GIVAT SHMUEL, Israel, May 24 /PRNewswire-FirstCall/ -- Cimatron Limited (Nasdaq: CIMT) ("Cimatron" or the "Company"), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced financial results for the first quarter of 2010.

The following provides details on Cimatron's GAAP and non-GAAP results for the first quarter of 2010:

GAAP:

Revenues for the first quarter of 2010 were $7.9 million, compared to $7.8 million recorded in the first quarter of 2009.

Gross Profit for the first quarter of 2010 was $6.7 million as compared to $6.3 million for the same period in 2009. Gross margin in the first quarter of 2010 was 84% of revenues, compared to a gross margin of 81% in the first quarter of 2009.

Operating loss in the first quarter of 2010 was $(103) thousand, compared to an operating loss of $(512) thousand in the first quarter of 2009.

Net loss for the first quarter of 2010 was $(100) thousand, or $(0.01) per diluted share, compared to a net loss of $(563) thousand, or $(0.06) per diluted share, recorded for the same quarter of 2009.

Non-GAAP:

Revenues on a non-GAAP basis for the first quarter of 2010 were $7.9 million, compared to $7.8 million recorded for the first quarter of 2009.

Gross Profit on a non-GAAP basis for the first quarter of 2010 was $6.8 million as compared to $6.5 million for the same period in 2009. Gross margin in the first quarter of 2010 was 86% of revenues, compared to 83% in the first quarter of 2009.

Operating Profit on a non-GAAP basis in the first quarter of 2010 was $143 thousand, compared to an operating loss of $(265) thousand in the first quarter of 2009.

Net Profit on a non-GAAP basis for the first quarter of 2010 was $55 thousand, or $0.01 per diluted share, compared to net loss of $(407) thousand, or $(0.04) per diluted share recorded in the same quarter of 2009.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said, "The first quarter results are in line with our expectations. We see stability or a very mild recovery in most of our markets, with higher license revenues in Q1/10 compared to Q1/09, and healthy recurring maintenance revenues. We are pleased to show a non-GAAP operating and net profit, and significant improvement in our bottom line compared to the first quarter of 2009, mainly due to budget control measures that we took in early 2009. Of course, challenges and uncertainties remain in effect, especially in light of the current Euro-zone crisis. We will continue to exercise tight budget control, while investing in product development and marketing throughout the year," concluded Mr. Haran.

Conference Call

Cimatron's management will host a conference call tomorrow, May 25th, 2010 at 9:00 EDT, 16:00 Israel time. On the call, management will review and discuss the results, and will answer questions by investors.

To participate, please call one of the following teleconferencing numbers. Please begin placing your call at least 5 minutes before the conference call commences.

                              USA: 1-888-407-2553

                         International: +972-3-9180650

                              Israel: 03-9180650

For those unable to listen to the live call, a replay of the call will be available from the day after the call at the investor relations section of Cimatron's website, at: www.cimatron.com.

Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income included herein. Non-GAAP financial measures consist of GAAP financial measures adjusted to include recognition of deferred revenues of acquired companies and to exclude amortization of acquired intangible assets and deferred income tax, as well as certain business combination accounting entries. The purpose of such adjustments is to give an indication of our performance exclusive of non-GAAP charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. We believe that these non-GAAP measures help investors to understand our current and future operating performance, especially as our two most recent acquisitions have resulted in amortization and non-cash items that have had a material impact on our GAAP results. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

About Cimatron

With over 25 years of experience and more than 40,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM solutions for mold, tool and die makers, as well as manufacturers of discrete parts. Cimatron is committed to providing comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time.

The Cimatron product line includes the CimatronE and GibbsCAM brands with solutions for mold design, die design, electrodes design, 2.5 to 5 axes milling, wire EDM, turn, Mill-turn, rotary milling, multi-task machining, and tombstone machining. Cimatron's subsidiaries and extensive distribution network serve and support customers in the automotive, aerospace, medical, consumer plastics, electronics, and other industries in over 40 countries worldwide.

Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. For more information, please visit the company web site at: http://www.cimatron.com.

Safe Harbor Statement

This press release includes forward looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the Company's plans, objectives and expected financial and operating results. The words "may," "could," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions or variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control. The risks and uncertainties that may affect forward looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, marketing demand for Cimatron products and services, long sales cycle, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties that relate to the Company's business, refer to the Company's filings with the Securities and Exchange Commission. The Company cannot assess the impact of or the extent to which any single factor or risk, or combination of them, may cause. Cimatron undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

                            CIMATRON LIMITED
                    CONSOLIDATED STATEMENTS OF INCOME
          (US Dollars in thousands, except for per share data)

                                                        Three months ended
                                                        ------------------
                                                             March 31,
                                                          2010         2009
                                                          ----         ----

