Cimatron Reports Revenues of $9.6M and Non-GAAP Operating Profit of $1.0M in Q3/11

$0.31 non-GAAP earnings per share for the first nine months of 2011.
110% year-over-year non-GAAP net profit increase for the first nine months of 2011.
15% year-over-year new license revenue growth in Q3/11, on a constant currency basis.

Cimatron Limited today announced financial results for the third quarter and first nine months of 2011.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, noted "We are very pleased to report strong results for the third quarter and first 9 months of 2011. The new license year-over-year revenue growth is especially satisfying when recalling that last year's Q3 was an exceptional third quarter in many ways. We are getting very positive feedback on the new product versions, both for CimatronE and for GibbsCAM. While economic uncertainty remains very high, early Q4 indications suggest we will be able to maintain our momentum and close a successful and profitable year," concluded Mr. Haran.

The following provides details on Cimatron's GAAP and non-GAAP results for the third quarter and first nine months of 2011:

GAAP:

Revenues for the third quarter of 2011 were $9.6 million, compared to $8.7 million recorded in the third quarter of 2010. For the first nine months of 2011, revenues were $28.5 million, compared to $25.1 million in the same period of 2010.

Gross Profit for the third quarter of 2011 was $8.3 million as compared to $7.3 million in the same period in 2010. Gross margin in the third quarter of 2011 constituted 87% of revenues, compared to a gross margin constituting 84% of revenues in the same quarter of 2010. For the first nine months of 2011, gross profit was $24.6 million, compared to $20.8 million during the same period of 2010. Gross margin for the nine months ended on September 30th, 2011 constituted 86% of revenues compared to a gross margin constituting 83% of revenues in the first nine months of 2010.

Operating profit in the third quarter of 2011 was $0.7 million as compared to $0.5 million in the third quarter of 2010. In the first nine months of 2011, Cimatron recorded an operating profit of $2.2 million as compared to $0.7 million in the first nine months of 2010.

Net Profit for the third quarter of 2011 was $0.0 million, or $0.00 per diluted share, compared to $0.3 million, or $0.04 per diluted share recorded in the same quarter of 2010. In the first nine months of 2011, net profit was $1.2 million, or $0.13 per diluted share, compared to $0.5 million, or $0.06 per diluted share, in the first nine months of 2010.

Non-GAAP:

Revenues for the third quarter of 2011 were $9.6 million, compared to $8.7 million recorded in the third quarter of 2010. For the first nine months of 2011, revenues were $28.5 million, compared to $25.1 million in the same period of 2010.

Gross Profit for the third quarter of 2011 was $8.5 million as compared to $7.5 million in the same period in 2010. Gross margin in the third quarter of 2011 constituted 88% of revenues, compared to a gross margin constituting 85% of revenues in the same quarter of 2010. For the first nine months of 2011, gross profit was $25.0 million, compared to $21.3 million in the same period of 2010. Gross margin for the nine months ended on September 30th, 2011 constituted 88% of revenues compared to a gross margin constituting 85% of revenues in the first nine months of 2010.

Operating profit in the third quarter of 2011 was $1.0 million as compared to $0.7 million in the third quarter of 2010. For the first nine months of 2011, Cimatron recorded an operating profit of $3.0 million as compared to $1.5 million for the first nine months of 2010.

Net Profit for the third quarter of 2011 was $0.8 million, or $0.09 per diluted share, compared to 0.9 million, or $0.10 per diluted share, recorded in the same quarter of 2010. For the first nine months of 2011, net profit was $2.9 million, or $0.31 per diluted share, compared to $1.4 million, or $0.15 per diluted share, for the first nine months of 2010.

Conference Call

Cimatron's management will host a conference call today, November 10th, 2011 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: +1-888-668-9141

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 at the investor relations section of Cimatron's website, at: http://www.cimatron.com/