CKSW (MM)

ClickSoftware Reports Record Revenues and Profits for the 4th Quarter and Year Ended December 31, 2003 BURLINGTON, Mass., Feb. 9 /PRNewswire-FirstCall/ -- ClickSoftware Technologies, Ltd., , a leading provider of end-to-end service chain optimization software, today announced record results for the fourth quarter and year ended December 31, 2003. For the fourth quarter ended December 31, 2003, total revenues were $6.3 million, with consolidated net income of $723,000, or $0.03 per share. This compares with revenues of $4.6 million and a net loss of $4.1 million, or a loss of $0.16 per share, for the same period last year, and revenues of $5.9 million and consolidated net income of $687,000, or $0.03 per share, for the third quarter of 2003. Software license revenues for the fourth quarter of 2003 were $3.0 million, while service revenues were $3.3 million. This compares to software license revenues of $2.4 million and service revenues of $2.2 million for the same period last year and $3.1 million in software licenses revenues and $2.8 million in service revenues in the third quarter of 2003. Gross profit in the fourth quarter was $4.3 million, or 68% of revenues, compared to $2.8 million, or 61% of revenues, in the same period last year, and $3.9 million, or 66% of revenues, in the third quarter of 2003. As of December 31, 2003, the company had cash, cash equivalents and short and long-term investments of $11.7 million up from $10.1 million at the end of the third quarter of 2003 and $6.6 million from December 31, 2002. Net cash from operating activities was $0.8 million in the fourth quarter of 2003 and $4.2 million for the full year. Net cash from financing activities was $0.9 million in the fourth quarter of 2003 and $1.1 million for the year ended December 31, 2003. "The excellent fourth-quarter results marked the culmination of a very successful year. Full-year revenues grew 42% over 2002, and we now have four consecutive quarters of profitability," said Dr Moshe BenBassat, Chairman and CEO of ClickSoftware. "Our professional services group continues to perform very well in deploying successfully our solution in large enterprises, such as Telstra in Australia and Diebold in the U.S. We plan to sustain this momentum in 2004 and leverage the growing acceptance of our solution as a way for service organizations to increase service revenues, decrease operating costs and increase customer satisfaction," BenBassat added. Outlook ClickSoftware said it currently believes that in the first quarter of 2004, revenues should be in the range of $6 million to $6.6 million reflecting the possible first quarter seasonal effects of the enterprise software industry. For the full year of 2004, the company believes that revenues should grow by 20% to 30%. Record Full-Year Results Total revenues for the full year 2003 were $22.4 million, with consolidated net income of $1.7 million, or $0.06 per share. This compares with revenues of $15.8 million and a net loss of $10.1 million, or a loss of $0.40 per share, for the year 2002. Investor Conference Call ClickSoftware will host a conference call today at 8:30 a.m. ET to discuss these results and answer questions from the investment community. To participate, please call (800) 683-1585 and ask for the ClickSoftware conference call. International participants, please call (973) 935-2407. The conference call will be simultaneously webcast (in listen mode only) and is available via the Internet 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). The pass-code for the replay is 4414320. About ClickSoftware ClickSoftware is a leading provider of end-to-end service optimization solutions that maximize service revenue and customer responsiveness while minimizing costs. ClickSoftware's ServiceOptimization suite includes strategic and tactical workforce planning, optimized service scheduling, intelligent problem resolution, wireless workforce management, and business analytics, connecting all organizational levels and all functions. The company is headquartered in Burlington, MA and Israel, with offices in the United States, Europe, and Asia Pacific. For more information about ClickSoftware, call (781) 272-5903 or (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, 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 and visibility into future quarters, continued growth and rate of growth, and the Company's plans to sustain business momentum and deployments by the Company's professional services group, and to leverage the growing acceptance of the Company's solution. 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. ClickSoftware's achievement of these results may be affected by many factors, including among others, the following: uncertainties regarding the general economic outlook; the length of or change in the company's sales cycle; the company's ability to identify potential customers and to close sales to potential customers in a timely manner; the company's ability to maintain relationships with strategic partners; the ability of the company's professional services group to successfully complete implementations; level of competition; and the company's ability to predict and control expenses and to align revenues and expenses. 