ClickSoftware Reports Record Revenues for the First Quarter Ended March 31, 2010
Quarterly Revenues Up 35% Year-Over-Year
BURLINGTON, Massachusetts, April 28, 2010 /PRNewswire-FirstCall/ -- ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of workforce management and service optimization solutions, today announced results for the first quarter ended March 31, 2010.
For the first quarter ended March 31, 2010, total revenues were a Company record $17.5 million, up 35% compared with revenues of $13.0 million for the same period in 2009. Net income for the first quarter of 2010 was $2.8 million, or $0.09 per fully diluted share, compared with net income of $2.6 million, or $0.09 per fully diluted share, for the same period last year.
Non-GAAP net income for the quarter was $3.7 million, or $0.11 per fully diluted share, compared with $2.8 million, or $0.09 per fully diluted share, for the same period last year.
Software license revenues for the first quarter of 2010 were $6.8 million, while service and maintenance revenues were $10.7 million. This compares to software license revenues of $4.3 million and service revenues of $8.7 million for the same period last year.
Gross profit in the first quarter of 2010 was $11.0 million, or 63% of revenues, compared to $8.7 million, or 67% of revenues, in the same period last year.
Cash, cash equivalents and short and long-term investments at the end of the first quarter of 2010 increased to $38.8 million from $35.0 million at the end of the fourth quarter of 2009. Net cash provided by operating activities was $4.0 million during the first quarter of 2010.
Comments of Management
"Reporting record revenues, strong profit growth and significant cash generation in the first quarter provides a solid start to 2010. We made strategic progress on all fronts, and are excited to build on this momentum," commented Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "We saw growth in the form of new customers as well as a significant increase in repeat business. We believe additional orders from existing customers are a positive signal and a testament to the value our products offer. As we also announced during the quarter, we had some strategic wins to our newly launched ClickSoftware Mobility Suite, including SoCalGas and SDG&E in California, and ETSA Utilities in Australia. The SAP relationship continues to pay off and develop", he added.
Outlook
The Company reiterates the previously provided year 2010 guidance of revenues in the approximate range of $71.5 to $74.5 million, representing about 17% to 22% growth over 2009.
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)-846-5003 and ask for the ClickSoftware conference call. International participants, please call (480)-629-9856. The call will be available live on the internet (in listen mode only) at http://www.clicksoftware.com. A replay of this call will be available on the ClickSoftware website, or by calling (800)-406-7325 (international callers can dial (303)-590-3030), ID Code: 4281091.
About ClickSoftware
ClickSoftware is the leading provider of workforce management and service optimization solutions that create business value for service operations through higher levels of productivity, customer satisfaction and cost effectiveness. Combining educational, implementation and support services with best practices and its industry leading solutions, ClickSoftware drives service decision making across all levels of the organization. From proactive customer demand forecasting, capacity planning and shift scheduling to real-time decision-making, incorporating scheduling, mobility and location based services, ClickSoftware helps service organizations get the most out of their resources. With over 150 customers across a variety of industries and geographies, and strong partnerships with leading platform and system integration partners - ClickSoftware is uniquely positioned to deliver superb business performance to any organization. The Company is headquartered in Burlington, MA and Israel, with offices in Europe and Asia Pacific.
For more information about ClickSoftware, please call +1-(781)-272-5903 or +1-(888)-438-3308, or visit http://www.clicksoftware.com, 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 rates of growth, and expectations regarding future closing of contracts, receipt of orders, recognition of revenues and deferred revenues. For example, when we discuss our "Outlook" for 2010, our future strategic progress and expected development from our SAP relationship, 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
March 31, 2010 March 31, 2009
-------------------- -------------------
% of % of
$ Revenues $ Revenues
-------------------- -------------------
Revenues:
Software license $ 6,838 39% $ 4,294 33%
Services 10,645 61% 8,683 67%
-------------------- -------------------
Total revenues 17,483 100% 12,977 100%
-------------------- -------------------
Cost of revenues:
Software license 693 4% 656 5%
Services 5,826 33% 3,589 28%
-------------------- -------------------
Total cost of revenues 6,519 37% 4,245 33%
-------------------- -------------------
Gross profit 10,964 63% 8,732 67%
-------------------- -------------------
Operating expenses:
Research and
development costs, net 1,847 11% 1,394 11%
Selling and marketing
expenses 4,361 25% 3,601 28%
General and
administrative
