Revenues Up 6% to $16.6 Million, With Net Income of $3.2 Million or
$0.10 Per Share BURLINGTON, Massachusetts, October 21
/PRNewswire-FirstCall/ -- ClickSoftware Technologies Ltd.
(NasdaqGS: CKSW), the leading provider of workforce management and
service optimization solutions, today announced results for the
third quarter ended September 30, 2009. For the third quarter ended
September 30, 2009, total revenues were $16.6 million, with net
income of $3.2 million, or $0.10 per fully diluted share. This
compares with revenues of $15.7 million and net income of $2.7
million, or $0.09 per fully diluted share, for the same period last
year, and revenues of $14.4 million and net income of $2.9 million,
or $0.10 per fully diluted share, for the second quarter of 2009.
Non-GAAP net income was $3.6 million, or $0.11 per fully diluted
share, for the third quarter of 2009. This compares to Non-GAAP net
income of $2.9 million, or $0.10 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 second quarter of 2009.
Software license revenues for the third quarter of 2009 were $5.4
million, while service and maintenance revenues were $11.2 million.
This compares to software license revenues of $7.2 million and
service and maintenance revenues of $8.5 million for the same
period last year, and $4.1 million and $10.3 million, respectively,
in the second quarter of 2009. Gross profit in the third quarter of
2009 was $10.9 million, or 65% of revenues, compared to $10.6
million, or 68% of revenues, in the same period last year, and $9.6
million, or 67% of revenues, in the second quarter of 2009. During
the third quarter of 2009 the Company concluded the acquisition of
the workforce management assets of AST for total consideration of
about $1.6 million in cash. Cash, cash equivalents and short and
long-term investments at the end of the third quarter increased to
$36.5 million from $33.1 million at the end of the second quarter
of 2009. Net cash provided by operating activities was $3.7 million
during the third quarter of 2009. Management Commentary "The third
quarter was another strong quarter for ClickSoftware with record
revenues and operating profit, and considerable growth in cash.
Taking a longer term view, since the end of the third quarter of
2008, shareholders' equity has grown by 87%", said Dr. Moshe
BenBassat, ClickSoftware's Chairman and CEO. "The acquisition of
AiPoint that was announced last week joins the two other
acquisitions we completed earlier in the year. These acquisitions,
together with major new product developments including the release
of Version 8, and the productive partnerships we have solidified,
mark major milestones in our long term plan to establish a strong
growth engine for the future", he added. The Company will ring the
Nasdaq stock market opening bell on Thursday, October 29th, and
host an Analyst & Investor Day after the ceremony. For details
and registration to the Analyst & Investor Day please visit
ClickSoftware's website at: http://www.clicksoftware.com/. Outlook
For the fourth quarter, the Company currently expects to achieve
revenues in the approximate range of $16.0 to $16.7 million
dollars, representing 13.5% to 14.1% growth over the same quarter
last year. This will bring the annual revenues for 2009 to the
approximate range of $60.0 to $60.7 million, representing year over
year annual growth of 14.7% to 16.1%. 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 (877) 941-4775 and ask for
the ClickSoftware conference call. International participants,
please call (480) 629-9761. 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: 4169395. About ClickSoftware ClickSoftware is
the leading provider of 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 150 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 fourth quarter of 2009, our
long term plans for growth 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 required 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 September 30, 2009 September 30, 2008 ____________________
____________________ % of % of $ Revenues $ Revenues
____________________ ____________________ Revenues: Software
license $ 5,369 32% $ 7,190 46% Services 11,239 68% 8,474 54%
____________________ ____________________ Total revenues 16,608
100% 15,664 100% Cost of revenues: Software license 611 4% 763 5%
Services 5,143 31% 4,326 28% ____________________
____________________ Total cost of revenues 5,754 35% 5,089 32%
____________________ ____________________ Gross profit 10,854 65%
10,575 68% ____________________ ____________________ Operating
