Cimatron: new license revenue up 18% in Q3

Last week, I briefly noted that Cimatron had reported Q3 revenue of $9.6 million, up 10% from the $8.7 million reported last year. Here are a few more details about what actually was a really good quarter for Cimatron:

• License revenue was 42% of total, or $4.0 million in Q3 2011, as compared to 39% of total a year ago, or $3.4 million — an increase of 18% as reported and 15% on a constant currency basis.
• Maintenance revenue was 51% of total or $4.9 million, up 9% from 52% or $4.5 million a year ago.
• By geo, revenue from Europe was $4.6 million up from $4.1 million a year ago; from North America, $2.9 million, up from $2.7 million in Q3 2010; from  Asia Pacific: $1.6 million, up from $1.4 million; and Rest of the World $500,000, flat hen compared to last year. CEO Danny Haran gave a little bit of color on the earnings call, saying “We’re doing well in the USA, we’re doing well in Europe, we’re doing well in Asia. Even Japan has come back a little bit from the previous quarters.”

Mr. Haran also offered glimpses on the company’s plans for growth saying that Cimatron continues to look for merger or acquisition opportunities but noting that there aren’t too many candidates that would be a good fit. From an organic perspective (in other words, without acquisitions), Mr. Haran says Cimatron is working to expand its distribution network, to making the “product more and more competitive” and to introduce GibbsCAM to new markets such as Korea and China. Looking ahead, Mr. Haran said that “These are interesting times. On the one hand, economic uncertainty is very high, and news from Europe and the USA continuously shake the markets; on the other hand, business seems to be strong and healthy in all of our markets.” Mr. Haran would not be pinned down on Q4, saying that “we have early and partial indications showing continuation of momentum… So far so good; it’s not like we’re seeing any slowdown anywhere.”