ClickSoftware Reports Record Revenues for the Second Quarter Ended June 30, 2010
Quarterly Revenues up 22% and License Revenues up 54% Year-Over-Year
BURLINGTON, Massachusetts, July 21, 2010 /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 second quarter ended June 30, 2010.
For the second quarter ended June 30, 2010, total revenues were $17.6 million, up 22% from $14.4 million in the second quarter of 2009. Net income for the second quarter of 2010 was $2.4 million, or $0.07 per fully diluted share, compared to net income of $2.9 million, or $0.10 per fully diluted share, for the same period last year.
Non-GAAP net income for the quarter was $3.3 million, or $0.10 per fully diluted share, compared to $2.8 million, or $0.09 per fully diluted share, for the same period last year.
Software license revenues for the second quarter of 2010 were $6.2 million, up 54% compared with software license revenues of $4.1 million for the same period last year. Service and maintenance revenues were $11.3 million, up 10% compared with service and maintenance revenues of $10.3 million in the same period last year.
Gross profit in the second quarter of 2010 was $10.8 million, or 62% of revenues, compared to $9.6 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 second quarter of 2010 increased to $42.5 million from $38.8 million at the end of the first quarter of 2010. Net cash provided by operating activities was $4.0 million during the second quarter of 2010.
Comments of Management
"The second quarter marked another strong period with record revenues, strong cash generation and solid bookings", said Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "We are gaining traction with our newly launched products -- ClickMobile and ClickRoster -- and are encouraged by the demand in the marketplace. Gartner's recent Field Service Management Report highlights our increasing position and reinforces our leadership in the market. We are entering the third quarter of 2010 with a solid backlog and deferred revenues of $24.6 million, which improve our visibility for the second half of 2010. Having this visibility is important given the uncertainty in the European markets and the somewhat unpredictable behavior of the recovery in the US economy", he added.
Outlook
The Company reiterates its 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 +1(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 +1(888)326-9310 (international callers can dial +972-3-925-5928).
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, the content of which is not part of this press release. Follow us on Twitter. (http://twitter.com/ClickSoftware)
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 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
June 30, 2010 June 30, 2009
------------- -------------
% of % of
$ Revenues $ Revenues
---------------- -----------------
Revenues:
Software license $ 6,249 36% $ 4,066 28%
Services 11,333 64% 10,300 72%
---------------- -----------------
Total revenues 17,582 100% 14,366 100%
---------------- -----------------
Cost of revenues:
Software license 338 2% 334 2%
Services 6,398 36% 4,416 31%
---------------- -----------------
Total cost of
revenues 6,736 38% 4,750 33%
---------------- -----------------
Gross profit 10,846 62% 9,616 67%
---------------- -----------------
Operating expenses:
Research and
development costs,
net 1,892 11% 1,606 11%
Selling and
marketing expenses 4,812 27% 3,906 27%
General and
administrative
expenses 1,424 8% 1,623 11%
---------------- -----------------
Total operating
expenses 8,128 46% 7,135 50%
---------------- -----------------
Net income from
operations 2,718 15% 2,481 17%
Interest, net 55 0% 76 0%
---------------- -----------------
Net income before taxes $ 2,773 16% $ 2,557 17%
Tax (expense) income,
net (422) (2%) 387 3%
---------------- -----------------
Net income $ 2,351 13% $ 2,944 20%
---------------- -----------------
Net income per ordinary
share:
Basic $ 0.08 $ 0.10
---------------- -----------------
Diluted $ 0.07 $ 0.10
---------------- -----------------
Shares used in
computing basic Net
income per share 30,366,473 28,796,957
------------------- ---------------------
Shares used in
computing diluted Net
income per share 31,946,699 30,911,937
------------------- ---------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited. In thousands, except share and per share amounts)
Six Months Ended
June 30, 2010 June 30, 2009
----------------- ------------------
% of % of
$ Revenues $ Revenues
----------------- ------------------
Revenues:
Software license $ 13,087 37% $ 8,360 31%
Services 21,978 63% 18,983 69%
----------------- ------------------
Total revenues 35,065 100% 27,343 100%
----------------- ------------------
Cost of revenues:
Software license 1,031 3% 990 4%
Services 12,224 35% 8,005 29%
----------------- ------------------
Total cost of
revenues 13,255 38% 8,995 33%
----------------- ------------------
Gross profit 21,810 62% 18,348 67%
----------------- ------------------
Operating expenses:
Research and
development costs, net 3,739 11% 3,000 11%
Selling and marketing
expenses 9,173 26% 7,507 27%
General and
administrative
expenses 2,980 8% 2,985 11%
----------------- ------------------
Total operating
expenses 15,892 45% 13,492 49%
----------------- ------------------
Net income from
operations 5,918 17% 4,856 18%
Interest, net 51 0% 323 1%
----------------- ------------------
Net income before taxes $ 5,969 17% $ 5,179 19%
Tax (expense) income, net (844) (2%) 367 1%
----------------- ------------------
Net income $ 5,125 15% $ 5,546 20%
----------------- ------------------
Net income per ordinary
share:
Basic $ 0.17 $ 0.19
----------------- ------------------
Diluted $ 0.16 $ 0.18
----------------- ------------------
Shares used in
computing basic Net
income per share 30,314,900 28,731,653
------------------- --------------------
