Cimatron Limited Reports First Quarter Profit Decrease of $1.65 Million in Operating Expenses

GIVAT SHMUEL, Israel, May 6 /PRNewswire-FirstCall/ -- Cimatron Limited (NASDAQ:CIMT), a leading developer of CAD/CAM solutions for the tooling industry, today announced its results for the first quarter ending March 31, 2002.
Net income for the quarter was $144,000 or 2 cents per share, up from a net loss of $2.24 million or a loss of 28 cents per share for the first quarter last year

First quarter revenues were $5.32 million, a 2% increase from $5.19 million for the same quarter last year, despite the global market decline. The quarterly gross profit was $4.08 million, up 15% from a gross profit of $3.56 million for the same quarter last year.

Selling, general and administrative expenses were $2.65 million, down from $3.3 million for the same period a year ago. Research and development expenses were significantly reduced to $1.32 million from $2.32 million in the first quarter of 2001, a reduction of 43%. This was due to the completion of a major development stage of Cimatron E, the Company's flagship product. Operating income was $105,000, up from an operating loss of $2.07 million for the 2001 quarter.

Micha Ronen, Chief Financial Officer of Cimatron, commented, "These results come despite a slow economic environment. A planned decrease in overall operating expenses had a positive effect on our business performance. This is encouraging and a testament to Cimatron's healthy business model, which enabled us to achieve a positive cash flow of $0.6 million this quarter," he added.

"I am proud of our business and financial performance this quarter, achieved under extremely challenging macro-economic market conditions," remarked Nitzan Sapir, President and Chief Executive Officer of Cimatron. "Our management team successfully promoted our new product, Cimatron E, and dramatically decreased expenses this quarter, while expanding the support of our international distribution channels. Despite the difficulty in anticipating the remainder of 2002, I am confident that our new suite of products, to be released later this year, will strengthen our market share and consistently improve our results," added Sapir.

About Cimatron

Cimatron Ltd. (NASDAQ:CIMT) is a leading developer of integrated CAD/CAM solutions for the tooling industry. Through its Data-to-Steel product philosophy, Cimatron is committed to providing mold, tool and die makers with comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time. Worldwide, more than 8,500 customers, with over 15,000 installations in the automotive, consumer plastics, and electronics industries, employ Cimatron's leading CAD/CAM solutions for manufacturing. Founded in 1982, Cimatron Ltd. is publicly traded on the NASDAQ exchange under the symbol CIMT. Cimatron's subsidiaries and extensive distributor network are located in over 35 countries to serve customers worldwide with complete pre- and post-sales support. 

www.cimatron.com

 

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