BURLINGTON, Mass., April 30, 2014 /PRNewswire/ -- ClickSoftware
Technologies Ltd. (NasdaqGS: CKSW), the leading provider of
automated mobile workforce management and optimization solutions
for the service industry, today announced results for the first
quarter ended March 31, 2014.
Highlights
- First quarter 2014 total revenues reached $28.4 million (16% growth year-over-year);
- Completed the acquisition of Xora, Inc. on March 5, 2014 to expand reach into the SMB market
via wireless carriers;
- Major wins at large enterprises for cloud based solutions in
highly competitive bids, including a Fortune 100 company;
- Total cash and liquid investments as of March 31, 2014 were $50.3
million after payment of Xora's purchase price;
- Short-term backlog and deferred revenues increased
substantially to $47.3 million (43%
growth year-over-year);
- 2014 annual revenue guidance increased to $126 - $132 million; Non-GAAP EPS is expected to
be in the range of $0.04 to
$0.12;
- Annual Recurring Revenues (ARR) from cloud expected to grow to
$26 - $30 million by end of
2014.
For the first quarter ended March 31,
2014, total revenues were $28.4
million, up 16% from $24.5
million in the first quarter of 2013. Net loss for the first
quarter of 2014 was $2.0 million, or
$0.06 per fully diluted share,
compared to net income of $0.1
million, or $0.00 per fully
diluted share, for the same period last year. Non-GAAP net loss for
the quarter was $1.0 million, or
$0.03 per fully diluted share,
compared to Non-GAAP net income of $0.8
million, or $0.02 per fully
diluted share, for the same period last year.
Software license revenues for the first quarter of 2014 were
$7.0 million, up 4% compared with
software license revenues of $6.7
million for the same period last year. Cloud subscriptions
revenues for the first quarter of 2014 increased significantly to
$2.3 million from $0.3 million for the same period last year.
Support revenues were $8.3 million,
up 13% compared with support revenues of $7.3 million in the same period last year.
Consulting revenues were $10.7
million, up 6% compared with consulting revenues of
$10.2 million in the same period last
year.
Gross profit in the first quarter of 2014 was $16.5 million, or 58% of revenues, compared to
$14.2 million, or 58% of revenues, in
the same period last year.
Cash and liquid investments at the end of the first quarter of
2014 were $50.3 million after payment
of $12.7 million in cash for the
acquisition of Xora (net of Xora cash). This is a decrease of
$7.7 million compared to the end of
the fourth quarter of 2013. Net cash provided by operating
activities was $3.7 million during
the first quarter of 2014.
Management Commentary
"We delivered solid financial results in the first quarter and
continued to establish a predictable stream of recurring
subscription revenues which will grow as we continue to ramp up
existing cloud deployments and bring new customers online. In
parallel, the number of on premise opportunities in our pipeline
remains stable, which gives us confidence that we can achieve our
short-term growth targets," said Dr. Moshe BenBassat,
ClickSoftware's Founder and CEO.
"The acquisition of Xora, which we closed in March, extends
ClickSoftware's market reach into the SMB (Small and Medium
Businesses) market and opens an important distribution channel
through leading U.S. wireless carriers including AT&T, Sprint,
and Verizon. We also intend to build on our existing
client-base of more than 50 telecommunication carriers around the
world to expand globally our sales into new SMB markets.
"During the quarter we secured several large cloud wins,
including a major Fortune 100 company, which were highly
competitive and were won after long and in-depth evaluation
processes. Not only will these wins contribute substantially to our
future recurring revenues, but they also underscore our leadership
position as the company with the most powerful cloud-based
solutions for mobile workforce management and service optimization.
With the new cloud wins we have been reporting over past quarters
and the installed base of Xora, we believe we are now the #1 cloud
company in our space, both in terms of size of the user-base in the
cloud, and the spectrum of our state-of-the-art cloud solutions we
offer for companies of all sizes," Dr. BenBassat concluded.
