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ClickSoftware Reports Record Revenues of $100 Million for 2012

Annual Revenues Increase 15%; Fourth Quarter Revenues Increase 19% Year-Over-Year; Company Announces 2013 Revenue and EPS Guidance

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BURLINGTON, Mass., Feb. 4, 2013 /PRNewswire/ -- 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, 2012.

Fourth Quarter and Full Year 2012 Highlights

  • Fourth quarter 2012 revenues reach $28.4 million (19% growth);
  • 2012 annual revenues reach $100 million mark (15% growth);
  • Total cash and investments at $59.4 million;
  • Annual cash from operations was $16.2 million.

Fourth Quarter Results

For the fourth quarter ended December 31, 2012, total revenues were $28.4 million, up 19% from $24.0 million in the fourth quarter of 2011. Net income for the fourth quarter of 2012 was $3.9 million, or $0.12 per fully diluted share, compared to net income of $2.9 million, or $0.09 per fully diluted share, for the same period last year.

Non-GAAP net income for the quarter was $4.2 million, or $0.13 per fully diluted share, compared to $4.9 million, or $0.15 per fully diluted share, for the same period last year.

Software license revenues for the fourth quarter of 2012 were $10.8 million, up 18% compared with software license revenues of $9.2 million for the same period last year. Service and maintenance revenues were $17.6 million, up 19% compared with service and maintenance revenues of $14.8 million in the same period last year.

Gross profit in the fourth quarter of 2012 was $18.5 million, or 65% of revenues, compared to $15.0 million, or 63% of revenues, in the same period last year.

Net cash provided by operating activities was $10.7 million during the fourth quarter of 2012.  Following a $2.5 million cash dividend payment, cash, cash equivalents and short and long-term investments at the end of the fourth quarter of 2012 were $59.4 million, an increase of $7.8 million compared to the end of the third quarter of 2012.

Full Year 2012 Results

Total revenues for 2012 grew 15% over 2011 to $100.0 million, yielding net income of $7.5 million, or $0.23 per fully diluted share.  This compares with revenues of $87.1 million and net income of $12.2 million, or $0.38 per fully diluted share, for 2011.  Non-GAAP net income for 2012 was $10.2 million, or $0.31 per fully diluted share. This compares with Non-GAAP net income of $17.0 million, or $0.53 per fully diluted share, for 2011.

Management Commentary

"2012 was an exciting year for us as we broke the $100 million revenue mark and invested in initiatives that will expand our addressable market and allow us to accelerate long-term growth," commented Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "Contributing to our annual results was a record fourth quarter with $28.4 million in revenues, which was solidified by strong wins with new customers and continued geographic expansion. The reduction of our profitability in 2012 is mostly attributable to our investments in cloud operations, research and development and sales and marketing. During 2012 we hired more than a hundred employees, growing our headcount by about 25%. These investments establish the groundwork for accelerated growth in 2013 and beyond, and will also allow us to further expand our product offering while creating higher barriers of entry for our competitors.  For example, new developments that integrate mobility and our patent-pending ClickButler technology into shift optimization provide a differentiated product that meets the demands of an evolving market and delivers a unique value and functionality not offered by any other vendor."    

"The investments in our three major growth initiatives: mobility, cloud services and geographic expansion, continue to progress and we see increased return on these efforts.  In mobility, there was a noticeable increase in interest in our solutions and, in 2012, 80% of our new customers purchased our mobile solution. In the cloud, we have added 10 new customers during the past year, and our pipeline for cloud-based solutions is considerably larger than what it was a year ago. We expect this growth to continue and translate into increased revenues going forward. Similarly, in terms of new territories, we are entering new markets and winning new deals.  As we continue to execute our strategic long term plan, we are confident we will be able to accelerate growth beyond the historical rates we have been used to," Dr. BenBassat concluded.

Financial Outlook

For 2013, the Company currently expects top line growth of 20% to 25%, and to achieve revenues in the $120 to $125 million range. This outlook is based on approximately $33.2 million in backlog and deferred revenues, current visibility into a growing sales pipeline and expected expansion into new territories and industry verticals. 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 February 3, 2013, its Board of Directors approved a $0.08 per share dividend to be paid on March 4, 2013 to all shareholders of record as of the close of business on February 18, 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) 668-9141 and ask for the ClickSoftware conference call. International participants, please call +972-3-918-0609. 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 by calling (888) 326-9310 (international callers can dial +972-3-925-5901).

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 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 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 non-GAAP earnings per share, visibility into future periods and pipeline, winning new business, expected growth in mobility solutions and cloud services and demand for those offerings, expected expansion in new territories and new markets, growth 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, 2011 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.

