Cimatron Reports Financial Results for the First Quarter of 2009
(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.
Revenues for the first quarter of 2009 were
Gross Income for the first quarter of 2009 was
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
to an operating loss of
Net Loss for the first quarter of 2009 was
per diluted share, compared to net loss of
diluted share recorded in the same quarter of 2008.
Revenues on a non-GAAP basis for the first quarter of 2009 were
Gross Income on a non-GAAP basis for the first quarter of 2009 was
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
first quarter of 2008.
Net loss on a non-GAAP basis for the first quarter of 2009 was
Commenting on the results,
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.
Cimatron’s management will host a conference call today,
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
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
Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT.
For more information, please visit the company web site at:
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: firstname.lastname@example.org Yael Nevat Commitment-IR.com Tel: +972-9-714-8866, +972-50-762-6215 E-mail: yael@commitment-IR.com
SOURCE Cimatron Ltd