expenses: Research and development costs, net 1,701 10% 1,749 11%
Selling and marketing expenses 4,282 26% 4,359 28% General and
administrative expenses 1,736 10% 1,604 10% ____________________
____________________ Total operating expenses 7,719 46% 7,712 49%
____________________ ____________________ Net income from
operations 3,135 19% 2,863 18% Interest, net 101 1% (154) (1)%
____________________ ____________________ Net income before taxes $
3,236 19% $ 2,709 17% Taxes on income 68 0% 51 0%
____________________ ____________________ Net income $ 3,168 19% $
2,658 17% ____________________ ____________________ Net income per
ordinary share: Basic $ 0.11 $ 0.09 ____________________
____________________ Diluted $ 0.10 $ 0.09 ____________________
____________________ Shares used in computing basic Net income per
share 29,916,657 28,545,709 ____________________
____________________ Shares used in computing diluted Net income
per share 31,968,186 29,278,568 ____________________
____________________ ClickSoftware Technologies Ltd. CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited. In thousands, except share and
per share amounts) Nine Months Ended September 30, 2009 September
30, 2008 ___________________ _____________________ % of % of $
Revenues $ Revenues ___________________ _____________________
Revenues: Software license $ 13,729 31% $ 14,252 37% Services
30,222 69% 23,883 63% ___________________ _____________________
Total revenues 43,951 100% 38,135 100% ___________________
_____________________ Cost of revenues: Software license 1,601 4%
1,610 4% Services 13,148 30% 12,325 32% ___________________
_____________________ Total cost of revenues 14,749 34% 13,935 37%
___________________ _____________________ Gross profit 29,202 66%
24,200 63% ___________________ _____________________ Operating
expenses: Research and development costs, net 4,701 11% 4,960 13%
Selling and marketing expenses 11,789 27% 12,056 32% General and
administrative expenses 4,721 11% 4,010 11% ___________________
_____________________ Total operating expenses 21,211 48% 21,026
55% ___________________ _____________________ Net income from
operations 7,991 18% 3,174 8% Interest, net 424 1% 187 0%
___________________ _____________________ Net income before taxes $
8,415 19% $ 3,361 9% Tax benefit (Taxes on income) (299) (1)% 239
1% ___________________ _____________________ Net income $ 8,714 20%
$ 3,122 8% ___________________ _____________________ Net income per
ordinary share: Basic $ 0.30 $ 0.11 ___________________
_____________________ Diluted $ 0.28 $ 0.11 ___________________
_____________________ Shares used in computing basic Net income per
share 29,134,317 28,547,767 ___________________
_____________________ Shares used in computing diluted Net income
per share 30,924,013 29,483,592 ___________________
_____________________ ClickSoftware Technologies Ltd. SUPPLEMENTAL
RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (Unaudited. In
thousands, except share and per share amounts) Three Months Ended
September 30, 2009 September 30, 2008 ___________________
_____________________ % of % of $ Revenues $ Revenues
___________________ _____________________ GAAP Net income: $ 3,168
19% $ 2,658 17% Adjustment of share-based compensation within: Cost
of Services 36 31 Research and development costs, net 32 30 Selling
and marketing expenses 72 60 General and administrative expenses
162 90 Adjustment of amortization of intangible assets within: Cost
of revenues 82 - Research and development costs, net 30 - Deferred
taxes - - ___________________ _____________________ Non-GAAP Net
income $ 3,582 22% $ 2,869 18% ___________________
_____________________ GAAP Net income per ordinary share: Basic $
0.11 $ 0.09 ___________________ _____________________ Diluted $
0.10 $ 0.09 ___________________ _____________________ Non-GAAP Net
income per ordinary share: Basic $ 0.12 $ 0.10 ___________________
_____________________ Diluted $ 0.11 $ 0.10 ___________________
_____________________ ClickSoftware Technologies Ltd. SUPPLEMENTAL
RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (Unaudited. In
thousands, except share and per share amounts) Nine Months Ended
September 30, 2009 September 30, 2008 __________________
___________________ % of % of $ Revenues $ Revenues
__________________ ___________________ GAAP Net income: $ 8,714 20%
$ 3,122 8% Adjustment of share-based compensation within: Cost of
Services 96 85 Research and development costs, net 88 80 Selling
and marketing expenses 194 165 General and administrative expenses
