Solid Start for 2009 BURLINGTON, Massachusetts, February 4
/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 fiscal year ended December 31,
2008. For the fourth quarter ended December 31, 2008, total
revenues were $14.1 million, with net income of $5.0 million, or
$0.17 per share. This compares with revenues of $10.4 million and
net income of $0.5 million, or $0.02 per share, for the same period
last year, and revenues of $15.7 million and net income of $2.7
million, or $0.09 per share, for the third quarter of 2008.
Non-GAAP net income (excluding the effects of share-based
compensation expenses related to the adoption of SFAS-123R and tax
benefit) was $3.3 million, or $0.11 per share, for the fourth
quarter of 2008. This compares to $0.7 million Non-GAAP net income,
or $0.02 per share, for the same period last year, and Non-GAAP net
income of $2.9 million or $0.10 per share, for the third quarter of
2008. In the fourth quarter of 2008 the Company recorded a tax
benefit due to the creation of a deferred tax asset in the amount
of $1.9 million. Software license revenues for the fourth quarter
of 2008 were $5.6 million, while service and maintenance revenues
were $8.5 million. This compares to software license revenues of
$3.2 million and service and maintenance revenues of $7.2 million
for the same period last year, and $7.2 million and $8.5 million,
respectively, in the third quarter of 2008. Gross profit in the
fourth quarter of 2008 was $10.0 million, or 71% of revenues,
compared to $6.7 million, or 64% of revenues, in the same period
last year, and $10.6 million, or 68% of revenues, in the third
quarter of 2008. Cash, cash equivalents and short and long-term
investments in the fourth quarter of 2008 increased to $32.0
million from $25.3 million at the end of the third quarter of 2008.
Net cash provided by operating activities was $7.5 million during
the fourth quarter of 2008. Full Year Results Total revenues for
2008 grew 31% over 2007 to $52.3 million, with consolidated net
income of $8.1 million, or $0.28 per share. This compares with
revenues of $40.0 million and net income of $2.6 million, or $0.09
per share, for 2007. Excluding the effects of share-based
compensation expenses related to the adoption of SFAS-123R and tax
benefit, Non-GAAP net income for 2008 was $7.0 million, or $0.24
per share. Management Commentary "The results for 2008 show
significant improvement in just about every aspect of the business:
revenue growth, profitability, margins, and EPS. Specifically
operating cash flow grew to a record level - the highest in the
Company's history. These results for 2008 are particularly pleasing
considering the global economy recession", says Dr. Moshe
BenBassat, CEO and Chairman of ClickSoftware. "Year 2009 started in
a positive way with an encouraging amount of business generated in
the first month of the year. I believe that we are well positioned
for continued growth in 2009," he added. Outlook While the Company
currently expects that it will continue to grow in 2009, the level
of uncertainty is too high to be able to reliably estimate the
growth rate in terms of concrete numbers. Therefore no concrete
guidance for 2009 is given at this point in time. The assessment
that revenues will continue to grow in 2009 is based on a
comfortable backlog going into 2009, and the strong start of the
first month of 2009. 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 800-762-8908 and ask for the
ClickSoftware conference call. International participants, please
call 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 303-590-3030),
ID Code: 3960582. 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) December 31
December 31 ------------------------------ 2008 2007
------------------------------ ASSETS CURRENT ASSETS Cash and cash
equivalents $ 17,427 $ 9,054 Short-term investments 13,857 15,054
Trade receivables, net 7,825 6,883 Deferred taxes 1,940 - Other
receivables and prepaid expenses 1,071 1,040
------------------------------ Total current assets 42,120 32,031
------------------------------ FIXED ASSETS Cost 4,142 2,885 Less -
accumulated depreciation 2,017 1,448 ------------------------------
Total fixed assets 2,125 1,437 ------------------------------
Long-term investments 699 602 Severance pay deposits 1,218 1,163
------------------------------ Total Assets $ 46,162 $ 35,233
------------------------------ LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES Accounts payable and accrued expenses $ 8,780 $
7,281 Deferred revenues 5,442 5,803 ------------------------------
Total current liabilities 14,222 13,084
------------------------------ LONG TERM LIABILITIES Accrued
severance pay 2,653 2,418 Deferred revenues - Long term 3,201 2,919
------------------------------ Total long-term liabilities 5,854
5,337 ------------------------------ Total liabilities 20,076
18,421 ------------------------------ SHAREHOLDERS' EQUITY Ordinary
shares of NIS 0.02 par value 116 115 Additional paid-in capital
74,771 73,803 Accumulated deficit (48,952) (57,063) Accumulated
other comprehensive income 194 - Treasury stock, at cost: 39,000
shares (43) (43) ------------------------------ Total shareholders'
equity 26,086 16,812 ------------------------------ Total liability
and shareholders' equity $ 46,162 $ 35,233
------------------------------ ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share
and per share amounts) Three Months Ended December 31, 2008
December 31, 2007 -------------------- --------------------- % of %
of $ Revenues $ Revenues -------------------- ---------------------
Revenues: Software license $ 5,567 39% $ 3,184 31% Services 8,560
61% 7,230 69% -------------------- --------------------- Total
revenues 14,127 100% 10,414 100% --------------------
--------------------- Cost of revenues: Software license 323 2% 429
