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 RECORD REVENUES FOR THE FOURTH
QUARTER AND YEAR ENDED DECEMBER 31, 2010
Quarterly Revenues Up 8% Year-Over-Year, Annual Revenues Up 16%, and Cash at
Record Level of $51 Million
- --------------------------------------------------------------------------------
BURLINGTON, MA, February 9, 2011 - ClickSoftware Technologies Ltd. (NasdaqGS:
CKSW), the leading provider of automated workforce management and optimization
solutions for the service industry, today announced results for the fourth
quarter and year ended December 31, 2010.
For the fourth quarter ended December 31, 2010, total revenues were $18.5
million, up 8% from $17.2 million in the fourth quarter of 2009. Net income for
the fourth quarter of 2010 was $1.6 million, or $0.05 per fully diluted share,
compared to net income of $3.8 million, or $0.12 per fully diluted share, for
the same period last year.
Non-GAAP net income for the quarter was $2.2 million, or $0.07 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 fourth quarter of 2010 were $6.8 million, up
22% compared with software license revenues of $5.5 million for the same period
last year. Service and maintenance revenues were $11.7 million, up 1% compared
with service and maintenance revenues of $11.6 million in the same period last
year.
Gross profit in the fourth quarter of 2010 was $11.4 million, or 62% of
revenues, compared to $11.1 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
fourth quarter of 2010 increased to $51.0 million from $48.3 million at the end
of the third quarter of 2010. Net cash provided by operating activities was $2.8
million during the fourth quarter of 2010.
Full Year Results
Total revenues for 2010 grew 16% over 2009 to $71.0 million, yielding net income
of $9.0 million, or $0.28 per fully diluted share. This compares with revenues
of $61.1 million and net income of $12.5 million, or $0.40 per fully diluted
share, for 2009. Non-GAAP net income for 2010 was $12.0 million, or $0.37 per
fully diluted share. This compares with Non-GAAP net income of $12.7 million, or
$0.41 per fully diluted share, for 2009.
Management Commentary
"2010 was a good year marked by record revenues and cash generation. These
milestones were achieved through a significant number of new customer wins,
product enhancements, and strategic partnerships which, collectively,
contributed to annual sales growth of 16%. While these top-line revenues came in
slightly below our expectations, we believe our progress and investments during
the year solidified the foundation for our continued growth in 2011 and beyond,"
said Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO.
"During 2010 we made significant progress enhancing our mobility and shift
planning products, thereby increasing our offerings to the existing markets we
serve and to our installed-base, as well as expanding considerably our
addressable market. We are offering ClickMobile as a stand-alone product or as
part of our ServiceOptimization Suite. With Sybase as our partner and
ClickMobile's device agnostic capabilities - running on iPhone, iPad, Android,
Blackberry devices and others - we expect to see significant traction for our
mobility offerings", Dr. BenBassat added.
Outlook
For 2011, the Company currently expects to achieve revenues in the approximate
range of $81.5 to $85.0 million, representing about 15% to 20% growth over 2010.
This outlook is based on $25.5 million in backlog and deferred revenues and
current visibility into a growing sales pipeline.
