CKSW (MM)

Reiterates its 2008 Annual Guidance BURLINGTON, Massachusetts, July 23 /PRNewswire-FirstCall/ -- ClickSoftware Technologies Ltd. (NASDAQ:CKSW), the leading provider of mobile workforce management and service optimization solutions, today announced results for the second quarter ended June 30, 2008. For the second quarter ended June 30, 2008, total revenues were $11.0 million, with net income of $0.1 million, or $0.00 per share. This compares with revenues of $10.5 million and net income of $1.0 million, or $0.03 per share, for the same period last year, and revenues of $11.5 million and net income of $0.3 million, or $0.01 per share, for the first quarter of 2008. Excluding the effects of share-based compensation expenses related to the adoption of SFAS-123R, net income was $0.3 million, or $0.01 per share, for the second quarter of 2008. Software license revenues for the second quarter of 2008 were $3.1 million, while service and maintenance revenues were $7.9 million. This compares to software license revenues of $4.4 million and service and maintenance revenues of $6.1 million for the same period last year, and $4.0 million and $7.5 million, respectively, in the first quarter of 2008. Gross profit in the second quarter of 2008 was $6.7 million, or 61% of revenues, compared to $6.8 million, or 64% of revenues, in the same period last year, and $6.9 million, or 60% of revenues, in the first quarter of 2008. Cash, cash equivalents and short and long-term investments in the second quarter of 2008 decreased to $24.9 million from $25.9 million at the end of the first quarter of 2008. Net cash used in operating activities was $0.9 million during the second quarter of 2008. Management Commentary "The second quarter was a productive quarter which included three large new customers. Order booking from new customers was twice as high relative to the first quarter of 2008, and almost three times higher than the amount we booked in the same period last year, contributing an additional $1.7 million to our backlog and deferred revenues to a total amount of $19.4 million at the end of the second quarter," said Dr. Moshe BenBassat, ClickSoftware's Chairman and Chief Executive Officer. "While the timing of certain revenues was pushed into the third quarter and therefore impacted our second quarter financials, we believe we shall recognize those revenues in the second part of the year and see a strong second half. Total revenues for the first half of 2008 amount to $22.5 million, which is roughly 45% to 47% of the full-year target of $48 to $50 million. This is well within the range of mid-year typical results that will enable us to get to the targeted annual revenues." Outlook The Company reiterates the previously provided FY08 guidance of revenue growth of approximately 20%-25% over 2007, or $48-$50 million. Investors Conference Call ClickSoftware will host a conference call today at 9:30 a.m. EDT 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 +1-800-762-8908 and ask for the ClickSoftware conference call. International participants, please call +1-480-629-1990. 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 +1-800-406-7325 (international callers can dial +1-303-590-3030), ID Code: 3896864. 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 +1-781-272-5903 or +1-888-438-3308, or visit http://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 and Section 21E of the Securities Exchange Act of 1934. 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. 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 20F for the year ended December 31, 2007 and in subsequent filings with the Securities and Exchange Commission. 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 Technologies Ltd. CONSOLIDATED BALANCE SHEETS (In thousands, except share data) June 30 December 31 -------------------------- 2008 2007 -------------------------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 12,474 $ 9,054 Short-term investments 11,770 15,054 Trade receivables, net 9,365 6,883 Other receivables and prepaid expenses 1,288 1,040 -------------------------- Total current assets 34,897 32,031 -------------------------- FIXED ASSETS Cost 3,164 2,885 Less - accumulated depreciation 1,676 1,448 -------------------------- Total fixed assets 1,488 1,437 -------------------------- Long-term investments 672 602 Severance pay deposits 1,374 1,163 -------------------------- Total Assets $ 38,431 $ 35,233 -------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 7,269 $ 7,281 Deferred revenues 7,229 5,803 -------------------------- Total current liabilities 14,498 13,084 -------------------------- LONG TERM LIABILITIES Accrued severance pay 2,853 2,418 Deferred revenues - Long term 3,346 2,919 -------------------------- Total long-term liabilities 6,199 5,337 -------------------------- Total liabilities 20,697 18,421 -------------------------- SHAREHOLDERS' EQUITY Ordinary shares of NIS 0.02 par value 115 115 Additional paid-in capital 74,261 73,803 Accumulated deficit (56,599) (57,063) Treasury stock, at cost: 39,000 shares (43) (43) -------------------------- Total shareholders' equity 17,734 16,812 -------------------------- Total liability and shareholders' equity $ 38,431 $ 35,233 -------------------------- ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Three Months Ended June 30, 2008 June 30, 2007 ------------------- ------------------ % of % of $ Revenues $ Revenues ------------------- ------------------ Revenues: Software license $ 3,064 28% $ 4,436 42% Services 7,924 72% 6,056 58% ------------------- ------------------ Total revenues 10,988 100% 10,492 100% ------------------- ------------------ Cost of revenues: Software license 299 3% 529 5% Services 3,994 36% 3,209 31% ------------------- ------------------ Total cost of revenues 4,293 39% 3,738 36% ------------------- ------------------ Gross profit 6,695 61% 6,754 64% ------------------- ------------------ Operating expenses: Research and development costs, net 1,635 15% 1,427 14% Selling and Marketing expenses 3,831 35% 3,408 32% General and administrative expenses 1,215 11% 1,235 12% ------------------- ------------------ Total operating expenses 6,681 61% 6,070 58% ------------------- ------------------ Net Income from operations 14 0% 684 7% Interest, net 174 2% 293 3% ------------------- ------------------ Net income before taxes $ 188 2% $ 977 9% ------------------- ------------------ Taxes on income 64 1% 13 0% ------------------- ------------------ Net income $ 124 1% $ 964 9% ------------------- ------------------ Net income per ordinary share: Basic $ 0.00 $ 0.03 ------------------- ------------------ Diluted $ 0.00 $ 0.03 ------------------- ------------------ Shares used in computing basic Net income per share 28,541,098 28,167,420 ------------------- ------------------ Shares used in computing diluted Net income per share 29,700,676 29,545,429 ------------------- ------------------ ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Six Months Ended June 30, 2008 June 30, 2007 --------------------- ------------------ % of % of $ Revenues $ Revenues --------------------- ------------------ Revenues: Software license $ 7,062 31% $ 8,125 42% Services 15,409 69% 11,425 58% --------------------- ------------------ Total revenues 22,471 100% 19,550 100% --------------------- ------------------ Cost of revenues: Software license 847 4% 1,217 6% Services 7,999 36% 6,283 32% --------------------- ------------------ Total cost of revenues 8,846 39% 7,500 38% --------------------- ------------------ Gross profit 13,625 61% 12,050 62% --------------------- ------------------ Operating expenses: Research and development costs, net 3,211 14% 2,653 14% Selling and Marketing expenses 7,697 34% 6,369 33% General and administrative expenses 2,406 11% 2,192 11% --------------------- ------------------ Total operating expenses 13,314 59% 11,214 57% --------------------- ------------------ Income from operations 311 1% 836 4% Other income - - 188 1% Interest, net 341 2% 444 2% --------------------- ------------------ Net income before taxes $ 652 3% $ 1,468 8% --------------------- ------------------ Taxes on income 188 1% 48 0% --------------------- ------------------ Net income $ 464 2% $ 1,420 7% --------------------- ------------------ Net income per ordinary share: Basic $ 0.02 $ 0.05 --------------------- ------------------ Diluted $ 0.02 $ 0.05 --------------------- ------------------ Shares used in computing basic Net income per share 28,526,346 28,106,315 --------------------- ------------------ Shares used in computing diluted Net income per share 29,677,587 28,551,294 --------------------- ------------------ 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 June 30, 2008 June 30, 2007 ------------------- ------------------- % of % of $ Revenues $ Revenues ------------------- ------------------- GAAP Net income: $ 124 1% $ 964 9% Adjustment of share-based compensation within: Cost of Services 30 23 Research and development costs, net 28 19 Selling and Marketing expenses 58 34 General and administrative expenses 79 78 ------------------- ------------------- Net income excluding share-based compensation $ 319 3% $ 1,118 11% ------------------- ------------------- GAAP Net income per ordinary share: Basic $ 0.00 $ 0.03 ------------------- ------------------- Diluted $ 0.00 $ 0.03 ------------------- ------------------- Net income per ordinary share excluding share-based compensation: Basic $ 0.01 $ 0.04 ------------------- ------------------- Diluted $ 0.01 $ 0.04 ------------------- ------------------- ClickSoftware Technologies Ltd. SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (In thousands, except share and per share amounts) Six Months Ended June 30, 2008 June 30, 2007 ------------------- ------------------- % of % of $ Revenues $ Revenues ------------------- ------------------- GAAP Net income: $ 464 2% $ 1,420 7% Adjustment of share-based compensation within: Cost of Services 54 43 Research and development costs, net 50 35 Selling and Marketing expenses 105 63 General and administrative expenses 150 161 ------------------- ------------------- Net income excluding share-based compensation $ 823 4% $ 1,722 9% ------------------- ------------------- GAAP Net income per ordinary share: Basic $ 0.02 $ 0.05 ------------------- ------------------- Diluted $ 0.02 $ 0.05 ------------------- ------------------- Net income per ordinary share excluding share-based compensation: Basic $ 0.03 $ 0.06 ------------------- ------------------- Diluted $ 0.03 $ 0.06 ------------------- ------------------- Contacts: Shmuel Arvatz Chief Financial Officer +972-3-765-9467 Adam J. Rosen +1-646-536-3865 DATASOURCE: ClickSoftware Technologies Ltd CONTACT: Contacts: Shmuel Arvatz, Chief Financial Officer, +972-3-765-9467, ; Adam J. Rosen, +1-646-536-3865,

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