CIMATRON LIMITED

RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION

(US Dollars in thousands, except for per share data)

Three months ended

Twelve months ended

December 31,

December 31,

2012

2011

2012

2011

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

Total revenue  

12,357

-

12,357

12,226

-

12,226

42,314

-

42,314

40,714

-

40,714

Total cost of revenue

1,522

1,375

1,477

1,330

5,092

4,923

5,383

4,795

Non-cash amortization of acquired intangible assets

(147)

(147)

(588)

(588)

One-time income from OCS agreement

419

Gross profit

10,835

147

10,982

10,749

147

10,896

37,222

169

37,391

35,331

588

35,919

Research and development expenses, net

2,066

-

2,066

2,031

-

2,031

7,001

-

7,001

6,739

-

6,739

Selling, general and administrative expenses (1)

6,658

(50)

6,608

6,799

(99)

6,700

24,677

(346)

24,331

24,453

(402)

24,051

Operating income  

2,111

197

2,308

1,919

246

2,165

5,544

515

6,059

4,139

990

5,129

 Financial income (expenses), net

16

-

16

(186)

-

(186)

(35)

-

(35)

(195)

-

(195)

Taxes on income (2)

(771)

169

(602)

(339)

(44)

(383)

(1,770)

197

(1,573)

(1,327)

843

(484)

Other

(23)

-

(23)

3

-

3

(30)

-

(30)

(6)

-

(6)

Net income  

1,333

366

1,699

1,397

202

1,599

3,709

712

4,421

2,611

1,833

4,444

Less: Net (income) loss attributable to the noncontrolling interest

14

-

14

44

-

44

(10)

-

(10)

57

-

57

Net income attributable to Cimatron's shareholders

$ 1,347

$ 366

$ 1,713

$ 1,441

$ 202

$ 1,643

$ 3,699

$ 712

$ 4,411

$ 2,668

$ 1,833

$ 4,501

Net income per share - basic

$ 0.14

$ 0.18

$ 0.15

$ 0.18

$ 0.40

$ 0.47

$ 0.29

$ 0.49

Net income per share - diluted

$ 0.14

$ 0.18

$ 0.15

$ 0.18

$ 0.40

$ 0.47

$ 0.29

$ 0.48

Weighted average number of shares outstanding

Basic EPS (in thousands)

9,338

9,338

9,300

9,300

9,323

9,323

9,252

9,252

Diluted EPS (in thousands)

9,348

9,348

9,315

9,315

9,337

9,337

9,292

9,292

(1) Non-GAAP adjustment to exclude non-cash amortization of acquired intangible assets.  

(2) Non-GAAP adjustment to exclude the effect of deferred taxes and other tax provisions.