Revenues Rise 32% YOY to $10.5M; Net Income More Than Doubled YOY
BURLINGTON, Massachusetts, July 25 /PRNewswire-FirstCall/ --
ClickSoftware Technologies Ltd. (NasdaqCM: CKSW), the leading
provider of mobile workforce management and service optimization
solutions, today announced results for the second quarter ended
June 30, 2007. For the second quarter ended June 30, 2007, total
revenues were $10.5 million, an increase of 32% compared with $8.0
million for the second quarter of 2006 and 16% compared with the
first quarter of 2007. Net income for the quarter was $1.0 million,
or $0.03 per share, an increase of 118% compared with $0.4 million,
or $0.02 per share, for the second quarter of 2006, and 111%
compared with the first quarter of 2007. Excluding the effects of
share-based compensation expenses related to the adoption of
SFAS-123R, net income for the second quarter of 2007 was $1.1
million, or $0.04 per share. The increase in revenues derives from
both software licenses and services. Software license revenues for
the second quarter of 2007 were $4.4 million, an increase of 36%
compared to the second quarter of 2006, and 20% compared to the
first quarter of 2007. Services revenues for the period were $6.1
million, a 29% increase compared to the second quarter of 2006 and
a 13% increase compared to the first quarter of 2007. Gross profit
increased 36% on a year-over-year basis to $6.8 million, or 64% of
revenues, compared to $5.0 million, or 62% of revenues, in the
second quarter of 2006, and $5.3 million, or 58% of revenues, in
the first quarter of 2007. For the quarter, net cash used in
operating activities was $0.5 million, contributing to a reduction
in the balance of cash, cash equivalents, and short and long term
investments to $20.2 million from $20.7 million in the first
quarter of 2007. On the other hand, working capital increased by
about $1.0 million from the first quarter of 2007. "The second
quarter was another period of considerable growth for
ClickSoftware, with strong financial results, operational
achievements and strategic progress across all parameters," said
Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "In response
to an increasing demand from both existing customers and new
prospects, we continue to scale up the organization, such as a new
subsidiary we just formed in Japan. Our new products for leveraging
mobility and GPS-based location reports in workforce optimization
are gaining recognition as the leading products for the real time
service enterprise. Gartner's Magic Quadrant report for field
service management published in May 2007 further validates our
overall leadership position. Looking forward, we believe that we
are positioned for continued strong growth," BenBassat added.
Outlook Based on recent wins, backlog, deferred revenues and the
current pipeline, the Company is raising its guidance, projecting
annual revenues in the range of about $41 million to $42 million
for 2007, compared to $32.4 million for 2006. This represents
annual revenue growth of about 26.5% to 29.5%, compared to the 20%
growth projection given at the beginning of the year. 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 +1-973-582-2855. 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 +1-973-341-3080), ID Code: 8987538.
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 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 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, 2006 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) June 30 December 31 ____________________ 2007 2006
____________________ ASSETS CURRENT ASSETS Cash and cash
equivalents $ 11,696 $ 13,385 Short-term investments 7,744 5,918
Trade receivables, net 8,394 6,465 Other receivables and prepaid
expenses 1,100 953 ____________________ Total current assets 28,934
26,721 ____________________ FIXED ASSETS Cost 2,563 1,692 Less -
accumulated depreciation 1,141 888 ____________________ Total fixed
assets 1,422 804 ____________________ Long-term investments 770 451
Severance pay deposits 958 996 ____________________ Total Assets $
32,084 $ 28,972 ____________________ LIABILITIES AND SHAREHOLDERS'
EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $
7,487 $ 5,945 Deferred revenues 5,549 5,965 _____________________
Total current liabilities 13,036 11,910 _____________________ LONG
TERM LIABILITIES Accrued severance pay 2,068 2,031 Deferred
revenues - Long term 2,351 2,490 Total long-term
_____________________ liabilities 4,419 4,521 _____________________
Total liabilities 17,455 16,431 _____________________ SHAREHOLDERS'
EQUITY Ordinary shares of NIS 0.02 par value 114 113 Additional
paid-in capital 72,809 72,205 Deferred Stock Compensation - (63)
Accumulated deficit (58,251) (59,671) Treasury stock, at cost:
39,000 shares (43) (43) Total shareholders' equity 14,629 12,541
Total liability and shareholders' ____________________ equity $
32,084 $ 28,972 ____________________ ClickSoftware Technologies
Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except
share and per share amounts) Three Months Ended June 30, 2007 June
30, 2006 ____________________ _________________ % of % of $
Revenues $ Revenues ____________________ _______________ Revenues:
