Although Reported Revenues Below Prior Quarters, Deferred Revenues
and Backlog at Record Levels BURLINGTON, Massachusetts, February 8
/PRNewswire-FirstCall/ -- ClickSoftware Technologies, Ltd.,
(NasdaqSC: CKSW), the leading provider of workforce and service
optimization solutions, today announced results for the fourth
quarter and year ended December 31, 2005. The company had
previously announced financial results on a preliminary basis on
January 19, 2006. For the fourth quarter ended December 31, 2005,
total revenues were $5.9 million, with a net loss of $740,000, or
$0.03 per share. This compares with revenues of $6.8 million and a
net income of $428,000, or $0.02 per share, for the same period
last year, and revenues of $6.1 million and a net loss of $307,000,
or $0.01 per share, for the third quarter of 2005. "While our
reported revenues were down for the fourth quarter, deferred
revenues increased to $5.0 million, compared to $4.5 million in the
third quarter of 2005 and $3.0 million at the end of the fourth
quarter of 2004. In fact, we booked $7.9 million in business in the
fourth quarter, resulting in a book-to-recognition ratio of 135%,
the highest in recent quarters. For all of 2005, we booked $28.5
million in business. Accordingly, the backlog and deferred revenues
accelerated as we entered 2006, and represents approximately 60% of
the company's total revenues for all of 2005," said Dr. Moshe
BenBassat, Chairman and Chief Executive Officer. Software license
revenues for the fourth quarter of 2005 were $1.7 million, while
service revenues were $4.2 million. This compares to software
license revenues of $3.9 million and service revenues of $2.9
million for the same period last year, and $1.8 million and $4.3
million, respectively, in the third quarter of 2005. Gross profit
in the fourth quarter of 2005 was $3.2 million, or 55% of revenues,
compared to $4.5 million, or 66% of revenues, in the same period
last year, and $3.5 million, or 58% of revenues, in the third
quarter of 2005. As of December 31, 2005, the company had cash,
cash equivalents and short and long-term investments of $13.8
million, up by $1.8 million from $12.0 million as of December 31,
2004 and up by $0.7 from $13.1 million as of September 30, 2005.
Net cash provided by operating activities was $2 million during
2005 and $0.8 million in the fourth quarter of 2005. Full Year
Results Total revenues for 2005 were $24.1 million with a
consolidated net loss of $2.0 million, or $0.07 per share. This
compares with revenues of $22.7 million and net income of $0.9
million, or $0.03 per share, for 2004. Outlook The company
currently believes that revenues for all of 2006 should grow by
approximately 15% over 2005. 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-(888)-802-2275 and ask for the
ClickSoftware conference call. International participants, please
call +1-(913)-312-1267. 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-(888)-203-1112 (international callers can dial
+1-(719)-457-0820). The passcode for the replay is 4983703. 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, optimized shift 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; timing of revenue recognition; 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. Contacts: Shmuel Arvatz Chief Financial
Officer +972-3-7659467 Howard Kalt Kalt Rosen & Co.
