2014

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.

Highlights

  • 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.

Management Commentary

"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.

Financial Outlook

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.  

Cash Dividend

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).

About ClickSoftware

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



 

ClickSoftware Contact:
Noa Schuman
Investor Relations
+972-3-7659-467
Noa.Schuman@clicksoftware.com


Investor Relations Contact:
Rob Fink
KCSA Strategic Communications
212-896-1206
rfink@kcsa.com

SOURCE ClickSoftware Technologies Ltd



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