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 10-K for the year ended December 31, 2002 and subsequent quarterly reports on Form 10-Q and its other filings with the Securities and Exchange Commission. Contacts: Shmuel Arvatz Chief Financial Officer ++972-3-7659467 Howard Kalt Kalt Rosen & Co. (415) 397-2686 ClickSoftware Technologies Ltd. CONSOLIDATED BALANCE SHEETS (In thousands, except share data) December 31 December 31 ------------------------------- 2003 2002 ------------------------------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 7,695 $ 3,400 Short-term investments 3,394 2,949 Trade receivables, net 3,362 4,043 Other receivables and prepaid expenses 722 1,254 ----------------------------- Total current assets 15,173 11,646 ----------------------------- FIXED ASSETS Cost 4,118 4,119 Less - accumulated depreciation 3,195 2,869 ----------------------------- 923 1,250 ----------------------------- Long-term investments 580 280 Severance pay deposits 779 781 ----------------------------- Total Assets $ 17,455 $ 13,957 ----------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Short-term loans $ - $ 17 Accounts payable and accrued expenses 4,077 5,369 Deferredrevenues 2,275 411 ----------------------------- Total current liabilities 6,352 5,797 ----------------------------- LONG TERM LIABILITIES Accrued severance pay 1,490 1,476 ----------------------------- Total long-term liabilities 1,490 1,476 ----------------------------- Total liabilities 7,842 7,273 ----------------------------- SHAREHOLDERS' EQUITY Ordinary shares of NIS 0.02 par value 109 102 Additional paid-in capital 70,276 69,196 Deferred Stock Compensation - (101) Accumulated deficit (60,729) (62,470) Treasury stock, at cost: 39,000 shares (43) (43) ----------------------------- Total shareholders' equity 9,613 6,684 ----------------------------- Total liability and shareholders' equity $ 17,455 $ 13,957 ----------------------------- ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Three Months Ended December 31, 2003 December 31, 2002 ---------------------- ----------------------- $ % of $ % of Revenues Revenues ---------------------- ----------------------- Revenues: Software license $ 2,951 47% $ 2,402 52% Services 3,356 53% 2,175 48% ------------------- ------------------ Total revenues 6,307 100% 4,577 100% ------------------- ------------------ Cost of revenues: Software license 172 3% 295 7% Services 1,862 29% 1,474 32% ------------------ ------------------ Total cost of revenues 2,034 32% 1,769 39% ------------------ ------------------ Gross profit 4,273 68% 2,808 61% ------------------ ------------------ Operating expenses: Research and development costs, net 503 8% 670 15% Selling and Marketing expenses 2,056 33% 2,494 54% General and administrative expenses 990 16% 1,060 23% Restructuring and impairment expenses - - 2,665 58% Amortization of deferred stock-based compensation - - 75 2% ------------------ ------------------ Total operating expenses 3,549 57% 6,964 152% ------------------ ------------------ Income (Loss) from operations 724 11% (4,156) (91)% Interest and other income (expenses), net (1) 0% 69 2% ------------------ ------------------ Net Income (loss) $ 723 11% $ (4,087) (89)% ------------------ ------------------ Net Income (loss) per ordinary share: Basic $ 0.03 $ (0.16) ------------------ ------------------ Diluted $ 0.03 $ (0.16) ------------------ ------------------ Shares used in computing basic Net income (loss) per share 26,379,342 25,604,785 ------------- ------------- Shares used in computing diluted Net Income (loss) per share 28,455,655 25,604,785 ------------- ------------- ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Year Ended December 31, 2003 December 31, 2002 ---------------------- ----------------------- $ % of $ % Of Revenues Revenues ---------------------- ----------------------- Revenues: Software license $ 10,622 47% $ 7,113 45% Services 11,788 53% 8,640 55% ------------------ ----------------- Total revenues 22,410 100% 15,753 100% ------------------ ----------------- Cost of revenues: Software license 955 4% 949 6% Services 6,631 30% 5,804 37% ------------------ ----------------- Total cost of revenues 7,586 34% 6,753 43% ------------------ ----------------- Gross profit 14,824 66% 9,000 57% ------------------ ----------------- Operating expenses: Research and development costs, net 1,911 8% 2,806 18% Selling and Marketing expenses 7,836 35% 10,473 66% General and administrative expenses 3,494 16% 3,106 20% Restructuring and impairment expenses - - 2,665 17% Amortization of deferred stock-based compensation 101 0% 300 2% ---------------- ----------------- Total operating expenses 13,342 59% 19,350 123% ----------------- ----------------- Income (Loss) from operations 1,482 7% (10,350) (66)% Interest and other income (expenses), net 259 1% 252 2% ------------------ ----------------- Net Income (loss) $ 1,741 8% $(10,098) (64)% ------------------ ----------------- Net Income (loss) per ordinary share: Basic $ 0.07 $ (0.40) ----------------- ----------------- Diluted $ 0.06 $ (0.40) ----------------- ----------------- Shares used in computing basic Net Income (loss) per share 25,847,758 25,553,891 ----------------- ----------------- Shares used in computing diluted Net Income (loss) per share 26,874,351 25,553,891 ----------------- ----------------- DATASOURCE: ClickSoftware Technologies, Ltd. CONTACT: Shmuel Arvatz, Chief Financial Officer of ClickSoftware Technologies, Ltd., +972-3-7659467, ; or Howard Kalt of Kalt Rosen & Co., +1-415-397-2686, , for ClickSoftware Technologies, Ltd.

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