CLICKSOFTWARE REPORTS RECORD NET INCOME
PROFITABLE FOR 3RD CONSECUTIVE QUARTER
ON 28% REVENUE INCREASE FROM PREVIOUS YEAR
BURLINGTON, MA, October 27– ClickSoftware Technologies, Ltd., (NasdaqSC: CKSW) a leading provider of end-to-end service chain optimization software, today announced results for the third quarter ended September 30, 2003.
For the third quarter of 2003, total revenues were $5.9 million, with record consolidated net income of $687,000, or $0.03 per share. This compares with revenues of $4.6 million and a net loss of $1.8 million, or a loss of $0.07 per share, for the same period last year, and revenues of $ 5.1 million and consolidated net income of $173,000, or $0.01 per share, for the second quarter of 2003.
Software license revenues for the third quarter of 2003 were $3.1 million, while service revenues were $2.8 million. This compares to software license revenues of $2.3 million and service revenues of $2.3 million for the same period last year, and $2.3 million in software licenses revenues and $2.8 million in service revenues in the second quarter of 2003.
Gross profit in the third quarter was $3.9 million, or 66% of revenues, compared to $2.7 million, or 59% of revenues, in the same period last year, and $3.3 million, or 66% of revenues, in the second quarter of 2003.
Net cash from operating activities increased to $1.7 million in the third quarter of 2003 and to $3.4 million for the nine months ended September 30, 2003. The company increased its cash reserves (cash, cash equivalents and short and long-term investments) by $3.4 million from December 31, 2002. As of September 30, 2003, the company had cash, cash equivalents, and short and long-term investments of $10.1 million. Total assets at the close of the quarter were $16.6 million and stockholders’ equity was $8.0 million.
Deferred revenues increased to $2.6 million, up from $1.4 million at the end of second quarter.
“The third quarter was marked by the addition of several new clients—including large orders from Deutsche Telekom and United Utilities—as well as successful deployment of our products at five companies. The continuing wins of new large clients and the successful deployment of existing clients sets the stage for continuing growth in 2004 and further distances ClickSoftware from its competitors,” said Dr. Moshe BenBassat, ClickSoftware’s Chairman and Chief Executive Officer.
“The consistent improvement in revenue growth, profitability, and cash reserves is also reflected in solid operational fundamentals such as the significant third quarter increase in revenues per employee to a run rate of $192,000. In addition, our deferred revenues have increased significantly, giving us much clearer visibility into the upcoming quarters,” BenBassat added
Outlook
ClickSoftware said it currently believes that fourth quarter revenues should increase by about 5% over the third quarter, which should enable the company to be profitable for the fourth consecutive quarter and for the full fiscal year.
9-Month Summary
For the first nine months of 2003, total revenues were $ 16.1 million, with consolidated net income of $1.0 million, or $0.04 per share. This compares with revenues of $ 11.2 million and a net loss of $6.0 million, or a loss of $0.24 per share, for the first nine months of 2002. The $16.1 million revenues for the first nine months of 2003 are already higher than the full year $15.8 million revenues for 2002, indicating a run rate growth of about 40% in 2003.
Investor Conference Call
ClickSoftware will host a conference call today at 8:30 a.m. ET to discuss these results and answer questions from the investment community. To participate, please call (800) 473-6123 and ask for the ClickSoftware conference call. International participants, please call (973) 582-2706. The conference call will be simultaneously webcast (in listen mode only) and is available via the Internet athttp://www.clicksoftware.com. A replay of this call will be available on the ClickSoftware website, or by calling (877) 519-4471 (international callers can dial (973) 341-3080). The pass-code for the replay is 4237081.
About ClickSoftware
ClickSoftware is a leading provider of end-to-end service optimization solutions that maximize service revenue and customer responsiveness while minimizing costs. ClickSoftware’s ServiceOptimization suite includes strategic and tactical workforce planning, optimized service scheduling, intelligent problem resolution, wireless workforce management, and business analytics, connecting all organizational levels and all functions.
