CIMdata PLM Industry Summary Online Archive
3 March 2005
Financial News
Cimatron Ltd. Reports Fourth Quarter and Full Year 2004 Results
• Annual Revenues of over $23 Million
• Q4 Revenues of $6.4 Million-6% Growth from Q4 2003
Cimatron Limited announced financial results for the fourth quarter and year ended December 31, 2004.
Annual revenues for 2004 were $23.1 million compared to $21.6 million last year (7% growth). The annual gross profit was $18.5 million compared to $16.9 million last year (9% growth). Net loss in 2004 was $(388) thousand compared to $(301)thousand in 2003.
Revenues for the fourth quarter of 2004 reached $6.4 million, an increase of 21% over the previous quarter and up 6% over the revenue in the fourth quarter of 2003.
Gross profit for the fourth quarter was $5.1 million, representing 20.4 % growth over the last quarter and 6% growth over Q4 last year. Net loss for the quarter was $(249) thousand compared to net income of $272 thousand in Q4 2003.
Commenting on the results, Zvika Naggan, President and Chief Executive Officer of Cimatron, stated: "2004 was a transition year for the Company, in which we succeeded after four years to change the revenue trend and grow in sales. During Q4 we continued the growth in revenues compared to the last quarter and to the comparable quarter last year. In Q4 we had an operational loss, which is partially attributed to internal reorganization and to the effect of sharp currency fluctuations experienced in the international markets. The effect of the currency fluctuation was due to the fact that most of our revenues are in U.S. dollars, while most of our expenses are in Euros and New Israeli Shekels, both of which appreciated significantly against the US dollar during 2004.
In addition to the revenue growth, we achieved a number of important business objectives. In 2004 we laid the infrastructure for future growth by reorganizing the sales and marketing forces worldwide. We expanded our operation and broadened our customer base. We reinforced our presence in Asia and put special emphasis on the Chinese market, where we founded a new joint venture. US sales increased 23% compared to last year.
We won major contracts in 2004 with large and multi-national customers; we intend to continue and focus our sales on very large customers in the coming year. We also significantly deepened our involvement and sales to the educational market, as part of our long-term commitment to the CAD/CAM market in general, and to the Tooling industry in particular.
In 2004, we sold significantly more integrated software solutions (Design and NC) than former years. We will continue to strengthen our integrative offering, providing toolmakers with end-to-end solutions for tooling, from quoting to delivery, and enabling them to achieve greater productivity and shorten their delivery-time. Cimatron E Master Solution offers complete solution from part analysis and preparation tools to drawing and machining. Dedicated applications for mold and die makers and the best-in-class Electrode package, are all designed to make toolmakers more productive and competitive."
Full financials for this press release are available at http://www.cimatron.com .
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