Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulations S-T Rule 101(b)(1):_____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulations S-T Rule 101(b)(7):_____
Indicate by check mark, whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): ___
Attached hereto and incorporated by reference herein is the
registrant's press release announcing its third quarter 2007 earnings results,
issued on October 31, 2007.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CLICKSOFTWARE TECHNOLOGIES LTD.
(Registrant)
By: /s/ SHMUEL ARVATZ
---------------------
Shmuel Arvatz
Executive Vice President and
Chief Financial Officer
Date: October 31, 2007
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CONTACTS:
Shmuel Arvatz Adam J. Rosen
Chief Financial Officer (646) 536-3865
+972-3-765-9467 arosen@rkequity.com
Shmuel.Arvatz@clicksoftware.com
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CLICKSOFTWARE REPORTS FINANCIAL RESULTS FOR THE THIRD
QUARTER OF 2007
REITERATING 2007 FULL YEAR REVENUE GUIDANCE
BURLINGTON, MA, OCTOBER 31, 2007 - ClickSoftware Technologies Ltd. (NasdaqCM:
CKSW), the leading provider of mobile workforce management and service
optimization solutions, today announced the financial results for the third
quarter ended September 30, 2007.
For the third quarter ended September 30, 2007, total revenues were $10.1
million, an increase of 16% compared with $8.7 million for the parallel quarter
of 2006, and a decrease of 4% compared with the previous quarter. Net income for
the period was $0.7 million, or $0.02 per share, compared with $0.8 million, or
$0.03 per share, for the parallel quarter of 2006. Excluding expenses for
share-based compensation related to the adoption of SFAS-123R, net income for
the third quarter was $0.9 million, or $0.03 per share. Shares outstanding for
the quarter on a fully diluted basis were 30,409,632, up 9% compared to the
parallel quarter of 2006.
Software license revenues for the third quarter of 2007 were $4.3 million, an
increase of 33% compared to the third quarter of 2006. Services revenues for the
period were $5.8 million, an increase of 6% compared to the third quarter of
2006.
Gross profit for the quarter increased 16% to $6 million, compared to $5.1
million in the third quarter of 2006. Gross margin for the period remained
stable at 59%.
Cash, cash equivalents and short and long-term investments increased to $21.3
million, up $1.1 million from $20.2 million at the end of the second quarter of
2007. Net cash provided from operating activities during the period was $0.5
million.
"The third quarter was another period of excellent execution as reflected in
strong year-over-year growth in revenues, profits and cash flow, as well as
important strategic progress," said Dr. Moshe BenBassat, ClickSoftware's
Chairman and CEO. "Our revenues are down slightly from the second quarter,
reflecting the specific timing of several multi-million dollar deals. One of
these deals, with a major telecommunications company in India, has already
closed in the fourth quarter".
Dr. BenBassat continued, "We are very excited about the momentum that continues
to build in our business. We are in the final stage of signing a deal with a
large utility in North America. We have also been selected as the winner in
another large, highly competitive deal, and are currently in final negotiations.
Internationally, we have been selected by an important customer in France, and
are deploying a pilot solution for one of Japan's largest utility companies. As
a result, not only we are able to confirm our full-year revenue guidance, but we
are also building a nice book of orders that will make us start 2008 with
comfortable backlog of contractually committed orders. On the product front, we
have just released the IMRS package, our exciting Microsoft-integration-ready
offering for the mid-market, which we believe will prove especially attractive
to the Microsoft Partners community. In addition, we have formed a partnership
with ServiceBench, a move designed to open new opportunities in the service
market".
OUTLOOK
Based on the reported activity and the current pipeline, management maintains
the annual guidance provided in the second quarter earnings release: annual
revenues ranging from $41-$42 million, an increase of 26.5%-29.5% compared to
2006 revenues of $32.4 million.
INVESTORS CONFERENCE CALL
ClickSoftware will host a conference call today at 9:30 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) 321-3075 and ask for the ClickSoftware conference call. International
participants, please call (973) 582-2855. 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 (877)
519-4471 (international callers can dial (973) 341-3080), ID Code: 9343639.
ABOUT CLICKSOFTWARE
ClickSoftware is the leading provider of mobile 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 and capacity planning 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 100 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 (781) 272-5903 or (888)
438-3308, or visit www.clicksoftware.com.
This press release contains express or implied forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Exchange Act. These forward-looking statements include, but
are not limited to, those regarding future results of operations, visibility
into future periods, continued growth and rate of growth, and expectations
regarding future closing of contracts and receipt of orders, recognition of
revenues and deferred revenues. Such "forward-looking statements" involve known
and unknown risks, uncertainties and other factors, which may cause actual
results or performance to be materially different from those projected.
