Clicksoftware Technologies (CKSW) 6-K Current report (foreign)

ClickSoftware Contact:	Investor Relations Contact:
Noa Schuman	Rob Fink
Investor Relations	KCSA Strategic Communications
+972-3-7659-467	212-896-1206
Noa.Schuman@clicksoftware.com	rfink@kcsa.com

ClickSoftware Reports Financial Results for the Second Quarter Ended June 30, 2012

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New substantial contracts signed following the closing of the second quarter provide good visibility for the remainder of the year;

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Company updates annual revenue guidance

Burlington, MA, July 25, 2012 – ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of automated workforce management and optimization solutions for the service industry, today announced results for the second quarter ended June 30, 2012.

For the second quarter ended June 30, 2012, total revenues were $22.5 million, up 9% from $20.7 million in the second quarter of 2011, in line with the pre-announcement. Net income for the second quarter of 2012 was $0.1 million, or $0.00 per fully diluted share, compared to net income of $2.6 million, or $0.08 per fully diluted share, for the same period last year.

Non-GAAP net income for the quarter was $1.0 million, or $0.03 per fully diluted share, compared to $3.5 million, or $0.11 per fully diluted share, for the same period last year.

Software license revenues for the second quarter of 2012 were $6.3 million, up 4% compared to software license revenues of $6.1 million for the same period last year. Service and maintenance revenues were $16.2 million, up 11% compared to service and maintenance revenues of $14.6 million in the same period last year.

Gross profit in the second quarter of 2012 was $12.7 million, or 57% of revenues, compared to $13.5 million, or 65% of revenues, in the same period last year.

Net cash used in operating activities was $1.1 million during the second quarter of 2012. After paying a cash dividend of $2.5 million, cash, cash equivalents and short and long-term investments at the end of the second quarter of 2012 were $49.9 million, a decrease of $4.3 million compared to the end of the first quarter of 2012.

Management Commentary

“Despite macro-economic conditions in Europe and timing issues of specific contracts that affected our revenues in the first half of the year, we expect annual revenues to be close to our original guidance estimates. As announced earlier this month, right after the close of the second quarter we signed a major multi-million dollar contract. This contract, together with our healthy pipeline, provide good visibility for the remainder of the year, and keep us confident in our ability to execute our growth strategy,” said Dr. Moshe BenBassat, ClickSoftware’s Chairman and CEO. “As a whole, demand in the workforce management and enterprise mobility market remains strong, as evidenced by the significant number of prospects in our pipeline expressing interest in our mobility offering. In particular, more than half of the opportunities generated in our pipeline during the second quarter contain our mobility solution. We are optimistic about our growth in the second half of 2012 and beyond,” Dr. BenBassat concluded.

Outlook

The Company now believes that revenues for 2012 will be in the range of $98 to $103 million, representing about 13% to 18% growth over 2011. This is slightly below the previously provided guidance for annual revenues in the range of $100 to $105 million in 2012.

Cash Dividend

ClickSoftware also announced today that on July 23, 2012, its Board of Directors approved the distribution of a $0.08 per share dividend to be paid on August 22, 2012 to all shareholders of record as of the close of business on August 8, 2012. The dividend will be paid net of any required tax. The Company does not have a formal policy governing the amounts and payment of dividends, and the declaration and payment of future dividends, if any, is at the discretion of the Company’s Board of Directors.

Annual Shareholders Meeting

ClickSoftware also reported that at its Annual Shareholders Meeting held on June 28, 2012, all items on the agenda as set forth in the proxy statement furnished on Form 6-K with the U.S. Securities and Exchange Commission on May 16, 2012, were approved.

Investors Conference Call

ClickSoftware will host a conference call today at 9:00 a.m. EDT to discuss its financial results and other matters discussed in this press release, as well as answer questions from the investment community. To participate, please call (888) 668-9141 and ask for the ClickSoftware conference call. International participants, please call +972-3-918-0609. The call will be broadcasted by live webcast on the internet (in listen mode only) at http://ir.clicksoftware.com. A replay of this webcast will be available on the ClickSoftware website. Alternatively, a telephone replay of the call will be available for a week by calling (888) 326-9310 (international callers can dial +972-3-925-5900).

About ClickSoftware

ClickSoftware is the leading provider of automated workforce management and optimization solutions for every size of service business. Our portfolio of solutions, available on demand and on premise, creates business value through higher levels of productivity, customer satisfaction and operational efficiency. Our patented concept of ‘continuous planning and scheduling’ incorporates customer demand forecasting, long and short term capacity planning, shift planning, real-time scheduling, mobility and location-based services, as well as on-going communication with the consumer on the expected arrival time of the service resource.

