Quantcast

Cimatron Reports Financial Results for the First Quarter of 2009

May 26, 2009

GIVAT SHMUEL, Israel, May 26 /PRNewswire-FirstCall/ — Cimatron Limited
(NASDAQ: CIMT), a leading provider of integrated CAD/CAM solutions for the
toolmaking and manufacturing industries, today announced financial results
for the first quarter of 2009.

The following provides details on Cimatron’s GAAP and non-GAAP figures in
the first quarter of 2009:

There is no difference between GAAP and non-GAAP revenues in 2009.
Revenues on a non-GAAP basis in 2008 excluded the effect of business
combination accounting rules on the acquired deferred maintenance revenue
balance of Gibbs System Inc. that was merged into Cimatron in early 2008.
Expenses on a non-GAAP basis in 2009 and 2008 exclude the non-cash
amortization of acquired intangible assets of Microsystem and Gibbs, and the
effect of deferred taxes.

GAAP:

Revenues for the first quarter of 2009 were $7.8 million, compared to
$10.0 million recorded in the first quarter of 2008.

Gross Income for the first quarter of 2009 was $6.3 million as compared
to $8.0 million in the same period in 2008. Gross margin in the first quarter
of 2009 was 81% of revenues, compared to gross margin of 80% in the first
quarter of 2008.

Operating loss in the first quarter of 2009 was $(512) thousand, compared
to an operating loss of $(218) thousand in the first quarter of 2008.

Net Loss for the first quarter of 2009 was $(563) thousand, or $(0.06)
per diluted share, compared to net loss of $(298) thousand, or $(0.03) per
diluted share recorded in the same quarter of 2008.

Non-GAAP:

Revenues on a non-GAAP basis for the first quarter of 2009 were $7.8
million
, compared to $10.3 million recorded in the first quarter of 2008.

Gross Income on a non-GAAP basis for the first quarter of 2009 was $6.5
million
as compared to $8.4 million in the same period in 2008. Gross margin
in the first quarter of 2009 was 83% of revenues, compared to 82% in the
first quarter of 2008.

Operating Loss on a non-GAAP basis in the first quarter of 2009 was
$(265) thousand, compared to an operating income of $277 thousand in the
first quarter of 2008.

Net loss on a non-GAAP basis for the first quarter of 2009 was $(407)
thousand
, or $(0.04) per diluted share, compared to a net income of $235
thousand
, or $0.02 per diluted share recorded in the same quarter of 2008.

Commenting on the results, Danny Haran, President and Chief Executive
Officer of Cimatron, said, “As our products address markets that have been
affected by the current economic downturn, the first quarter of 2009 was very
challenging, in line with our expectations. We are witnessing significant
softness in all our markets, especially when it comes to closing new deals.
Prospects and customers tend to delay purchasing decisions until they feel
more confident with their own business. However, maintenance revenues
continue to hold up well, and we are pleased that despite a significant
decrease in revenues as compared to the parallel quarter in 2008, the effect
on the bottom line is less significant, reflecting the steps we took to
control expenses and preserve cash. As we cannot predict when the market will
turn around, we will continue to closely monitor our expenses level. At the
same time, we continue to invest in product development and marketing,
activities we believe are essential for gaining market share, especially
during difficult economic periods.” concluded Mr. Haran.

Conference Call

Cimatron’s management will host a conference call today, May 26th, 2009
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: +1-888-723-3164

                          International: +972-3-9180610

                               Israel: 03-9180610

For those unable to listen to the live call, a replay of the call will be
available from the day after the call under 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 Operation
(Non-GAAP basis). 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 accounting
entries. The purpose of such adjustments is to give an indication of our
performance exclusive of non-GAAP charges and other items that are considered
by management to be outside 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 profits. These non-GAAP financial
measures may differ materially from the non-GAAP financial measures used by
other companies.

