Announces New Major Contracts Not Included in the Results BURLINGTON, Massachusetts, November 2 /PRNewswire-FirstCall/ -- ClickSoftware Technologies, Ltd., (NasdaqSC: CKSW), the leading provider of workforce and service optimization solutions, today announced results for the third quarter ended September 30, 2005. For the third quarter ended September 30, 2005, total revenues were $6.1 million, with net loss of $307,000, or $0.01 per share. This compares with revenues of $5.5 million and net income of $183,000, or $0.01 per share, for the same period last year, and revenues of $6.1 million and net loss of $307,000, or $0.01 per share, for the second quarter of 2005. Software license revenues for the third quarter of 2005 were $1.8 million, while service revenues were $4.3 million. This compares to software license revenues of $2.5 million and service revenues of $3.0 million for the same period last year, and $2.1 million and $4.0 million, respectively, in the second quarter of 2005. Gross profit in the third quarter was $3.5 million, or 58% of revenues, compared to $3.7 million, or 67% of revenues, in the same period last year, and $3.6 million, or 60% of revenues, in the second quarter of 2005. Cash, cash equivalents and short and long-term investments decreased to $13.1 million at the end of the third quarter, down from $15.2 million at the end of the second quarter of 2005. Net cash used in operating activities was $2.1 million in the third quarter of 2005. Deferred revenues as of the end of the third quarter of 2005 decreased to $4.5 million, compared to $5.8 million at the second quarter of 2005. "The third quarter and the beginning of the fourth quarter brought an impressive list of several new wins of large clients, such as Pacific Gas & Electric, announced today, and others to be announced in coming weeks," said Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "While the revenues associated with these wins are not yet included in our financial results for the third quarter, they will contribute substantially to our revenue stream in the upcoming quarters". Outlook For the fourth quarter the company currently projects revenues ranging between $6.7 to $7.2 million. This would bring the total annual revenues to the range of $24.9 to $25.4 million, representing an annual growth rate of 10% to 12% relative to 2004. The third quarter results announced today do not include 2 recent major wins (including PG&E). There are 3 additional major contracts the company believes are likely to sign over the next several weeks. "We are finally seeing the traction in the marketplace that we have been working hard to develop and we believe the company is now ready to reap the benefits of its leadership position in the service delivery management sector," said Dr. BenBassat. Investor Conference Call ClickSoftware will host a conference call today at 9:30 a.m. ET to discuss these results and answer questions from the investment community. To participate, please call 1-(800)-936-9754 and ask for the ClickSoftware conference call. International participants, please call +1-(973)-935-2048. 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 1-(877)-519-4471 (international callers can dial +1-(973)-341-3080. The passcode for the replay is 6598308. About ClickSoftware ClickSoftware is the leading provider of workforce and service optimization solutions that maximize workforce productivity and customer satisfaction while minimizing operations costs. ClickSoftware's ServiceOptimization Suite provides an integrated, intelligent solution for automatic, efficient, and effective decisions over the entire service decision-making chain. It includes reliable customer demand and workload forecasting, strategic and tactical capacity planning, daily service scheduling, troubleshooting and repair support, wireless workforce management, and business analytics, connecting all organizational levels and functions. The company has offices in Burlington, MA; Tel-Aviv, Israel; North America; Europe; and Asia Pacific. For more information about ClickSoftware, 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, 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, visibility into future periods, continued growth and rate of growth, and expectations regarding future closing of contracts, recognition of revenues and deferred revenues. 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. Achievement of these results by ClickSoftware and its subsidiaries may be affected by many factors, including among others, the following: risks and uncertainties regarding the general economic outlook; the length of or change in the company's sales cycle; the company's ability to close sales to potential customers in a timely manner; the company's ability to maintain or increase relationships with strategic partners; and the company'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 ClickSoftware's annual report on Form 10-K for the year ended December 31, 2004 and subsequent filings with the Securities and Exchange Commission. The Company 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 BALANCE SHEETS (In