As the pioneers of the ‘W6’ concept more than 20 years ago, we have perfected solutions for solving a wide variety of problems on Who does What, for Whom, with What, Where and When. The combination of proven technology with educational services helps businesses find the right balance between reducing costs, increasing customer satisfaction, employee preferences and industry regulations/legislation. ClickSoftware’s solutions manage hundreds of thousands of resources in service businesses across a variety of industries and geographies. Our flexible deployment approach, breadth and depth of solutions and strong partnerships with leading CRM/ERP vendors and system integrators makes us the number one choice to deliver superb business performance to any organization. The Company is headquartered in the United States and Israel, with offices across Europe, and Asia Pacific.

For more information, please visitwww.clicksoftware.comor follow us onTwitter, the content of which is not part of this press release.

Use of Non-GAAP Financial Results

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), the Company's earnings release contains Non-GAAP financial measures of net income and net income per share that exclude the effects of share-based compensation, tax benefit related to the update of deferred tax asset and the amortization of acquired intangible assets. The Company’s management believes the Non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of the Company's on-going core operations and prospects for the future. Management also uses both GAAP and Non-GAAP information in evaluating and operating business internally and as such deemed it important to provide all this information to investors. The Non-GAAP financial measures disclosed by the Company should not be considered in isolation or as a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. Reconciliations between GAAP measures and Non-GAAP measures are provided later in this press release.

Safe Harbor for Forward Looking Statements

This press release contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding future results of operations, including our outlook for full year 2012 revenues, the possibility of future dividends, visibility into future periods and pipeline, growth opportunities in the workforce management and enterprise mobility markets, winning new business and future success in the area of mobility and cloud. Such “forward-looking statements” involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from those projected. Achievement of these results by ClickSoftware may be affected by many factors, including, but not limited to, risks and uncertainties regarding the general economic outlook, more attractive investments than dividends that may become available, the length of or changes in ClickSoftware’s sales cycle, ClickSoftware’s ability to close sales to potential customers in a timely manner and maintain or strengthen relationships with strategic partners, the timing of revenue recognition, foreign currency exchange rate fluctuations, and ClickSoftware’s ability to maintain or increase its sales pipeline. The forward-looking statements contained in this press release are subject to other risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in ClickSoftware's annual report on Form 20-F for the year ended December 31, 2011 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise required by law, ClickSoftware is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Note: Financial Schedules Attached

ClickSoftware Technologies Ltd.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited. In thousands, except share and per share amounts)

	Three Months Ended
	June 30, 2012					June 30, 2011
	$		% of Revenues			$			% of Revenues
Revenues:
Software license	$	6,307		28	%	$	6,066			29	%
Services		16,175		72	%		14,601			71	%
Total revenues		22,482		100	%		20,667			100	%
Cost of revenues:
Software license		640		3	%		374			2	%
Services		9,115		41	%		6,823			33	%
Total cost of revenues		9,755		43	%		7,197			35	%
Gross profit		12,727		57	%		13,470			65	%
Operating expenses:
Research and development costs, net		2,979		13	%		2,291			11	%
Selling and marketing expenses		7,403		33	%		6,083			29	%
General and administrative expenses		2,255		10	%		1,761			9	%
Total operating expenses		12,637		56	%		10,135			49	%
Operating income		90		0	%		3,335			16	%
Interest income, net		27		0	%		(46	)		0	%
Net income before taxes	$	117		1	%	$	3,289			16	%
Tax expense, net		44		0	%		690			3	%
Net income	$	73		1	%	$	2,599			13	%
Net earnings per ordinary share:
Basic	$	0.00				$	0.08
Diluted	$	0.00				$	0.08
Shares used in computing basic net income per share		31,545,346					30,873,416
Shares used in computing diluted net income per share		32,867,492					32,652,099

ClickSoftware Technologies Ltd.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited. In thousands, except share and per share amounts)

	Six Months Ended
	June 30, 2012					June 30, 2011
	$		% of Revenues			$			% of Revenues
Revenues:
Software license	$	12,725		29	%	$	13,518			34	%
Services		31,605		71	%		26,449			66	%
Total revenues		44,330		100	%		39,967			100	%
Cost of revenues:
Software license		1,565		4	%		1,031			3	%
Services		17,599		40	%		13,702			34	%
Total cost of revenues		19,164		43	%		14,733			37	%
Gross profit		25,166		57	%		25,234			63	%
Operating expenses:
Research and development costs, net		5,650		13	%		4,152			10	%
Selling and marketing expenses		14,737		33	%		11,595			29	%
General and administrative expenses		4,197		9	%		3,366			8	%
Total operating expenses		24,584		55	%		19,113			48	%
Operating income		582		1	%		6,121			15	%
Interest income, net		226		1	%		(22	)		0	%
Net income before taxes	$	808		2	%	$	6,099			15	%
Tax expense, net		34		0	%		1,252			3	%
Net income	$	774		2	%	$	4,847			12	%
Net earnings per ordinary share:
Basic	$	0.02				$	0.16
Diluted	$	0.02				$	0.15
Shares used in computing basic net income per share		31,479,942					30,767,584
Shares used in computing diluted net income per share		32,925,309					32,376,192