Shares used in
computing diluted
Net income per share 31,994,563 30,390,432
------------------- --------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
June 30 December 31
2010 2009
ASSETS (unaudited) (audited)
----------------------------
CURRENT ASSETS
Cash and cash equivalents $ 20,967 $ 15,594
Short-term investments 20,994 18,852
Trade receivables, net 16,608 16,410
Deferred taxes 2,440 3,160
Other receivables and prepaid expenses 2,101 1,980
----------------------------
Total current assets 63,110 55,996
----------------------------
FIXED ASSETS
Cost 6,900 6,025
Less - accumulated depreciation 3,371 2,898
----------------------------
Total fixed assets 3,529 3,127
----------------------------
Long-term investments 560 528
Intangible assets, net 2,403 2,802
Goodwill 2,511 2,511
Severance pay deposits 1,522 1,485
----------------------------
Total Assets $ 73,635 $ 66,449
----------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 11,005 $ 11,619
Deferred revenues 8,177 6,711
----------------------------
Total current liabilities 19,182 18,330
----------------------------
LONG TERM LIABILITIES
Accrued severance pay 3,001 2,879
Deferred revenues - Long term 2,619 2,582
----------------------------
Total long-term liabilities 5,620 5,461
----------------------------
Total liabilities 24,802 23,791
----------------------------
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 0.02 par value 125 124
Additional paid-in capital 80,175 78,933
Accumulated deficit (31,313) (36,438)
Accumulated other comprehensive income (111) 82
Treasury stock, at cost: 39,000 shares (43) (43)
----------------------------
Total shareholders' equity 48,833 42,658
----------------------------
Total Liabilities and shareholders'
equity $ 73,635 $ 66,449
----------------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended
June 30, 2010 June 30, 2009
(unaudited) (unaudited)
------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 5,125 $ 5,546
Adjustments to reconcile net income to
net cash provided by operating activities:
Expenses not affecting operating cash
flows:
Depreciation 618 463
Amortization of deferred compensation 662 387
Amortization of acquired intangible
assets 398 95
Severance pay, net 85 (60)
Other (1) 17
Changes in operating assets and
liabilities:
Increase in trade receivables (198) (3,884)
Decrease (Increase) in deferred taxes 720 (430)
Increase in other receivables (314) (956)
(Decrease) Increase in accounts
payable and accrued expenses (614) 1,268
Increase in deferred revenues 1,503 841
-------------- --------------
Net cash provided by operating activities $ 7,984 $ 3,287
-------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (1,018) (878)
Acquisition of intangible assets and
goodwill in business combination - (2,519)
Short-term investment (2,174) (5,239)
-------------- --------------
Net cash used in investment activities $ (3,192) $ (8,636)
-------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES
Employee options exercised 581 1,317
-------------- --------------
Net cash provided by financing activities $ 581 $ 1,317
-------------- --------------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 5,373 (4,032)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 15,594 17,427
-------------- --------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 20,967 $ 13,395
-------------- --------------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Three Months Ended
June 30, 2010 June 30, 2009
----------------- ------------------
% of % of
$ Revenues $ Revenues
----------------- ------------------
GAAP Net income: $ 2,351 13% $ 2,944 20%
Share-based compensation(1) 323 199
Amortization of intangible assets(2) 199 95
Deferred taxes 380 (430)
----------------- ------------------
Non-GAAP Net income $ 3,253 19% $ 2,808 20%
----------------- ------------------
GAAP Earnings per share (diluted): $ 0.07 $ 0.10
Share-based compensation(1) 0.01 0.01
Amortization of intangible
assets(2) 0.01 0.00
Deferred taxes 0.01 (0.02)
----------------- ------------------
Non-GAAP Earnings per share
(diluted): $ 0.10 $ 0.09
----------------- ------------------
(1) Share-based compensation:
Cost of services 43 31
Research and development
costs, net 37 29
Selling and marketing expenses 85 63
General and administrative
expenses 158 76
----------------- ------------------
$ 323 $ 199
----------------- ------------------
(2) Amortization of intangible
assets:
Cost of revenues 169 66
Research and development
costs, net 30 29
----------------- ------------------
$ 199 $ 95
----------------- ------------------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Six Months Ended
June 30, 2010 June 30, 2009
----------------- ------------------
% of % of
$ Revenues $ Revenues
----------------- ------------------
GAAP Net income: $ 5,125 15% $ 5,546 20%
Share-based compensation(1) 662 388
Amortization of intangible assets(2) 398 95
Deferred taxes 720 (430)
----------------- ------------------
Non-GAAP Net income $ 6,905 20% $ 5,599 20%
----------------- ------------------
GAAP Earnings per share (diluted): $ 0.16 $ 0.18
Share-based compensation(1) 0.02 0.01
Amortization of intangible assets(2) 0.01 0.00
Deferred taxes 0.03 (0.01)
----------------- ------------------
Non-GAAP Earnings per share
(diluted): $ 0.22 $ 0.18
----------------- ------------------
(1) Share-based compensation:
Cost of services 87 60
Research and development
costs, net 73 56
Selling and marketing expenses 173 122
General and administrative
expenses 329 150
----------------- ------------------
$ 662 $ 388
----------------- ------------------
(2) Amortization of intangible
assets:
Cost of revenues 338 66
Research and development
costs, net 60 29
----------------- ------------------
$ 398 $ 95
----------------- ------------------
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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