Achievement of these results by ClickSoftware and its subsidiaries may be
affected by many factors, including among others, the following: risks and
uncertainties regarding the general economic outlook; the length of or change in
the Company's sales cycle; the Company's ability to close sales to potential
customers in a timely manner; the Company's ability to penetrate new markets;
the Company's ability to maintain or increase relationships with strategic
partners; timing of revenue recognition; and the Company'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 ClickSoftware's annual report on Form 20F for the year ended
December 31, 2006 and subsequent filings with the Securities and Exchange
Commission. The Company 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 BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
SEPTEMBER 30 DECEMBER 31
-------- --------
2007 2006
-------- --------
ASSETS
CURRENT ASSETS
CASH AND CASH EQUIVALENTS $ 7,470 $ 13,385
SHORT-TERM INVESTMENTS 12,910 5,918
TRADE RECEIVABLES, NET 8,788 6,465
OTHER RECEIVABLES AND PREPAID EXPENSES 1,288 953
-------- --------
TOTAL CURRENT ASSETS 30,456 26,721
-------- --------
FIXED ASSETS
COST 2,648 1,692
LESS - ACCUMULATED DEPRECIATION 1,309 888
-------- --------
TOTAL FIXED ASSETS 1,339 804
-------- --------
LONG-TERM INVESTMENTS 925 451
SEVERANCE PAY DEPOSITS 1,075 996
-------- --------
TOTAL ASSETS $ 33,795 $ 28,972
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
ACCOUNTS PAYABLE AND ACCRUED EXPENSES $ 6,796 $ 5,945
DEFERRED REVENUES 6,366 5,965
-------- --------
TOTAL CURRENT LIABILITIES 13,162 11,910
-------- --------
LONG TERM LIABILITIES
ACCRUED SEVERANCE PAY 2,249 2,031
DEFERRED REVENUES - LONG TERM 2,261 2,490
-------- --------
TOTAL LONG-TERM LIABILITIES 4,510 4,521
-------- --------
TOTAL LIABILITIES 17,672 16,431
-------- --------
SHAREHOLDERS' EQUITY
ORDINARY SHARES OF NIS 0.02 PAR VALUE 115 113
ADDITIONAL PAID-IN CAPITAL 73,577 72,205
DEFERRED STOCK COMPENSATION - (63)
ACCUMULATED DEFICIT (57,526) (59,671)
TREASURY STOCK, AT COST: 39,000 SHARES (43) (43)
-------- --------
TOTAL SHAREHOLDERS' EQUITY 16,123 12,541
-------- --------
TOTAL LIABILITY AND SHAREHOLDERS' EQUITY $ 33,795 $ 28,972
======== ========
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CLICKSOFTWARE TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
THREE MONTHS ENDED
SEPTEMBER 30, 2007 SEPTEMBER 30, 2006
------------------------------ -----------------------------
$ % OF REVENUES $ % OF REVENUES
------------ ------------ ------------ ------------
REVENUES:
SOFTWARE LICENSE $ 4,293 43% $ 3,224 37%
SERVICES 5,762 57% 5,456 63%
------------ ------------ ------------ ------------
TOTAL REVENUES 10,055 100% 8,680 100%
------------ ------------ ------------ ------------
COST OF REVENUES:
SOFTWARE LICENSE 712 7% 668 8%
SERVICES 3,386 34% 2,870 33%
------------ ------------ ------------ ------------
TOTAL COST OF REVENUES 4,098 41% 3,538 41%
------------ ------------ ------------ ------------
GROSS PROFIT 5,957 59% 5,142 59%
------------ ------------ ------------ ------------
OPERATING EXPENSES:
RESEARCH AND DEVELOPMENT COSTS, NET 1,496 15% 1,037 12%
SELLING AND MARKETING EXPENSES 3,222 32% 2,472 28%
GENERAL AND ADMINISTRATIVE EXPENSES 1,039 10% 959 11%
------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 5,757 57% 4,468 51%
------------ ------------ ------------ ------------
INCOME FROM OPERATIONS 200 2% 674 8%
OTHER INCOME 216 2% - -
INTEREST, NET 249 2% 123 1%
------------ ------------ ------------ ------------
NET INCOME BEFORE TAXES 665 6% 797 9%
TAXES ON INCOME (60) 1% - -
------------ ------------ ------------ ------------
NET INCOME $ 725 7% $ 797 9%
------------ ------------ ------------ ------------
NET INCOME PER ORDINARY SHARE:
BASIC $ 0.03 $ 0.03
------------ ------------
DILUTED $ 0.02 $ 0.03
------------ ------------
SHARES USED IN COMPUTING BASIC NET INCOME PER SHARE 28,352,213 27,774,196
------------ ------------
SHARES USED IN COMPUTING DILUTED NET INCOME PER
SHARE 30,409,632 27,774,196