4% Services 3,821 27% 3,268 31% --------------------
--------------------- Total cost of 4,144 29% 3,697 36% revenues
-------------------- --------------------- Gross profit 9,983 71%
6,717 64% -------------------- --------------------- Operating
expenses: Research and development 1,499 11% 1,618 16% costs, net
Selling and marketing 3,946 28% 3,612 35% expenses General and
administrative 1,436 10% 1,168 11% expenses --------------------
--------------------- Total operating 6,881 49% 6,398 61% expenses
-------------------- --------------------- Net Income from
operations 3,102 22% 319 3% Interest, net (38) 0% 206 2%
-------------------- --------------------- Net income before $
3,064 22% $ 525 5% taxes -------------------- ---------------------
Tax benefit (Taxes on 1,925 13% (62) (1)% income)
-------------------- --------------------- Net income $ 4,989 35% $
463 4% -------------------- --------------------- Net income per
ordinary share: Basic $ 0.17 $ 0.02 --------------------
--------------------- Diluted $ 0.17 $ 0.02 -----------------------
--------------------- Shares used in 28,621,436 28,455,972
computing basic Net income per share -----------------------
--------------------- Shares used in 29,281,305 30,452,219
computing diluted Net income per share -----------------------
--------------------- ClickSoftware Technologies Ltd. CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except share and per share
amounts) Year Ended December 31, 2008 December 31, 2007
--------------------- --------------------- % of % of $ Revenues $
Revenues --------------------- --------------------- Revenues:
Software license $ 19,819 38% $ 15,602 39% Services 32,443 62%
24,417 61% --------------------- --------------------- Total
revenues 52,262 100% 40,019 100% ---------------------
--------------------- Cost of revenues: Software license 1,933 4%
2,358 6% Services 16,146 31% 12,937 32% ---------------------
--------------------- Total cost of 18,079 35% 15,295 38% revenues
--------------------- --------------------- Gross profit 34,183 65%
24,724 62% --------------------- --------------------- Operating
expenses: Research and development 6,459 12% 5,767 14% costs, net
Selling and marketing 16,002 31% 13,203 33% expenses General and
administrative 5,446 10% 4,399 11% expenses ---------------------
--------------------- Total operating 27,907 53% 23,369 58%
expenses --------------------- --------------------- Income from
operations 6,276 12% 1,355 3% Other income - - 404 1% Interest, net
149 0% 899 2% --------------------- --------------------- Net
income before taxes $ 6,425 12% $ 2,658 7% ---------------------
--------------------- Tax benefit (Taxes on 1,686 4% (50) 0%
income) --------------------- --------------------- Net income $
8,111 16% $ 2,608 7% --------------------- ---------------------
Net income per ordinary share: Basic $ 0.28 $ 0.09
--------------------- --------------------- Diluted $ 0.27 $ 0.09
---------------------- --------------------- Shares used in
28,564,496 28,254,926 computing basic Net income per share
---------------------- --------------------- Shares used in
29,503,217 29,794,261 computing diluted Net income per share
---------------------- --------------------- 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 in accordance with the requirements of SFAS No. 123R,
"Share-based Payment" ("123R") and tax benefit related to the
creation of deferred tax asset. 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, 2008
December 31, 2007 ----------------------- --------------------- %
of % of $ Revenues $ Revenues -----------------------
--------------------- GAAP Net income: $ 4,989 35% $ 463 4%
Adjustment of share-based compensation within: Cost of Services 31
25 Research and 28 24 development costs, net Selling and marketing
60 47 expenses General and 91 115 administrative expenses Deferred
taxes (1,940) - ----------------------- ---------------------
Non-GAAP Net income $ 3,259 23% $ 674 6% -----------------------
--------------------- GAAP Net income per ordinary share: Basic $
0.17 $ 0.02 ----------------------- --------------------- Diluted $
0.17 $ 0.02 ----------------------- --------------------- Net
income per ordinary share excluding share-based compensation: Basic
$ 0.11 $ 0.02 ----------------------- --------------------- Diluted
$ 0.11 $ 0.02 ----------------------- ---------------------
ClickSoftware Technologies Ltd. SUPPLEMENTAL RECONCILIATIONS OF
GAAP TO NON-GAAP RESULTS (In thousands, except share and per share
amounts) Year Ended December 31, 2008 December 31, 2007
-------------------- ------------------- % of % of $ Revenues $
Revenues -------------------- ------------------- GAAP Net income:
$ 8,111 16% $ 2,608 7% Adjustment of share-based compensation
within: Cost of Services 115 98 Research and 108 86 development
costs, net Selling and marketing 225 156 expenses General and 331
373 administrative expenses Deferred taxes (1,940) -
-------------------- ------------------- Non-GAAP net income $
6,950 13% $ 3,321 8% -------------------- -------------------
excluding share-based compensation GAAP Net income per ordinary
share: Basic $ 0.28 $ 0.09 -------------------- -------------------
Diluted $ 0.27 $ 0.09 -------------------- ------------------- Net
income per ordinary share excluding share-based compensation:
-------------------- ------------------- Basic $ 0.24 $ 0.12
-------------------- ------------------- Diluted $ 0.24 $ 0.11
-------------------- ------------------- Contacts: Shmuel Arvatz
Noa Schuman Chief Financial Officer Investor Relations
+972-3-765-9400 +972-3-7659-467 DATASOURCE: ClickSoftware
Technologies Ltd CONTACT: Contacts: Shmuel Arvatz, Chief Financial
Officer, +972-3-765-9400, . Noa Schuman, Investor Relations,
+972-3-7659-467,
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