Revenues up 27% to $11.5 Million BURLINGTON, Massachusetts, April 30 /PRNewswire-FirstCall/ -- ClickSoftware Technologies Ltd. (NasdaqCM: CKSW), the leading provider of mobile workforce management and service optimization solutions, today announced results for the first quarter ended March 31, 2008. For the first quarter ended March 31, 2008, total revenues were $11.5 million, with net income of $0.3 million, or $0.01 per share. This compares with revenues of $9.1 million and net income of $0.5 million, or $0.02 per share, for the same period last year, and revenues of $10.4 million and net income of $0.5 million, or $0.02 per share, for the fourth quarter of 2007. Excluding the effects of share-based compensation expenses related to the adoption of SFAS-123R, net income was $0.5 million, or $0.02 per share, for the first quarter of 2008. Software license revenues for the first quarter of 2008 were $4.0 million, while service and maintenance revenues were $7.5 million. This compares to software license revenues of $3.7 million and service and maintenance revenues of $5.4 million for the same period last year, and $3.2 million and $7.2 million, respectively, in the fourth quarter of 2007. Gross profit in the first quarter of 2008 was $6.9 million, or 60% of revenues, compared to $5.3 million, or 58% of revenues, in the same period last year, and $6.7 million, or 64% of revenues, in the fourth quarter of 2007. Cash, cash equivalents and short and long-term investments in the first quarter of 2008 increased to $25.9 million from $24.7 million at the end of the fourth quarter of 2007. Net cash provided from operating activities was $1.4 million during the first quarter of 2008. Management Commentary "The first quarter was a solid start to what we believe will be a good year for ClickSoftware. We have delivered a record level of revenues, reflecting strong momentum in all geographies," said Dr. Moshe BenBassat, ClickSoftware's Chairman and Chief Executive Officer. "During the quarter, we were pleased to add Rogers Cable Communications, another industry leader, to our growing list of customers. We continued to make progress in our mid-market strategy, as demonstrated by the formation of a new partnership with Aspective, a Vodafone company, and through our achievement of Microsoft's Gold Certified Partner status. In addition, our prominent position in the just-published Gartner's 'Magic Quadrant' report for the Field Service Management industry underscores again our leadership position. Overall, we believe we are on track to continue building our Company to the next level," he added. Outlook The Company reiterates the previously provided year 2008 guidance of revenue growth of approximately 20%-25% over 2007, or $48-$50 million. Investors Conference Call ClickSoftware will host a conference call today at 9:30 a.m. EDT 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 +1-800-762-8908 and ask for the ClickSoftware conference call. International participants, please call +1-480-629-1990. 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 800-406-7325 (international callers can dial (+1-303-590-3030), ID Code: 3865821. 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/. 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, 2007 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) March 31 December 31 ------------------------- 2008 2007 ------------------------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 12,591 $ 9,054 Short-term investments 12,699 15,054 Trade receivables, net 8,571 6,883 Other receivables and prepaid expenses 1,193 1,040 ------------------------- Total current assets 35,054 32,031 ------------------------- FIXED ASSETS Cost 2,996 2,885 Less - accumulated depreciation 1,507 1,448 ------------------------- Total fixed assets 1,489 1,437 ------------------------- Long-term investments 640 602 Severance pay deposits 1,229 1,163 ------------------------- Total Assets $ 38,412 $ 35,233 ------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 7,324 $ 7,281 Deferred revenues 7,933 5,803 ------------------------- Total current liabilities 15,257 13,084 ------------------------- LONG TERM LIABILITIES Accrued severance pay 2,569 2,418 Deferred revenues - Long term 3,264 2,919 ------------------------- Total long-term liabilities 5,833 5,337 ------------------------- Total liabilities 21,090 18,421 ------------------------- SHAREHOLDERS�?? EQUITY Ordinary shares of NIS 0.02 par value 115 115 Additional paid-in capital 73,973 73,803 Accumulated deficit (56,723) (57,063) Treasury stock, at cost: 39,000 shares (43) (43) ------------------------- Total shareholders' equity 17,322 16,812 ------------------------- Total liability and shareholders' equity $ 38,412 $ 35,233 ------------------------- ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Three Months Ended March 31, 2008 March 31, 2007 -------------------- ------------------ % of % of $ Revenues $ Revenues -------------------- ------------------ Revenues: Software license $ 3,998 35% $ 3,689 41% Services 7,485 65% 5,369 59% -------------------- ------------------ Total revenues 11,483 100% 9,058 100% -------------------- ------------------ Cost of revenues: Software license 548 5% 688 8% Services 4,005 35% 3,074 34% -------------------- ------------------ Total cost of revenues 4,553 40% 3,762 42% -------------------- ------------------ Gross profit 6,930 60% 5,296 58% -------------------- ------------------ Operating expenses: Research and development costs, net 1,576 14% 1,226 14% Selling and Marketing expenses 3,866 34% 2,961 33% General and administrative expenses 1,191 10% 957 10% -------------------- ------------------ Total operating expenses 6,633 58% 5,144 57% -------------------- ------------------ Income from operations 297 3% 152 1% Other income - - 188 2% Interest, net 167 1% 151 2% -------------------- ------------------ Net income before taxes $ 464 4% $ 491 5% -------------------- ------------------ Taxes on income 124 1% 35 0% -------------------- ------------------ Net income $ 340 3% $ 456 5% -------------------- ------------------ Net income per ordinary share: Basic $ 0.01 $ 0.02 -------------------- ------------------ Diluted $ 0.01 $ 0.02 -------------------- ------------------ Shares used in computing basic Net income per share 28,511,595 28,045,210 ---------------------- ------------------ Shares used in computing diluted Net income per share 29,654,498 29,584,633 ---------------------- ------------------ 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 March 31, 2008 March 31, 2007 -------------------- ------------------ % of % of $ Revenues $ Revenues -------------------- ------------------ GAAP Net income: $ 340 3% $ 456 5% Adjustment of share-based compensation within: Cost of Services 24 20 Research and development costs, net 22 16 Selling and Marketing expenses 47 29 General and administrative expenses 71 83 -------------------- ------------------ Net income excluding share-based compensation $ 504 4% $ 604 7% -------------------- ------------------ GAAP Net income per ordinary share: Basic $ 0.01 $ 0.02 -------------------- ------------------ Diluted $ 0.01 $ 0.02 -------------------- ------------------ Net income per ordinary share excluding share-based compensation: -------------------- ------------------ Basic $ 0.02 $ 0.02 -------------------- ------------------ Diluted $ 0.02 $ 0.02 -------------------- ------------------ Contacts: Shmuel Arvatz Adam J. Rosen Chief Financial Officer +1-646-536-3865 +972-3-765-9467 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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