Highlights of Cimatron's results for these periods include the following:
- 24% year-over-year increase in non-GAAP operating profit for Q2, to a second quarter record of $2.0 million;
- 28% year-over-year increase in non-GAAP net profit for Q2, to a second quarter record of $1.5 million;
- Record Q2 revenues of $11.8 million, a 6.5% year-over-year increase (4.4% on a constant currency basis);
- 17th consecutive quarter with year-over-year revenue growth on a constant currency basis;
- Record $7.6 million cash flow from operating activities in the first six months of 2014 leads to end of June net cash balance of $20.4 million or $1.90 per share
Concurrently with the release of its financial results, Cimatron also announced today that its Board of Directors has adopted a policy for distributing dividends, subject to all applicable laws. According to this policy, each year the Company will distribute a dividend of at least 50% of its annual distributable profits from the previous year. As part of the stated policy, the Company's Board of Directors reserves the right to declare additional dividend distributions, to change the rate of dividend distributions (either as a policy or on a one-time basis), to cancel a specific distribution or to cancel the policy as a whole at any time, at its sole discretion. The Company expects to declare the first distribution under the new policy during the first quarter of 2015, based on its 2014 annual distributable profits. The actual distribution of a dividend will be subject to meeting the conditions required by applicable laws, including the distribution tests set forth in Section 302 of the Israeli Companies Law, 5759-1999, and to the specific decision of the Company's Board of Directors for each distribution.
Commenting on the news, Danny Haran, President and Chief Executive Officer of Cimatron, noted, "We are very pleased to report our best second quarter ever, with record revenues, profit and cash flow. We saw strong results from both our product lines and across all major geographical territories. Over 50% of the year-over-year quarterly revenue growth reached the non-GAAP operating profit line, demonstrating once again the strong operating leverage in our business model.
"As planned, CimatronE version 12 was officially released during July 2014. We have high expectations for this latest version, as it incorporates numerous key enhancements, as well as our first entry into the 3D Printing software market. Initial feedback from the field is very encouraging.
"Our strong performance has built our cash balance to its current level of just over $20 million, an amount that is more than sufficient to fund our strategy for growth, including potential M&A opportunities. As such, we are happy to share our success more directly with our shareholders through the newly announced policy of significant annual dividend distributions. We are confident that our success in the years to come, coupled with the dividends that we plan to distribute, will create greater value for our shareholders while encouraging long-term interest and investment in our Company," concluded Mr. Haran.
The following provides details on Cimatron's GAAP and non-GAAP results for the second quarter and first six months of 2014:
GAAP:
Revenues for the second quarter of 2014 increased by 6.5% to $11.8 million, from $11.0 million recorded in the second quarter of 2013. For the first six months of 2014, revenues were $22.7 million, compared to $21.2 million in the same period of 2013.
Gross Profit for the second quarter of 2014 was $10.3 million, as compared to $9.6 million in the same period in 2013. Gross margin in the second quarter of 2014 constituted 88% of revenues, compared to 87% in the second quarter of 2013. For the first six months of 2014, gross profit was $19.8 million, compared to $18.5 million in the same period of 2013. Gross margin for the six months ended June 30, 2014 was 87% of revenues, the same as in the first six months of 2013.
Operating Profit in the second quarter of 2014 increased to $1.7 million, from $1.4 million in the corresponding quarter of 2013. In the first six months of 2014, operating profit increased to $2.7 million, compared to an operating profit of $2.2 million in the first six months of 2013.
Net Profit for the second quarter of 2014 increased to $1.3 million, or $0.12 per diluted share, compared to a net profit of $1.0 million, or $0.11 per diluted share, recorded in the same quarter of 2013. In the first six months of 2014, net profit increased to $1.9 million, or $0.18 per diluted share, compared to a net profit of $1.6 million, or $0.17 per diluted share, in the first six months of 2013.
Non-GAAP:
Revenues for the second quarter of 2014 increased by 6.5% to $11.8 million, from $11.0 million recorded in the second quarter of 2013. For the first six months of 2014, revenues were $22.7 million, compared to $21.2 million in the same period of 2013.
Gross Profit for the second quarter of 2014 was $10.5 million, as compared to $9.8 million in the same period of 2013. Gross margin in the second quarter of 2014 constituted 89% of revenues, the same as in the second quarter of 2013. In the first six months of 2014, gross profit was $20.1 million, compared to $18.8 million in the first six months of 2013. Gross margin for the six months ended June 30, 2014 was 88% of revenues, compared to a gross margin of 89% of revenues for the first six months of 2013.
Operating Profit in the second quarter of 2014 increased by 24% to $2.0 million , from $1.6 million in the corresponding quarter of 2013. In the first six months of 2014, operating profit increased by 30% to $3.3 million , compared to an operating profit of $2.6 million in the first six months of 2013.