    Total revenue                                        7,917        7,843

    Total cost of revenue                                1,251        1,508
                                                         -----        -----

    Gross profit                                         6,666        6,335

       Research and development expenses, net            1,485        1,415

       Selling, general and administrative expenses      5,284        5,432
                                                         -----        -----
    Operating loss                                        (103)        (512)

       Financial expenses, net                             (52)        (141)

       Taxes on Income                                      57           81

       Other                                                 1            3
                                                           ---          ---

    Net loss                                               (97)        (569)

       Less: Net loss (gain) attributable to the
        noncontrolling interest                             (3)           6
                                                           ---          ---

    Net loss attributable to Cimatron's
     shareholders                                        $(100)       $(563)
                                                         =====        =====
    Net loss per share - basic and diluted              $(0.01)      $(0.06)
                                                        ======       ======

    Weighted average number of shares
     outstanding

      Basic EPS (in thousands)                           9,078        9,224
                                                         =====        =====

      Diluted EPS (in thousands)                         9,078        9,224
                                                         =====        =====

                                           CIMATRON LIMITED
                         RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
                         (US Dollars in thousands, except for per share data)

                                                     Three months ended
                                                     ------------------
                                                          March 31,
                                                                         2010
                                                                         ----
                                               GAAP       Adj.      NON-GAAP
                                               ----       ----      --------

    Total revenue                              7,917          -         7,917

    Total cost of revenue (1)                  1,251      (147)         1,104
                                               -----       ----         -----

    Gross profit                               6,666        147         6,813

       Research and development expenses, net  1,485          -         1,485

       Selling, general and administrative
        expenses (1)                           5,284        (99)        5,185
                                               -----        ---         -----
    Operating income (loss)                     (103)       246           143

       Financial expenses, net                   (52)         -           (52)

       Taxes on Income (2)                        57        (91)          (34)

       Other                                       1          -             1


    Net income (loss)                            (97)       155            58

       Less: Net loss (gain) attributable to
        the noncontrolling interest               (3)         -            (3)
                                                 ---        ---           ---

    Net income (loss) attributable to
     Cimatron's shareholders                   $(100)      $155           $55
                                               =====       ====           ===
    Net income (loss) per share -basic and
     diluted                                  $(0.01)                   $0.01
                                              ======                    =====

    Weighted average number of shares
     outstanding

      Basic EPS (in thousands)                 9,078                    9,078
                                               =====                    =====

      Diluted EPS (in thousands)               9,078                    9,078
                                               =====                    =====

                                               Three months ended
                                               ------------------
                                                    March 31,
                                                                       2009
                                                                       ----
                                               GAAP      Adj.     NON-GAAP
                                               ----      ----     --------

    Total revenue                              7,843         -        7,843

    Total cost of revenue (1)                  1,508     (147)        1,361
                                               -----      ----        -----

    Gross profit                               6,335       147        6,482

       Research and development expenses, net  1,415         -        1,415

       Selling, general and administrative
        expenses (1)                           5,432     (100)        5,332
                                               -----      ----        -----
    Operating income (loss)                     (512)      247         (265)

       Financial expenses, net                  (141)        -         (141)

       Taxes on Income (2)                        81       (91)         (10)

       Other                                       3         -            3


    Net income (loss)                           (569)      156         (413)

       Less: Net loss (gain) attributable to
        the noncontrolling interest                6         -            6
                                                 ---       ---          ---

    Net income (loss) attributable to
     Cimatron's shareholders                   $(563)     $156        $(407)
                                               =====      ====        =====
    Net income (loss) per share -basic and
     diluted                                  $(0.06)                $(0.04)
                                              ======                 ======

    Weighted average number of shares
     outstanding

      Basic EPS (in thousands)                 9,224                  9,224
                                               =====                  =====

      Diluted EPS (in thousands)               9,224                  9,224
                                               =====                  =====

    (1) Non-GAAP adjustment to exclude non-cash amortization of
    acquired intangible assets.
    (2) Non-GAAP adjustment to exclude the effect of deferred taxes.

                                CIMATRON LIMITED
                           CONSOLIDATED BALANCE SHEETS
                            (US Dollars in thousands)

                                                     March 31,   December 31,
                                                     ---------   ------------
                                                            2010          2009
                                                            ----          ----

          ASSETS
    CURRENT ASSETS:
      Total cash, cash equivalents and short-term
       investments                                        $7,458        $6,684
      Trade receivables                                    6,335         5,422
      Other current assets                                 3,553         3,308
                                                           -----         -----
        Total current assets                              17,346        15,414
                                                          ------        ------


        Deposits with insurance companies and
         severance pay fund                                2,999         2,935
                                                           -----         -----

        Net property and equipment                           908         1,046
                                                             ---         -----

        Total other assets                                13,264        13,285
                                                          ------        ------

