ClickSoftware Contact: Investor Relations Contact:
Noa Schuman Marybeth Csaby / Rob Fink
Investor Relations KCSA Strategic Communications
+972-3-7659-467 212-896-1236 / 212-896-1206
Noa.Schuman@clicksoftware.com mcsaby@kcsa.com / rfink@kcsa.com
CLICKSOFTWARE REPORTS RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2010
Quarterly Revenues Up 5% and License Revenues Up 11% Year-Over-Year
- --------------------------------------------------------------------------------
BURLINGTON, MA, October 25, 2010 - ClickSoftware Technologies Ltd. (NasdaqGS:
CKSW), the leading provider of automated workforce management and optimization
solutions for the service industry, today announced results for the third
quarter ended September 30, 2010.
For the third quarter ended September 30, 2010, total revenues were $17.5
million, up 5% from $16.6 million in the third quarter of 2009. Net income for
the third quarter of 2010 was $2.3 million, or $0.07 per fully diluted share,
compared to net income of $3.2 million, or $0.10 per fully diluted share, for
the same period last year.
Non-GAAP net income for the quarter was $2.8 million, or $0.09 per fully diluted
share, compared to $3.6 million, or $0.11 per fully diluted share, for the same
period last year.
Software license revenues for the third quarter of 2010 were $6.0 million, up
11% compared with software license revenues of $5.4 million for the same period
last year. Service and maintenance revenues were $11.5 million, up 2% compared
with service and maintenance revenues of $11.2 million in the same period last
year.
Gross profit in the third quarter of 2010 was $10.9 million, or 62% of revenues,
compared to $10.9 million, or 65% of revenues, in the same period last year.
Cash, cash equivalents and short and long-term investments at the end of the
third quarter of 2010 increased to $48.3 million from $42.5 million at the end
of the second quarter of 2010. Net cash provided by operating activities was
$5.7 million during the third quarter of 2010.
"As we previously reported, delays in signing certain contracts somewhat
impacted our third quarter revenues; still, we are on target on a nine-month
basis and believe that we will meet our annual projections for 2010. We continue
to execute operationally for on-going sustainable growth by developing a strong
pipeline of new business, expanding our partnerships, and further enhancing our
product line offerings", said Dr. Moshe BenBassat, ClickSoftware's Chairman and
CEO. "Our leadership in the mobile marketplace strengthened as we continue to
sign new customers. The partnership with Sybase - an SAP company - by which our
industry leading mobile application will run on the industry leading Sybase
platform, creates one of the most attractive mobile offering
in the enterprise software market. This is further amplified by our device
agnostic approach that makes our mobile applications run on iPhone, iPad and
Android-based devices. Additionally, the introduction of a Facebook application
offers service organizations access into social media, and provides a
self-service approach for customers," Dr. BenBassat added. "To conclude, our
business remains strong and we expect the momentum to carry into the fourth
quarter and into 2011".
OUTLOOK
The Company expects revenues for the fourth quarter of 2010 to be above $20
million which will bring 2010 annual revenues to above $72.5 million. This will
represent annual revenues growth of approximately 19% or higher.
