Feb 19 - Cimatron Q4 Revenue $12.4M, with $1.3M Profit

NewsBreak

Cimatron Q4 Revenue $12.4M, with $1.3M Profit

GIVAT SHMUEL, Israel, Feb 19, 2013 - Cimatron Limited, a leading provider of integrated CAD/CAM software solutions for the tool making and manufacturing industries, today announced financial results for the fourth quarter and full year of 2012.

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

Record revenues of $42.3M in 2012 and $12.4M in Q4/12
Record non-GAAP operating profit of $6.1M in 2012 and $2.3M in Q4/12 with operating margins of 14% and 19%, respectively
Record $5.7M operating cash flow in 2012 (excluding a one-time royalty payment of $2.5M to the Israeli Office of the Chief Scientist)
39% increase in GAAP net profit in 2012 to $3.7M

Danny Haran, president and chief executive officer of Cimatron said that they are excited to report a record fourth quarter, rounding out the best year in Cimatron's history. They continue to see strong demand for their products, as well as robust growth in maintenance revenues from existing and new customers. On a constant currency basis in 2012, their revenues grew by 7% and achieved these strong results, despite a delay in some US-based projects, towards the end of the fourth quarter, which were attributed to customer 'Fiscal Cliff' concerns. These delays are believed to be behind them, as indicated by initial results in January.

Haran also said that they look forward to an even stronger 2013. Based on what is being currently seen in the market, combined with the current demand across their product portfolio, they expect to continue to grow our top line in 2013.

They aim to release a new and exciting version of CimatronE, v 11, towards the end of Q1 2013, soon after that, the GibbsCAM 2013 version release is planned. With numerous improvements and advances, they believe these innovations will greatly support sales efforts in 2013.

Cimatron is currently exploring new opportunities in the field of additive manufacturing, also known as 3D printing. Over the last few years, some of their customers and business partners have increasingly started to use and apply this emerging technology, to their manufacturing processes, and they are researching how they can better serve the customers and partners in this exciting new way of manufacturing.

At this point, Cimatron has no revenues from additive manufacturing. Yet, they believe that additive and hybrid manufacturing have great potential to emerge in many directions, and that their knowledge and vast expertise in 3D modeling and manufacturing will allow them to take part in this field, as it becomes more and more commonly used, side by side with traditional subtractive manufacturing techniques, concluded Haran.

The following provides details on Cimatron's GAAP and non-GAAP results for the fourth quarter and full year of 2012:

GAAP

Revenues for the fourth quarter of 2012 were $12.4 million, compared to $12.2 million recorded in the fourth quarter of 2011. In the full year ended December 31, 2012, revenues were $42.3 million, compared to $40.7 million in 2011.

Gross Profit for the fourth quarter of 2012 was $10.8 million, as compared to $10.7 million in the same period in 2011. Gross margin in the fourth quarter of 2012 was 88% of revenues, the same as in the fourth quarter of 2011. In 2012 as a whole, gross profit was $37.2 million, compared to $35.3 million in 2011. Gross margin for the year ended December 31st, 2012 was 88% compared to a gross margin of 87% in 2011.

Operating profit in the fourth quarter of 2012 was $2.1 million, as compared to $1.9 million in the same period in 2011. In 2012 as a whole, Cimatron recorded an operating profit of $5.5 million, compared to an operating profit of $4.1 million in 2011.

Net Profit for the fourth quarter of 2012 was $1.3 million, or $0.14 per diluted share, compared to a net profit of $1.4 million, or $0.15 per diluted share, recorded in the same quarter of 2011. In 2012 as a whole, net profit was $3.7 million, or $0.40 per diluted share, compared to a net profit of $2.7 million, or $0.29 per diluted share, in 2011.

Non-GAAP

Revenues for the fourth quarter of 2012 were $12.4 million, compared to $12.2 million recorded in the fourth quarter of 2011. In the full year ended December 31, 2012, revenues were $42.3 million, compared to $40.7 million in 2011.

Gross Profit for the fourth quarter of 2012 was $11.0 million, as compared to $10.9 million in the same period in 2011. Gross margin in the fourth quarter of 2012 was 89% the same as in the fourth quarter of 2011. In 2012 as a whole, gross profit was $37.4 million, compared to $35.9 million in 2011. Gross margin for the year ended December 31st, 2012 was 88%, the same as in 2011.

Operating Profit in the fourth quarter of 2012 was $2.3 million, as compared to $2.2 million in the same period in 2011. In 2012 as a whole, Cimatron recorded an operating profit of $6.1 million, compared to an operating profit of $5.1 million in 2011.

Net profit for the fourth quarter of 2012 was $1.7 million, or $0.18 per diluted share, compared to a net profit of $1.6 million, or $0.18 per diluted share, recorded in the same quarter of 2011. In 2012 as a whole, net profit was $4.4 million, or $0.47 per diluted share, compared to a net profit of $4.5 million, or $0.48 per diluted share, in 2011.

The contrast between non-GAAP operating profit (which rose in the full year of 2012 compared to 2011) and non-GAAP net profit (which was in 2012 at the same level as in 2011) was mainly attributable to an increase in income tax expense. Income tax expense constituted 26% of income before taxes in 2012, causing a more significant reduction in non-GAAP net profit, whereas it constituted only 10% of income before taxes in 2011. The main reason for the higher effective tax rate in 2012 is the Company's having completed the use of its remaining U.S. tax loss carry-forwards towards the end of 2011.

Conference Call

Cimatron's management will host a conference call today, Feb 19h, 2013, 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, call one of the following teleconferencing numbers. The company requests that the calls are made at least 5 minutes before the conference call commences.

USA: +1-888-668-9141

International: +972-3-9180644

Israel: 03-9180644

Ta replay of the call will be available, beginning on the day after the call, at the investor relations section of Cimatron's website, here.

About Cimatron

With 30 years of experience and more than 40,000 installations worldwide, Cimatron Ltd., or 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, enable collaboration with outside vendors, and ultimately shorten product delivery time.

The Cimatron product line includes the CimatronE and GibbsCAM brands with solutions for mold design, die design, electrodes design, 2.5 to 5 axes 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 Tel Aviv Stock Exchange under the symbol CIMT. For more information, visit www.cimatron.com.

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