Revenues up 56% to $15.7 Million, With Net Income of $2.7 Million, or $0.09 Per Share BURLINGTON, Massachusetts, October 29 /PRNewswire-FirstCall/ -- ClickSoftware Technologies Ltd. (NasdaqCM: CKSW), the leading provider of mobile workforce management and service optimization solutions, today announced results for the third quarter ended September 30, 2008. For the third quarter ended September 30, 2008, total revenues were $15.7 million, with net income of $2.7 million, or $0.09 per share. This compares with revenues of $10.1 million and net income of $0.7 million, or $0.03 per share, for the same period last year, and revenues of $11.0 million and net income of $0.1 million, or $0.00 per share, for the second quarter of 2008. Excluding the effects of share-based compensation expenses related to the adoption of SFAS-123R, net income was $2.9 million, or $0.10 per share, for the third quarter of 2008. Software license revenues for the third quarter of 2008 were $7.2 million, while service and maintenance revenues were $8.5 million. This compares to software license revenues of $4.3 million and service and maintenance revenues of $5.8 million for the same period last year, and $3.1 million and $7.9 million, respectively, in the second quarter of 2008. Gross profit in the third quarter of 2008 was $10.6 million, or 68% of revenues, compared to $6.0 million, or 59% of revenues, in the same period last year, and $6.7 million, or 61% of revenues, in the second quarter of 2008. Cash, cash equivalents and short and long-term investments in the third quarter of 2008 increased to $25.3 million from $24.9 million at the end of the second quarter of 2008. Net cash provided by operating activities was $0.6 million during the third quarter of 2008. "We are very pleased with our third quarter results, bringing our revenues and net profit to record levels. These results demonstrate the continued demand for our products and our leadership position in the workforce and service optimization market", said Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "Recognizing the risk associated with the recent developments in the global economy, we are closely monitoring our pipeline and short-term prospects. We have good visibility into the coming quarter and are excited by the long-term prospects of ClickSoftware. Additionally, today's announcement on the reseller agreement with SAP will further support our long term growth trend. This agreement takes the partnership between the two companies to a new level as it will enable customers to buy ClickSoftware's products directly from SAP", he added. Outlook As previously announced on October 2, 2008, the Company currently expects to achieve annual revenues in the range of approximately $52 to $54 million dollars, exceeding the annual guidance of $48 to $50 million given at the beginning of the year. This will bring the year-over-year growth to the approximate range of 30% to 35%. 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 +1-800-406-7325 (international callers can dial +1-303-590-3030), ID Code: 3928498. 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 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include, but are not limited to, those statements regarding future results of operations, visibility into future periods, growth and rates of growth, and expectations regarding future closing of contracts, receipt of orders, recognition of revenues and deferred revenues. Such "forward-looking statements" involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from those projected. Achievement of these results by ClickSoftware may be affected by many factors, including, but not limited to, risks and uncertainties regarding the general economic outlook, the length of or changes in ClickSoftware's sales cycle, ClickSoftware's ability to close sales to potential customers in a timely manner and maintain or strengthen relationships with strategic partners, the timing of revenue recognition, foreign currency exchange rate fluctuations, and ClickSoftware'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 the "Risk Factors" section and elsewhere in ClickSoftware's annual report on Form 20F for the year ended December 31, 2007 and in subsequent filings with the Securities and Exchange Commission. Clicksoftware 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 ____________________________ 2008 2007 ____________________________ ASSETS CURRENT ASSETS Cash and cash equivalents $ 9,015 $ 9,054 Short-term investments 15,480 15,054 Trade receivables, net 13,384 6,883 Other receivables and prepaid expenses 1,345 1,040 ____________________________ Total current assets 39,224 32,031 ____________________________ FIXED ASSETS Cost 3,381 2,885 Less - accumulated depreciation 1,854 1,448 Total fixed ____________________________ assets 1,527 1,437 ____________________________ Long-term investments 758 602 Severance pay deposits 1,415 1,163 ____________________________ Total Assets $ 42,924 $ 35,233 ____________________________ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 9,214 $ 7,281 Deferred revenues 6,773 5,803 ____________________________ Total current liabilities 15,987 13,084 ____________________________ LONG TERM LIABILITIES Accrued severance pay 2,880 2,418 Deferred revenues - Long term 3,444 2,919 ____________________________ Total long-term liabilities 6,324 5,337 ____________________________ Total liabilities 22,311 18,421 ____________________________ SHAREHOLDERS' EQUITY Ordinary shares of NIS 0.02 par value 116 115 Additional paid-in capital 74,481 73,803 Accumulated deficit (53,941) (57,063) Treasury stock, at cost: 39,000 shares (43) (43) ____________________________ Total shareholders' equity 20,613 16,812 ____________________________ Total liability and