Net profit jumps at Cimatron

Aug 28, 2008 (Globes - McClatchy-Tribune News Service via COMTEX) -- CIMT | Quote | Chart | News | PowerRating -- Aug. 28--CAD/CAM software developer Cimatron Technologies (Nasdaq: CIMT | Quote | Chart | News | PowerRating) has reported second quarter revenue that was double that of the second quarter of 2007.

With two significant acquisitions over the past twelve months, Cimatron revenue continues to grow. Second quarter revenue reached $10.7 million, 6.9 percent higher than in the first quarter, and 94.2 percent higher than in the corresponding quarter of 2007.

Increased revenue was attributed both to organic growth and to the consolidation of results of recent acquisitions Microsystems and Gibbs and Associates.

Cimatron increased its stake in its Italian distributor Microsystems to 51 percent in 2007, and in July of this year exercised its option to buy the remainder of the company for $1.5 million.

Cimatron was profitable on a GAAP basis, with net profit of $205,000, and reported a large jump in non-GAAP net profit to $740,000. Non-GAAP net profit in the second quarter of 2007 was $301,000.

Cimatron CFO Ilan Erez told "Globes" today that the firm was pleased with the results. "At the beginning of the year, after we bought private US firm Gibbs, we said that even without synergy we could together reach annual revenue of at least $40 million. As of now, we are keeping that promise." In the first half of the year, Cimatron revenue reached $20.7 million.

Givat-Shmuel based Cimatron was not able to recognize part of Gibbs' revenue, which had been listed as "deferred maintenance revenue" when it was bought. Adding the additional revenue gave Cimatron a non-GAAP revenue figure of $10.9 million. Erez explained, "Specific parts of Gibbs' revenue are not able to be recognized this year. It amounts to $1 million over 2008, or about $250,000 per quarter."

Cimatron provides integrated CAD/CAM solutions for mold, tool, and die makers as well as manufacturers of discrete parts.

Shares in Cimatron closed on Wednesday at $2.09 on Nasdaq, reflecting a market cap of $19.56 million.

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