CKSW (MM)

 

UNITED STATES

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

 

For the month of: October 2014 (Report No.2)

Commission File Number: 000-30827

 

CLICKSOFTWARE TECHNOLOGIES LTD.

(Translation of registrant's name into English)

 

94 Em Hamoshavot Road

Petach Tikva 49527, Israel

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x    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.

 

Yes ¨    No x

 

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 issued on October 29, 2014 announcing earnings results for the third quarter ended September 30, 2014.

 

 

The GAAP financial statements in this Form 6-K of CLICKSOFTWARE TECHNOLOGIES LTD. are incorporated by reference into the Registration Statements on Form S-8 (registration numbers 333-42000, 333-115003, 333-135435, 333-141307, 333-149825, 333-158839, 333-166028,333-173200, 333-180433, and 333-187488) of the Company, filed with the Securities and Exchange Commission, to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.

 

 

 

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
		Name:	Shmuel Arvatz
		Title:	Executive Vice President and
			Chief Financial Officer
Date: October 29, 2014

 

Exhibit 99.1

 

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

 

ClickSoftware Reports Financial Results for the Third Quarter Ended September 30, 2014

 

Quarterly Revenues Increase 34% Year-Over-Year;

Company Reiterates Annual Guidance

 

Burlington, MA, October 29, 2014 – 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 third quarter ended September 30, 2014.

 

Highlights

 

·

Quarterly revenues were $31.2 million (34% year-over-year growth);

·

P&L improved to Non-GAAP EPS $0.00, Non-GAAP net loss $0.1 million;

·

Annualized recurring Revenues (ARR) from cloud subscriptions expected to be at $26 - $30 million by end of 2014;

·

Quarterly recurring revenues from Cloud subscriptions and Support reached 45% of total revenues;

·

Total cash and liquid investments as of September 30, 2014 were $43.7 million;

·

Reiterating full-year 2014 revenue guidance of $128 million to $133 million, representing annual revenue growth of 24% to 29%.

 

For the third quarter ended September 30, 2014, total revenues were $31.2 million, up 34% from $23.3 million in the third quarter of 2013. Net loss for the third quarter of 2014 was $1.5 million, or $0.04 per fully diluted share, compared to net loss of $3.6 million, or $0.11 per fully diluted share, for the same period last year. Operating expenses on a GAAP basis included $440,000 connected with organizational restructuring of the Company’s acquired Xora operations. Non-GAAP net loss for the quarter was $0.1 million, or $0.00 per fully diluted share, a substantial improvement compared to Non-GAAP net loss of $3.3 million, or $0.10 per fully diluted share, for the same period last year.

 

Software license revenues for the third quarter of 2014 were $5.0 million, up 20% compared with $4.2 million in the same period last year.  Cloud subscription revenues increased significantly to $5.3 million from $0.5 million for the same period last year. Support revenues were $8.7 million, up 8% compared with support revenues of $8.0 million for the same period last year. Consulting revenues were $12.2 million, up 15% compared with consulting revenues of $10.6 million for the same period last year.

 

Gross profit in the third quarter of 2014 was $16.9 million, or 54% of revenues, compared to $12.2 million, or 52% of revenues, for the same period last year.

 

Cash and liquid investments at the end of the third quarter of 2014 were $43.7 million. This is a decrease of $1.1 million compared to the end of the second quarter of 2014. Net cash used in operating activities was $1.7 million during the third quarter of 2014.

 

 

Management Commentary

 

"As we continue to advance initiatives to grow cloud recurring revenues and position the Company for profitable growth, we achieved 34% year-over-year revenue growth and also considerably narrowed net loss as we practically reached Non-GAAP breakeven point. Quarterly recurring revenues from cloud subscriptions and on-going support contracts reached 45% of our total revenues, providing us greater visibility heading into the fourth quarter and fiscal 2015," said Dr. Moshe BenBassat, ClickSoftware's Founder and CEO. "The timing of several specific contracts expected to close in the third quarter were delayed and are now expected to close in the fourth quarter."

