$29M Record Backlog and Deferred Revenues Increase Visibility Into
2009 BURLINGTON, Massachusetts, July 22 /PRNewswire-FirstCall/ --
ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading
provider of mobile workforce management and service optimization
solutions, today announced results for the second quarter ended
June 30, 2009. For the second quarter ended June 30, 2009, total
revenues were $14.4 million, with net income of $2.9 million, or
$0.10 per fully diluted share. This compares with revenues of $11.0
million and net income of $0.1 million, or $0.00 per fully diluted
share, for the same period last year, and revenues of $13.0 million
and net income of $2.6 million, or $0.09 per fully diluted share,
for the first quarter of 2009. Non-GAAP net income was $2.8
million, or $0.09 per fully diluted share, for the second quarter
of 2009. This compares to Non-GAAP net income of $0.3 million, or
$0.01 per fully diluted share, for the same period last year, and
Non-GAAP net income of $2.8 million or $0.09 per fully diluted
share, for the first quarter of 2009. Software license revenues for
the second quarter of 2009 were $4.1 million, while service and
maintenance revenues were $10.3 million. This compares to software
license revenues of $3.1 million and service and maintenance
revenues of $7.9 million for the same period last year, and $4.3
million and $8.7 million, respectively, in the first quarter of
2009. Gross profit in the second quarter of 2009 was $9.6 million,
or 67% of revenues, compared to $6.7 million, or 61% of revenues,
in the same period last year, and $8.7 million, or 67% of revenues,
in the first quarter of 2009. During the second quarter of 2009 the
Company concluded the acquisition of the workforce management
assets of Manchitra for a total consideration of about $2.5
million. After paying this amount, cash, cash equivalents and short
and long-term investments in the second quarter decreased to $33.1
million from $34.6 million at the end of the first quarter of 2009.
Net cash provided by operating activities was $0.3 million during
the second quarter of 2009. Management Commentary "We are very
pleased with the financial results of the second quarter of 2009,
as well as with the number of new customers that we have won. Our
operational efficiencies also keep improving. As a result, the rate
of growth in revenues is higher than the rate of growth in the
expenses platform required to generate them, leading to better
profitability margins. Additionally, our backlog and deferred
revenues as of the end of the second quarter were about $29 million
which increases our visibility into the upcoming quarters", said
Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "During the
quarter we concluded the acquisition of the workforce management
assets of Manchitra in India, and at the beginning of July we
signed a definitive agreement to acquire the assets of AST Inc. The
AST acquisition will enable us to offer Software as a Service
(SaaS) solutions to the low-end market, and strengthens our
strategy to offer end-to-end solutions to customers of all sizes in
the service sector," he added. Outlook Based on the level of
backlog, deferred revenues and current pipeline, the Company
believes that revenues will continue to grow in the second half of
2009 compared to the second half of 2008. 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)762-8779 and ask for
the ClickSoftware conference call. International participants,
please call +1(480)248-5081. 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: 4114017. 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 130 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. 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 of net income and net income per share that
exclude the effects of share-based compensation in accordance with
the requirements of SFAS No. 123R, "Share-based Payment" ("123R"),
tax benefit related to the update of deferred tax asset and the
amortization of acquired intangible assets. The Company's
management believes the Non-GAAP financial information provided in
this release is useful to investors' understanding and assessment
of the Company's on-going core operations and prospects for the
future. Management also uses both GAAP and Non-GAAP information in
evaluating and operating business internally and as such deemed it
important to provide all this information to investors. The
Non-GAAP financial measures disclosed by the Company should not be
considered in isolation or as 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. Reconciliations between GAAP measures and Non-GAAP
measures are provided later in this press release. Safe Harbor for
Forward Looking Statements This press release contains express or
implied forward-looking statements within the Private Securities
Litigation Reform Act of 1995 and other U.S Federal securities
laws. 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. For example,
when we discuss our "Outlook" for the second half of 2009, our
visibility into upcoming quarters and anticipated benefits from
acquisitions, we are using forward-looking statements. 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 20-F for the year ended
December 31, 2008 and in subsequent filings with the Securities and
Exchange Commission. Except as otherwise requested by law,
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 STATEMENTS OF OPERATIONS (Unaudited.
