Cimatron Reports Financial Results for the First Quarter of 2009

Cimatron Limited (NASDAQ: CIMT), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced financial results for the first quarter of 2009.

The following provides details on Cimatron’s GAAP and non-GAAP figures in the first quarter of 2009:

There is no difference between GAAP and non-GAAP revenues in 2009. Revenues on a non-GAAP basis in 2008 excluded the effect of business combination accounting rules on the acquired deferred maintenance revenue balance of Gibbs System Inc. that was merged into Cimatron in early 2008. Expenses on a non-GAAP basis in 2009 and 2008 exclude the non-cash amortization of acquired intangible assets of Microsystem and Gibbs, and the effect of deferred taxes.

GAAP:
Revenues for the first quarter of 2009 were $7.8 million, compared to $10.0 million recorded in the first quarter of 2008.

Gross Income for the first quarter of 2009 was $6.3 million as compared to $8.0 million in the same period in 2008. Gross margin in the first quarter of 2009 was 81% of revenues, compared to gross margin of 80% in the first quarter of 2008.

Operating loss in the first quarter of 2009 was $(512) thousand, compared to an operating loss of $(218) thousand in the first quarter of 2008.

Net Loss for the first quarter of 2009 was $(563) thousand, or $(0.06) per diluted share, compared to net loss of $(298) thousand, or $(0.03) per diluted share recorded in the same quarter of 2008.

Non-GAAP:
Revenues on a non-GAAP basis for the first quarter of 2009 were $7.8 million, compared to $10.3 million recorded in the first quarter of 2008.

Gross Income on a non-GAAP basis for the first quarter of 2009 was $6.5 million as compared to $8.4 million in the same period in 2008. Gross margin in the first quarter of 2009 was 83% of revenues, compared to 82% in the first quarter of 2008.

Operating Loss on a non-GAAP basis in the first quarter of 2009 was $(265) thousand, compared to an operating income of $277 thousand in the first quarter of 2008.

Net loss on a non-GAAP basis for the first quarter of 2009 was $(407) thousand, or $(0.04) per diluted share, compared to a net income of $235 thousand, or $0.02 per diluted share recorded in the same quarter of 2008.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said, “As our products address markets that have been affected by the current economic downturn, the first quarter of 2009 was very challenging, in line with our expectations. We are witnessing significant softness in all our markets, especially when it comes to closing new deals. Prospects and customers tend to delay purchasing decisions until they feel more confident with their own business. However, maintenance revenues continue to hold up well, and we are pleased that despite a significant decrease in revenues as compared to the parallel quarter in 2008, the effect on the bottom line is less significant, reflecting the steps we took to control expenses and preserve cash. As we cannot predict when the market will turn around, we will continue to closely monitor our expenses level. At the same time, we continue to invest in product development and marketing, activities we believe are essential for gaining market share, especially during difficult economic periods." concluded Mr. Haran.