Quarterly Bookings Up 94% from Previous Quarter, Annual Revenues Up 17%, and Annual Operating Income Up 77% BURLINGTON, Massachusetts, February 3 /PRNewswire-FirstCall/ -- ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of workforce management and service optimization solutions, today announced results for the fourth quarter and year ended December 31, 2009. For the fourth quarter ended December 31, 2009, total revenues were $17.2 million, with net income of $3.8 million, or $0.12 per fully diluted share. This compares with revenues of $14.1 million and net income of $5.0 million, or $0.17 per fully diluted share, for the same period last year, and revenues of $16.6 million and net income of $3.2 million, or $0.10 per fully diluted share, for the third quarter of 2009. Non-GAAP net income was $3.5 million, or $0.11 per fully diluted share, for the fourth quarter of 2009. This compares to Non-GAAP net income of $3.3 million, or $0.11 per fully diluted share, for the same period last year, and Non-GAAP net income of $3.6 million or $0.11 per fully diluted share, for the third quarter of 2009. Software license revenues for the fourth quarter of 2009 were $5.5 million, while service and maintenance revenues were $11.6 million. This compares to software license revenues of $5.6 million and service revenues of $8.5 million for the same period last year, and $5.4 million and $11.2 million, respectively, in the third quarter of 2009. Gross profit in the fourth quarter of 2009 was $11.1 million, or 65% of revenues, compared to $10.0 million, or 71% of revenues, in the same period last year, and $10.9 million, or 65% of revenues, in the third quarter of 2009. During the fourth quarter of 2009 the Company concluded the acquisition of the assets of AiPoint for total consideration of about $1.5 million in cash. Cash, cash equivalents and short and long-term investments at the end of the fourth quarter decreased to $35.0 million from $36.5 million at the end of the third quarter of 2009. Net cash provided by operating activities was $0.6 million during the fourth quarter of 2009. Full Year Results Total revenues for 2009 grew 17% over 2008 to $61.1 million, yielding net income of $12.5 million, or $0.40 per fully diluted share. This compares with revenues of $52.3 million and net income of $8.1 million, or $0.27 per fully diluted share, for 2008. Non-GAAP net income for 2009 was $12.7 million, or $0.41 per fully diluted share. This compares with Non-GAAP net income of $7.0 million, or $0.24 per fully diluted share, for 2008. Management Commentary "Financial and operational results for the fourth quarter capped off a successful year for ClickSoftware. Specifically, strong bookings of $21 million in the quarter - almost double than the third quarter's level - contributed to a substantial increase in our backlog and deferred revenues which amounted to $27.4 million at the end of the year. In 2009, we acquired a record number of new customers that are globally diverse. APX Alarm, Cable and Wireless, Cez Group, Severn Trent Water, NHS Highland, Portugal Telecom and ROK are some of the companies that recognized the value of ClickSoftware, and came on board during the challenging economy of 2009," said Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "While focusing on execution to achieve the results of 2009, we continued to build the platform that, we believe, will accelerate our growth in 2010 and beyond. Our R&D group had a productive year and with three acquisitions in 2009 we enter 2010 with four growth engines: enterprise field force optimization, mobility, shift planning, and small-medium business solutions based on our SaaS offering," he added. Outlook For 2010, the Company currently expects to achieve revenues in the approximate range of $71.5 to $74.5 million, representing about 17% to 22% growth over 2009. This outlook is based on $27.4 million in backlog and deferred revenues - which are about 37.5% of 2010 mid revenue target - and current visibility into a growing sales pipeline. Investors Conference Call ClickSoftware will host a conference call today at 9:00 a.m. ET 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: 4199749. 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, capacity planning and shift scheduling 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. For more information about ClickSoftware, please call +1-781-272-5903 or +1-888-438-3308, or visit http://www.clicksoftware.com/. 