 

“The market trend of shifting from On-Premise to Cloud in large businesses is also very evident in our pipeline’s make-up and is consistent in all territories. Specifically for the fourth quarter of 2014, one customer already closed and three large customers are in a contract signing process. We still expect to exit 2014 with ARR in the range of $26 million to $30 million,” Dr. BenBassat added.

 

“Our channel partnerships remain strong. Most notably, we have expanded our offerings for the Salesforce community and are acquiring new customers. We recently participated at DreamForce, Salesforce’s user conference, where our new S1-native ShiftExpert product attracted lots of attention with its Smartwatch option. It was part of the on-going presentation at Samsung’s booth and was mentioned in several presentations as one of the early business applications leveraging wearables. We already signed two relatively small ShiftExpert customers.”

 

“Xora’s integration into ClickSoftware is in its final stages as we reorganize operations, establish joint product development, marketing and sales teams, and integrate Xora’s Smart line of products with our classic products to create unique offerings for communities of service providers of all sizes.”

 

“As we look forward to the fourth quarter and beyond, we remain optimistic about our prospects and our ability to win business and achieve growth in 2014; as such we are maintaining annual revenue guidance,” concluded Dr. BenBassat.

 

 

Financial Outlook

 

The Company reiterates its previously provided full year 2014 guidance of revenues at the range of $128 to $133 million.

 

The Company is also reiterating its full year 2014 Non-GAAP earnings per share of $0.01 - $0.08. Non-GAAP earnings exclude share-based compensation costs of approximately $0.10 and amortization of intangible assets of approximately $0.03 per fully diluted share. GAAP fully diluted earnings per share is expected to be in the range of ($0.13) - ($0.05).

 

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 (888) 407-2553 and ask for the ClickSoftware conference call. International participants, please call +972-3-918-0610. 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) 782-4291 (international callers can dial +972-3-925-5904).

 

 

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, tax payment for previous years retained earnings, impairment of intangible assets, the amortization of acquired intangible assets and restructuring of related expenses. 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, profitability, prospects, trends and opportunities in cloud subscriptions, pipeline, demand for our solutions, expected contract closings, integration of Xora, our outlook for 2014 revenues and GAAP and Non-GAAP earnings per share, and our future expected ARR. 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, 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
		September 30, 2014								September 30, 2013
		$				% of Revenues				$				% of Revenues
Revenues:
Software license		$	5,024				16	%		$	4,199				18	%
Cloud Subscriptions			5,346				17	%			451				1	%
Support			8,708				28	%			8,039				35	%
Cloud subscriptions and Support			14,054				45	%			8,490				36	%
Consulting			12,155				39	%			10,599				46	%
Total revenues			31,233				100	%			23,288				100	%
Cost of revenues:
Software license			599				2	%			488				2	%
Cloud subscriptions and Support			4,218				14	%			1,570				7	%
Consulting			9,523				30	%			9,014				39	%
Total cost of revenues			14,340				46	%			11,072				48	%
Gross Profit			16,893				54	%			12,216				52	%
Operating expenses:
Research and development costs, net			4,738				15	%			3,848				17	%
Selling and marketing expenses			10,784				35	%			10,088				43	%
General and administrative expenses			2,739				9	%			2,298				10	%
Restructuring and related expenses			440				1	%			-				-
Total operating expenses			18,701				60	%			16,234				70	%
Operating loss			(1,808	)			(6	)%			(4,018	)			(17	)%
Interest income, net			170				1	%			55				0	%
Net loss before taxes		$	(1,638	)			(5	)%		$	(3,963	)			(17	)%
Tax benefit, net			172				0	%			377				2	%
Net loss		$	(1,466	)			(5	)%		$	(3,586	)			(15	)%
Net loss per ordinary share:
Basic		$	(0.04	)						$	(0.11	)
Diluted		$	(0.04	)						$	(0.11	)
Shares used in computing basic net loss per share			33,025,616								32,238,308
Shares used in computing diluted net loss per share			33,025,616								32,238,308

  

  

ClickSoftware Technologies Ltd.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited. In thousands, except share and per share amounts)

 