The company is headquartered in Burlington, MA and Israel, with offices in the United States, Europe, and Asia Pacific. For more information about ClickSoftware, call (781) 272-5903 or (888) 438-3308 or visithttp://www.clicksoftware.com
This press release contains express or implied forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. These forward-looking statements include, but are not limited to, those regarding future results of operations and visibility into future quarters, continued growth and rate of growth, performance of competitors and the ability to sustain profitability. Such “forward-looking statements” involve known and unknown risks, uncertainties and other factors, which may cause actual results or performance to be materially different from those projected. ClickSoftware’s achievement of these results may be affected by many factors, including among others, the following: uncertainties regarding the general economic outlook; the length of or change in the company’s sales cycle; the company’s ability to identify potential customers and to close sales to potential customers in a timely manner; the company’s ability to maintain relationships with strategic partners; the ability of the company’s professional services group to successfully complete implementations; level of competition; and the company’s ability to predict and control expenses and to align revenues and expenses. The forward-looking statements contained in this press release are subject to other risks and uncertainties, including those discussed in ClickSoftware’s annual report on Form 10-K for the year ended December 31, 2002 and subsequent quarterly reports on Form 10-Q and its other filings with the Securities and Exchange Commission.
Contacts:
Shmuel Arvatz
Chief Financial Officer
++972-3-7659422
Shmuel.Arvatz@clicksoftware.com
Howard Kalt
Kalt Rosen & Co.
(415) 397-2686
Kalt@KRC-IR.com
ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
| September 30
| December 31
|
|---|
| 2003
| 2002
|
|---|
| | |
|---|
| ASSETS | | | | | | | | |
| CURRENT ASSETS | | |
| Cash and cash equivalents | | | $ | 4,847 | | $ | 3,400 | |
| Short-term investments | | | | 5,008 | | | 2,949 | |
| Trade receivables, net | | | | 3,247 | | | 4,043 | |
| Other receivables and prepaid expenses | | | | 1,523 | | | 1,254 | |
|
| |
| |
| Total current assets | | | | 14,625 | | | 11,646 | |
|
| |
| |
| | |
| FIXED ASSETS | | |
| Cost | | | | 4,072 | | | 4,119 | |
| Less - accumulated depreciation | | | | 3,045 | | | 2,869 | |
|
| |
| |
| | | | | 1,027 | | | 1,250 | |
|
| |
| |
| Long-term investments | | | | 218 | | | 280 | |
| Severance pay deposits | | | | 763 | | | 781 | |
|
| |
| |
| | |
| Total Assets | | | $ | 16,633 | | $ | 13,957 | |
|
| |
| |
| | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | |
| CURRENT LIABILITIES | | |
| Short-term loans | | | $ | -- | | $ | 17 | |
| Accounts payable and accrued expenses | | | | 4,530 | | | 5,369 | |
| Deferred revenues | | | | 2,649 | | | 411 | |
|
| |
| |
| Total current liabilities | | | | 7,179 | | | 5,797 | |
|
| |
| |
| | |
| LONG TERM LIABILITIES | | |
| Accrued severance pay | | | | 1,465 | | | 1,476 | |
|
| |
| |
| Total long-term liabilities | | | | 1,465 | | | 1,476 | |
|
| |
| |
| | |
| Total liabilities | | | | 8,644 | | | 7,273 | |
|
| |
| |
| | |
| SHAREHOLDERS' EQUITY | | |
| Ordinary shares of NIS 0.02 par value | | | | 104 | | | 102 | |
| Additional paid-in capital | | | | 69,380 | | | 69,196 | |
