ClickSoftware Reports Financial Results for the First Quarter Ended March 31, 2013 Quarterly Revenues Increase 12% Year-Over-Year; Company Reiterates Annual Guidance
BURLINGTON, Massachusetts, April 24, 2013 /PRNewswire/ --
ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of automated mobile workforce management and optimization solutions for the service industry, today announced results for the first quarter ended March 31, 2013.
- Revenues were $24.5 million (12% year-over-year growth);
- GAAP EPS $0.00; Non-GAAP EPS $0.02;
- Total cash and investments grew to $60.3 million;
- Cash from operations was $3.8 million;
- Reiterated guidance for 2013;
- Cash dividend continues; $0.08 quarterly payment declared.
For the first quarter ended March 31, 2013, total revenues were $24.5 million, up 12% from $21.8 million in the first quarter of 2012. Net income for the first quarter of 2013 was $0.1 million, or $0.00 per fully diluted share, compared to net income of $0.7 million, or $0.02 per fully diluted share, for the same period last year. Non-GAAP net income for the quarter was $0.8 million, or $0.02 per fully diluted share, compared to $1.3 million, or $0.04 per fully diluted share, for the same period last year.
Software license revenues for the first quarter of 2013 were $7.0 million, up 10% compared with software license revenues of $6.4 million for the same period last year. Service and maintenance revenues were $17.5 million, up 13% compared with service and maintenance revenues of $15.4 million in the same period last year.
Gross profit in the first quarter of 2013 was $14.2 million, or 58% of revenues, compared to $12.4 million, or 57% of revenues, in the same period last year.
Net cash provided by operating activities was $3.8 million during the first quarter of 2013. Following a $2.5 million cash dividend payment, cash, cash equivalents and short and long-term investments at the end of the first quarter of 2013 were $60.3 million, an increase of $0.9 million compared to the end of the fourth quarter of 2012.
"We continue to execute on our strategy to accelerate annual growth by over 20%. In order to achieve both our short- and long-term goals, investments in product development and global territory expansion initiatives continue. These investments impacted our profitability in the first quarter; however, we anticipated some level of quarterly fluctuation in our earnings projections and remain confident in our strategy. Based on our progress through the first quarter we are reiterating revenue and EPS guidance for 2013," said Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO.
"We are very encouraged by the progress we have made in the enterprise mobility market. The ClickAppStore now contains what we believe is the largest collection in the industry of enterprise mobility apps for the mobile worker. Continued investment in our App Factories will further enrich our offerings and solidify our leadership position for the future. These apps were designed to run on any mobility infrastructure platform, such as those of IBM and SAP. Additionally, being device agnostic, they can run on Apple's iPhones and tablets, Android devices, the new Blackberry, and soon on Windows 8. In the first quarter most new customers included our mobility solution in their order, and we also won a substantial contract with a customer for a stand-alone mobility solution, following a very competitive evaluation process. On the territory side, our first quarter results in Europe and demand metrics show encouraging signs that Europe may be recovering. Also, our hiring in the new territories - Latin America and Russia - is nearly complete. Our pipeline went up considerably compared to the same quarter last year, and all indications to date give us confidence about our growth opportunities in 2013 and beyond," Dr. BenBassat concluded.
ClickSoftware reiterates the previously provided full year 2013 guidance. Revenues are expected to be in the range of $120 to $125 million, representing about 20% to 25% growth over 2012. Non-GAAP fully diluted earnings per share for 2013 is expected to be in the range of $0.24 to $0.30, which excludes share-based compensation, deferred taxes expense and amortization of intangible assets costs of approximately $0.08, $0.01 and $0.01 per fully diluted share respectively. GAAP fully diluted earnings per share is expected to be in the range of $0.14 to $0.20.
ClickSoftware also announced today that on April 23, 2013, its Board of Directors approved a $0.08 per share dividend to be paid on May 22, 2013 to all shareholders of record as of the close of business on May 8, 2013. 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.
Investors Conference Call
ClickSoftware will host a conference call today at 9:00 a.m. EST 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) 407-2553 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 and on the Investor Relations App. 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).