Software license $ 4,436 42% $ 3,272 41% Services 6,056 58% 4,696
59% ____________________ ________________ Total revenues 10,492
100% 7,968 100% ____________________ ________________ Cost of
revenues: Software license 529 5% 564 7% Services 3,209 31% 2,444
31% ___________________ ________________ Total cost of revenues
3,738 36% 3,008 38% ____________________ ________________ Gross
profit 6,754 64% 4,960 62% ____________________ ________________
Operating expenses: Research and development costs, net 1,427 14%
927 11% Selling and Marketing expenses 3,408 32% 2,681 34% General
and administrative expenses 1,235 12% 1,014 13%
____________________ ________________ Total operating expenses
6,070 58% 4,622 58% ____________________ ________________ Income
from operations 684 7% 338 4% Other income - - - - Interest, net
293 3% 105 2% ________________________________________ Net income
before taxes 977 9% 443 6% Taxes on income 13 - - -
________________________________________ Net income $ 964 9% $ 443
6% ________________________________________ Net income per ordinary
share: Basic $ 0.03 $ 0.02 ________________________________________
Diluted $ 0.03 $ 0.02 ________________________________________
Shares used in computing basic Net income per share 28,167,420
27,692,856 ______________ ______________ Shares used in computing
diluted Net income per share 29,545,429 27,692,856 ______________
______________ ClickSoftware Technologies Ltd. CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except share and per share
amounts) Six Months Ended June 30, 2007 June 30, 2006
__________________ __________________ % of % of $ Revenues $
Revenues __________________ __________________ Revenues: Software
license $ 8,125 42% $ 5,479 38% Services 11,425 58% 8,950 62%
__________________ __________________ Total revenues 19,550 100%
14,429 100% Cost of revenues: __________________ __________________
Software license 1,217 6% 855 6% Services 6,283 32% 4,730 33% Total
cost of revenues 7,500 38% 5,585 39% __________________
__________________ Gross profit 12,050 62% 8,844 61% Operating
expenses: __________________ __________________ Research and
development costs, net 2,653 14% 1,928 13% Selling and Marketing
expenses 6,369 33% 4,999 34% General and administrative expenses
2,192 11% 1,838 13% __________________ __________________ Total
operating expenses 11,214 57% 8,765 60% __________________
__________________ Income from operations 836 4% 79 1% Other income
188 1% - - Interest, net 444 2% 203 1% __________________
__________________ Net income before taxes 1,468 8% 282 2% Taxes on
income 48 - - - __________________ __________________ Net income $
1,420 7% $ 282 2% __________________ __________________ Net income
per ordinary share: Basic $ 0.05 $ 0.01 __________________
__________________ Diluted $ 0.05 $ 0.01 __________________
__________________ Shares used in computing basic Net income per
share 28,106,315 27,669,804 __________________ __________________
Shares used in computing diluted Net income per share 28,551,294
27,669,804 __________________ __________________ 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 June 30, 2007 June 30, 2006 __________________
_________________ % of % of $ Revenues $ Revenues
__________________ _________________ GAAP Net income: $ 964 9% $
443 6% Adjustment of share-based compensation within: Cost of
Services 23 14 Research and development costs, net 19 14 Selling
and Marketing expenses 34 15 General and administrative expenses 78
71 _________________ __________________ Net income excluding
share-based compensation $ 1,118 11% $ 557 7% _________________
__________________ GAAP Net income per ordinary share: Basic $ 0.03
$ 0.02 __________________ __________________ Diluted $ 0.03 $ 0.02
__________________ __________________ Net income per ordinary share
excluding share-based compensation: Basic $ 0.04 $ 0.02
__________________ __________________ Diluted $ 0.04 $ 0.02
__________________ __________________ ClickSoftware Technologies
Ltd. SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (In
thousands, except share and per share amounts) Six Months Ended
June 30, 2007 June 30, 2006 __________________ _______________ % of
% of $ Revenues $ Revenues __________________ _______________ GAAP
Net income: $ 1,420 7% $ 282 2% Adjustment of share-based
compensation within: Cost of Services 43 24 Research and
development costs, net 35 25 Selling and Marketing expenses 63 22
General and administrative expenses 161 140 Net income excluding
share-based __________________ _________________ compensation $
1,722 9% $ 493 3% __________________ _________________ GAAP Net
income per ordinary share: Basic $ 0.05 $ 0.01 __________________
__________________ Diluted $ 0.05 $ 0.01 __________________
__________________ Net income per ordinary share excluding
share-based compensation: __________________ __________________
Basic $ 0.06 $ 0.02 __________________ __________________ Diluted $
0.06 $ 0.02 Contacts: Shmuel Arvatz Chief Financial Officer
+972-3-765-9467 Adam J. Rosen +1-646-536-3865 DATASOURCE:
ClickSoftware Technologies Ltd CONTACT: Contacts: Shmuel Arvatz,
Chief Financial Officer, +972-3-765-9467, , Adam J. Rosen,
+1-646-536-3865,
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