CIMdata PLM Industry Summary Online Archive
21 May 2007
Financial News
Cimatron Reports 2007 First Quarter Results
Cimatron Limited announced financial results for the first quarter of 2007. Cimatron's business and financial results are well in line with the company's plans. They reflect the organizational turnaround of the last two years and the positive response to its recently launched CimatronE version 8, as well as typical market seasonality.
Financial Highlights: Following a profitable 2006, the first quarter of 2007 continues the trend of operational and net profitability.
Revenues for the first quarter of 2007 were stable at $5.33 million, compared to $5.37 million in the first quarter of 2006. Software product revenues in the first quarter of 2007 increased 2.2% compared to the same quarter in 2006.
Gross Profit for the first quarter of 2007 was stable at $4.46 million, compared to $4.44 million in the same period in 2006. Gross margin in the first quarter was 83.7%, slightly higher than the 82.6% in Q1 2006.
Operating Profit in the first quarter of 2007 was $113 thousand, compared to an operating profit of $231 thousand in the first quarter of 2006.
Net Profit for the quarter was $181 thousand, or $0.023 per diluted share, compared to a net profit of $220 thousand, or $0.028 per diluted share recorded in the same quarter of 2006.
Cimatron's board of directors approved yesterday evening the exercise of Cimatron's previously disclosed first call option to acquire an additional 23.5% of the shares of Microsystem Srl, the company's Italian distributor, and accordingly, to increase Cimatron's holding in Microsystem from 27.5% to 51%. One year after the exercise of this option, which is expected to occur in June 2007, Cimatron will be entitled to exercise its second call option to acquire the remaining 49% of Microsystem's share capital.
Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said, "We are pleased to present another profitable quarter, in line with our strategic plan. Cimatron's financials for Q1 2007 reflect the initial positive acceptance to our innovative CimatronE version 8 for die makers, mold makers and discrete parts manufacturers, and our ongoing efforts to maintain tight expense control and more efficient organization. We are particularly pleased with market feedback to the new Die Design product launched in Q1 2007.
The increase in our holdings in Microsystem is designed to strengthen our leading position in Italy, one of our key markets in West Europe. We have worked closely with Microsystem's management and staff since we acquired 27.5% of its shares in 2005, and we already see the benefits for both companies' customers and employees. Sales of Cimatron software products in Italy in Q1 2007 were 29% higher than in Q1 2006. The acquisition of an additional 23.5% of Microsystem's shares will bring us to a holding of 51% and consequently we will start consolidating Microsystem's financial reports starting Q3 2007. Microsystem's total revenues in 2006 were approximately $10.5 million."
Mr. Rimon Ben-Shaoul, Chairman of the Board of Directors of Cimatron said, "Cimatron's management is pleased with the progress being made in the implementation of our strategic plans, and with the increased penetration of our new products to the target markets. We believe that this trend will continue throughout the year."
Conference Call Information:
Cimatron's management will host a conference call with the investment community to discuss and review the results today, May 21st, 2007:
The conference call will start at 9:00 EDT (16:00 Israel time)
To listen to the conference call, please dial:
From the US: 1-888-281-1167
From Israel: 03-9180688
International: +972-3-9180688
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/
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