About Cimatron

With over 25 years of experience and more than 40,000 installations
worldwide, Cimatron is a leading provider of integrated, CAD/CAM 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 is publicly traded on the NASDAQ exchange under the symbol CIMT.
For more information, please visit the company 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 the
company’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 the future
performance and involve risks and uncertainties, many of which are beyond the
company’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, marketing demand for
Cimatron products and services, long sales cycle, new product development,
assimilating future acquisitions, maintaining relationships with customers
and partners, and increased competition. For more details about the risks and
uncertainties of the business, refer to the Company’s filings with the
Securities and Exchanges Commission. The company 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
                                                             March 31,
                                                          2009         2008

    Total revenue                                        7,843       10,006

    Total cost of revenue                                1,508        1,994

    Gross profit                                         6,335        8,012

    Research and development expenses, net               1,415        1,757

    Selling, general and administrative expenses         5,432        6,473
    Operating loss                                        (512)        (218)

    Financial income (expenses), net.                     (141)         (45)

    Taxes on Income                                         81          (41)

    Other                                                    9            6

    Net loss                                            $ (563)      $ (298)
    Net loss per share - basic and diluted             $ (0.06)     $ (0.03)

    Weighted average number of shares outstanding

             Basic EPS (in thousands)                    9,224        9,357

             Diluted EPS (in thousands)                  9,224        9,462

                                 CIMATRON LIMITED
               RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
               (US Dollars in thousands, except for per share data)

                                  Three months ended  March 31,

                                 2009                       2008

                         GAAP     Adj.   NON-GAAP    GAAP    Adj.  NON-GAAP

    Total revenue (1)   7,843               7,843  10,006     248    10,254

    Total cost of
    revenue (2)         1,508    (147)      1,361   1,994    (147)    1,847

    Gross profit        6,335     147       6,482   8,012     395     8,407

    Research and
    development
    expenses, net       1,415               1,415   1,757       -     1,757

    Selling, general
    and administrative
    expenses (2)        5,432    (100)      5,332   6,473    (100)    6,373
    Operating income
    (loss)               (512)    247        (265)   (218)    495       277

    Financial income
    (expenses), net.     (141)      -        (141)    (45)      -       (45)

    Taxes on Income (3)    81     (91)        (10)    (41)     38        (3)

    Other                   9       -           9       6       -         6

    Net income (loss)   $(563)   $156       $(407)  $(298)   $533      $235

    Net income (loss)
    per share - basic
    and diluted        $(0.06)             $(0.04) $(0.03)            $0.02

    Weighted average
    number of shares
    outstanding

      Basic EPS (in
      thousands)        9,224               9,224   9,357             9,357

      Diluted EPS (in
      thousands)        9,224               9,224   9,462             9,462

    (1) Non-GAAP adjustment related to Gibbs' assumed support contracts that
        were not recognized on a GAAP basis in fiscal 2008 or thereafter due
        to business combination accounting rules.

    (2) Non-GAAP adjustment to exclude non-cash amortization of acquired
        intangible assets.

    (3) Non-GAAP adjustment to exclude the effect of deferred taxes.

                                 CIMATRON LIMITED
                           CONSOLIDATED BALANCE SHEETS
                            (US Dollars in thousands)

                                                             March  December
                                                               31,       31,
                                                              2009      2008

                     ASSETS

    CURRENT ASSETS:
       Total cash, cash equivalents and short-term
       investments                                         $ 6,738   $ 5,727
       Trade receivables                                     7,581     7,108
       Other current assets                                  2,809     2,697
           Total current assets                             17,128    15,532

           Deposits with insurance companies and
           severance pay fund                                2,482     2,719

           Net property and equipment                        1,246     1,312

           Total other assets                               14,051    14,307

               Total assets                               $ 34,907  $ 33,870

                    LIABILITIES AND SHAREHOLDERS'EQUITY

    CURRENT LIABILITIES:
       Short-term bank credit                              $ 1,370     $ 155
       Trade payables                                        1,876     1,865
       Accrued expenses and other liabilities                6,907     7,348
       Deferred revenues                                     4,347     2,348
           Total current liabilities                        14,500    11,716

    LONG-TERM LIABILITIES:
       Accrued severance pay                                 3,622     3,933
       Long-term loan                                          276       293
       Deferred tax liability                                1,638     1,729
       Total long-term liabilities                           5,536     5,955

       Minority interest                                        (9)       (4)

       Total shareholders' equity                           14,880    16,203
       Total liabilities and shareholders'equity          $ 34,907  $ 33,870

    Contact:
    Ilan Erez, Chief Financial Officer
    Cimatron Ltd.
    Tel. +972-3-531-2121
    E-mail: ilane@cimatron.com

    Yael Nevat
    Commitment-IR.com
    Tel: +972-9-714-8866, +972-50-762-6215
    E-mail: yael@commitment-IR.com

SOURCE Cimatron Ltd


Source: newswire



comments powered by Disqus