CIMATRON LIMITED

RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION

(US Dollars in thousands, except for per share data)

Three months ended

March 31,

2013

2012

GAAP

Adj.

NON-GAAP

GAAP

Adj.

NON-GAAP

Total revenue 

10,158

-

10,158

9,886

-

9,886

Total cost of revenue (1)

1,326

(147)

1,179

1,418

(147)

1,271

Gross profit

8,832

147

8,979

8,468

147

8,615

   Research and development expenses

1,728

-

1,728

1,693

-

1,693

   Selling, general and administrative expenses (1)

6,326

(53)

6,273

5,886

(99)

5,787

Operating income 

778

200

978

889

246

1,135

   Financial income, net

16

-

16

113

-

113

   Taxes on income (2)

(192)

(91)

(283)

(174)

(91)

(265)

   Other 

2

-

2

15

-

15

Net income 

604

109

713

843

155

998

   Less: Net income attributable to the noncontrolling interest

-

-

-

(12)

-

(12)

Net income attributable to Cimatron's shareholders

$ 604

$ 109

$ 713

$ 831

$ 155

$ 986

Net income per share - basic and diluted 

$ 0.06

$ 0.08

$ 0.09

$ 0.11

Weighted average number of shares outstanding

   Basic EPS (in thousands)

9,348

9,348

9,301

9,301

   Diluted EPS (in thousands)

9,358

9,358

9,318

9,318

(1) Non-GAAP adjustment to exclude non-cash amortization of acquired intangible assets. 

(2) Non-GAAP adjustment to exclude the effect of deferred taxes and other tax provisions.