BURLINGTON, Massachusetts,
July 8, 2013 /PRNewswire/ --
ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading
provider of automated workforce management and optimization
solutions for the service industry, today announced that it
anticipates revenues for the second quarter ended June 30, 2013 to be approximately $24.5 million, representing about 9% growth year
over year.
The Company primarily attributes the lower than expected
growth rate in revenues to a faster
than expected shift in its
revenues to cloud-based software-as-a-service (SaaS)
sales. As this revenue shift is happening, there are some delays in
closing certain contracts with customers that are performing
additional due diligence comparing our cloud and on-premise
offerings. The transition to a SaaS model is a positive development
for ClickSoftware's long term growth prospects; however this shift
and the tendency of customers to lower up-front investment are
having an impact on the Company's short term growth rate.
Additionally, while the Company has started to gain traction in its
geographical expansion, the deal closing processes are taking
longer than expected.
Based on preliminary estimates of operating costs, a net loss is
anticipated for the quarter ended June 30,
2013 in the range of $2.7 to $3.1
million or a loss of $0.08 to
$0.10 per share. Non-GAAP net loss is
expected to be between $2.1 to $2.5
million, or a loss of $0.06 to
$0.08 per share (Non-GAAP net income
excludes amortization of intangible assets expenses of about
$50,000, share-based compensation
expenses of about $600,000, and tax
benefit of about $70,000 in the
second quarter of 2013).
The Company estimates that its cash, cash-equivalents, short and
long-term investments were approximately $54.4 million as of June
30, 2013.
"Overall we view the transition to cloud SaaS-based revenues as
a positive development. Our shift to cloud-based sales - including
for large enterprises - is occurring faster than we anticipated,
and, by its very nature, impacts our ability to grow our short term
top line at the rate we originally expected, therefore influencing
our quarterly earnings," said Dr. Moshe
BenBassat, ClickSoftware's Chairman and CEO.
"During the second quarter we closed a relatively higher number
of new contracts, including a growing number of cloud-based
engagements. Some of these customers are initially implementing our
service to a smaller user base but have the potential for a larger
number of users once a full roll-out is completed. We also have a
number of prospect customers in advanced stages of closing during
the remainder of 2013 and are encouraged by our pipeline. In fact,
one large deal already closed in the first week of the third
quarter. In addition to our internal sales efforts, our workforce
and service optimization app is now included in SalesForce.com's
marketplace under the name ClickWorkforce and is expected to
contribute to our pipeline as well," he concluded.
Financial Outlook
While the long-term prospects of the Company remain positive,
the Company is reducing the previously provided full year 2013
guidance due to a faster than anticipated transition into Cloud
SaaS-based revenues and slow ramp-up of revenues from new
territories. Revenues are now expected to be between $110 million to $115 million, representing 10% to
15% growth over 2012. The Company expects to further update the EPS
guidance in the quarterly earnings release later this month.
The above assessment for the second quarter of 2013 is based on
the Company's initial analysis and is subject to change as
additional financial information becomes available.
ClickSoftware will release its second quarter financial
results on Wednesday, July 24, 2013,
during pre-market hours. A press release announcing dial-in and
webcasting details for the related conference call will be issued
in advance.
About ClickSoftware
ClickSoftware (NasdaqGS: CKSW) is the leading provider of
automated mobile workforce management and service optimization
solutions for the enterprise, both for mobile and in-house
resources. As pioneers of the "Service chain optimization" and "The
real-time service enterprise" concepts, our solutions provide
organizations with end-to-end visibility and control of the entire
service management chain by optimizing forecasting, planning, shift
and task scheduling, mobility and real-time management of resource
and customer communication.
Available via the cloud or on-premise, our products incorporate
best business practices and advanced decision-making algorithms to
manage service operations more efficiently, in a scalable,
integrated manner. Our solutions have become the backbone for many
leading organizations worldwide by addressing the fundamental
question of job fulfillment: Who does What, for Whom, With what,
Where and When.
ClickSoftware is the premier choice for delivering superb
business performance to service sector organizations of all sizes.
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, follow us
on Twitter, the content of which is not incorporated herein by
reference.
To download ClickSoftware's investor relations app, which offers
access to SEC documents, press releases, videos, audiocasts and
more, the content of which is not incorporated herein by reference,
please visit Apple's App Store to download on your iPhone and iPad,
or Google Play for your Android mobile device.
Use of Non-GAAP Financial Results
In addition to disclosing preliminary estimates of our financial
results calculated in accordance with U.S. generally accepted
accounting principles (GAAP), this press 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.
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 our expected revenues, net loss, net
loss per share and cash, cash equivalents, short and long-term
investments for and as of the end of the second quarter of 2013,
future trends in SaaS cloud-based revenues and prospects for the
remainder of 2013 and long-term, closing of contracts, expansion
into new territories and our outlook for full year 2013 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 20-F for the year ended
December 31, 2012 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.
ClickSoftware Contact:
Noa Schuman
Investor Relations
+972-3-7659-467
Noa.Schuman@clicksoftware.com
Investor Relations Contact:
Rob Fink
KCSA Strategic Communications
+1-212-896-1206
rfink@kcsa.com
SOURCE ClickSoftware Technologies Ltd