INVESTORS CONFERENCE CALL
ClickSoftware will host a conference call today at 9:00 a.m. ET 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 +972-3-918-0610. 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 or 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 over 200,000 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 visit www.clicksoftware.com or follow us on
Twitter, 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 in accordance with the
requirements of ASC 718 (originally issued as SFAS No. 123R, "Share-based
Payment" ("123R")), 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, visibility into
future periods, growth and future rates of growth and expectations regarding
future closing of contracts. For example, when we discuss our "Outlook" for 2010
fourth quarter revenues and demand and visibility for future periods, we are
using forward-looking statements. 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,
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, 2009 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
September 30, 2010 September 30, 2009
----------------------------- -----------------------------
% of % of
$ Revenues $ Revenues
----------------------------- -----------------------------
Revenues:
Software license $ 5,969 34% $ 5,369 32%
Services 11,509 66% 11,239 68%
----------------------------- -----------------------------
Total revenues 17,478 100% 16,608 100%
----------------------------- -----------------------------
Cost of revenues:
Software license 617 4% 611 4%
Services 5,986 34% 5,143 31%
----------------------------- -----------------------------
Total cost of revenues 6,603 38% 5,754 35%
----------------------------- -----------------------------
Gross profit 10,875 62% 10,854 65%
----------------------------- -----------------------------
Operating expenses:
Research and development costs, net 2,128 12% 1,701 10%
Selling and marketing expenses 4,727 27% 4,282 26%
General and administrative expenses 1,579 9% 1,736 10%
----------------------------- -----------------------------
Total operating expenses 8,434 48% 7,719 46%
----------------------------- -----------------------------
Net income from operations 2,441 14% 3,135 19%
Interest, net 69 0% 101 1%
----------------------------- -----------------------------
Net income before taxes $ 2,510 14% $ 3,236 19%
Taxes on income 183 1% 68 0%
----------------------------- -----------------------------
Net income $ 2,327 13% $ 3,168 19%
----------------------------- -----------------------------
Net income per ordinary share:
Basic $ 0.08 $ 0.11
----------------------------- -----------------------------
Diluted $ 0.07 $ 0.10
----------------------------- -----------------------------
Shares used in computing basic net income per share 30,451,473 29,916,657
----------------------------- -----------------------------
Shares used in computing diluted net income per share 31,951,042 31,968,186
----------------------------- -----------------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited. In thousands, except share and per share amounts)
Nine Months Ended
September 30, 2010 September 30, 2009
----------------------------- -----------------------------
% of % of
$ Revenues $ Revenues
----------------------------- -----------------------------
Revenues:
Software license $ 19,056 36% $ 13,729 31%
Services 33,487 64% 30,222 69%
Total revenues ----------------------------- -----------------------------
52,543 100% 43,951 100%
----------------------------- -----------------------------
Cost of revenues:
Software license 1,648 3% 1,601 4%
Services 18,210 35% 13,148 30%
----------------------------- -----------------------------
Total cost of revenues 19,858 38% 14,749 34%
----------------------------- -----------------------------
Gross profit 32,685 62% 29,202 66%
----------------------------- -----------------------------
Operating expenses:
Research and development costs, net 5,867 11% 4,701 11%
Selling and marketing expenses 13,900 26% 11,789 27%
General and administrative expenses 4,559 9% 4,721 11%
----------------------------- -----------------------------
Total operating expenses 24,326 46% 21,211 48%
----------------------------- -----------------------------
Net income from operations 8,359 16% 7,991 18%
Interest, net 120 0% 424 1%
----------------------------- -----------------------------
Net income before taxes $ 8,479 16% $ 8,415 19%
Tax expense (income), net 1,027 2% (299) (1%)
----------------------------- -----------------------------
Net income $ 7,452 14% $ 8,714 20%
----------------------------- -----------------------------
Net income per ordinary share:
Basic $ 0.25 $ 0.30
----------------------------- -----------------------------
Diluted $ 0.23 $ 0.28
----------------------------- -----------------------------
Shares used in computing basic net income per share 30,361,887 29,134,317
----------------------------- -----------------------------
Shares used in computing diluted net income per share 31,981,518 30,924,013
----------------------------- -----------------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
September 30, December 31,
2010 2009
-----------------------------
ASSETS (unaudited) (audited)
CURRENT ASSETS
Cash and cash equivalents $ 17,941 $ 15,594
Short term investments 29,740 18,852
Trade receivables, net 15,852 16,410
Deferred taxes 2,340 3,160
Other receivables and prepaid expenses 2,023 1,980
-----------------------------
Total current assets 67,896 55,996
-----------------------------
FIXED ASSETS
Cost 7,073 6,025
Less - accumulated depreciation 3,678 2,898
-----------------------------
Total fixed assets 3,395 3,127