ClickSoftware (NasdaqGS: CKSW) is the leading provider of automated mobile workforce management and service optimization solutions for the enterprise, both for mobile and in-house resources. As pioneers of the "Service chain optimization" and "The real-time service enterprise" concepts, our solutions provide organizations with end-to-end visibility and control of the entire service management chain by optimizing forecasting, planning, shift and task scheduling, mobility and real-time management of resource and customer communication.
Available via the cloud or on-premise, our products incorporate best business practices and advanced decision-making algorithms to manage service operations more efficiently, in a scalable, integrated manner. Our solutions have become the backbone for many leading organizations worldwide by addressing the fundamental question of job fulfillment: Who does What, for Whom, With what, Where and When.
ClickSoftware is the premier choice for delivering superb business performance to service sector organizations of all sizes. The Company is headquartered in the United States and Israel, with offices across Europe, and Asia Pacific. For more information, please visit http://www.clicksoftware.com and follow us on Twitter, the content of which is not a part of this press release.
To download ClickSoftware's investor relations app, which offers access to SEC documents, press releases, videos, audiocasts and more, please visit https://itunes.apple.com/us/app/cksw-ir/id530880886?mt=8 to download on your iPhone and iPad, or https://play.google.com/store/apps/details?id=com.theirapp.ckswir&hl=en for your Android mobile device.
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, previous years retained earnings tax 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 2013 revenues and GAAP and non-GAAP earnings per share, visibility into future periods and pipeline, recovery in Europe, plans for investments and future rates of growth and expectations of future cash flows and dividends. 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, 2012 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 March 31, 2013 March 31, 2012 ______________________ ____________________ % of % of $ Revenues $ Revenues ______________________ ____________________ Revenues: Software license $ 7,039 29% $ 6,418 29% Services 17,501 71% 15,430 71% ______________________ ____________________ Total revenues 24,540 100% 21,848 100% ______________________ ____________________ Cost of revenues: Software license 1,057 4% 925 4% Services 9,270 38% 8,484 39% ______________________ ____________________ Total cost of revenues 10,327 42% 9,409 43% ______________________ ____________________ Gross profit 14,213 58% 12,439 57% ______________________ ____________________ Operating expenses: Research and development costs, net 3,705 15% 2,671 12% Selling and marketing expenses 8,456 34% 7,334 34% General and administrative expenses 2,053 8% 1,942 9% ______________________ ____________________ Total operating expenses 14,214 58% 11,947 55% ______________________ ____________________ Operating income (loss) (1) 0% 492 2% Interest income, net 273 1% 199 1% ______________________ ____________________ Net income before taxes $ 272 1% $ 691 3% Tax expense (benefit), net 187 1% (10) 0% ______________________ ____________________ Net income $ 85 0% $ 701 3% ______________________ ____________________ Net earnings per ordinary share: Basic $ 0.00 $ 0.02 ______________________ ____________________ Diluted $ 0.00 $ 0.02 ______________________ ____________________ Shares used in computing basic net income per share 31,688,726 31,414,538 ______________________ ____________________ Shares used in computing diluted net income per share 32,899,269 32,983,126 ______________________ ____________________
ClickSoftware Technologies Ltd. CONSOLIDATED BALANCE SHEETS (In thousands, except share data) March 31, December 31, 2013 2012 (Unaudited) (Audited) ___________________________ ASSETS CURRENT ASSETS Cash and cash equivalents $ 18,092 $ 12,793 Deposits 23,828 30,310 Marketable securities 17,737 15,635 Trade receivables, net 19,324 21,792 Deferred taxes 860 220 Other receivables and prepaid expenses 4,409 3,398 ___________________________ Total current assets 84,250 84,148 ___________________________ LONG TERM ASSETS Property and equipment, net 4,369 4,206 Deposits 631 621 Other receivables and prepaid expenses 254 275 Deferred taxes 1,310 1,230 Intangible assets,net 322 452 Goodwill 1,572 1,572 Severance pay