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, Massachusetts, February 9, 2011 /PRNewswire-FirstCall/ -- 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 http://www.clicksoftware.com or follow us on Twitter (http://twitter.com/ClickSoftware) , 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, December 31,
2010 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, December 31,
2010 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
---------------------- -----------------------
ClickSoftware Contact:
Noa Schuman
Investor Relations
+972-3-7659-467
[email protected]
Investor Relations Contact:
Marybeth Csaby / Rob Fink
KCSA Strategic Communications
212-896-1236 / 212-896-1206
[email protected] / [email protected]
SOURCE ClickSoftware Technologies Ltd
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