CIMdata PLM Industry Summary Online Archive
12 March 2007
Financial News
Cimatron Reports Operating and Net Income in the Fourth Quarter and Full Year 2006
Cimatron Limited announced financial results for the fourth quarter and full year ended December 31, 2006.
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."
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