Hope you had a great weekend! This week is off to a good start, as Cimatron announced record revenue for both its fourth quarter and fiscal 2012 — a combination that led to record profits and cash flow. Even better, says CEO Danny Haran, “[w]e achieved these strong results despite a delay in some US-based projects towards the end of the fourth quarter, which were attributed to customer ‘Fiscal Cliff’ concerns. These delays are believed to be behind us, as indicated by initial results in January.”
- Revenue in Q4 was $12.4 million, and for the full year, $42.3 million. That’s an increase of 1% for the quarter and 5% for the year, as reported. In constant currencies, revenue was up 7% for the year.
- The non-GAAP operating profit was $6.1 million in 2012 and $2.3 million in Q4 — and, more impressive, operating margins were 14% and 19%, respectively.
Regarding 2013, Mr. Haran said, “[b]ased on what we are currently seeing in the market, combined with the current demand across our product portfolio, we expect to continue to grow our top line in 2013. This, we believe, will be translated into increased growth in operating profit due to the strong operating leverage inherent in our business model, which allows us to bring a great portion of any revenue increase down to the operating profit.”
He also said that Cimatron is considering entering the market for 3D printing technologies, clearly a hot topic over the last few years: “[W]e are researching how we can better serve our customers and partners in this exciting new way of manufacturing … [W]e believe that additive and hybrid manufacturing have great potential to emerge in many directions, and that our knowledge and vast expertise in 3D modeling and manufacturing will allow us to take part in this field, as it becomes more and more commonly used, side by side with traditional subtractive manufacturing techniques.”
Earlier this month, Cimatron announced that its Board of Directors had approved a cash distribution of NIS 1.54 (about US$0.42) per share on outstanding ordinary shares, for a total distribution of just under $4 million. The distribution, from paid-in capital, is the second $4 million to be paid out under a court approval that was issued in 2012.
The cash payout has caused the share price to rise from about $9.50 when it was announced to $12.80 last week. We’ll see what this good news about Q4 and 2013 does to the share price.
Cimatron will be holding an investor call today and I’ll update with more details sometime tomorrow.