funds 2,078 1,965 ___________________________ Total long term assets 10,536 10,321 ___________________________ Total Assets $ 94,786 $ 94,469 =========================== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 12,561 $ 16,536 Deferred revenues 14,338 9,047 ___________________________ Total current liabilities 26,899 25,583 ___________________________ LONG TERM LIABILITIES Accrued severance pay 4,604 4,465 Deferred revenues 1,187 1,503 ___________________________ Total long term liabilities 5,791 5,968 ___________________________ Total liabilities 32,690 31,551 ___________________________ SHAREHOLDERS' EQUITY Ordinary shares of NIS 0.02 par value 133 132 Additional paid-in capital 88,491 87,566 Accumulated deficit (27,750) (25,296) Accumulated other comprehensive income 1,265 559 Treasury stock, at cost: 39,000 shares (43) (43) ___________________________ Total shareholders' equity 62,096 62,918 ___________________________ Total Liabilities and shareholders' equity $ 94,786 $ 94,469 ===========================
ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Three Months Ended March 31, 2013 March 31, 2012 (Unaudited) (Unaudited) _____________________________________ CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 85 $ 701 Adjustments to reconcile net income to net cash provided by operating activities: Income and expense items not involving cash flows: Depreciation 582 490 Amortization of deferred compensation 569 548 Amortization of acquired intangible assets 130 241 Severance pay, net 26 204 Gain on marketable securities (152) (80) Other 46 - Changes in operating assets and liabilities: Trade receivables 2,468 1,573 Deferred taxes (720) (160) Other receivables (284) (1,114) Accounts payable and accrued expenses (3,975) (1,549) Deferred revenues 4,975 1,279 ________________ __________________ Net cash provided by operating activities $ 3,750 $ 2,133 ________________ __________________ CASH FLOWS FROM INVESTING ACTIVITIES Purchase of equipment (791) (882) Increase in deposits 6,472 2,068 Investments in marketable securities (3,752) (139) Proceeds from sale of marketable securities 1,802 607 ________________ __________________ Net cash provided by investment activities $ 3,731 $ 1,654 ________________ __________________ CASH FLOWS FROM FINANCING ACTIVITIES Dividend paid (2,539) (2,536) Employee options exercised 357 430 ________________ __________________ Net cash used in financing activities $ (2,182) $ (2,106) ________________ __________________ INCREASE IN CASH AND CASH EQUIVALENTS 5,299 1,681 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 12,793 14,683 ________________ __________________ CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 18,092 $ 16,364 ________________ __________________
ClickSoftware Technologies Ltd. SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (Unaudited. In thousands, except per share amounts) Three Months Ended March 31, 2013 March 31, 2012 __________________________ ________________________ % of % of $ Revenues $ Revenues __________________________ ________________________ GAAP Net income $ 85 0% $ 701 3% Share-based compensation (1) 569 548 Amortization of intangible assets (2) 130 241 Tax payment for previous years retained earnings* 744 - Deferred taxes (720) (160) __________________________ ________________________ Non-GAAP Net income $ 808 3% $ 1,330 6% __________________________ ________________________ GAAP Earnings per share (diluted) $ 0.00 $ 0.02 Share-based compensation 0.02 0.02 Amortization of intangible assets 0.00 0.00 Tax payment for previous years retained earnings* 0.02 0.00 Deferred taxes (0.02) 0.00 __________________________ ________________________ Non-GAAP Earnings per share (diluted) $ 0.02 $ 0.04 __________________________ ________________________ (1) Share-based compensation: Cost of services $ 79 $ 59 Research and development costs, net 61 49 Selling and marketing expenses 152 117 General and administrative expenses 277 323 __________________________ ________________________ $ 569 $ 548 __________________________ ________________________ (2) Amortization of intangible assets: Cost of revenues $ 101 $ 211 Research and development costs, net 29 30 __________________________ ________________________ $ 130 $ 241 __________________________ ________________________ * See Note 14.A to our consolidated financial statements for the year ended December 31, 2012 included in our Annual Report on Form 20-F, regarding November 2012 law
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