Cimatron Reports Operating and Net Income in the Fourth Quarter and Full Year 2006 Monday March 12, 5:05 am ET Operating and Net Profit Achieved in Q4 and full 2006 After Several Years of Losses Revenues in Q4 2006 up 11% Compared to Q4 2005 Improved Margins and Revenue Mix
GIVAT SHMUEL, Israel, March 12 /PRNewswire-FirstCall/ -- Cimatron Limited (NASDAQ: CIMT - News), 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, 2006. ADVERTISEMENT
Cimatron's business and financial results reflect the turnaround of the last two years, in which the Company focused on new product development and reorganization of its global sales and marketing force. The main achievements in 2006 were revenue growth, broadening of the products' offering to new markets and higher profit margins.
Financial Highlights:
Revenues for the fourth quarter of 2006 were $6.0 million, representing 11% growth compared to $5.4 million recorded in the fourth quarter of 2005. Software product revenues in the fourth quarter of 2006 increased 23% compared to the same quarter in 2005.
Revenues for the year ended December 31, 2006 were $21.5 million, compared to $20.9 million in 2005. Software product revenues for the year increased 7.5% compared to 2005.
Gross Income for the fourth quarter of 2006 was $5.1 million as compared to $3.5 million in the same period in 2005. Gross Income in 2006 was $17.8 million as compared to $16.0 million in 2005.
Operating Income in the fourth quarter of 2006 was $366 thousand, compared to an operating loss of $(1.7) million in the fourth quarter of 2005. In 2006 the Company recorded operating income of $48 thousand, compared to an operating loss of $(4.47) million in 2005. The significant improvement in the operating income results mostly from continuous efforts to reduce operating expenses.
Net Income for the quarter was $557 thousand, or $0.07 per diluted share, compared to a net loss of $(1.72) million, or $(0.22) per diluted share recorded in the same quarter of 2005. For 2006, net income was $514 thousand, or $0.07 per diluted share, compared to a net loss of $(4.59) million, or $(0.59) per diluted share in 2005.
Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said, "We are pleased to report operating and net income for 2006 with strong Q4 results. Cimatron's financials for 2006 reflect our efforts to develop and launch competitive products to the entire toolmaking and manufacturing industries, as well as tight expense control and more efficient organization.
Cimatron's subsidiary in China achieved 80% revenue growth in 2006. The Chinese market is the fastest growing target market for Cimatron, and we continue to invest and expand our operation in this strategic market. Other key territories have also performed well in 2006, including the large markets of Germany and Japan. In North America, we are expanding our operations to cover additional markets beyond our strong presence in the automotive industry. Consequently, we have seen strong Q4 results in North America, with 17% revenue growth compared to Q4 of 2005.
The promising CimatronE version 8 was recently released, introducing new and enhanced innovative solutions for die makers, mold makers and discrete parts manufacturers. We are well on track with implementing our long term strategic plan of providing a broad range of products to the entire manufacturing market."
Mr. Rimon Ben-Shaoul, Chairman of the Board of Directors of Cimatron Said, "after several years of re-organization, cost cutting and extensive product development, we believe the Company is now on the right track for sustained growth and profitability, and that Cimatron's current competitive advantages enable us to reinforce our worldwide market positioning, both in emerging and traditional markets."
About Cimatron
With more than 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.
ASSETS CURRENT ASSETS: Total cash, cash equivalents and short-terms investments $ 5,597 $ 4,875 Other current assets 5,828 5,377 Total current assets 11,425 10,252
Deposits with insurance companies and severance pay fund 2,653 2,219
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Cimatron's New Version 8 Receives High Praises From Customers and Analysts Monday March 5, 1:55 pm ET Newly Released Version Delivers Significant Productivity Improvement With Progressive Die Design, Mega Mold Design, NC-Preview, Automated Drilling, and Enhanced 5-Axis Production
GIVAT SHMUEL, Israel, March 5 /PRNewswire-FirstCall/ -- Cimatron Limited (NASDAQ: CIMT - News) announced today the general availability of version 8 of CimatronE, its leading CAD/CAM solution for toolmakers and manufacturers. ADVERTISEMENT
With Version 8, Cimatron helps toolmakers and manufacturers of complex discrete parts step up to new levels of productivity, introducing breakthrough improvements such as:
- A new application for progressive die design, covering the entire spectrum of quoting, strip design, tool design, and manufacturing, compressing weeks of work into days
- New automated drilling capabilities, reducing programming time by up to 80%
- NC-Preview functionality, presenting machining results in a matter of seconds and eliminating errors early in the process
- Concurrent mold design and the ability to handle mega-size molds, allowing multiple users to work on the same assembly with increased speed and ease
- New enhancements in 5-Axis Production, delivering higher performance and better user control
Customers that have been working with version 8 during the release process expressed anticipation for the new functionality: "Version 8 gives us new tools in design and manufacturing to compete with domestic and overseas markets," said Todd DeMint, Lead Designer at toolmaker Eimo Americas (Michigan, USA). "The improvements in version 8 - such as the ability to work on large molds, the quick split tools, and the methodology for transferring data to cavities and cores - will save us significant time in the design process."
Adds Jay Weiner, Mechanical Engineer and IT Manager at CAM Tool & Die (Ontario, Canada): "Cimatron's new Progressive Die Design application is highly powerful and flexible, with surfacing capabilities that are second to none. Being able to work in 3D from start to finish, we expect substantial productivity improvements."
Following an independent review of the new release, industry analyst Alan Christman of CIMdata said: "Version 8 of CimatronE is a substantial and significant release that will greatly enhance and broaden the Cimatron CAD/CAM offering. CIMdata is favorably impressed by the evolution in Cimatron product and market strategy and the sizeable content of version 8. We expect the product to be well received in the worldwide market." The complete CIMdata review is available for download on the Cimatron website at www.cimatron.com.
For more information about the availability of version 8 in your area, please contact your local Cimatron office. A list of offices and additional information about version 8 can be found on the Cimatron website.
About Cimatron
With more than 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.
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: Mrs. Idit Pass Lagziel Phone: +972-3-5312098 Email: iditp*cimatron.com
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These are the kinds of programs I deal with everday. I'm getting my degree in Engineering and we use a variety of CAD systems. BTW: That is one large white candle! WOW!
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