| Deferred Stock Compensation | | | | -- | | | (101 | ) |
| Accumulated deficit | | | | (61,452 | ) | | (62,470 | ) |
| Treasury stock, at cost: 39,000 shares | | | | (43 | ) | | (43 | ) |
|
| |
| |
| Total shareholders' equity | | | | 7,989 | | | 6,684 | |
|
| |
| |
| | |
| Total liability and shareholders' equity | | | $ | 16,633 | | $ | 13,957 | |
|
| |
| |
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
| Three Months Ended |
|---|
| September 30,2003
| September 30 ,2002
|
|---|
| $
| % of Revenues
| $
| % Of Revenues
|
|---|
| Revenues: | | | | |
| Software license | $ 3,116 | 53% | $ 2,335 | 51% |
| Services | 2,786 | 47% | 2,274 | 49% |
|
|
|
|
|
| Total revenues | 5,902 | 100% | 4,609 | 100% |
|
|
|
|
|
| Cost of revenues: |
| Software license | 347 | 6% | 337 | 7% |
| Services | 1,670 | 28% | 1,539 | 34% |
|
|
|
|
|
| Total cost of revenues | 2,017 | 34% | 1,876 | 41% |
|
|
|
|
|
| Gross profit | 3,885 | 66% | 2,733 | 59% |
|
|
|
|
|
| Operating expenses: |
| Research and development costs, net | 414 | 7% | 729 | 16% |
| Selling and Marketing expenses | 1,998 | 34% | 2,599 | 56% |
| General and administrative expenses | 1,007 | 17% | 1,154 | 25% |
| Amortization of deferred stock-based |
| compensation | - | - | 75 | 2% |
|
|
|
|
|
| Total operating expenses | 3,419 | 58% | 4,557 | 99% |
|
|
|
|
|
| Income (Loss) from operations | 466 | 8% | (1,824) | (40)% |
| Interest and other income (expenses), net | 221 | 4% | (9) | 0% |
|
|
|
|
|
| Net Income (loss) | $ 687 | 12% | $ (1,833) | (40)% |
|
|
|
|
|
| Net Income (loss) per ordinary share: |
| Basic | $ 0.03 | | $ (0.07) | |
|
|
|
|
|
| Diluted | $ 0.03 | | $ (0.07) | |
|
|
|
|
|
| Shares used in computing basic Net income (loss) |
| per share | 25,729,470 | | 25,329,521 | |
|
|
|
|
|
| Shares used in computing diluted Net Income |
| (loss) per share | 27,046,509 | | 25,329,521 | |
|
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|
|
|
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
| Nine Months Ended |
|---|
| September 30, 2003
| September 30 , 2002
|
|---|
| $
| % of Revenues
| $
| % Of Revenues
|
|---|
| Revenues: | | | | |
| Software license | $ 7,671 | 48% | $ 4,711 | 42% |
| Services | 8,432 | 52% | 6,465 | 58% |
|
|
|
|
|
| Total revenues | 16,103 | 100% | 11,176 | 100% |
|
|
|
|
|
| Cost of revenues: |
| Software license | 783 | 5% | 654 | 6% |
| Services | 4,769 | 29% | 4,330 | 39% |
|
|
|
|
|
| Total cost of revenues | 5,552 | 34% | 4,984 | 45% |
|
|
|
|
|
| Gross profit | 10,551 | 66% | 6,192 | 55% |
|
|
|
|
|
| Operating expenses: |
| Research and development costs, net | 1,408 | 9% | 2,136 | 19% |
| Selling and Marketing expenses | 5,780 | 36% | 7,979 | 71% |
| General and administrative expenses | 2,504 | 16% | 2,046 | 18% |
| Amortization of deferred stock-based |
| compensation | 101 | 0% | 225 | 2% |
|
|
|
|
|
| Total operating expenses | 9,793 | 61% | 12,386 | 110% |
|
|
|
|
|
| Income (Loss) from operations | 758 | 5% | (6,194) | (55)% |
| Interest and other income (expenses), net | 260 | 1% | 183 | 1% |
|
|
|
|
|
| Net Income (loss) | $ 1,018 | 6% | $ (6,011) | (54)% |
|
|
|
|
|
| Net Income (loss) per ordinary share: |
| Basic | $ 0.04 | | $ (0.24) | |
|
|
|
|
|
| Diluted | $ 0.04 | | $ (0.24) | |
|
|
|
|
|
| Shares used in computing basic Net Income (loss) |
| per share | 25,664,058 | | 25,550,633 | |
|
|
|
|
|
| Shares used in computing diluted Net Income (loss) |
| per share | 26,201,352 | | 25,550,633 | |
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