Financial Outlook
Following the strong results of the first quarter and the
addition of Xora, the Company is raising its full year revenue
guidance to be in the range of $126 - $132
million (previously $111 - $115
million), based on a current backlog of $47.3 million and projections for winning new
business. This outlook includes revenues of about $18 to $21 million from cloud subscriptions and
about $35 million from support
contracts of existing on premise customers.
Evolution of Cloud Subscriptions Revenues: Based on
subscriptions from existing users, signed contracts, anticipated
roll-out progress with existing customers and projections for
signing new business this year, the Company estimates exiting 2014
with an Annual Recurring Revenues (ARR) run rate for cloud
subscriptions in the range of $26 - $30
million.
In addition, the Company is also updating its full year 2014
Non-GAAP earnings per share to be in the range of $0.04 - $0.12 (previously $0.06 - $0.12). Non-GAAP earnings exclude share-based
compensation costs of approximately $0.11 and amortization of intangible assets of
approximately $0.05 per fully diluted
share. GAAP fully diluted earnings per share is now expected to be
in the range of ($0.12) - ($0.04)
(previously ($0.04) -
$0.02).
Investors Conference Call
ClickSoftware will host a conference call today at 9:00 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 (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 and on the Investor
Relations App. Alternatively, a telephone replay of the call will
be available for a week by calling (888) 326-9310 (international
callers can dial +972-3-925-5901).
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" concept,
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 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, impairment of intangible assets 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, including
expected growth, prospects, trends and opportunities in SaaS
offerings and cloud-based sales, pipeline, demand for our
solutions, our outlook for 2014 revenues and GAAP and
Non-GAAP earnings per share, and our future expected annual
recurring 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, the impact of the Cloud model on initial
transaction size and gross margins 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, 2013 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
|
|
|
|
March 31,
2014
|
|
March 31,
2013
|
|
|
|
$
|
% of
Revenues
|
|
$
|
% of
Revenues
|
Revenues:
|
|
|
|
|
|
|
Software
license
|
$
7,014
|
25%
|
|
$
6,738
|
27%
|
|
Cloud
Subscriptions
|
2,290
|
8%
|
|
301
|
1%
|
|
Support
|
8,336
|
29%
|
|
7,349
|
30%
|
|
Cloud
subscriptions and Support
|
10,626
|
37%
|
|
7,650
|
31%
|
|
Consulting
|
10,740
|
38%
|
|
10,152
|
41%
|
|
|
Total
revenues
|
28,380
|
100%
|
|
24,540
|
100%
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
Software
license
|
729
|
3%
|
|
707
|
3%
|
|
Cloud
subscriptions and Support
|
2,389
|
8%
|
|
1,310
|
5%
|
|
Consulting
|
8,749
|
31%
|
|
8,310
|
34%
|
|
|
Total cost of
revenues
|
11,867
|
42%
|
|
10,327
|
42%
|
|
|
|
|
|
|
|
|
Gross
Profit
|
16,513
|
58%
|
|
14,213
|
58%
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development costs, net
|
4,463
|
16%
|
|
3,705
|
15%
|
|
Selling and
marketing expenses
|
11,146
|
39%
|
|
8,456
|
34%
|
|
General and
administrative expenses
|
2,751
|
10%
|
|
2,053
|
8%
|
|
|
Total operating
expenses
|
18,360
|
65%
|
|
14,214
|
58%
|
|
|
|
|
|
|
|
|
Operating
loss
|
(1,847)
|
(7%)
|
|
(1)
|
0%
|
Interest income,
net
|
201
|
1%
|
|
273
|
1%
|
Net (loss) income
before taxes
|
$
(1,646)
|
(6%)
|
|
$
272
|
1%
|
Tax income,
net
|
308
|
1%
|
|
187
|
1%
|
Net (loss)
income
|
$
(1,954)
|
(7%)
|
|
$
85
|
0%
|
|
|
|
|
|
|
|
|
Net (loss)
earnings per ordinary share:
|
|
|
|
|
|
|
Basic
|
$
(0.06)
|
|
|
$
0.00
|
|
|
Diluted
|
$
(0.06)
|
|
|
$
0.00
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic
net (loss)
earnings per share
|
32,568,790
|
|
|
31,688,726
|
|
Shares used in
computing diluted
net (loss)
earnings per share
|
33,568,790
|
|
|
32,899,269
|
|
|
|
|
|
|
|
|
|
ClickSoftware
Technologies Ltd.