shareholders' equity $ 42,924 $ 35,233 ____________________________ ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Three Months Ended September 30, 2008 September 30, 2007 _____________________ ___________________ % of % of $ Revenues $ Revenues _____________________ ___________________ Revenues: Software license $ 7,190 46% $ 4,293 43% Services 8,474 54% 5,762 57% _____________________ ___________________ Total revenues 15,664 100% 10,055 100% _____________________ ___________________ Cost of revenues: Software license 763 5% 712 7% Services 4,326 28% 3,386 34% _____________________ ___________________ Total cost of revenues 5,089 32% 4,098 41% _____________________ ___________________ Gross profit 10,575 68% 5,957 59% _____________________ ___________________ Operating expenses: Research and development costs, net 1,749 11% 1,496 15% Selling and Marketing expenses 4,359 28% 3,222 32% General and administrative expenses 1,604 10% 1,039 10% _____________________ ___________________ Total operating expenses 7,712 49% 5,757 57% _____________________ ___________________ Net Income from operations 2,863 18% 200 2% Other income - - 216 2% Interest, net (154) (1)% 249 2% _____________________ ___________________ Net income before taxes $ 2,709 17% $ 665 6% _____________________ ___________________ Taxes on income 51 0% (60) (1)% _____________________ ___________________ Net income $ 2,658 17% $ 725 7% _____________________ ___________________ Net income per ordinary share: Basic $ 0.09 $ 0.03 _____________________ ___________________ Diluted $ 0.09 $ 0.02 _____________________ ___________________ Shares used in computing basic Net income per share 28,545,709 28,352,213 _____________________ ___________________ Shares used in computing diluted Net income per share 29,278,508 30,409,632 _____________________ ___________________ ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Nine Months Ended September 30, 2008 September 30, 2007 ______________________ ___________________ % of % of $ Revenues $ Revenues ______________________ ___________________ Revenues: Software license $ 14,252 37% $ 12,418 42% Services 23,883 63% 17,187 58% ______________________ ___________________ Total revenues 38,135 100% 29,605 100% ______________________ ___________________ Cost of revenues: Software license 1,610 4% 1,929 7% Services 12,355 32% 9,669 33% ______________________ ___________________ Total cost of revenues 13,935 37% 11,598 40% ______________________ ___________________ Gross profit 24,200 63% 18,007 60% ______________________ ___________________ Operating expenses: Research and development costs, net 4,960 13% 4,149 14% Selling and Marketing expenses 12,056 32% 9,591 32% General and administrative expenses 4,010 11% 3,231 11% ______________________ ___________________ Total operating expenses 21,026 55% 16,971 57% ______________________ ___________________ Income from operations 3,174 8% 1,036 3% Other income - - 404 1% Interest, net 187 0% 693 2% ______________________ ___________________ Net income before taxes $ 3,361 9% $ 2,133 6% ______________________ ___________________ Taxes on income 239 1% (12) 0% ______________________ ___________________ Net income $ 3,122 8% $ 2,145 7% ______________________ ___________________ Net income per ordinary share: Basic $ 0.11 $ 0.08 ______________________ ___________________ Diluted $ 0.11 $ 0.07 ______________________ ___________________ Shares used in computing basic Net income per share 28,547,767 28,190,978 _______________________ ______________________ Shares used in computing diluted Net income per share 29,483,592 29,490,538 _______________________ ______________________ 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 September 30, 2008 September 30, 2007 ______________________ _____________________ % of % of $ Revenues $ Revenues ______________________ _____________________ GAAP Net income: $ 2,658 17% $ 725 7% Adjustment of share-based compensation within: Cost of Services 31 30 Research and development costs, net 30 27 Selling and Marketing expenses 60 46 General and administrative expenses 90 97 ______________________ _____________________ Net income excluding share-based compensation $ 2,869 18% $ 925 9% ______________________ _____________________ GAAP Net income per ordinary share: Basic $ 0.09 $ 0.03 ______________________ _____________________ Diluted $ 0.09 $ 0.02 ______________________ _____________________ Net income per ordinary share excluding share-based compensation: Basic $ 0.10 $ 0.03 ______________________ _____________________ Diluted $ 0.10 $ 0.03 ______________________ _____________________ ClickSoftware Technologies Ltd. SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (In thousands, except share and per share amounts) Nine Months Ended September 30, September 30, 2008 2007 ______________________ _____________________ % of % of $ Revenues $ Revenues ______________________ _____________________ GAAP Net income: $ 3,122 8% $ 2,145 7% Adjustment of share-based compensation within: Cost of Services 85 73 Research and development costs, net 80 62 Selling and Marketing expenses 165 109 General and administrative expenses 240 258 ______________________ _____________________ Net income excluding share-based compensation $ 3,692 10% $ 2,647 9% ______________________ _____________________ GAAP Net income per ordinary share: Basic $ 0.11 $ 0.08 ______________________ _____________________ Diluted $ 0.11 $ 0.07 ______________________ _____________________ Net income per ordinary share excluding share-based compensation: Basic $ 0.13 $ 0.09 ______________________ _____________________ Diluted $ 0.13 $ 0.09 ______________________ _____________________ 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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