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) 782-4291 (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, 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 2011
revenues, continued growth in 2011, expected traction for our offerings 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
December 31, 2010 December 31, 2009
------------------------- --------------------------
% of % of
$ Revenues $ Revenues
------------------------- --------------------------
Revenues:
Software license $ 6,769 37% $ 5,530 32%
Services 11,707 63% 11,642 68%
------------------------- --------------------------
Total revenues 18,476 100% 17,172 100%
------------------------- --------------------------
Cost of revenues:
Software license 651 4% 379 2%
Services 6,404 35% 5,703 33%
------------------------- --------------------------
Total cost of revenues 7,055 38% 6,082 35%
------------------------- --------------------------
Gross profit 11,421 62% 11,090 65%
------------------------- --------------------------
Operating expenses:
Research and development costs, net 2,053 11% 1,798 10%
Selling and marketing expenses 5,313 29% 4,451 26%
General and administrative expenses 2,188 12% 1,702 10%
------------------------- --------------------------
Total operating expenses 9,554 52% 7,951 46%
------------------------- --------------------------
Net income from operations 1,867 10% 3,139 18%
Interest income (expense), net 69 0% (44) 0%
------------------------- --------------------------
Net income before taxes $ 1,936 10% $ 3,095 18%
Tax expense (income), net 343 2% (705) (4%)
------------------------- --------------------------
Net income $ 1,593 9% $ 3,800 22%
------------------------- --------------------------
Net earnings per ordinary share:
Basic $ 0.05 $ 0.13
------------------------- --------------------------
Diluted $ 0.05 $ 0.12
------------------------- --------------------------
Shares used in computing basic
net income per share 30,581,063 30,232,763
------------------------- --------------------------
Shares used in computing diluted
net income per share 32,169,050 31,808,737
------------------------- --------------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
Year Ended
December 31, 2010 December 31, 2009
(Unaudited) (Audited)
------------------------- --------------------------
% of % of
$ Revenues $ Revenues
------------------------- --------------------------
Revenues:
Software license $ 25,825 36% $ 19,259 32%
Services 45,194 64% 41,864 68%
------------------------- --------------------------
Total revenues 71,019 100% 61,123 100%
------------------------- --------------------------
Cost of revenues:
Software license 2,299 3% 1,980 3%
Services 24,614 35% 18,851 31%
------------------------- --------------------------
Total cost of revenues 26,913 38% 20,831 34%
------------------------- --------------------------
Gross profit 44,106 62% 40,292 66%
------------------------- --------------------------
Operating expenses:
Research and development costs, net 7,920 11% 6,499 11%
Selling and marketing expenses 19,213 27% 16,240 27%
General and administrative expenses 6,747 10% 6,423 11%
------------------------- --------------------------
Total operating expenses 33,880 48% 29,162 48%
------------------------- --------------------------
Net income from operations 10,226 14% 11,130 18%
Interest income, net 189 0% 380 1%
------------------------- --------------------------
Net income before taxes $ 10,415 15% $ 11,510 19%
Tax expense (income), net 1,370 2% (1,004) (2%)
------------------------- --------------------------
Net income $ 9,045 13% $ 12,514 20%
------------------------- --------------------------
Net earnings per ordinary share:
Basic $ 0.30 $ 0.43
------------------------- --------------------------
Diluted $ 0.28 $ 0.40
------------------------- --------------------------
Shares used in computing basic
net income per share 30,415,679 29,400,973
------------------------- --------------------------
Shares used in computing diluted
net income per share 32,037,399 31,137,238
------------------------- --------------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December 31, 2010 December 31, 2009
(Unaudited) (Audited)
-------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 25,749 $ 15,594
Short term deposits 16,747 17,520
Marketable securities 7,839 1,332
Trade receivables, net 14,255 16,410
Deferred taxes 2,220 3,160
Other receivables and prepaid expenses 2,431 1,980
-------------------------------
Total current assets 69,241 55,996
-------------------------------
PROPERTY AND EQUIPMENT
Cost 7,260 6,025
Less - accumulated depreciation 3,876 2,898
-------------------------------
Property and Equipment, net 3,384 3,127
-------------------------------
Long term deposits 620 528
Other receivables and prepaid expenses 364 --
Intangible assets, net 2,004 2,802
Goodwill 2,511 2,511
Severance pay funds 1,703 1,485
-------------------------------
Total Assets $ 79,827 $ 66,449
===============================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 12,574 $ 11,619
Deferred revenues 7,957 6,711
-------------------------------
Total current liabilities 20,531 18,330
