CimatronYesterday Cimatron announced the launch of “CimatronE 12” which includes significant productivity improvements and new features supporting 3D Printing technologies.

 

The new software includes conformal cooling channels that are typically manufactured using 3D printing and supports the AMF (Additive Manufacturing File) format which is the new standard for converting 3D models into digital files.

 

UPDATE 8/13/14: Cimatron Announces Record Q2: (Press release)

  • 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

3D Printing Software Update:

“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.”

 


Cimatron’s preparation for this launch included the appointment of industry expert Terry Wohlers to head their 3D printing advisory board. (See article on 3DPrintingIndustry.com)

On the appointment, Mr. Wohlers stated:

“Cimatron has long been a strong player in the CAD/CAM software market, and it is only natural for the company to leverage its knowledge of manufacturing software solutions by exploring opportunities in 3D printing. By 2015, we believe the 3D printing industry will be worth $3.7 billion, and a successful deployment by Cimatron in this market will provide it strong potential for growth. I am honored to have been selected as part of Cimatron’s pioneering efforts in this regard and I look forward to working closely with Cimatron’s management team and Board of Directors.”

 


 

Now officially part of the 3D printing software space, I believe Cimatron (CIMT) represents deep value at current share prices- especially given their lack of debt, record cash flow from operations in Q1,  and over $16M cash in hand to roll out “CimatronE 12” through their existing sales channels.

 

Cimatron EPS Growth and Trailing PE Compared To Other 3D Printing Software Stocks

Company

Quarterly Earnings Growth (yoy)

Trailing PE

Autodesk (NASDAQ:ADSK)

-49.10%

61

Dassault Systèmes(OTCPK:DASTY)

-17.90%

18

Cimatron (CIMT)

7.8%

12

 Source: Yahoo Finance , confirmed with Fidelity Investments.

 Based on average estimates of .51/share in 2014 earnings, and .58/share for 2015, Cimatron trades with a forward PE of 10.

 


 

It’s also worth noting that Cimatron CEO Danny Haran stated in the company’s Q1 conference call that 3D printing applications for their software will be expanded to address additional market needs:

“As we get more information from more customers that they are beginning to adopt metal 3D printing for touch uses, for insets within malls and we expect that to grow. Also, we will provide support for AMF, a format that is more specific for additive manufacturing.

And I see there are other things that already I would say brewing and we expect to have more applications and actually more uses and features and modules in coming versions. It is pretty much as we expected that as soon as we get into this market, we learn much more, we find more opportunities. It’s a very long-term process. It’s a marathon run as the market learns what it can do, what it wants to do, but yes, we expect more uses in coming versions.”

 

Q2 Earnings 

Cimatron will report their Q2 2014 on Wednesday August 13 in premarket with a conference call at 9:00am EDT

 

Conclusion

Cimatron is now officially part of the 3D printing software space and represents deep value at the current share price in comparison to peers.

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Disclosure: I am long shares of Cimatron (CIMT). I have not been paid by any company or any third-party for this content.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. See sidebar for full disclaimer.

Gary Anderson…..Follow me on Twitter: @3DPrintingStock

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