ClickSoftware Contact:

Investor Relations Contact:

Noa Schuman

Rob Fink

Investor Relations

KCSA Strategic Communications

+972-3-7659-467

212-896-1206

Noa.Schuman@clicksoftware.com

rfink@kcsa.com  

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, 2012


December 31, 2011




$

% of Revenues


$

% of Revenues


Revenues:








Software license

$           10,847

38%


$             9,163

38%



Services

17,552

62%


14,796

62%



        Total revenues

28,399

100%


23,959

100%


Cost of revenues:








Software license

1,154

4%


755

3%



Services

8,728

31%


8,220

34%



        Total cost of revenues

9,882

35%


8,975

37%


Gross profit

18,517

65%


14,984

63%


Operating expenses:








Research and development costs, net

3,871

14%


2,601

11%



Selling and marketing expenses

8,725

31%


6,105

25%



General and administrative expenses

2,335

8%


2,095

9%



Impairment of goodwill

-

-


939

4%



        Total operating expenses

14,931

53%


11,740

49%


Operating income

3,586

13%


3,244

14%


Other income

110

0%


-

-


Interest income, net

64

0%


179

1%


Net income before taxes

$           3,760

13%


$             3,423

14%


Tax (benefit) expense, net

(146)

(1)%


552

2%


Net income

$           3,906

14%


$             2,871

12%


 

Net earnings per ordinary share:







Basic

$             0.12



$               0.09



Diluted

$             0.12



$               0.09



Shares used in computing basic

net income per share

31,622,991



31,297,842



Shares used in computing diluted

net income per share

32,747,616



32,758,847













 







ClickSoftware Technologies Ltd.



CONSOLIDATED STATEMENTS OF OPERATIONS



(In thousands, except share and per share amounts)












Year Ended





December 31, 2012

(Unaudited)


December 31, 2011

(Audited)




$

% of Revenues


$

% of Revenues


Revenues:








Software license

$          34,541

35%


$             31,542

36%



Services

65,505

65%


55,545

64%



Total revenues

100,046

100%


87,087

100%


Cost of revenues:








Software license

3,686

4%


2,519

3%



Services

35,185

35%


29,177

34%



Total cost of revenues

38,871

39%


31,696

36%


Gross profit

61,175

61%


55,391

64%


Operating expenses:








Research and development costs, net

13,146

13%


9,019

10%



Selling and marketing expenses

31,977

32%


23,382

27%



General and administrative expenses

8,779

9%


7,386

8%



Impairment of goodwill

-

-


939

1%



Total operating expenses

53,902

54%


40,726

47%


Operating income

7,273

7%


14,665

17%


Other income

110

0%


-

-


Interest income, net

274

0%


7

0%


Net income before taxes

$            7,657

8%


$            14,672

17%


Tax expense, net

169

0%


2,462

3%


Net income

$            7,488

8%


$            12,210

14%


 

Net earnings per ordinary share:







Basic

$              0.24



$                0.39



Diluted

$              0.23



$                0.38



Shares used in computing basic

net income per share

31,545,435



31,014,373



Shares used in computing diluted

net income per share

32,837,789



32,226,883













 



ClickSoftware Technologies Ltd.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)


December 31, 2012

December 31, 2011


 (Unaudited)

 (Audited)

                      ASSETS



CURRENT ASSETS




Cash and cash equivalents

$                 12,793

$                 14,683


Deposits

30,310

28,243


Marketable securities

15,635

10,945


Trade receivables, net

21,792

23,378


Deferred taxes

220

540


Other receivables and prepaid expenses

3,398

2,610


      Total current assets

84,148

80,399

LONG TERM ASSETS



                                Property and equipment, net

4,206

3,873

                                Deposits

621

1,093

                   Other receivables and prepaid expenses

275

233

                   Deferred taxes

1,230

550

                   Intangible assets, net

452

1,166

                   Goodwill

1,572

1,572

                   Severance pay funds

1,965

1,746


     Total long term assets

10,321

10,233


                   Total Assets

$                94,469

$                90,632


                   LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES




Accounts payable and accrued expenses

$                16,536

$                13,608


Dividend payable

-

2,536


Deferred revenues

9,047

9,529


     Total current liabilities

25,583

25,673




LONG TERM LIABILITIES




Accrued severance pay

4,465

3,847


Deferred taxes liability

-

180


Deferred revenues

1,503

1,828


     Total long term liabilities

5,968

5,855


     Total liabilities

31,551

31,528

SHAREHOLDERS' EQUITY 



Ordinary shares of NIS 0.02 par value

132

131


Additional paid-in capital

87,566

84,383


Accumulated deficit

(25,296)

(25,200)


Accumulated other comprehensive income

559

(167)


Treasury stock, at cost: 39,000 shares

(43)

(43)


     Total shareholders' equity

62,918

59,104


                         Total Liabilities and shareholders' equity

$                 94,469

$               90,632


 







ClickSoftware Technologies Ltd.



