CIMdata PLM Industry Summary Online Archive
7 August 2007
Financial News
Cimatron Reports 9% Revenue Growth over Q2 2006 and $0.04 EPS in Q2 2007
Cimatron Limited announced financial results for the second quarter of 2007.
Cimatron's business and financial results continue to improve compared to the first quarter of 2007, as well as compared to the second quarter of 2006. Revenue and profit growth are mostly due to positive acceptance of recently-launched products. The increase in operating profit in the second quarter of 2007 consists of more than 80% of the revenue growth in this quarter.
Financial Highlights:
Revenues for the second quarter of 2007 increased by 9.3% to $5.51 million compared to $5.04 million in the second quarter of 2006. Software license revenues in the second quarter of 2007 increased by 16.4% compared to the same quarter in 2006. For the first 6 months of 2007, revenue increased by 4.1% to $10.84 million, compared to $10.42 million in the same period of 2006. Software license revenues in the first half of 2007 increased by 8.7% compared to the same period in 2006.
Gross Profit for the second quarter of 2007 was $4.7 million as compared to $4.1 million in the same period in 2006, a 14.6% increase. Gross margin in the second quarter was 85% of revenues, compared to 81% of revenues in Q2 2006. In the first 6 months of 2007, gross profit increased 7.3% to $9.2 million, compared to $8.5 million in the first 6 months of 2006. Gross margin for the 6 months ended on June 30th, 2007 was 85% of revenues as compared to 82% of revenues in the same period of 2006.
Operating Profit in the second quarter of 2007 was $282 thousand, compared to an operating loss of $(145) thousand in the second quarter of 2006. In the first 6 months of 2007, Cimatron reports an operating profit increase to $395 thousand, compared to an operating profit of $86 thousand in the first 6 months of 2006.
Net Profit for the second quarter of 2007 was $291 thousand, or $0.04 per diluted share, compared to a net profit of $18 thousand, or $0.00 per diluted share recorded in the same quarter of 2006. In the first 6 months of 2007, net profit increased by 98.3% to $472 thousand, or $0.06 per diluted share, compared to a net profit of $238 thousand, or $0.03 per diluted share, in the first 6 months of 2006.
Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said, "We are very pleased with the consecutive improvement in our financial and business results, being the result of implementation of our strategic plan. Cimatron's turnaround is based on broader product offering, geographical re-focusing and more efficient operations, all of which led to improved profitability."
Mr. Rimon Ben-Shaoul, Chairman of the Board of Directors of Cimatron said, "We believe that Cimatron is now well positioned to further increase its market share and accordingly its revenues in order to become a larger player in the industry. Following the exercise of the option to increase its holding in Microsystem to 51%, Cimatron continues to consider M&A opportunities, as part of its general growth strategy to further increase its offering and global presence."
Conference Call Information:
Cimatron's management will host a conference call with the investment community to discuss and review the results, on August 8th, 2007:
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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