		Nine Months Ended
		September 30, 2014								September 30, 2013
		$				% of Revenues				$				% of Revenues
Revenues:
Software license		$	18,022				20	%		$	16,675				23	%
Cloud Subscriptions			13,049				14	%			1,090				2	%
Support			25,826				28	%			22,922				32	%
Cloud subscriptions and Support			38,875				42	%			24,012				34	%
Consulting			34,825				38	%			31,801				44	%
Total revenues			91,722				100	%			72,488				100	%
Cost of revenues:
Software license			1,931				2	%			1,704				2	%
Cloud subscriptions and Support			10,292				11	%			4,425				6	%
Consulting			27,481				30	%			26,455				36	%
Total cost of revenues			39,704				43	%			32,584				45	%
Gross Profit			52,018				57	%			39,904				55	%
Operating expenses:
Research and development costs, net			14,620				16	%			11,572				16	%
Selling and marketing expenses			34,463				38	%			28,813				40	%
General and administrative expenses			8,171				9	%			6,643				9	%
Restructuring and related expenses			440				0	%			-				-
Total operating expenses			57,694				63	%			47,028				65	%
Operating loss			(5,676	)			(6	)%			(7,124	)			(10	)%
Interest income, net			485				1	%			618				1	%
Net loss before taxes		$	(5,191	)			(5	)%		$	(6,506	)			(9	)%
Tax (expense) benefit, net			(450	)			(1	%)			90				0	%
Net loss		$	(5,641	)			(6	)%		$	(6,416	)			(9	)%
Net loss per ordinary share:
Basic		$	(0.17	)						$	(0.20	)
Diluted		$	(0.17	)						$	(0.20	)
Shares used in computing basic net loss per share			32,848,170								31,954,737
Shares used in computing diluted net loss per share			32,848,170								31,954,737

 

 

ClickSoftware Technologies Ltd.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

 

		September 30, 2014				December 31, 2013
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	22,686			$	25,346
Deposits			3,168				9,001
Marketable securities			16,484				22,586
Trade receivables, net			23,042				22,490
Deferred taxes			1,360				1,740
Other receivables and prepaid expenses			4,513				4,408
Total current assets			71,253				85,571
LONG TERM ASSETS
Property and equipment, net			5,258				5,023
Deposits			1,352				1,072
Other receivables and prepaid expenses			378				218
Deferred taxes			2,650				2,060
Intangible assets and Goodwill, net			12,550				1,572
Severance pay funds			1,937				2,052
Total long term assets			24,125				11,997
Total Assets		$	95,378			$	97,568
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of debt		$	173			$	-
Accounts payable and accrued expenses			16,934				17,707
Deferred revenues			14,494				13,420
Total current liabilities			31,601				31,127
LONG TERM LIABILITIES
Debt, less current maturities			153				-
Accrued severance pay			4,732				4,840
Deferred taxes			20				40
Deferred revenues			3,864				4,642
Total long term liabilities			8,769				9,522
Total liabilities			40,370				40,649
SHAREHOLDERS’ EQUITY
Ordinary shares of NIS 0.02 par value			140				137
Additional paid-in capital			96,484				92,301
Accumulated deficit			(41,820	)			(36,179	)
Accumulated other comprehensive income			247				703
Treasury stock, at cost: 39,000 shares			(43	)			(43	)
Total shareholders' equity			55,008				56,919
Total Liabilities and shareholders' equity		$	95,378			$	97,568

 

 

ClickSoftware Technologies Ltd.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

 

		Nine Months Ended
		September 30, 2014 (Unaudited)				September 30, 2013 (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(5,641	)		$	(6,416	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Income and expense items not involving cash flows:
Depreciation			2,116				1,881
Amortization of deferred compensation			2,480				1,925
Amortization of acquired intangible assets			763				229
Severance pay, net			7				321
Gain on marketable securities			(619	)			(336	)
Other			189				75
Changes in operating assets and liabilities:
Trade receivables			1,951				1,416
Deferred taxes			(230	)			(1,300	)
Other receivables			934				(417	)
Accounts payable and accrued expenses			(3,365	)			(1,541	)
Deferred revenues			(157	)			8,660
Net cash (used in) provided by operating activities		$	(1,572	)		$	4,497
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment			(2,090	)			(2,906	)
Acquisition of subsidiary (*)			(12,464	)			-
Decrease in deposits			5,553				20,015
Investments in marketable securities			(6,188	)			(12,278	)
Proceeds from sale of marketable securities			12,909				7,217
Net cash (used in) provided by investment activities		$	(2,280	)		$	12,048
CASH FLOWS FROM FINANCING ACTIVITIES
Prepayments of long-term debts			(514	)			-
Dividend paid			-				(6,723	)
Employee options exercised			1,706				1,167
Net cash provided by (used in) financing activities		$	1,192			$	(5,556	)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS			(2,660	)			10,989
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD			25,346				12,793
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	22,686			$	23,782
(*) Acquisition of subsidiary
Working capital (excluding cash and cash equivalents)			233
Property and Equipment			445
Intangible assets			12,626
Long-term liabilities			(840	)
Cash paid for the acquisition of a subsidiary, net		$	12,464

