Once such microcap company, Cimatron (NASDAQ: CIMT), continues to impress. We wrote about Cimatron's impressive growth recently and having reported yesterday, Cimatron continues to chug along. The leading provider of integrated CAD/CAM solutions for the tool making and manufacturing industries posted a 58% increase in revenues for the third quarter of 2007 to $7.9 million, compared to $5.0 million in the third quarter of 2006.
While larger software companies like Google (NASDAQ: GOOG) and VMWare (NYSE: VMW) continue to post strong growth, Cimatron holds its own. Much of this growth comes from consolidating revenues of its Italian distributor, Microsystems, of which Cimatron recently purchased 51%.
"We are very pleased with our continued revenue and profit growth, marked by significant growth in software license sales," said Danny Haran, President and Chief Executive Officer of Cimatron. "The figures for the third quarter reflect the continuous positive acceptance of our latest version of Cimatron E, as well as the contribution of Microsystem's results to both the top and bottom lines."
The market liked the numbers. While already up over 100% this year alone, the stock popped after hours and was trading at $3.32, an increase of 20% over where the stock closed yesterday.
This company is truly a microcap, with a market cap of only $20 million -- so, tread really carefully and do your homework on this one. But with a niche product and good execution overseas and into Asia, this company could continue to be a real winner.
Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author holds a personal position in Google and EMC.
The market liked the numbers. While already up over 100% this year alone, the stock popped after hours and was trading at $3.32, an increase of 20% over where the stock closed yesterday.
This company is truly a microcap, with a market cap of only $20 million -- so, tread really carefully and do your homework on this one. But with a niche product and good execution overseas and into Asia, this company could continue to be a real winner.
Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author holds a personal position in Google and EMC.
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