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2013
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
27,818
|
|
$
25,346
|
|
Deposits
|
2,955
|
|
9,001
|
|
Marketable
securities
|
17,091
|
|
22,586
|
|
Trade receivables,
net
|
23,325
|
|
22,490
|
|
Deferred
taxes
|
1,600
|
|
1,740
|
|
Other receivables
and prepaid expenses
|
5,738
|
|
4,408
|
|
|
Total current
assets
|
78,527
|
|
85,571
|
|
|
|
|
|
|
|
LONG TERM
ASSETS
|
|
|
|
|
Property and
equipment, net
|
4,984
|
|
5,023
|
|
Deposits
|
2,394
|
|
1,072
|
|
Other receivables
and prepaid expenses
|
314
|
|
218
|
|
Deferred
taxes
|
2,150
|
|
2,060
|
|
Intangible assets
and Goodwill, net
|
13,446
|
|
1,572
|
|
Severance pay
funds
|
2,086
|
|
2,052
|
|
|
Total long term
assets
|
25,374
|
|
11,997
|
|
|
|
Total
Assets
|
$
103,901
|
|
$
97,568
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Current maturities
of debt
|
$
363
|
|
$
-
|
|
Accounts payable
and accrued expenses
|
18,743
|
|
17,707
|
|
Deferred
revenues
|
17,773
|
|
13,420
|
|
|
Total current
liabilities
|
36,879
|
|
31,127
|
|
|
|
|
|
|
|
LONG TERM
LIABILITIES
|
|
|
|
|
Debt, less current
maturities
|
319
|
|
-
|
|
Accrued severance
pay
|
4,809
|
|
4,840
|
|
Deferred
taxes
|
40
|
|
40
|
|
Deferred
revenues
|
4,919
|
|
4,642
|
|
|
Total long term
liabilities
|
10,087
|
|
9,522
|
|
|
Total
liabilities
|
46,966
|
|
40,649
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Ordinary shares of
NIS 0.02 par value
|
139
|
|
137
|
|
Additional paid-in
capital
|
94,188
|
|
92,301
|
|
Accumulated
deficit
|
(38,133)
|
|
(36,179)
|
|
Accumulated other
comprehensive income
|
784
|
|
703
|
|
Treasury stock, at
cost: 39,000 shares
|
(43)
|
|
(43)
|
|
|
Total
shareholders' equity
|
56,935
|
|
56,919
|
|
|
|
Total Liabilities
and shareholders' equity
|
$
103,901
|
|
$
97,568
|
ClickSoftware
Technologies Ltd.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2014
(Unaudited)
|
|
March 31,
2013
(Unaudited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net (loss)
income
|
$
(1,954)
|
|
$
85
|
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
|
|
Income and expense
items not involving cash flows:
|
|
|
|
|
|
|
Depreciation
|
661
|
|
582
|
|
|
|
Amortization of
deferred compensation
|
736
|
|
569
|
|
|
|
Amortization of
acquired intangible assets
|
145
|
|
130
|
|
|
|
Severance pay,
net
|
(65)
|
|
26
|
|
|
|
Gain on marketable
securities
|
(441)
|
|
(152)
|
|
|
|
Other
|
(1)
|
|
46
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
Trade
receivables
|
1,668
|
|
2,468
|
|
|
|
Deferred
taxes
|
50
|
|
(720)
|
|
|
|
Other
receivables
|
310
|
|
(284)
|
|
|
|
Accounts payable
and accrued expenses
|
(1,556)
|
|
(3,975)
|
|
|
|
Deferred
revenues
|
4,177
|
|
4,975
|
|
Net cash provided
by operating activities
|
$
3,730
|
|
$
3,750
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of
equipment
|
(176)
|
|
(791)
|
|
|
Acquisition of
subsidiary (*)
|
(12,737)
|
|
-
|
