ilane@cim
matron.com
4
CIMATRON LIMITED
CONSOLIDATED STATEMENTS OF INCOME
(US Dollars in thousands, except for per share data)
Three months ended
March 31,
2012
2011
Total revenue
9,886
8,894
Total cost of revenue
1,418
1,345
Gross profit
8,468
7,549
Research and development expenses, net
1,693
1,554
Selling, general and administrative expenses
5,886
5,571
889
424
113
116
(174)
(227)
Operating income
Financial income, net
Taxes on income
Other
Net income
Less: Net (income) loss attributable to the noncontrolling interest
15
(2)
843
311
(12)
28
Net income attributable to Cimatron's shareholders
$ 831
$ 339
Net income per share - basic and diluted
$ 0.09
$ 0.04
Basic EPS (in thousands)
9,301
9,106
Diluted EPS (in thousands)
9,318
9,239
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
March 31,
GAAP
Total revenue
9,886
Total cost of revenue (1)
1,418
Gross profit
2012
Adj.
NON-GAAP
2011
Adj.
NON-GAAP
9,886
8,894
(147)
1,271
1,345
(147)
1,198
8,468
147
8,615
7,549
147
7,696
Research and development expenses, net
1,693
-
1,693
1,554
-
1,554
Selling, general and administrative expenses (1)
5,886
(99)
5,787
5,571
889
246
1,135
424
248
672
Financial income, net
113
-
113
116
-
116
Taxes on income (2)
(174)
(265)
(227)
172
(55)
15
(2)
-
(2)
Operating income
Other
Net income
Less: Net (income) loss attributable to the noncontrolling interest
-
GAAP
(91)
15
-
843
155
998
311
(12)
-
(12)
28
Net income attributable to Cimatron's shareholders
$ 831
Net income per share - basic and diluted
$ 155
-
(101)
420
$ 420
8,894
5,470
731
28
$ 986
$ 339
$ 759
$ 0.09
$ 0.11
$ 0.04
$ 0.08
Basic EPS (in thousands)
9,301
9,301
9,106
9,106
Diluted EPS (in thousands)
9,318
9,318
9,239
9,239
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)
March 31,
2012
December 31,
2011
ASSETS
CURRENT ASSETS:
Total cash, cash equivalents and short-term investments
Trade receivables
Other current assets
$
Total current assets
Deposits with insurance companies and severance pay fund
Net property and equipment
Total other assets
Total assets
14,904
6,102
1,836
$
11,787
5,840
1,452
22,842
19,079
3,187
3,069
944
1,009
11,232
11,365
$
38,205
$
34,522
$
730
1,226
7,799
5,270
15,025
$
87
1,072
9,048
2,403
12,610
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
4,310
6
548
4,135
6
639
Total long-term liabilities
4,864
4,780
Total shareholders’ equity
18,316
17,132
Total liabilities and shareholders’ equity
$
38,205
$
34,522
CIMATRON LIMITED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(US Dollars in thousands)
Noncontrolling
Interest
Balance at December 31, 2011
Changes during the three months ended March
31, 2012:
Net income
Exercise of share options
Unrealized loss on derivative instruments
Other
Foreign currency translation adjustment
Total comprehensive income
Balance at March 31, 2012
$
(131)
Share
capital
$
313
Additional
paid-in
capital
Accumulated
other
comprehensive
income (loss)
Retained
earnings
(accumulated
deficit)
Treasury
stock
$
$
$
$
18,999
(446)
12
(851)
(752)
831
-
(119)
$
313
Total
shareholders’
equity
$
843
$
19,013
$
(119)
215
112
1,170
$
(20)
$
(752)
17,132
843
14
215
112
-
14
215
112
-
$
Comprehensive
income (loss)
$
18,316
CIMATRON LIMITED
STATEMENTS OF CASH FLOWS
(US Dollars in thousands)
Three months ended
March 31,
2012
2011
Cash flows from operating activities:
Net income
$
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization
Increase (decrease) in accrued severance pay
Deferred taxes, net
843
$
311
337
218
(92)
375
(8)
170
(755)
(21)
(118)
1,941
2,353
(282)
17
(20)
715
1,278
Cash flows from investing activities:
Purchase of property and equipment
Net cash used in investing activities
(63)
(63)
(45)
(45)
Cash flows from financing activities:
Short-term bank credit
Long-term bank credit
Proceeds from issuance of shares upon exercise of options
Net cash provided by financing activities
663
(1)
14
676
Changes in assets and liabilities:
Increase in accounts receivable and prepaid expenses
Decrease (increase) in inventory
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
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
Appendix A - Non-cash transactions
Purchase of property on credit
456
728
1,184
$
2,966
151
11,787
14,904
$
2,417
342
10,221
12,980
$
8
$
6