312 240 Adjustment of amortization of intangible assets within:
Cost of revenues 148 - Research and development costs, net 59 -
Deferred taxes (430) - __________________ ___________________
Non-GAAP Net income $ 9,181 21% $ 3,692 10% __________________
___________________ GAAP Net income per ordinary share: Basic $
0.30 $ 0.11 __________________ ___________________ Diluted $ 0.28 $
0.11 __________________ ___________________ Non-GAAP Net income per
ordinary share: Basic $ 0.32 $ 0.13 __________________
___________________ Diluted $ 0.30 $ 0.13 __________________
___________________ ClickSoftware Technologies Ltd. CONSOLIDATED
BALANCE SHEETS (In thousands, except share data) September 30,
December 31, 2009 2008 ____________________________ ASSETS
(unaudited) (audited) CURRENT ASSETS Cash and cash equivalents $
18,818 $ 17,427 Short-term investments 17,133 13,857 Trade
receivables, net 11,723 7,825 Deferred taxes 2,370 1,940 Other
receivables and prepaid expenses 1,825 1,071
____________________________ Total current assets 51,869 42,120
____________________________ FIXED ASSETS Cost 5,462 4,142 Less -
accumulated depreciation 2,677 2,017 ____________________________
Total fixed assets 2,785 2,125 ____________________________
Long-term investments 527 699 Intangible assets, net 1,802 -
Goodwill 2,184 - Severance pay deposits 1,430 1,218
____________________________ Total Assets $ 60,597 $ 46,162
============================ LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES Accounts payable and accrued expenses $ 9,367 $
8,780 Deferred revenues 6,742 5,442 ____________________________
Total current liabilities 16,109 14,222
____________________________ LONG TERM LIABILITIES Accrued
severance pay 2,892 2,653 Deferred revenues - Long term 2,912 3,201
____________________________ Total long-term liabilities 5,804
5,854 ____________________________ Total liabilities 21,913 20,076
____________________________ SHAREHOLDERS' EQUITY Ordinary shares
of NIS 0.02 par value 124 116 Additional paid-in capital 78,603
74,771 Accumulated deficit (40,238) (48,952) Accumulated other
comprehensive income 238 194 Treasury stock, at cost: 39,000 shares
(43) (43) ____________________________ Total shareholders' equity
38,684 26,086 ____________________________ Total Liabilities and
shareholders' equity $ 60,597 $ 46,162 ============================
ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited. In thousands of U.S dollars) Nine months Ended
September 30, September 30, 2009 2008 _____________ _____________
CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 8,714 $ 3,122
Adjustments to reconcile net income to net cash provided by
operating activities: Expenses not affecting operating cash flows:
Depreciation 747 553 Amortization of deferred compensation 689 569
Amortization of acquired intangible assets 207 - Severance pay, net
27 210 Other 17 8 Changes in operating assets and liabilities:
Increase in trade receivables (3,898) (6,501) Increase in other
receivables (710) (305) Increase in deferred taxes (430) - Increase
in accounts payable and accrued expenses 587 1,933 Increase in
deferred revenues 1,011 1,495 _____________ _____________ Net cash
provided by operating activities $ 6,961 $ 1,084 _____________
_____________ CASH FLOWS FROM INVESTING ACTIVITIES Purchase of
equipment (1,424) (651) Acquisition of intangible assets and
goodwill in a business combination (4,193) - Short-term investment
(3,104) (582) _____________ _____________ Net cash used in
investment activities $ (8,721) $ (1,233) _____________
_____________ CASH FLOWS FROM FINANCING ACTIVITIES Employee options
exercised 3,151 110 _____________ _____________ Net cash provided
by financing activities $ 3,151 $ 110 _____________ _____________
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,391 (39) CASH
AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 17,427 9,054
_____________ _____________ CASH AND CASH EQUIVALENTS AT END OF
PERIOD $ 18,818 $ 9,015 _____________ _____________ For more
information about ClickSoftware, please call +1-781-272-5903 or
+1-888-438-3308, or visit http://www.clicksoftware.com/. Contacts:
Shmuel Arvatz Noa Schuman Chief Financial Officer Investor
Relations +972-3-765-9400 +972-3-7659-467 DATASOURCE: ClickSoftware
Technologies Ltd CONTACT: For more information about ClickSoftware,
please call +1-781-272-5903 or +1-888-438-3308 or Contacts: Shmuel
Arvatz, Chief Financial Officer, +972-3-765-9400, ; Noa Schuman,
Investor Relations, +972-3-7659-467,
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