CIMATRON LIMITED

RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION

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

Three months ended

Six months ended

June 30,

June 30,

2014

2013

2014

2013

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

Total revenue 

11,754

-

11,754

11,039

-

11,039

22,717

-

22,717

21,197

-

21,197

Total cost of revenue (1)

1,450

(147)

1,303

1,391

(147)

1,244

2,953

(294)

2,659

2,717

(294)

2,423

Gross profit

10,304

147

10,451

9,648

147

9,795

19,764

294

20,058

18,480

294

18,774

   Research and development expenses (2)

1,871

(12)

1,859

1,758

-

1,758

3,786

(24)

3,762

3,486

-

3,486

   Selling, general and administrative expenses

6,761

6,614

6,477

6,445

13,235

12,951

12,803

12,718

Non-cash amortization of acquired intangible assets

-

(32)

-

(85)

Stock-based compensation

(147)

-

(284)

-

Operating income 

1,672

306

1,978

1,413

179

1,592

2,743

602

3,345

2,191

379

2,570

   Financial income (expenses), net

35

-

35

(40)

-

(40)

(4)

-

(4)

(24)

-

(24)

   Taxes on income (3)

(409)

(85)

(494)

(377)

-

(377)

(759)

(168)

(927)

(569)

(91)

(660)

   Other 

(5)

-

(5)

3

-

3

(26)

-

(26)

5

-

5

Net income 

1,293

221

1,514

999

179

1,178

1,954

434

2,388

1,603

288

1,891

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

-

-

-

3

-

3

(10)

-

(10)

3

-

3

Net income attributable to Cimatron's shareholders

$ 1,293

$ 221

$ 1,514

$ 1,002

$ 179

$ 1,181

$ 1,944

$ 434

$ 2,378

$ 1,606

$ 288

$ 1,894

Net income per share - basic and diluted 

$ 0.12

$ 0.14

$ 0.11

$ 0.13

$ 0.18

$ 0.22

$ 0.17

$ 0.20

Weighted average number of shares outstanding

Basic EPS (in thousands)

10,751

10,751

9,362

9,362

10,741

10,741

9,355

9,355

Diluted EPS (in thousands)

10,761

10,761

9,362

9,362

10,744

10,744

9,360

9,360

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

(2) Non-GAAP adjustment to exclude stock-based compensation

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