ClickSoftware Technologies Ltd.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	June 30, 2012			December 31, 2011
	(Unaudited)			(Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	13,923		$	14,683
Deposits		24,437			28,243
Marketable securities		10,896			10,945
Trade receivables, net		21,631			23,378
Deferred taxes		590			540
Other receivables and prepaid expenses		2,932			2,610
Total current assets		74,409			80,399
LONG TERM ASSETS
Property and equipment, net		4,461			3,873
Deposits		596			1,093
Other receivables and prepaid expenses		121			233
Deferred taxes		680			550
Intangible assets, net		752			1,166
Goodwill		1,572			1,572
Severance pay funds		1,801			1,746
Total long term assets		9,983			10,233
Total Assets	$	84,392		$	90,632
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	11,725		$	13,608
Dividend payable		-			2,536
Deferred revenues		7,668			9,529
Total current liabilities		19,393			25,673
LONG TERM LIABILITIES
Accrued severance pay		4,187			3,847
Deferred taxes liability		240			180
Deferred revenues		1,342			1,828
Total long term liabilities		5,769			5,855
Total liabilities		25,162			31,528
SHAREHOLDERS’ EQUITY
Ordinary shares of NIS 0.02 par value		132			131
Additional paid-in capital		86,091			84,383
Accumulated deficit		(26,951	)		(25,200	)
Accumulated other comprehensive income		1			(167	)
Treasury stock, at cost: 39,000 shares		(43	)		(43	)
Total shareholders' equity		59,230			59,104
Total Liabilities and shareholders' equity	$	84,392		$	90,632

ClickSoftware Technologies Ltd.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, In thousands)

	Six Months Ended
	June 30, 2012			June 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	774		$	4,847
Adjustments to reconcile net income to  net cash provided by operating activities:
Income and expense items not involving cash flows:
Depreciation		1,008			690
Amortization of deferred compensation		1,232			712
Amortization of acquired intangible assets		415			404
Severance pay, net		285			288
Gain on marketable securities		(71	)		(43	)
Other		3			10
Changes in operating assets and liabilities:
Trade receivables		1,747			(2,206	)
Deferred taxes		(120	)		750
Other receivables		(42	)		(199	)
Accounts payable and accrued expenses		(1,883	)		(246	)
Deferred revenues		(2,347	)		2,642
Net cash provided by operating activities	$	1,001		$	7,649
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment		(1,600	)		(976	)
Decrease (increase) in deposits		4,303			(8,116	)
Investments in marketable securities		(725	)		(4,743	)
Proceeds from sale of marketable securities		845			3,133
Net cash provided by (used in) investment activities	$	2,823		$	(10,702	)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid		(5,061	)		(2,476	)
Employee options exercised		477			1,218
Net cash used in financing activities	$	(4,584	)	$	(1,258	)
DECREASE IN CASH AND CASH EQUIVALENTS		(760	)		(4,311	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		14,683			25,749
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	13,923		$	21,438

ClickSoftware Technologies Ltd.

SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS

(Unaudited. In thousands, except per share amounts)

	Three Months Ended
	June 30, 2012					June 30, 2011
	$		% of Revenues			$		% of Revenues
GAAP Net income	$	73		0	%	$	2,599		13	%
Share-based compensation (1)		684					401
Amortization of intangible assets (2)		174					202
Deferred taxes		40					310
Non-GAAP Net income	$	971		4	%	$	3,512		17	%
GAAP Earnings per share (diluted)	$	0.00				$	0.08
Share-based compensation		0.02					0.01
Amortization of intangible assets		0.01					0.01
Deferred taxes		0.00					0.01
Non-GAAP Earnings per share (diluted)	$	0.03				$	0.11
(1) Share-based compensation:
Cost of services		82					58
Research and development costs, net		64					49
Selling and marketing expenses		156					110
General and administrative expenses		382					184
	$	684				$	401
(2) Amortization of intangible assets:
Cost of revenues		144					173
Research and development costs, net		30					29
	$	174				$	202

ClickSoftware Technologies Ltd.

SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS

(Unaudited. In thousands, except per share amounts)

	Six Months Ended
	June 30, 2012						June 30, 2011
	$			% of Revenues			$		% of Revenues
GAAP Net income	$	774			2	%	$	4,847		12	%
Share-based compensation (1)		1,232						712
Amortization of intangible assets (2)		415						404
Deferred taxes		(120	)					750
Non-GAAP Net income	$	2,301			5	%	$	6,713		17	%
GAAP Earnings per share (diluted)	$	0.02					$	0.15
Share-based compensation		0.04						0.02
Amortization of intangible assets		0.01						0.01
Deferred taxes		0.00						0.03
Non-GAAP Earnings per share (diluted)	$	0.07					$	0.21
(1) Share-based compensation:
Cost of services		141						97
Research and development costs, net		113						83
Selling and marketing expenses		273						187
General and administrative expenses		705						345
	$	1,232					$	712
(2) Amortization of intangible assets:
Cost of revenues		355						345
Research and development costs, net		60						59
	$	415					$	404