-------------------------------
LONG TERM LIABILITIES
Accrued severance pay 3,431 2,879
Deferred revenues 1,777 2,582
-------------------------------
Total long term liabilities 5,208 5,461
-------------------------------
Total liabilities 25,739 23,791
-------------------------------
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 0.02 par value 126 124
Additional paid-in capital 81,170 78,933
Accumulated deficit (27,393) (36,438)
Accumulated other comprehensive income 228 82
Treasury stock, at cost: 39,000 shares (43) (43)
-------------------------------
Total shareholders' equity 54,088 42,658
-------------------------------
Total Liabilities and shareholders' equity $ 79,827 $ 66,449
===============================
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended
December 31, 2010 December 31, 2009
(Unaudited) (Audited)
---------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 9,045 $ 12,514
Adjustments to reconcile net income to
net cash provided by operating activities:
Income and expense items not involving cash flows:
Depreciation 1,254 1,032
Amortization of deferred compensation 1,169 992
Amortization of acquired intangible assets 796 366
Severance pay, net 334 (41)
Gain on marketable securities (59) (2)
Other 8 22
Changes in operating assets and liabilities:
Decrease (Increase) in trade receivables 2,155 (8,585)
Decrease (Increase) in deferred taxes 940 (1,220)
Increase in other receivables (669) (1,021)
Increase in accounts payable and accrued expenses 955 2,839
Increase in deferred revenues 441 650
---------------------------------
Net cash provided by operating activities $ 16,369 $ 7,546
---------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (1,517) (2,057)
Acquisition of intangible assets and goodwill in a
business combination -- (5,679)
Decrease (Increase) in deposits 681 (3,492)
Investments in marketable securities (8,451) (2,425)
Proceeds from sale of marketable securities 2,003 1,095
---------------------------------
Net cash used in investment activities $ (7,284) $ (12,558)
---------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Employee options exercised 1,070 3,179
---------------------------------
Net cash provided by financing activities $ 1,070 $ 3,179
---------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
10,155 (1,833)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 15,594 17,427
---------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 25,749 $ 15,594
---------------------------------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Three Months Ended
December 31, 2010 December 31, 2009
------------------------ ------------------------
% of % of
$ Revenues $ Revenues
------------------------ ------------------------
GAAP Net income $ 1,593 9% $ 3,800 22%
Share-based compensation (1) 328 302
Amortization of intangible assets (2) 199 160
Deferred taxes 120 (790)
------------------------ ------------------------
Non-GAAP Net income $ 2,240 12% $ 3,472 20%
------------------------ ------------------------
GAAP Earnings per share (diluted) $ 0.05 $ 0.12
Share-based compensation 0.01 0.01
Amortization of intangible assets 0.01 0.00
Deferred taxes 0.00 (0.02)
------------------------ ------------------------
Non-GAAP Earnings per share (diluted) $ 0.07 $ 0.11
------------------------ ------------------------
(1) Share-based compensation:
Cost of services 42 35
Research and development costs, net 36 32
Selling and marketing expenses 81 73
General and administrative expenses 169 162
------------------------ ------------------------
$ 328 $ 302
------------------------ ------------------------
(2) Amortization of intangible assets:
Cost of revenues 170 130
Research and development costs, net 29 30
------------------------ ------------------------
$ 199 $ 160
------------------------ ------------------------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Year Ended
December 31, 2010 December 31, 2009
------------------------ ------------------------
% of % of
$ Revenues $ Revenues
------------------------ ------------------------
GAAP Net income: $ 9,045 13% $ 12,514 20%
Share-based compensation (1) 1,169 992
Amortization of intangible assets (2) 796 366
Deferred taxes 940 (1,220)
------------------------ ------------------------
Non-GAAP Net income $ 11,950 17% $ 12,652 21%
------------------------ ------------------------
GAAP Earnings per share (diluted) $ 0.28 $ 0.40
Share-based compensation 0.04 0.03
Amortization of intangible assets 0.02 0.01
Deferred taxes 0.03 (0.03)
------------------------ ------------------------
Non-GAAP Earnings per share (diluted) $ 0.37 $ 0.41
------------------------ ------------------------
(1) Share-based compensation:
Cost of services 170 132
Research and development costs, net 145 120
Selling and marketing expenses 334 266
General and administrative expenses 520 474
------------------------ ------------------------
$ 1,169 $ 992
------------------------ ------------------------
(2) Amortization of intangible assets:
Cost of revenues 678 278
Research and development costs, net 118 88
------------------------ ------------------------
$ 796 $ 366
------------------------ ------------------------