Cimatron Reports $6.6 million Gross Income for the second quarter of 2009

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

Danny Haran, President and Chief Executive Officer of Cimatron, said, “It has been another challenging quarter for Cimatron and the industry in general. The results are in line with our expectations, and reflect steady maintenance revenues alongside lower product sales. While we are receiving initial signs from some of our customers, indicating some stabilization in their businesses, these indications are not yet translating into higher software sales. We remain confident that our highly ranked market position, combined with investment in product development and marketing, will be well rewarded as the markets finally recover from the current downturn. In the meantime, we are pleased that our maintenance revenues held up very well, indicating the breadth and strength of our installed base, and that our budget control measures helped us stay mostly balanced and preserve cash in the second quarter of 2009, thereby keeping our balance sheet in solid shape, in spite of the drop in revenues compared to the second quarter of 2008." concluded Mr. Haran.

The following provides details on Cimatron’s GAAP and non-GAAP figures in the second quarter and first six months 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 second quarter of 2009 were $8.1 million, compared to $10.7 million recorded in the second quarter of 2008. For the first six months of 2009, revenues were $16.0 million, compared to $20.7 million in the same period of 2008.

Gross Income for the second quarter of 2009 was $6.6 million as compared to $8.8 million in the same period in 2008. Gross margin in the second quarter of 2009 was 81% of revenues, compared to a gross margin of 82% in the second quarter of 2008. For the first six months of 2009, gross income was $12.9 million, compared to $16.8 million in the same period of 2008. Gross margin for the six months ended on June 30th, 2009 was 81% of revenues, same as in the first six months of 2008.

Operating loss in the second quarter of 2009 was $(317) thousand, compared to an operating profit of $73 thousand in the second quarter of 2008. In the first six months of 2009, Cimatron recorded an operating loss of $(829) thousand, compared to an operating loss of $(145) thousand in the first six months of 2008.

Net Loss for the second quarter of 2009 was $(83) thousand, or $(0.01) per diluted share, compared to a net profit of $205 thousand, or $0.02 per diluted share recorded in the same quarter of 2008. In the first six months of 2009 net loss was $(646) thousand, or $(0.07) per diluted share, compared to a net loss of $(93) thousand, or $(0.01) per diluted share, in the first six months of 2008.

Non-GAAP:
Revenues on a non-GAAP basis for the second quarter of 2009 were $8.1 million, compared to $10.9 million recorded in the second quarter of 2008. For the first six months of 2009, revenues were $16.0 million, compared to $21.2 million in the same period of 2008.

Gross Income on a non-GAAP basis for the second quarter of 2009 was $6.7 million as compared to $9.2 million in the same period in 2008. Gross margin in the second quarter of 2009 was 83% of revenues, compared to 84% in the second quarter of 2008. In the first six months of 2009, gross income on a non-GAAP basis was $13.2 million, compared to $17.6 million in the first six months of 2008. Gross margin on a non-GAAP basis for the six months ended on June 30th, 2009 was 83% of revenues, same as in the first six months of 2008.

Operating Loss on a non-GAAP basis in the second quarter of 2009 was $(70) thousand, compared to an operating profit of $568 thousand in the second quarter of 2008. In the first six months of 2009, Cimatron reports an operating loss of $(335) thousand, compared to operating income of $844 thousand in the first six months of 2008.

Net profit on a non-GAAP basis for the second quarter of 2009 was $73 thousand, or $0.01 per diluted share, compared to a net profit of $740 thousand, or $0.08 per diluted share recorded in the same quarter of 2008. In the first six months of 2009, net loss was $(332) thousand, or $(0.04) per diluted share, compared to a net profit of $974 thousand, or $0.10 per diluted share, in the first six months of 2008.