|
|
Decrease in
deposits
|
4,724
|
|
6,472
|
|
|
Investments in
marketable securities
|
(2,920)
|
|
(3,752)
|
|
|
Proceeds from
sale of marketable securities
|
8,856
|
|
1,802
|
|
Net cash (used in)
provided by investment activities
|
$
(2,253)
|
|
$
3,731
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Prepayments of
long-term debts
|
(158)
|
|
-
|
|
|
Dividend
paid
|
-
|
|
(2,539)
|
|
|
Employee options
exercised
|
1,153
|
|
357
|
|
Net cash provided
by (used in) financing activities
|
$
995
|
|
$
(2,182)
|
|
|
|
|
|
INCREASE IN CASH
AND CASH EQUIVALENTS
|
2,472
|
|
5,299
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
25,346
|
|
12,793
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
$
27,818
|
|
$
18,092
|
|
|
|
|
|
|
(*)Acquisition of
subsidiary
|
|
|
|
|
Working capital
(excluding cash and cash equivalents)
|
1,113
|
|
|
|
Property and
Equipment
|
445
|
|
|
|
Intangible
assets
|
12,019
|
|
|
|
Long-term
liabilities
|
(840)
|
|
|
Cash paid for the
acquisition of a subsidiary, net
|
$
12,737
|
|
ClickSoftware
Technologies Ltd.
|
SUPPLEMENTAL
RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
|
(Unaudited. In
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2014
|
|
March 31,
2013
|
|
|
|
$
|
% of
Revenues
|
|
$
|
% of
Revenues
|
|
|
|
|
|
|
GAAP Net (loss)
income
|
$
(1,954)
|
(7%)
|
|
$
85
|
0%
|
Share-based
compensation (1)
|
736
|
|
|
569
|
|
Amortization of
intangible assets (2)
|
145
|
|
|
130
|
|
Tax payment for
previous years retained earnings*
|
-
|
|
|
744
|
|
Deferred
taxes
|
50
|
|
|
(720)
|
|
Non-GAAP Net
(loss) income
|
$
(1,023)
|
(4%)
|
|
$
808
|
3%
|
|
|
|
|
|
|
GAAP Earnings per
share (diluted)
|
$
(0.06)
|
|
|
$
0.00
|
|
Share-based
compensation
|
0.02
|
|
|
0.02
|
|
Amortization of
intangible assets
|
0.01
|
|
|
0.00
|
|
Tax payment for
previous years retained earnings*
|
0.00
|
|
|
0.02
|
|
Deferred
taxes
|
0.00
|
|
|
(0.02)
|
|
Non-GAAP (loss)
earnings per share (diluted)
|
$
(0.03)
|
|
|
$
0.02
|
|
|
|
|
|
|
|
|
(1)
Share-based compensation:
|
|
|
|
|
|
|
Cost of
revenues
|
$
102
|
|
|
$
79
|
|
|
Research and
development costs, net
|
84
|
|
|
61
|
|
|
Selling and
marketing expenses
|
234
|
|
|
152
|
|
|
General and
administrative expenses
|
316
|
|
|
277
|
|
|
$
736
|
|
|
$
569
|
|
|
|
|
|
|
|
(2)
Amortization of intangible assets:
|
|
|
|
|
|
|
Cost of
revenues
|
$
145
|
|
|
$
101
|
|
|
Research and
development costs, net
|
-
|
|
|
29
|
|
|
|
|
$
145
|
|
|
$
130
|
|
|
|
|
|
|
|
|
|
* See Note 14.A to
our consolidated financial statements for the year ended December
31, 2012 included in our Annual Report on Form 20-F, regarding
November 2012 law
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ClickSoftware
Contact:
|
Investor Relations
Contact:
|
Noa
Schuman
|
Rob Fink
|
Investor
Relations
|
KCSA Strategic
Communications
|
+972-3-7659-467
|
212-896-1206
|
Noa.Schuman@clicksoftware.com
|
rfink@kcsa.com
|
SOURCE ClickSoftware