Highlights of Cimatron's results for the fourth quarter and full year of 2013 include the following:
- Record revenues of $44.2M in 2013 and $12.7M in Q4/13
- Record non-GAAP operating profit of $6.3M in 2013 and $2.4M in Q4/13 with operating margins of 14% and 18%, respectively
- Record non-GAAP net profit of $4.7M in full year 2013
- $0.48 non-GAAP EPS in full year 2013
- $13.0M end-of-year net cash balance
Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, noted, "We are pleased to report yet another record quarter, rounding out a record year that was also the fourth year in which we have shown continued growth in revenues and profits. The revenue growth on a constant currency basis in 2013 was 3.2%, in line with the revenue growth that we have seen in our market. Throughout 2013, our operating profit was unfavorably affected by the weakening of the US dollar versus the Israeli Shekel, as a considerable percentage of our expenses is denominated in Israeli Shekels, whereas we record no revenues in that currency.
"On the product side, we are excited about the coming release of CimatronE version 12, expected in mid-2014. This version will include new enhancements covering many aspects of mold and die design and manufacturing, including our first solutions geared for the 3D printing market. As we've indicated in previous announcements, CimatronE version 12 will include a new module for the design and analysis of conformal cooling systems, an application of 3D printing. This version will also support the Additive Manufacturing File (AMF) format – the new standard for converting 3D models into digital files for 3D printing and additive manufacturing. We are confident that we will identify additional uses and applications of our technology for additive manufacturing as we gain more exposure to this emerging market. We believe that these developments, along with other investments in our traditional target markets, will continue to drive growth in revenues and profits going forward," concluded Mr. Haran.
The following provides details on Cimatron's GAAP and non-GAAP results for the fourth quarter and full year of 2013:
GAAP:
Revenues for the fourth quarter of 2013 were $12.7 million, compared to $12.4 million recorded in the fourth quarter of 2012. For the full year of 2013, revenues were $44.2 million, compared to $42.3 million in 2012.
Gross Profit for the fourth quarter of 2013 was $11.0 million, as compared to $10.8 million in the same period in 2012. Gross margin in the fourth quarter of 2013 constituted 87% of revenues, compared to 88% in the fourth quarter of 2012. For the full year of 2013, gross profit was $38.4 million, compared to $37.2 million in 2012. Gross margin for the full year of 2013 constituted 87% of revenues, compared to a gross margin constituting 88% of revenues for the full year of 2012.
The slightly higher gross margin in the full year of 2012 as compared to 2013 mainly reflects the agreement that Cimatron entered into with the Office of Chief Scientist in the Israeli Ministry of Economy (OCS), which was announced in 2012. As a result of that agreement, the Company recorded additional one-time income of approximately $0.4 million in the second quarter of 2012, reflected as a lower cost of revenue in the Company's GAAP Statements of Income for the full year of 2012. Such income was excluded from the non-GAAP results for the full year of 2012, in order to ensure that comparisons to comparable periods of previous and subsequent years better reflect the results of ongoing operations.
Operating Profit in the fourth quarter of 2013 was $2.1 million, the same as in the parallel period of 2012. In the full year of 2013, Cimatron recorded an operating profit of $5.5 million, the same as in the full year of 2012.
Net Profit for the fourth quarter of 2013 was $2.3 million, or $0.21 per diluted share, compared to a net profit of $1.3 million, or $0.14 per diluted share, recorded in the same quarter of 2012. The net profit in the fourth quarter of 2013 was higher than the operating profit in that period mainly due to the creation of a $1.1 million tax asset in Israel that resulted in tax income rather than tax expense. Such tax income was excluded from the non-GAAP results for the fourth quarter and full year of 2013, in order to ensure that comparisons to comparable periods of previous years (and, in the future, subsequent years) better reflect the results of ongoing operations.
In the full year of 2013, net profit was $4.8 million, or $0.49 per diluted share, compared to net profit of $3.7 million, or $0.40 per diluted share, in the full year of 2012.
Non-GAAP:
Revenues for the fourth quarter of 2013 were $12.7 million, compared to $12.4 million recorded in the fourth quarter of 2012. For the full year of 2013, revenues were $44.2 million, compared to $42.3 million in 2012.
Gross Profit for the fourth quarter of 2013 was $11.2 million, as compared to $11.0 million in the same period of 2012. Gross margin in the fourth quarter of 2013 constituted 88% of revenues, compared to 89% in the fourth quarter of 2012. In the full year of 2013, gross profit was $39.0 million, compared to $37.4 million in the full year of 2012. Gross margin for the full year of 2013 constituted 88% of revenues, the same as in the full year of 2012.
Operating Profit in the fourth quarter of 2013 was $2.4 million, as compared to $2.3 million in the same period in 2012. In the full year of 2013, Cimatron recorded operating profit of $6.3 million , compared to operating profit of $6.1 million in the full year of 2012.