  

 

ClickSoftware Technologies Ltd.

SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS

(Unaudited. In thousands, except per share amounts)

 

 

		Three Months Ended
		September 30, 2014								September 30, 2013
		$				% of Revenues				$				% of Revenues
GAAP Operating loss		$	(1,808	)			(6	)%		$	(4,018	)			(17	)%
Share-based compensation (1)			953								736
Amortization of intangible assets (2)			329								48
Restructuring and related expenses			440								-
Non-GAAP Operating loss		$	(86	)			(0	)%		$	(3,234	)			(14	)%
GAAP Net loss		$	(1,466	)			(5	)%		$	(3,586	)			(15	)%
Share-based compensation (1)			953								736
Amortization of intangible assets (2)			329								48
Restructuring and related expenses			440								-
Deferred taxes			(370	)							(510	)
Non-GAAP Net loss		$	(114	)			(0	)%		$	(3,312	)			(14	)%
GAAP loss per share (diluted)		$	(0.04	)						$	(0.11	)
Share-based compensation			0.03								0.02
Amortization of intangible assets			0.01								0.00
Restructuring and related expenses			0.01								-
Deferred taxes			(0.01	)							(0.01	)
Non-GAAP Net loss per share (diluted)		$	(0.00	)						$	(0.10	)
(1) Share-based compensation:
Cost of revenues		$	103							$	92
Research and development costs, net			137								76
Selling and marketing expenses			226								176
General and administrative expenses			487								392
		$	953							$	736
(2) Amortization of intangible assets:
Cost of revenues		$	329							$	48
Research and development costs, net			-								-
		$	329							$	48

  

 

ClickSoftware Technologies Ltd.

SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS

(Unaudited. In thousands, except per share amounts)

 

 

		Nine Months Ended
		September 30, 2014								September 30, 2013
		$				% of Revenues				$				% of Revenues
GAAP Operating loss		$	(5,676	)			(6	)%		$	(7,124	)			(10	)%
Share-based compensation (1)			2,480								1,925
Amortization of intangible assets (2)			763								229
Restructuring and related expenses			440								-
Non-GAAP Operating loss		$	(1,993	)			(2	)%		$	(4,970	)			(7	)%
GAAP Net loss		$	(5,641	)			(6	)%		$	(6,416	)			(9	)%
Share-based compensation (1)			2,480								1,925
Amortization of intangible assets (2)			763								229
Restructuring and related expenses			440								-
Tax payment for previous years retained earnings*			-								744
Deferred taxes			(230	)							(1,300	)
Non-GAAP Net loss		$	(2,188	)			(2	)%		$	(4,818	)			(7	)%
GAAP loss per share (diluted)		$	(0.17	)						$	(0.20	)
Share-based compensation			0.08								0.06
Amortization of intangible assets			0.02								0.01
Restructuring and related expenses			0.01								-
Tax payment for previous years retained earnings*			-								0.02
Deferred taxes			(0.01	)							(0.04	)
Non-GAAP Net loss per share (diluted)		$	(0.07	)						$	(0.15	)
(1) Share-based compensation:
Cost of revenues		$	311							$	262
Research and development costs, net			342								212
Selling and marketing expenses			693								505
General and administrative expenses			1,134								946
		$	2,480							$	1,925
(2) Amortization of intangible assets:
Cost of revenues		$	763							$	200
Research and development costs, net			-								29
		$	763							$	229

 

 

* 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