-----------------------------
Long term investments 599 528
Intangible assets, net 2,203 2,802
Goodwill 2,511 2,511
Severance pay deposits 1,699 1,485
-----------------------------
Total Assets $ 78,303 $ 66,449
=============================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 10,433 $ 11,619
Deferred revenues 10,115 6,711
-----------------------------
Total current liabilities 20,548 18,330
-----------------------------
LONG TERM LIABILITIES
Accrued severance pay 3,266 2,879
Deferred revenues - long term 2,618 2,582
-----------------------------
Total long term liabilities 5,884 5,461
-----------------------------
Total liabilities 26,432 23,791
-----------------------------
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 0.02 par value 126 124
Additional paid-in capital 80,629 78,933
Accumulated deficit (28,986) (36,438)
Accumulated other comprehensive income 145 82
Treasury stock, at cost: 39,000 shares (43) (43)
-----------------------------
Total shareholders' equity 51,871 42,658
-----------------------------
Total Liabilities and shareholders' equity $ 78,303 $ 66,449
=============================
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Nine Months Ended
September 30, September 30,
2010 2009
(unaudited) (unaudited)
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 7,452 $ 8,714
Adjustments to reconcile net income to
net cash provided by operating activities:
Expenses not affecting operating cash flows:
Depreciation 936 747
Amortization of deferred compensation 841 689
Amortization of acquired intangible assets 597 207
Severance pay, net 173 27
Other 3 17
Changes in operating assets and liabilities:
Decrease (Increase) in trade receivables 558 (3,898)
Decrease (Increase) in deferred taxes 820 (430)
Decrease (Increase) in other receivables 20 (710)
(Decrease) Increase in accounts payable and accrued
expenses (1,186) 587
Increase in deferred revenues 3,440 1,011
------------- -------------
Net cash provided by operating activities $ 13,654 $ 6,961
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (1,205) (1,424)
Acquisition of intangible assets and goodwill in a
business combination -- (4,193)
Short-term investment (10,959) (3,104)
------------- -------------
Net cash used in investment activities $ (12,164) $ (8,721)
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CASH FLOWS FROM FINANCING ACTIVITIES
Employee options exercised 857 3,151
------------- -------------
Net cash provided by financing activities $ 857 $ 3,151
------------- -------------
INCREASE IN CASH AND CASH EQUIVALENTS
2,347 1,391
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 15,594 17,427
------------- -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 17,941 $ 18,818
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ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Three Months Ended
September 30, 2010 September 30, 2009
----------------------------- -----------------------------
% of % of
$ Revenues $ Revenues
----------------------------- -----------------------------
GAAP Net income $ 2,327 13% $ 3,168 19%
Share-based compensation (1) 179 302
Amortization of intangible assets (2) 199 112
Deferred taxes 100 --
----------------------------- -----------------------------
Non-GAAP Net income $ 2,805 16% $ 3,582 22%
----------------------------- -----------------------------
GAAP Earnings per share (diluted) $ 0.07 $ 0.10
Share-based compensation (1) 0.01 0.01
Amortization of intangible assets (2) 0.01 0.00
Deferred taxes 0.00 --
----------------------------- -----------------------------
Non-GAAP Earnings per share (diluted) $ 0.09 $ 0.11
----------------------------- -----------------------------
(1) Share-based compensation:
Cost of services 41 36
Research and development costs, net 36 32
Selling and marketing expenses 80 72
General and administrative expenses 22 162
----------------------------- -----------------------------
$ 179 $ 302
----------------------------- -----------------------------
(2) Amortization of intangible assets: Cost of
revenues 170 82
Research and development costs, net 29 30
----------------------------- -----------------------------
$ 199 $ 112
----------------------------- -----------------------------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Nine Months Ended
September 30, 2010 September 30, 2009
----------------------------- -----------------------------
% of % of
$ Revenues $ Revenues
----------------------------- -----------------------------
GAAP Net income: $ 7,452 14% $ 8,714 20%
Share-based compensation (1) 841 690
Amortization of intangible assets (2) 597 207
Deferred taxes 820 (430)
----------------------------- -----------------------------
Non-GAAP Net income $ 9,710 18% $ 9,181 21%
----------------------------- -----------------------------
GAAP Earnings per share (diluted) $ 0.23 $ 0.28
Share-based compensation (1) 0.03 0.02
Amortization of intangible assets (2) 0.02 0.01
Deferred taxes 0.02 (0.01)
----------------------------- -----------------------------
Non-GAAP Earnings per share (diluted) $ 0.30 $ 0.30
----------------------------- -----------------------------
(1) Share-based compensation:
Cost of services 128 96
Research and development costs, net 109 88
Selling and marketing expenses 253 194
General and administrative expenses 351 312
----------------------------- -----------------------------
$ 841 $ 690
----------------------------- -----------------------------
(2) Amortization of intangible assets: Cost of
revenues 508 148
Research and development costs, net 89 59
----------------------------- -----------------------------
$ 597 $ 207
----------------------------- -----------------------------