In thousands, except share and per share amounts) Three Months
Ended June 30, 2009 June 30, 2008 --------------- --------------- %
of % of $ Revenues $ Revenues ------------------ ------------------
Revenues: Software license $ 4,066 28% $ 3,064 28% Services 10,300
72% 7,924 72% ------------------ ------------------ Total revenues
14,366 100% 10,988 100% ------------------ ------------------ Cost
of revenues: Software license 334 2% 299 3% Services 4,416 31%
3,994 36% ------------------ ------------------ Total cost of
revenues 4,750 33% 4,293 39% ------------------ ------------------
Gross profit 9,616 67% 6,695 61% Operating expenses: Research and
development costs, net 1,606 11% 1,635 15% Selling and marketing
expenses 3,906 27% 3,831 35% General and administrative expenses
1,623 11% 1,215 11% ------------------ ------------------ Total
operating expenses 7,135 50% 6,681 61% ------------------
------------------ Net Income from operations 2,481 17% 14 0%
Interest, net 76 0% 174 2% ------------------ ------------------
Net income before taxes $ 2,557 17% $ 188 2% Tax benefit (Taxes on
income) 387 3% (64) (1%) ------------------ ------------------ Net
income $ 2,944 20% $ 124 1% ------------------ ------------------
Net income per ordinary share: Basic $ 0.10 $ 0.00
------------------ ------------------ Diluted $ 0.10 $ 0.00
------------------ ------------------ Shares used in computing
basic Net income per share 28,796,957 28,541,098
-------------------- -------------------- Shares used in computing
diluted Net income per share 30,911,937 29,700,676
-------------------- -------------------- ClickSoftware
Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited
In thousands, except share and per share amounts) Six Months Ended
June 30, 2009 June 30, 2008 --------------- --------------- % of %
of $ Revenues $ Revenues ------------------ ------------------
Revenues: Software license $ 8,360 31% $ 7,062 31% Services 18,983
69% 15,409 69% ------------------ ------------------ Total revenues
27,343 100% 22,471 100% ------------------ ------------------ Cost
of revenues: Software license 990 4% 847 4% Services 8,005 29%
7,999 36% ------------------ ------------------ Total cost of
revenues 8,995 33% 8,846 39% ------------------ ------------------
Gross profit 18,348 67% 13,625 61% ------------------
------------------ Operating expenses: Research and development
costs, net 3,000 11% 3,211 14% Selling and marketing expenses 7,507
27% 7,697 34% General and administrative expenses 2,985 11% 2,406
11% ------------------ ------------------ Total operating expenses
13,492 49% 13,314 59% ------------------ ------------------ Net
Income from operations 4,856 18% 311 1% Interest, net 323 1% 341 2%
------------------ ------------------ Net income before taxes $
5,179 19% $ 652 3% Tax benefit (Taxes on income) 367 1% (188) (1%)
------------------ ------------------ Net income $ 5,546 20% $ 464
2% ------------------ ------------------ Net income per ordinary
share: Basic $ 0.19 $ 0.02 ------------------ ------------------
Diluted $ 0.18 $ 0.02 ------------------ ------------------ Shares
used in computing basic Net income per share 28,731,653 28,526,346
------------------- ------------------- Shares used in computing
diluted Net income per share 30,390,432 29,707,424
-------------------- -------------------- ClickSoftware
Technologies Ltd. SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP
RESULTS (In thousands, except share and per share amounts) Three
Months Ended June 30, 2009 June 30, 2008 ---------------
--------------- % of % of $ Revenues $ Revenues ------------------
------------------ GAAP Net income: 2,944 20% 124 1% Adjustment of
share-based compensation within: Cost of Services 31 30 Research
and development costs, net 29 28 Selling and marketing expenses 63
58 General and administrative expenses 76 79 Amortization of
intangible assets 95 - Deferred taxes (430) - ------------------
------------------ Non-GAAP Net income $ 2,808 20% 319 3%
------------------ ------------------ GAAP Net income per ordinary
share: Basic $ 0.10 $ 0.00 ------------------ ------------------
Diluted $ 0.10 $ 0.00 ------------------ ------------------
Non-GAAP Net income per ordinary share: Basic $ 0.10 $ 0.01
------------------ ------------------ Diluted $ 0.09 $ 0.01
------------------ ------------------ ClickSoftware Technologies
Ltd. SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (In
thousands, except share and per share amounts) Six Months Ended
June 30, 2009 June 30, 2008 --------------- --------------- % of %
of $ Revenues $ Revenues ------------------ ------------------ GAAP
Net income: $ 5,546 20% $ 464 2% Adjustment of share-based
