Provides Revenue Outlook for 2007 BURLINGTON, Massachusetts,
February 7 /PRNewswire-FirstCall/ -- ClickSoftware Technologies,
Ltd., (NasdaqCM: CKSW), the leading provider of mobile workforce
management and service optimization solutions, today announced
results for the fourth quarter and year ended December 31, 2006.
For the fourth quarter ended December 31, 2006, total revenues
reached a record $9.3 million, with record net income of $1.1
million, or $0.04 per share. This compares with revenues of $5.9
million and a net loss of $740,000, or a loss of $0.03 per share,
for the same period last year, and revenues of $8.7 million and net
income of $797,000, or $0.03 per share, for the third quarter of
2006. Excluding the effects of share-based compensation expenses
related to the adoption of SFAS-123R, net income was $1.2 million,
or $0.04 per share. Software license revenues for the fourth
quarter of 2006 were $3.4 million, while service and maintenance
revenues were $5.9 million. This compares to software license
revenues of $1.7 million and service and maintenance revenues of
$4.2 million for the same period last year, and $3.2 million and
$5.5 million, respectively, in the third quarter of 2006. Gross
profit in the fourth quarter of 2006 was $5.9 million, or 63% of
revenues, compared to $3.2 million, or 55% of revenues, in the same
period last year, and $5.1 million, or 59% of revenues, in the
third quarter of 2006. Cash, cash equivalents and short and
long-term investments increased significantly to $19.8 million, up
$3.4 million from $16.4 million at the end of the third quarter.
Net cash provided from operating activities was $3.2 million during
the fourth quarter of 2006. Full Year Results Total revenues for
2006 grew 35% over 2005 to $32.4 million with consolidated net
income of $2.1 million, or $0.08 per share. This compares with
revenues of $24.1 million and net loss of $2.0 million, or a loss
of $0.07 per share, for 2005. Excluding the effects of share-based
compensation expenses related to the adoption of SFAS-123R, net
income at 2006 was $2.7 million, or $0.09 per share. Management
Commentary "2006 was a remarkable year for ClickSoftware. We have
substantially improved our business performance, further bolstered
our market leadership by signing new major agreements with blue
chip customers from a variety of industry verticals, and increased
our traction with new and existing partners," said Dr. Moshe
BenBassat, Chairman and Chief Executive Officer. "I am thankful for
our dedicated employees and management who have all contributed
immensely to our great achievements in 2006. We are very excited
about the success we experienced in 2006, and looking forward to
continued growth in 2007. For 2007 and beyond, our strategy
includes furthering the momentum gained in 2006, expanding into new
territories and new verticals, and widening the footprint of
product offerings," he added. Outlook The company currently
believes that revenue in 2007 will grow by approximately 20% over
2006, reaching approximately $39 million. This is based on the
current levels of deferred revenue, current backlog of firm
commitments, and current visibility into a growing sales pipeline.
Investors Conference Call ClickSoftware will host a conference call
today at 9:30 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) 321-3075 and ask for the ClickSoftware conference call.
International participants, please call (973) 582-2855. The call
will be available live on the internet (in listen mode only) 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), ID Code:
8337189. About ClickSoftware ClickSoftware is the leading provider
of mobile workforce management and service optimization solutions
that create business value for service operations through higher
levels of productivity, customer satisfaction and cost
effectiveness. Combining educational, implementation and support
services with best practices and its industry leading solutions,
ClickSoftware drives service decision making across all levels of
the organization. From proactive customer demand forecasting and
capacity planning to real-time decision-making, incorporating
scheduling, mobility and location based services, ClickSoftware
helps service organizations get the most out of their resources.
With over 100 customers across a variety of industries and
geographies, and strong partnerships with leading platform and
system integration partners - ClickSoftware is uniquely positioned
to deliver superb business performance to any organization. The
company is headquartered in Burlington, MA and Israel, with offices
in Europe, and Asia Pacific. For more information about
ClickSoftware, please call +1-781-272-5903 or +1-888-438-3308, or
visit http://www.clicksoftware.com/. Contacts: Shmuel Arvatz Chief
Financial Officer +972-3-765-9467 Howard Kalt Kalt Rosen & Co.
