Cimatron, provider of the CimatronE and GibbsCAM solutions for mold and die design, milling and other machining solutions, today announced its highest-ever quarterly and annual revenue. Revenue for the fourth quarter of 2010 was up 13% from Q4 2009 to $11 million, boosting full year revenues up by 9% to $36 million. This is still below pre-recession highs, but represents a return to a more normal environment in Cimatron’s end-markets.
CEO Danny Haran said that “it was a very good year and we see momentum continuing worldwide [in 2011], and especially in China and Brazil, driven by coming releases of GibbsCAM and CimatronE and our new SuperBox product, due out later in 2011.”
Cimatron provided only totals in their press release and percentages in their earnings call, but it would appear that total revenue for 2010 breaks down as follows:
• License revenue was 41% of total revenue in Q4 (up 30% y/y in constant currencies), leading to a 2010 total of about $14 million. This is up 5% from 2009, but still well below the $20 million reported for fiscal 2008.
• Maintenance revenue totaled $18.4 million for 2010 and is holding steady at about 50% of revenue. Maintenance and other services revenue was about $21 million, up from just under $20 million in 2009 and about even with the high of 2008.
• On a geo basis, Cimatron continues to grow its distribution channels in new markets, and posted revenue increases in all geographies. The company cited record revenues in China and South Korea (but did not specify amounts) to boost revenue from Asia by 14% to $5.5 million. Revenue from Europe was about $18 million, essentially even with 2009, while revenue from North America was about $11 million, up from $9 million.
During the earnings call, Mr. Haran said that the company had explored a number of acquisitions in 2010 but that none came to fruition. He said that Cimatron continues to maintain a high cash reserve and remains committed to growth through mergers and/or acquisitions.
In a second announcement, Cimatron said that it is pursuing a dual listing of its shares on the Tel Aviv Stock Exchange (TASE). Mr. Haran said that this is necessary to increase exposure among Israeli and European institutional investors. In order to qualify for the dual listing, Cimatron must maintain a market cap of at least NIS (new Israeli shekel) 135 million for at least 30 days prior to its registration with the TASE, using the average price of the company’s shares on the NASDAQ over the period. Cimatron has maintained an average market capitalization above the minimum required for 20 consecutive days, so is well on its way to qualifying — especially since its share price is up 15% on today’s earnings news. If the dual listing comes into effect, shares will be listed on both exchanges and the company will have to comply with the rules and regulations of the NASDAQ and the US Securities and Exchange Commission.
Cimatron did not offer guidance for 2011 or commentary on Q1 to date.