+1-(415)-397-2686 ClickSoftware Technologies Ltd. CONSOLIDATED
BALANCE SHEETS (In thousands, except share data) December 31
December 31 ------------------------ 2005 2004
------------------------ ASSETS CURRENT ASSETS Cash and cash
equivalents $ 10,467 $ 4,196 Short-term investments 3,111 7,533
Trade receivables, net 4,118 5,317 Other receivables and prepaid
expenses 1,083 982 ------------------------- Total current assets
18,779 18,028 ------------------------- FIXED ASSETS Cost 3,451
3,713 Less - accumulated depreciation 2,450 2,646
------------------------- Total fixed assets 1,001 1,067
------------------------- Long-term investments 264 264 Severance
pay deposits 960 890 ------------------------- Total Assets $
21,004 $ 20,249 ========================= LIABILITIES AND
SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and
accrued expenses 4,924 4,731 Deferred revenues 5,031 2,969
------------------------- Total current liabilities 9,955 7,700
------------------------- LONG TERM LIABILITIES Accrued severance
pay 1,786 1,677 ------------------------- Total long-term
liabilities 1,786 1,677 ------------------------- Total liabilities
11,741 9,377 ------------------------- SHAREHOLDERS' EQUITY
Ordinary shares of NIS 0.02 par value 111 110 Additional paid-in
capital 71,220 70,930 Deferred Stock Compensation (216) (309)
Accumulated deficit (61,809) (59,816) Treasury stock, at cost:
39,000 shares (43) (43) ------------------------- Total
shareholders' equity 9,263 10,872 ------------------------- Total
liability and shareholders' equity $ 21,004 $ 20,249
========================= ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share
and per share amounts) Three Months Ended December 31, 2005
December 31, 2004 ------------------ ------------------ % of % of $
Revenues $ Revenues ------------------ ------------------ Revenues:
Software license $ 1,683 29% $ 3,943 58% Services 4,176 71% 2,878
42% ------------------ ------------------ Total revenues 5,859 100%
6,821 100% ------------------ ------------------ Cost of revenues:
Software license 446 8% 523 8% Services 2,200 37% 1,765 26%
------------------ ------------------ Total cost of revenues 2,646
45% 2,288 34% ------------------ ------------------ Gross profit
3,213 55% 4,533 66% ------------------ ------------------ Operating
expenses: Research and development costs, net 823 14% 757 11%
Selling and Marketing expenses 2,484 42% 2,713 40% General and
administrative expenses 740 13% 708 10% Amortization of deferred
stock-based compensation 5 0% 3 0% ------------------
------------------ Total operating expenses 4,052 69% 4,181 61%
------------------ ------------------ (Loss) income from operations
(839) (14)% 352 5% Interest and other income, net 99 1% 76 1%
------------------ ------------------ Net (loss) income $ (740)
(13)% $ 428 6% ------------------ ------------------ Net (loss)
income per ordinary share: Basic $ (0.03) $ 0.02 ------------------
------------------ Diluted $ (0.03) $ 0.02 ------------------
------------------ Shares used in computing basic Net (loss) income
per share 27,618,192 27,319,177 -------------------
------------------- Shares used in computing diluted Net (loss)
Income per share 27,618,192 28,293,031 -------------------
------------------- ClickSoftware Technologies Ltd. CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except share and per share
amounts) Year Ended December 31, 2005 December 31, 2004
------------------ ------------------ % of % of $ Revenues $
Revenues ------------------ ------------------ Revenues: Software
license $ 8,235 34% $ 10,603 47% Services 15,832 66% 12,102 53%
------------------ ------------------ Total revenues 24,067 100%
22,705 100% ------------------ ------------------ Cost of revenues:
Software license 1,541 6% 1,109 5% Services 8,251 34% 6,395 28%
------------------ ------------------ Total cost of revenues 9,792
40% 7,504 33% ------------------ ------------------ Gross profit
14,275 60% 15,201 67% ------------------ ------------------
Operating expenses: Research and development costs, net 3,128 13%
2,710 12% Selling and Marketing expenses 10,124 42% 8,939 39%
General and administrative expenses 3,119 13% 2,809 13%
Amortization of deferred stock-based compensation 19 0% 9 0%
------------------ ------------------ Total operating expenses
16,390 68% 14,467 64% ------------------ ------------------ (Loss)
income from operations (2,115) (8)% 734 3% Interest and other
income, net 122 0% 179 1% ------------------ ------------------ Net
(loss) income $ (1,993) (8)% $ 913 4% ------------------
------------------ Net (loss) income per ordinary share: Basic $
(0.07) $ 0.03 ------------------ ------------------ Diluted $
(0.07) $ 0.03 ------------------ ------------------ Shares used in
computing basic Net (loss) income per share 27,514,262 27,202,804
------------------- ------------------- Shares used in computing
diluted Net (loss) income per share 27,514,262 28,336,450
------------------- ------------------- DATASOURCE: ClickSoftware
Technologies Ltd CONTACT: Shmuel Arvatz, Chief Financial Officer,
Tel: +972-3-7659467, , Howard Kalt, Kalt Rosen & Co., Tel:
+1-(415)-397-2686,
Copyright