          Total assets                                   $34,517       $32,680
                                                         =======       =======

          LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES:
      Short-term bank credit                                $977          $456
      Trade payables                                       1,323         1,064
      Accrued expenses and other liabilities               7,106         6,991
      Deferred revenues                                    3,835         2,397
                                                           -----         -----
        Total current liabilities                         13,241        10,908
                                                          ------        ------

    LONG-TERM LIABILITIES:
      Accrued severance pay                                4,135         4,104
      Long-term loan                                         190           204
      Deferred tax liability                               1,275         1,365
                                                           -----         -----
         Total long-term liabilities                       5,600         5,673
                                                           -----         -----

      Total shareholders' equity                          15,676        16,099
                                                          ------        ------
          Total liabilities and shareholders' equity     $34,517       $32,680
                                                         =======       =======

                   CIMATRON LIMITED
     STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
               (US Dollars in thousands)

                                                       Accumulated
                                         Additional       other
                                            paid-     comprehensive
                   Noncontrolling Share       in          income
                      Interest   capital   capital        (loss)
                   --------------   -------    ----------      -------------
    Balance at
     December
     31, 2009                $(48)     $304       $18,204                $75
                             ====      ====       =======                ===
    Changes
     during the
     three
     months
     ended
     March 31,
     2010:
    Net gain
     (loss)                     3
    Exercise of
     share
     options                             --            11
    Unrealized
     loss on
     derivative
     instruments                                                         (58)
    Other                                                                237
    Stock
     option
     compensation                                      15
    Investment
     in
     treasury
     stock
    Foreign
     currency
     translation
     adjustment                                                         (447)
                                                                        ----
    Total
     comprehensive
     loss
    Balance at
     March 31,
     2010                    $(45)     $304       $18,230              $(193)
                             ====      ====       =======              =====

                       Retained
                       earnings              Comprehensive      Total
                     (accumulated  Treasury      income     shareholders'
                       deficit)     stock        (loss)         equity
                     ------------  --------  -------------  -------------
    Balance at
     December 31,
     2009                 $(1,894)    $(542)                      $16,099
                          =======     =====                       =======
    Changes during
     the three
     months ended
     March 31, 2010:
    Net gain (loss)          (100)                     (97)           (97)
    Exercise of
     share options                                                     11
    Unrealized loss
     on derivative
     instruments                                       (58)           (58)
    Other                                              237            237
    Stock option
     compensation                                                      15
    Investment in
     treasury stock                     (84)                          (84)
    Foreign currency
     translation
     adjustment                                       (447)          (447)

    Total
     comprehensive
     loss                                             (365)
                                                      ====
    Balance at March
     31, 2010             $(1,994)    $(626)                      $15,676
                          =======     =====                       =======

                               CIMATRON LIMITED
                           STATEMENTS OF CASH FLOWS
                           (US Dollars in thousands)

                                                      Three months ended
                                                           March 31,
                                                           ---------
                                                        2010          2009
                                                        ----          ----

    Cash flows from operating activities:
    Net loss                                            $(97)        $(569)

    Adjustments to reconcile net loss
       to net cash provided by (used in) operating
        activities:
    Depreciation and amortization                        387           391
    Increase (decrease) in accrued severance pay          60          (311)
    Stock option compensation                             15            18
    Deferred taxes, net                                  (56)          (82)

    Changes in assets and liabilities:
    Increase in accounts receivable and prepaid
     expenses                                         (1,675)       (1,175)
    Decrease (increase) in inventory                      11           (13)
    Increase in deposits with insurance companies and
     severance pay fund                                  (64)          237
    Increase in trade payables, accrued expenses and
     other liabilities                                 2,078         1,305
    Net cash provided by (used in) operating
     activities                                          659          (199)
                                                         ---          ----

    Cash flows from investing activities:
    Purchase of property and equipment                   (24)          (68)
    Net cash used in investing activities                (24)          (68)
                                                         ---           ---


    Cash flows from financing activities:
    Short-term bank credit                               541         1,215
    Long-term bank credit                                 (8)           45
    Proceeds from issuance of shares upon exercise of
     options                                              11             -
    Investment in treasury stock                         (84)          (35)
    Net cash provided in financing activities            460         1,225
                                                         ---         -----


    Net increase in cash and cash equivalents          1,095           958
    Effect of exchange rate changes on cash             (321)           53
    Cash and cash equivalents at beginning of period   6,684         5,727
    Cash and cash equivalents at end of period        $7,458        $6,738
                                                      ======        ======


    Appendix A - Non-cash transactions
            Purchase of property on credit                $-           $23
                                                         ===           ===

    Contact:
    --------
    Ilan Erez, Chief Financial Officer
    Cimatron Ltd.
    Tel.: 972-3-531-2121
    E-mail: ilane@cimatron.com

SOURCE Cimatron Limited