compensation within: Cost of Services 60 54 Research and
development costs, net 56 50 Selling and marketing expenses 122 105
General and administrative expenses 150 150 Amortization of
intangible assets 95 - Deferred taxes (430) - ------------------
------------------ Non-GAAP Net income $ 5,599 20% $ 823 4%
------------------ ------------------ GAAP Net income per ordinary
share: Basic $ 0.19 $ 0.02 ------------------ ------------------
Diluted $ 0.18 $ 0.02 ------------------ ------------------
Non-GAAP Net income per ordinary share: Basic $ 0.19 $ 0.03
------------------ ------------------ Diluted $ 0.18 $ 0.03
------------------ ------------------ ClickSoftware Technologies
Ltd. CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
June 30 December 31 2009 2008 (unaudited) (audited)
------------------ ------------------ ASSETS CURRENT ASSETS Cash
and cash equivalents $ 13,395 $ 17,427 Short-term investments
19,205 13,857 Trade receivables, net 11,709 7,825 Deferred taxes
2,370 1,940 Other receivables and prepaid expenses 1,980 1,071
------------------ ------------------ Total current assets 48,659
42,120 ------------------ ------------------ FIXED ASSETS Cost
4,918 4,142 Less - accumulated depreciation 2,395 2,017
------------------ ------------------ Total fixed assets 2,523
2,125 ------------------ ------------------ Long-term investments
495 699 Intangible assets, net 1,274 - Goodwill 1,245 - Severance
pay deposits 1,338 1,218 ------------------ ------------------
Total Assets $ 55,534 $ 46,162 ------------------
------------------ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT
LIABILITIES Accounts payable and accrued expenses $ 10,048 $ 8,780
Deferred revenues 6,447 5,442 ------------------ ------------------
Total current liabilities 16,495 14,222 ------------------
------------------ LONG TERM LIABILITIES Accrued severance pay
2,713 2,653 Deferred revenues - Long term 3,037 3,201
------------------ ------------------ Total long-term liabilities
5,750 5,854 ------------------ ------------------ Total liabilities
22,245 20,076 ------------------ ------------------ SHAREHOLDERS'
EQUITY Ordinary shares of NIS 0.02 par value 120 116 Additional
paid-in capital 76,471 74,771 Accumulated deficit (43,406) (48,952)
Accumulated other comprehensive income 147 194 Treasury stock, at
cost: 39,000 shares (43) (43) ------------------ ------------------
Total shareholders' equity 33,289 26,086 ------------------
------------------ Total Liabilities and shareholders' equity $
55,534 $ 46,162 ------------------ ------------------ ClickSoftware
Technologies Ltd. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited.
In thousands of U.S dollars) Six Months Ended June 30, 2009 June
30, 2008 ------------------------------------- CASH FLOWS FROM
OPERATING ACTIVITIES Net income $ 5,546 $ 464 Adjustments to
reconcile net income to net cash provided by operating activities:
Expenses not affecting operating cash flows: Depreciation 463 358
Amortization of deferred compensation 387 359 Amortization of
acquired intangible assets 95 - Severance pay, net (60) 224 Other
17 6 Changes in operating assets and liabilities: Increase in trade
receivables (3,884) (2,482) Increase in other receivables (956)
(248) Increase in Deferred taxes (430) - Increase (Decrease) in
accounts payable and accrued expenses 1,268 (12) Increase in
deferred revenues 841 1,853 ------------------ ------------------
Net cash provided by operating activities $ 3,287 $ 522
------------------ ------------------ CASH FLOWS FROM INVESTING
ACTIVITIES Purchase of equipment (878) (415) Acquisition of
intangible assets and goodwill in a business combination (2,519) -
Short-term investment (5,239) 3,214 ------------------
------------------ Net cash provided by (used in) investment
activities $ (8,636) $ 2,799 ------------------ ------------------
CASH FLOWS FROM FINANCING ACTIVITIES Employee options and ESPP
exercised 1,317 99 ------------------ ------------------ Net cash
provided by financing activities $ 1,317 $ 99 ------------------
------------------ (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
(4,032) 3,420 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
17,427 9,054 ------------------ ------------------ CASH AND CASH
EQUIVALENTS AT END OF PERIOD $ 13,395 $ 12,474 ------------------
------------------ For more information about ClickSoftware, please
call (781)272-5903 or (888)438-3308, or visit
http://www.clicksoftware.com/. Contacts: Shmuel Arvatz Chief
Financial Officer +972-3-765-9400 Noa Schuman Investor Relations
+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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