thousands, except share data) September 30 December 31 --------------------------- 2005 2004 --------------------------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 4,317 $ 4,196 Short-term investments 8,551 7,533 Trade receivables, net 4,151 5,317 Other receivables and prepaid expenses 1,495 982 --------------------------- Total current assets 18,514 18,028 --------------------------- FIXED ASSETS Cost 3,316 3,713 Less - accumulated depreciation 2,342 2,646 --------------------------- 974 1,067 --------------------------- Long-term investments 264 264 Severance pay deposits 928 890 --------------------------- Total Assets $ 20,680 $ 20,249 =========================== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses 4,464 4,731 Deferred revenues 4,539 2,969 --------------------------- Total current liabilities 9,003 7,700 --------------------------- LONG TERM LIABILITIES Accrued severance pay 1,751 1,677 --------------------------- Total long-term liabilities 1,751 1,677 --------------------------- Total liabilities 10,754 9,377 --------------------------- SHAREHOLDERS' EQUITY Ordinary shares of NIS 0.02 par value 111 110 Additional paid-in capital 71,177 70,930 Deferred Stock Compensation (250) (309) Accumulated deficit (61,069) (59,816) Treasury stock, at cost: 39,000 shares (43) (43) --------------------------- Total shareholders' equity 9,926 10,872 --------------------------- Total liability and shareholders' equity $ 20,680 $ 20,249 =========================== ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Three Months Ended September 30, 2005 September 30, 2004 ------------------ ------------------- % of % of $ Revenues $ Revenues ------------------ ------------------- Revenues: Software license $ 1,848 30% $ 2,478 45% Services 4,257 70% 2,979 55% ------------------ ------------------- Total revenues 6,105 100% 5,457 100% ------------------ ------------------- Cost of revenues: Software license 388 6% 210 4% Services 2,173 36% 1,572 29% ------------------ ------------------- Total cost of revenues 2,561 42% 1,782 33% ------------------ ------------------- Gross profit 3,544 58% 3,675 67% ------------------ ------------------- Operating expenses: Research and development costs, net 820 14% 612 11% Selling and Marketing expenses 2,286 37% 2,218 41% General and administrative expenses 807 13% 727 13% Amortization of deferred stock-based compensation 5 0% 3 0% ------------------ ------------------- Total operating expenses 3,918 64% 3,560 65% ------------------ ------------------- (Loss) income from operations (374) (6)% 115 2% Interest and other income, net 67 1% 68 1% ------------------ ------------------- Net (loss) income $ (307) (5)% $ 183 3% ------------------ ------------------- Net (loss) income per ordinary share: Basic $ (0.01) $ 0.01 ------------------ ------------------- Diluted $ (0.01) $ 0.01 ------------------ ------------------- Shares used in computing basic Net (loss) income per share 27,545,943 27,296,008 ------------------ ------------------- Shares used in computing diluted Net (loss) Income per share 27,545,943 27,964,757 ------------------ ------------------- ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Nine Months Ended September 30, 2005 September 30, 2004 ------------------ ------------------- % of % of $ Revenues $ Revenues ------------------ ------------------- Revenues: Software license $ 6,552 36% $ 6,660 42% Services 11,656 64% 9,224 58% ------------------ ------------------- Total revenues 18,208 100% 15,884 100% ------------------ ------------------- Cost of revenues: Software license 1,095 6% 586 4% Services 6,051 33% 4,630 29% ------------------ ------------------- Total cost of revenues 7,146 39% 5,216 33% ------------------ ------------------- Gross profit 11,062 61% 10,668 67% ------------------ ------------------- Operating expenses: Research and development costs, net 2,305 13% 1,953 13% Selling and Marketing expenses 7,640 42% 6,226 39% General and administrative expenses 2,379 13% 2,101 13% Amortization of deferred stock-based compensation 14 0% 6 0% ------------------ ------------------- Total operating expenses 12,338 68% 10,286 65% ------------------ ------------------- (Loss) income from operations (1,276) (7)% 382 2% Interest and other income, net 23 0% 103 1% ------------------ ------------------- Net (loss) income $ (1,253) (7)% $ 485 3% ------------------ ------------------- Net (loss) income per ordinary share: Basic $ (0.05) $ 0.01 ------------------ ------------------- Diluted $ (0.05) $ 0.01 ------------------ ------------------- Shares used in computing basic Net (loss) income per share 27,482,857 27,176,170 ------------------ ------------------- Shares used in computing diluted Net (loss) income per share 27,482,857 28,066,292 ------------------ ------------------- Contacts: Shmuel Arvatz Chief Financial Officer +972-3-7659467 Howard Kalt Kalt Rosen & Co. +1-(415)-397-2686 DATASOURCE: ClickSoftware Technologies Ltd CONTACT: Contacts: Shmuel Arvatz, Chief Financial Officer, +972-3-7659467, or Howard Kalt, Kalt Rosen & Co., +1-(415)-397-2686,

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