+1-415-397-2686 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 and receipt of
orders, 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 penetrate new markets; 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 20F for the year ended
December 31, 2005 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. ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
December 31 December 31 2006 2005 ASSETS CURRENT ASSETS Cash and
cash equivalents $13,385 $10,467 Short-term investments 5,918 3,111
Trade receivables, net 6,465 4,118 Other receivables and prepaid
expenses 953 1,083 Total current assets 26,721 18,779 FIXED ASSETS
Cost 1,692 3,451 Less - accumulated depreciation 888 2,450 Total
fixed assets 804 1,001 Long-term investments 451 264 Severance pay
deposits 996 960 Total Assets $28,972 $21,004 LIABILITIES AND
SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and
accrued expenses $5,945 $ 4,924 Deferred revenues 5,965 5,031 Total
current liabilities 11,910 9,955 LONG TERM LIABILITIES Accrued
severance pay 2,031 1,786 Deferred revenues - Long term 2,490 -
Total long-term liabilities 4,521 1,786 Total liabilities 16,431
11,741 SHAREHOLDERS' EQUITY Ordinary shares of NIS 0.02 par value
113 111 Additional paid-in capital 72,205 71,220 Deferred Stock
Compensation (63) (216) Accumulated deficit (59,671) (61,809)
Treasury stock, at cost: 39,000 shares (43) (43) Total
shareholders' equity 12,541 9,263 Total liability and shareholders'
equity $28,972 $21,004 ClickSoftware Technologies Ltd. CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except share and per share
amounts) Three Months Ended December 31, 2006 December 31, 2005 %
of % of $ Revenues $ Revenues Revenues: Software license $3,442 37%
$1,683 29% Services 5,880 63% 4,176 71% Total revenues 9,322 100%
5,859 100% Cost of revenues: Software license 456 5% 446 8%
Services 2,982 32% 2,200 37% Total cost of revenues 3,438 37% 2,646
45% Gross profit 5,884 63% 3,213 55% Operating expenses: Research
and development costs, net 1,148 12% 823 14% Selling and Marketing
expenses 2,866 31% 2,484 42% General and administrative expenses
874 9% 745 13% Total operating expenses 4,888 52% 4,052 69% Income
(Loss) from operations 996 11% (839) (14)% Interest and other
income, net 158 1% 99 1% Net income (loss) before taxes $1,154 12%
$(740) (13)% Taxes on income 95 1% - - Net income (loss) $1,059 11%
$(740) (13)% Net income (loss) per ordinary share: Basic $0.04
$(0.03) Diluted $0.04 $(0.03) Shares used in computing basic Net
income (loss) per share 27,932,444 27,618,192 Shares used in
computing diluted Net income (loss) per share 29,197,188 27,618,192
ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except share and per share amounts) Year
Ended December 31, 2006 December 31, 2005 % of % of $ Revenues $
Revenues Revenues: Software license $12,145 37% $8,235 34% Services
20,286 63% 15,832 66% Total revenues 32,431 100% 24,067 100% Cost
of revenues: Software license 1,979 6% 1,541 6% Services 10,582 33%
8,251 34% Total cost of revenues 12,561 39% 9,792 40% Gross profit
19,870 61% 14,275 60% Operating expenses: Research and development
costs, net 4,113 13% 3,128 13% Selling and Marketing expenses
10,337 32% 10,124 42% General and administrative expenses 3,671 11%
3,138 13% Total operating expenses 18,121 56% 16,390 68% Income
(Loss) from operations 1,749 5% (2,115) (8)% Interest and other
income, net 484 2% 122 0% Net income (loss) before taxes $2,233 7%
$(1,993) (8)% Taxes on income 95 0% - - Net income (loss) $2,138 7%
$(1,993) (8)% Net income (loss) per ordinary share: Basic $0.08 $
(0.07) Diluted $0.08 $ (0.07) Shares used in computing basic Net
income (loss) per share 27,767,748 27,514,262 Shares used in
computing diluted Net income (loss) per share 28,442,887 27,514,262
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 that exclude the
effects of share-based compensation and the requirements of SFAS
No. 123R, "Share-based Payment" ("123R"). The non-GAAP financial
measures used by management and disclosed by the Company exclude
the income statement effects of all forms of share-based
compensation .The non-GAAP financial measures disclosed by the
Company should not be considered 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. ClickSoftware Technologies Ltd. SUPPLEMENTAL
RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (In thousands, except
share and per share amounts) Three Months Ended December 31, 2006
December 31, 2005 % of % of $ Revenues $ Revenues GAAP Net income
(loss): $1,059 12% $ (740) (13)% Adjustment of share-based
compensation within: Cost of Services 22 --- Research and
development costs, net 18 --- Selling and Marketing expenses 31 ---
General and administrative expenses 85 5 Net income (loss)
excluding share-based compensation $1,215 13% $ (735) (13)% GAAP
Net income (loss) per ordinary share: Basic $0.04 $(0.03) Diluted
$0.04 $(0.03) Net income (loss) per ordinary share excluding
share-based compensation: Basic $0.04 $(0.03) Diluted $0.04 $(0.03)
ClickSoftware Technologies Ltd. SUPPLEMENTAL RECONCILIATIONS OF
GAAP TO NON-GAAP RESULTS (In thousands, except share and per share
amounts) Year Ended December 31, 2006 December 31, 2005 % of % of $
Revenues $ Revenues GAAP Net income (loss): $2,138 7% $(1,993) (8)%
Adjustment of share-based compensation within: Cost of Services 68
--- Research and development costs, net 61 --- Selling and
Marketing expenses 83 --- General and administrative expenses 312
19 Net income (loss) excluding share-based compensation $2,662 8% $
(1,974) (8)% GAAP Net income (loss) per ordinary share: Basic $0.08
$(0.07) Diluted $0.08 $(0.07) Net income (loss) per ordinary share
excluding share-based compensation: Basic $0.10 $(0.07) Diluted
$0.09 $(0.07) DATASOURCE: ClickSoftware Technologies Ltd CONTACT:
Contacts: Shmuel Arvatz, Chief Financial Officer, +972-3-765-9467,
; Howard Kalt, Kalt Rosen & Co., +1-415-397-2686,
Copyright