expenses 1,556 9% 1,362 10%
-------------------- -------------------
Total operating
expenses 7,764 44% 6,357 49%
-------------------- -------------------
Net income from operations 3,200 18% 2,375 18%
Interest, net (4) 0% 247 2%
-------------------- -------------------
Net income before taxes $ 3,196 18% $ 2,622 20%
Tax expense, net 422 2% 20 0%
-------------------- -------------------
Net income $ 2,774 16% $ 2,602 20%
-------------------- -------------------
Net income per ordinary
share:
Basic $ 0.09 $ 0.09
-------------------- -------------------
Diluted $ 0.09 $ 0.09
-------------------- -------------------
Shares used in computing
basic Net income per share 30,263,328 28,666,350
-------------------- -------------------
Shares used in computing
diluted Net income per
share 32,042,427 29,592,373
-------------------- -------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
March 31, December 31,
2010 2009
---------------------------------
ASSETS (unaudited) (audited)
CURRENT ASSETS
Cash and cash equivalents $ 18,228 $ 15,594
Short-term investments 19,970 18,852
Trade receivables, net 16,534 16,410
Deferred taxes 2,820 3,160
Other receivables and
prepaid expenses 2,227 1,980
---------------------------------
Total current assets 59,779 55,996
---------------------------------
FIXED ASSETS
Cost 6,400 6,025
Less - accumulated depreciation 3,117 2,898
---------------------------------
Total fixed assets 3,283 3,127
---------------------------------
Long-term investments 577 528
Intangible assets, net 2,602 2,802
Goodwill 2,511 2,511
Severance pay deposits 1,551 1,485
---------------------------------
Total Assets $ 70,303 $ 66,449
---------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued
expenses $ 10,084 $ 11,619
Deferred revenues 8,337 6,711
---------------------------------
Total current liabilities 18,421 18,330
---------------------------------
LONG TERM LIABILITIES
Accrued severance pay 2,991 2,879
Deferred revenues - Long term 2,923 2,582
---------------------------------
Total long-term
liabilities 5,914 5,461
---------------------------------
Total liabilities 24,335 23,791
---------------------------------
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 0.02
par value 125 124
Additional paid-in capital 79,520 78,933
Accumulated deficit (33,664) (36,438)
Accumulated other comprehensive
income 30 82
Treasury stock, at cost: 39,000
shares (43) (43)
---------------------------------
Total shareholders' equity 45,968 42,658
---------------------------------
Total Liabilities and
shareholders' equity $ 70,303 $ 66,449
---------------------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
March 31, March 31,
2010 2009
(unaudited) (unaudited)
-------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 2,774 $ 2,602
Adjustments to reconcile net income to
net cash provided by operating activities:
Expenses not affecting operating cash flows:
Depreciation 305 216
Amortization of deferred compensation 339 188
Amortization of acquired intangible assets 199 -
Severance pay, net 46 (165)
Other 2 17
Changes in operating assets and liabilities:
Increase in trade receivables (124) (1,261)
Decrease in deferred taxes 340 -
Increase in other receivables (299) (924)
Increase in accounts payable and accrued
expenses (1,535) (479)
Increase in deferred revenues 1,967 2,811
--------- ---------
Net cash provided by operating activities $ 4,014 $ 3,005
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (462) (403)
Short-term investment (1,167) (3,333)
--------- ---------
Net cash used in investment activities $ (1,629) $ (3,736)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Employee options exercised 249 41
--------- ---------
Net cash provided by financing activities $ 249 $ 41
--------- ---------
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS 2,634 (690)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 15,594 17,427
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 18,228 $ 16,737
--------- ---------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except share and per share amounts)
Three Months Ended
March 31, 2010 March 31, 2009
-------------- --------------
% of % of
$ Revenues $ Revenues
--------------------- -------------------
GAAP Net income: $ 2,774 16% $ 2,602 20%
Adjustment of
share-based
compensation within:
Cost of services 44 29
Research and
development
costs, net 36 27
Selling and
marketing
expenses 88 59
General and
administrative
expenses 171 74
Adjustment of
amortization of
intangible assets
within:
Cost of revenues 169 -
Research and
development costs, net 30 -
Deferred taxes 340 -
--------------------- -------------------
Non-GAAP Net income $ 3,652 21% $ 2,791 22%
--------------------- -------------------
GAAP Net income per
ordinary share:
Basic $ 0.09 $ 0.09
--------------------- -------------------
Diluted $ 0.09 $ 0.09
--------------------- -------------------
Non-GAAP Net income per
ordinary share:
Basic $ 0.12 $ 0.10
--------------------- -------------------
Diluted $ 0.11 $ 0.09
--------------------- -------------------
ClickSoftware Contact: Investor Relations Contact:
Noa Schuman Marybeth Csaby / Rob Fink
Investor Relations KCSA Strategic Communications
+972-3-7659-467 +1-212-896-1236 / +1-212-896-1206
[email protected] [email protected] / [email protected]
SOURCE ClickSoftware Technologies Ltd
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