Press Releases
Cimatron Reports Record Revenues of $28.7M and Ten Year Record Net Income of $1.9M in 2007
Feb. 27, 2008
• Record quarterly revenues of $9.9 million in Q4 2007, up 63.9% compared to Q4 2006. Annual revenues up 33.5%.
• Net Income in Q4 2007 was $965 thousand, up 73.2% over Q4 2006. Annual net income up 274%.
• $0.12 EPS in Q4 2007, $0.24 EPS in 2007

Givat Shmuel, Israel, – February 27, 2008– Cimatron Limited (NASDAQ: CIMT), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced financial results for the fourth quarter and full year ended December 31, 2007.
2007 was a record year for Cimatron. Strong year-over-year revenue growth, both for Q4/2007 and for the entire year, translated into strong operating and net income. The growth is attributed to growing acceptance of the CimatronE product line and to the positive contribution of Microsystem's results which, as of Q3/2007, are fully consolidated.

Financial Highlights:

Revenues for the fourth quarter of 2007 were $9.9 million, representing 63.9% growth compared to $6.0 million recorded in the fourth quarter of 2006. Revenues for the year ended December 31, 2007 increased 33.5% to $28.7 million, compared to $21.5 million in 2006.

Gross Income for the fourth quarter of 2007 increased 49.7% to $7.7 million as compared to $5.1 million in the same period in 2006. Gross Income in 2007 increased 30% to $23.2 million as compared to $17.8 million in 2006. Gross margin in 2007 was 81%.

Operating Income in the fourth quarter of 2007 was $831 thousand, compared to an operating income of $366 thousand in the fourth quarter of 2006. In 2007 the company recorded operating income of $1.68 million, compared to an operating income of $48 thousand in 2006. The significant improvement in the operating income results mostly from the increase in revenues.

Net Income for the forth quarter of 2007 increased 73.2% to $965 thousand, or $0.12 per diluted share, compared to a net income of $557 thousand, or $0.07 per diluted share recorded in the same quarter of 2006. For 2007, net income increased 274% to $1.9 million, or $0.24 per diluted share, compared to a net income of $514 thousand, or $0.07 per diluted share in 2006.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said, “We are very pleased to report a strong year of improved top and bottom lines. Cimatron's results for 2007 are attributed to our efforts to develop and launch competitive products to the entire toolmaking and manufacturing industry, as well as to the positive contribution of the Microsystem acquisition.
 
During the last two months, since we have merged Gibbs and Associates, we are working closely with Mr. Bill Gibbs, our new President North America, and his team to leverage the potential synergy from the merger, pushing additional products to the joint distribution network. Gibbs System’s estimated non-GAAP revenues in 2007 were approximately $12M and estimated non-GAAP pre-tax profit was above 10% of revenues. We expect to see benefits from the merger unfolding throughout 2008 and beyond.” 

Mr. Rimon Ben-Shaoul, Chairman of the Board of Directors of Cimatron said, “The 2007 financial results reflect good execution of our long term product and marketing strategy.  The Microsystem and Gibbs and Associates merger transactions create additional economies of scale for the coming years.”

Conference Call

Cimatron's management will host a conference call today, at 9:00 EST, 16:00 Israel time. On the call, management will review and discuss the results, and will also be available to 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: +1-888-668-9141
Israel: 03-9180609

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: www.cimatron.com

About Cimatron
With more than 25 years of experience and over 20,000 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. Cimatron’s cutting-edge CAD/CAM solutions are widely used in the automotive, medical, consumer plastics, electronics, and other industries.
Founded in 1982, Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. Cimatron’s subsidiaries and extensive distributor network are located in over 35 countries to serve customers worldwide with complete pre- and post-sales support. For more information, please visit  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.

For More Information Contact:

Ilan Erez
Chief Financial Officer 
Cimatron Ltd. 
Phone: +972 3 531 2121
Email: ilane@cimatron.com

Yael Nevat
Commitment-IR.com 
Phone: +972 3 611 4466, +972 50 762 6215
Email: yael@commitment-IR.com
 

Cimatron Limited
Consolidated Balance Sheets

(US Dollars in thousands)

December 31,
2007

December 31,
2006

ASSETS
Current Assets
Total cash, cash equivalents and short-terms investments $ 9,026 $ 5,597
Trade receivables $ 7,308 $ 4,848
Other current assets 1,467 980
Total current assets 17,801 11,425
 
Deposits with insurance companies and severance pay fund 2,703 2,653
 
Long-Term Investments
Marketable investments 1,158 1,287
Investments in affiliated companies - 748
Total long-term investements 1,158 2,035
 
Net property and equipment 1,337  1,010
 
Total other assets 4,328  784
Total assets $ 27,327 $ 17,907
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term bank credit $ 791 $ 500
Trade payables 2,258 828
Accrued expenses and other liabilities 7,889 4,330
Deferred revenues 742 425
Total current liabilities 11,680 6,083
 
Long-term Liabilities    
Accrued severance pay 3,929 3,003
Long-term loan 403 -
Other 282 -
Total long-term liabilities 4,614 3,003
 
Minority interest 63 (24)
 
Total shareholders'equity 10,970 8,845
 
Total liabilities and shareholders' equity $ 27,327 $ 17,907

 

 

Cimatron Limited
Consolidated statements of income

(US Dollars in thousands)

Three months
ended 
December 31,

Twelve months
ended 
December 31,

2007 2006 2007 2006
  
Total revenue 9,881 6,028 28,640 21,459
Total cost of revenue 2,230  917 5,440  3,623
Gross profit 7,651 5,111 23,200 17,836
Research and development expenses,net 1,137 1,093 4,281 4,426
Selling, general and administrative expenses 5,683 3,652 17,243 13,362
 
Operating Income 831  366  1,676  48 
 
Net Income $ 965 $ 557 $ 1,923 $ 514
 
Net Income per share - basic and diluted $ 0.12 $ 0.07 $ 0.24 $ 0.07

 

Weighted average number of shares outstanding

- Basic EPS (in thousands)

 



7,884

 



7,835

 



7,866

 



7,835

- Diluted EPS (in thousands) 7,921 7,835 7,921 7,835

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