------------ ------------
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CLICKSOFTWARE TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
NINE MONTHS ENDED
SEPTEMBER 30, 2007 SEPTEMBER 30, 2006
----------------------------- ------------------------------
$ % OF REVENUES $ % OF REVENUES
------------ ------------ ------------ ------------
REVENUES:
SOFTWARE LICENSE $ 12,418 42% $ 8,703 38%
SERVICES 17,187 58% 14,406 62%
------------ ------------ ------------ ------------
TOTAL REVENUES 29,605 100% 23,109 100%
------------ ------------ ------------ ------------
COST OF REVENUES:
SOFTWARE LICENSE 1,929 7% 1,523 7%
SERVICES 9,669 33% 7,600 33%
------------ ------------ ------------ ------------
TOTAL COST OF REVENUES 11,598 40% 9,123 40%
------------ ------------ ------------ ------------
GROSS PROFIT 18,007 60% 13,986 60%
------------ ------------ ------------ ------------
OPERATING EXPENSES:
RESEARCH AND DEVELOPMENT COSTS, NET 4,149 14% 2,965 13%
SELLING AND MARKETING EXPENSES 9,591 32% 7,471 32%
GENERAL AND ADMINISTRATIVE EXPENSES 3,231 11% 2,797 12%
------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 16,971 57% 13,233 57%
------------ ------------ ------------ ------------
INCOME FROM OPERATIONS 1,036 3% 753 3%
OTHER INCOME 404 1% - -
INTEREST, NET 693 2% 326 1%
------------ ------------ ------------ ------------
NET INCOME BEFORE TAXES 2,133 6% 1,079 5%
TAXES ON INCOME (12) 0% - -
------------ ------------ ------------ ------------
NET INCOME $ 2,145 7% $ 1,079 5%
------------ ------------ ------------ ------------
NET INCOME PER ORDINARY SHARE:
BASIC $ 0.08 $ 0.04
------------ ------------
DILUTED $ 0.07 $ 0.04
------------ ------------
SHARES USED IN COMPUTING BASIC NET INCOME PER SHARE 28,190,978 27,708,283
------------ ------------
SHARES USED IN COMPUTING DILUTED NET INCOME PER
SHARE 29,490,538 27,708,283
------------ ------------
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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 that exclude the effects of share-based
compensation and the requirements of SFAS No. 123R, "Share-based Payment"
("123R"). The non-GAAP financial measures used by management and disclosed by
the Company exclude the income statement effects of all forms of share-based
compensation .The non-GAAP financial measures disclosed by the Company should
not be considered 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.
CLICKSOFTWARE TECHNOLOGIES LTD.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2007 2006
------------- -------------
% OF % OF
$ REVENUES $ REVENUES
----- ----- ----- -----
GAAP NET INCOME: $ 725 7% $ 797 9%
ADJUSTMENT OF SHARE-BASED COMPENSATION WITHIN:
COST OF SERVICES 30 22
RESEARCH AND DEVELOPMENT COSTS, NET 27 18
SELLING AND MARKETING EXPENSES 46 30
GENERAL AND ADMINISTRATIVE EXPENSES 97 87
----- ----- ----- -----
NET INCOME EXCLUDING SHARE-BASED COMPENSATION $ 925 9% $ 954 11%
----- ----- ----- -----
GAAP NET INCOME PER ORDINARY SHARE:
BASIC $0.03 $0.03
----- -----
DILUTED $0.02 $0.03
----- ----
NET INCOME PER ORDINARY SHARE EXCLUDING
SHARE-BASED COMPENSATION:
BASIC $0.03 $0.03
----- -----
DILUTED $0.03 $0.03
----- -----
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CLICKSOFTWARE TECHNOLOGIES LTD.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2007 2006
-------------- --------------
% OF % OF
$ REVENUES $ REVENUES
------ ----- ------ -----
GAAP NET INCOME: $2,145 7% $1,079 5%
ADJUSTMENT OF SHARE-BASED COMPENSATION WITHIN:
COST OF SERVICES 73 46
RESEARCH AND DEVELOPMENT COSTS, NET 62 43
SELLING AND MARKETING EXPENSES 109 52
GENERAL AND ADMINISTRATIVE EXPENSES 258 227
------ ----- ------ -----
NET INCOME EXCLUDING SHARE-BASED COMPENSATION $2,647 9% $1,447 6%
------ ----- ------ -----
GAAP NET INCOME PER ORDINARY SHARE:
BASIC $ 0.08 $ 0.04
------ ------
DILUTED $ 0.07 $ 0.04
------ ------
NET INCOME PER ORDINARY SHARE EXCLUDING
SHARE-BASED COMPENSATION:
BASIC $ 0.09 $ 0.05
------ ------
DILUTED $ 0.09 $ 0.05
------ ------
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