CONSOLIDATED STATEMENTS OF CASH FLOWS


(In thousands)






Year Ended






December 31, 2012

(Unaudited)

December 31, 2011

(Audited)


CASH FLOWS FROM OPERATING ACTIVITIES








Net income



$           7,488


$           12,210



Adjustments to reconcile net income to








net cash provided by operating activities:








   Income and expense items not involving cash flows:








Depreciation



2,144


1,519



Amortization of deferred compensation



2,534


1,731



Amortization of acquired intangible assets



715


782



Impairment of goodwill



-


939



Impairment of acquired intangible assets



-


55



Severance pay, net



399


373



Gain on marketable securities



(146)


(94)



Other



12


11



   Changes in operating assets and liabilities:








Trade receivables



1,586


(9,123)



Deferred taxes



(540)


1,310



Other receivables



(104)


(443)



Accounts payable and accrued expenses



2,928


1,034



Deferred revenues



(807)


1,623



Net cash provided by operating activities



$         16,209


$           11,927


CASH FLOWS FROM INVESTING ACTIVITIES








  Purchase of equipment



(2,490)


(2,018)



  Increase  in deposits



(1,595)


(11,969)



  Investments in marketable securities



(7,459)


(8,298)



  Proceeds from sale of marketable securities



2,915


5,286



Net cash used in investment activities



$        (8,629)


$         (16,999)


CASH FLOWS FROM FINANCING ACTIVITIES








 Dividend paid



(10,120)


(7,481)



 Employee options exercised



650


1,487



Net cash used in financing activities



$         (9,470)


$           (5,994)


DECREASE IN CASH AND CASH EQUIVALENTS

(1,890)


(11,066)


CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD


14,683


25,749


CASH AND CASH EQUIVALENTS AT END OF PERIOD



$          12,793


$            14,683












 



ClickSoftware Technologies Ltd.

SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS

(Unaudited. In thousands, except per share amounts)




Three Months Ended



December 31, 2012


December 31, 2011



$

% of Revenues


$

% of Revenues




GAAP Net income

$           3,906

14%


$          2,871

12%

Share-based compensation (1)

652



510


Amortization of intangible assets (2)

150



176


Impairment of goodwill and other intangible assets

-



994


Deferred taxes

(470)



300


Non-GAAP Net income

$          4,238

15%


$          4,851

20%







GAAP Earnings per share (diluted)

$            0.12



$            0.09


Share-based compensation

0.02



0.02


Amortization of intangible assets

0.00



0.00


Impairment of goodwill and other intangible assets

0.00



0.03


Deferred taxes

(0.01)



0.01


Non-GAAP Earnings per share (diluted)

$            0.13



$            0.15








(1) Share-based compensation:







Cost of services

$               85



$              52



Research and development costs, net

69



42



Selling and marketing expenses

173



101



General and administrative expenses

325



315



$             652



$            510



(2) Amortization of intangible assets:

Cost of revenues                                                   

$             121



$            147


Research and development costs, net

29



29



$             150



$            176


 






ClickSoftware Technologies Ltd.


SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS


(Unaudited. In thousands, except per share amounts)












Year Ended





December 31, 2012


December 31, 2011




$

% of Revenues


$

% of Revenues





GAAP Net income

$            7,488

7%


$         12,210

14%


Share-based compensation (1)

2,534



1,731



Amortization of intangible assets (2)

715



782



Impairment of goodwill and other intangible assets

-



994



Deferred taxes

(540)



1,310



Non-GAAP Net income

$          10,197

10%


$         17,027

20%









GAAP Earnings per share (diluted)

$              0.23



$             0.38



Share-based compensation

0.08



0.05



Amortization of intangible assets

0.02



0.03



Impairment of goodwill and other intangible assets

0.00



0.03



Deferred taxes

(0.02)



0.04



Non-GAAP Earnings per share (diluted)

$             0.31



$            0.53










(1) Share-based compensation:








Cost of services

$              312



$             202




Research and development costs, net

254



168




Selling and marketing expenses

611



389




General and administrative expenses

1,357



972




$           2,534



$          1,731










(2) Amortization of intangible assets:







Cost of revenues                                                   

$               597



$             664



Research and development costs, net

118



118




$               715



$             782



 

 

SOURCE ClickSoftware Technologies Ltd.



RELATED LINKS
http://www.clicksoftware.com

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