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 ASC 718 (originally issued as 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 2010, 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 December 31, 2009 December 31, 2008 ------------------------------------- % of % of $ Revenues $ Revenues ------------------------------------- Revenues: Software license $ 5,530 32% $ 5,567 31% Services 11,642 68% 8,560 69% ------------------------------------- Total revenues 17,172 100% 14,127 100% ------------------------------------- Cost of revenues: Software license 379 2% 323 2% Services 5,703 33% 3,821 27% ------------------------------------- Total cost of revenues 6,082 35% 4,144 29% ------------------------------------- Gross profit 11,090 65% 9,983 71% ------------------------------------- Operating expenses: Research and development costs, net 1,798 10% 1,499 11% Selling and marketing expenses 4,451 26% 3,946 28% General and administrative expenses 1,702 10% 1,436 10% ------------------------------------- Total operating expenses 7,951 46% 6,881 49% ===================================== Net income from operations 3,139 18% 3,102 22% Interest, net (44) 0% (38) 0% ------------------------------------- Net income before taxes $ 3,095 18% $ 3,064 22% Tax benefit, net 705 4% 1,925 13% ===================================== Net income $ 3,800 22% $ 4,989 35% ------------------------------------- Net income per ordinary share: Basic $ 0.13 $ 0.17 --------------------------------------- Diluted $ 0.12 $ 0.17 --------------------------------------- Shares used in computing basic Net income per share 30,232,763 28,621,436 --------------------------------------- Shares used in computing diluted Net income per share 31,808,737 29,281,305 --------------------------------------- ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Year Ended December 31, 2009 December 31, 2008 (unaudited) (audited) ------------------------------------- % of % of $ Revenues $ Revenues ------------------------------------- Revenues: Software license $ 19,259 32% $ 19,819 38% Services 41,864 68% 32,443 62% ------------------------------------- Total revenues 61,123 100% 52,262 100% ------------------------------------- Cost of revenues: Software license 1,980 3% 1,933 4% Services 18,851 31% 16,146 31% ------------------------------------- Total cost of revenues 20,831 34% 18,079 35% ------------------------------------- Gross profit 40,292 66% 34,183 65% ------------------------------------- Operating expenses: Research and development costs, net 6,499 11% 6,459 12% Selling and marketing expenses 16,240 27% 16,002 31% General and administrative expenses 6,423 10% 5,446 10% ------------------------------------- Total operating expenses 29,162 48% 27,907 53% ------------------------------------- Net income from operations 11,130 18% 6,276 12% Interest, net 380 0% 149 0% ------------------------------------- Net income before taxes $ 11,510 18% $ 6,425 12% Tax benefit, net 1,004 2% 1,686 4% ------------------------------------- Net income $ 12,514 20% $ 8,111 16% ------------------------------------- Net income per ordinary share: Basic $ 0.43 $ 0.28 --------------------------------------- Diluted $ 0.40 $ 0.27 --------------------------------------- Shares used in computing basic Net income per share 29,400,973 28,564,496 --------------------------------------- Shares used in computing diluted Net income per share 31,137,238 29,503,217 --------------------------------------- ClickSoftware Technologies Ltd. SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (Unaudited. In thousands, except share and per share amounts) Three Months Ended December 31, 2009 December 31, 2008 ------------------------------------------ % of % of $ Revenues $ Revenues ------------------------------------------ GAAP Net income: $ 3,800 22% $ 4,989 35% Adjustment of share-based compensation within: Cost of Services 35 31 Research and development costs, net 32 28 Selling and marketing expenses 73 60 General and administrative expenses 162 91 Adjustment of amortization of intangible assets within: Cost of revenues 130 - Research and development costs, net 30 - Deferred taxes (790) (1,940) ========================================== Non-GAAP Net income $ 3,472 20% $ 3,259 23% ========================================== GAAP Net income per ordinary share: Basic $ 0.13 $ 0.17 ========================================== Diluted $ 0.12 $ 0.17 ========================================== Non-GAAP Net income per ordinary share: Basic $ 0.11 $ 0.11 ========================================== Diluted $ 0.11 $ 0.11 ========================================== ClickSoftware Technologies Ltd. SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (Unaudited. In thousands, except share and per share amounts) Year Ended December 31, 2009 December 31, 2008 ------------------------------------------ % of % of $ Revenues $ Revenues ------------------------------------------ GAAP Net income: $ 12,514 20% $ 8,111 16% Adjustment of share-based compensation within: Cost of Services 131 115 Research and development costs, net 120 108 Selling and marketing expenses 267 225 General and administrative expenses 474 331 Adjustment of amortization of intangible assets within: Cost of revenues 278 - Research and development costs, net 89 - Deferred taxes (1,220) (1,940) ========================================== Non-GAAP Net income $ 12,653 21% $ 6,950 13% ========================================== GAAP Net income per ordinary share: Basic $ 0.43 $ 0.28 ========================================== Diluted $ 0.40 $ 0.27 ========================================== Non-GAAP Net income per ordinary share: Basic $ 0.43 $ 0.24 ========================================== Diluted $ 0.41 $ 0.24 ========================================== ClickSoftware Technologies Ltd. CONSOLIDATED BALANCE SHEETS (In thousands, except share data) December 31, 2009 December 31, 2008 ASSETS (unaudited) (audited) ---------------------------------------- CURRENT ASSETS Cash and cash equivalents $ 16,712 $ 17,427 Short-term investments 17,734 13,857 Trade receivables, net 16,410 7,825 Deferred taxes 3,160 1,940 Other receivables and prepaid expenses 1,980 1,071 ---------------------------------------- Total current assets 55,996 42,120 ---------------------------------------- FIXED ASSETS Cost 6,025 4,142 Less - accumulated depreciation 2,898 2,017 ---------------------------------------- Total fixed assets 3,127 2,125 ---------------------------------------- Long-term investments 528 699 Intangible assets, net 2,802 - Goodwill 2,511 - Severance pay deposits 1,485 1,218 ---------------------------------------- Total Assets $ 66,449 $ 46,162 ---------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 11,619 $ 8,780 Deferred revenues 6,711 5,442 ---------------------------------------- Total current liabilities 18,330 14,222 ---------------------------------------- LONG TERM LIABILITIES Accrued severance pay 2,879 2,653 Deferred revenues - Long term 2,582 3,201 ---------------------------------------- Total long-term liabilities 5,461 5,854 ---------------------------------------- Total liabilities 23,791 20,076 ---------------------------------------- SHAREHOLDERS' EQUITY Ordinary shares of NIS 0.02 par value 124 116 Additional paid-in capital 78,933 74,771 Accumulated deficit (36,438) (48,952) Accumulated other comprehensive income 82 194 Treasury stock, at cost: 39,000 shares (43) (43) ---------------------------------------- Total shareholders' equity 42,658 26,086 ---------------------------------------- Total Liabilities and shareholders'equity $ 66,449 $ 46,162 ---------------------------------------- ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S dollars) Year Ended December 31, December 31, 2009 2008 (unaudited) (audited) -------------------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $12,514 $ 8,111 Adjustments to reconcile net income to net cash provided by operating activities: Expenses not affecting operating cash flows: Depreciation 1,032 752 Amortization of deferred compensation 991 779 Amortization of acquired intangible assets 367 - Severance pay, net (41) 180 Other 22 15 Changes in operating assets and liabilities: Increase in trade receivables (8,585) (942) Increase in deferred taxes (1,220) (1,940) (Increase) Decrease in other receivables (1,021) 163 Increase in accounts payable and accrued expenses 2,839 1,499 Increase (Decrease) in deferred revenues 650 (79) -------------------------- Net cash provided by operating activities $ 7,548 $ 8,538 -------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Purchase of equipment (2,057) (1,455) Acquisition of intangible assets and goodwill in a business combination (5,679) - Short-term investment (3,706) 1,100 -------------------------- Net cash used in investment activities $ (11,442) $ (355) -------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Employee options exercised 3,179 190 -------------------------- Net cash provided by financing activities $ 3,179 $ 190 -------------------------- (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (715) 8,373 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 17,427 9,054 -------------------------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 16,712 $ 17,427 -------------------------- ClickSoftware Contact: Investor Relations Contact: Noa Schuman Marybeth Csaby / Rob Fink Investor Relations KCSA Strategic Communications +972-3-7659-467 +1-212-896-1236 / +1-212-896-1206 / DATASOURCE: ClickSoftware Technologies Ltd CONTACT: ClickSoftware Contact: Noa Schuman, Investor Relations, +972-3-7659-467, ; Investor Relations Contact: Marybeth Csaby / Rob Fink, KCSA Strategic Communications, +1-212-896-1236

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