ClickSoftware Reports 3rd Quarter Financial Results BURLINGTON,
Massachusetts, October 27 /PRNewswire-FirstCall/ -- ClickSoftware
Technologies, Ltd., (NasdaqSC: CKSW), the leading provider of
end-to-end service chain optimization software, today announced
results for the third quarter ended September 30, 2004. For the
third quarter ended September 30, 2004, total revenues were $5.5
million, with consolidated net income of $183,000, or $0.01 per
share. This compares with revenues of $5.9 million and net income
of $687,000, or $0.03 per share, for the same period last year, and
revenues of $5.4 million and consolidated net income of $230,000,
or $0.01 per share, for the second quarter of 2004. Software
license revenues for the third quarter of 2004 were $2.5 million,
while service revenues were $3.0 million. This compares to software
license revenues of $3.1 million and service revenues of $2.8
million for the same period last year and $1.9 million in software
license revenues and $3.5 million in service revenues in the second
quarter of 2004. Gross profit in the third quarter was $3.7
million, or 67% of revenues, compared to $3.9 million, or 66% of
revenues, in the same period last year, and $3.6 million, or 66% of
revenues, in the second quarter of 2004. As of September 30, 2004,
the company had cash, cash equivalents and short and long-term
investments of $12.7 million, similar to the balance at the end of
the second and the first quarters of 2004. Deferred revenues as of
the end of the third quarter of 2004 were $3.8 million, compared to
$3.9 million at the end of the second quarter of 2004. "Although
revenues in 2004 are progressing somewhat slower than we would have
liked, primarily due to general economic conditions, there are
several important developments that lead us to project growth over
the next several quarters," said Dr. Moshe BenBassat, Chairman and
CEO of ClickSoftware. "The first is that, in the third quarter, we
had seven go-live events, including a very large telecommunications
company in the U.S., five utility companies, and a major appliance
company in Europe. Out of these, five were for new implementations,
and two for upgrades to Version 7.1. In fact, one of these
successful deployments led to a license order exceeding $500,000.
"Second, since signing a partnership agreement with IBM on June 30,
an extensive set of activities have taken place all over the world,
aimed at establishing work processes, meeting key IBM individuals
responsible for driving revenues, and developing marketing
communications material. Today the joint IBM-ClickSoftware Project
Office is very much alive and with an intensive work plan set up
for the coming months. "Third, the ClickSoftware sales pipeline is
becoming considerably more robust as measured by total number of
prospects, their size, and quality, as well as their geographic
distribution." Outlook For the fourth quarter the company currently
projects revenues ranging between $6.5 million and $8 million. "The
wide range reflects the size of the potential transactions
currently in the sales pipeline, some in excess of $800,000. The
ability to close these transactions, as well as the precise timing
of closure and recognition of the revenues from such transactions,
depend on a variety of factors, not all of which are under the
company's control. As a result, it is possible for one or more of
these transactions to fail to close, or to slip from one quarter to
the next." Dr. BenBassat said. Investor Conference Call
ClickSoftware will host a conference call today at 8:30 a.m. ET to
discuss these results and answer questions from the investment
community. To participate, please call +1-800-683-1585 and ask for
the ClickSoftware conference call. International participants,
please call +1-973-935-2407. The conference call will be
simultaneously webcast (in listen mode only) and is available via
the Internet at http://www.clicksoftware.com/. A replay of this
call will be available on the ClickSoftware website, or by calling
+1-877- 519-4471 (international callers can dial +1-973-341-3080).
The passcode for the replay is 5279076. About ClickSoftware
ClickSoftware is the leading provider of workforce and service
optimization solutions that maximize workforce productivity and
customer satisfaction while minimizing operations costs.
ClickSoftware's ServiceOptimization Suite provides an integrated,
intelligent solution for automatic, efficient, and effective
decisions over the entire service decision-making chain. It
includes reliable customer demand and workload forecasting,
strategic and tactical capacity planning, daily service scheduling,
troubleshooting and repair support, wireless workforce management,
and business analytics, connecting all organizational levels and
functions. The company is headquartered in Burlington, MA and
Israel, with offices in North America, Europe, and Asia Pacific.
For more information about ClickSoftware, 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, as
amended, and Section 21E of the Exchange Act. These forward-looking
statements include, but are not limited to, those regarding future
results of operations; visibility into future periods; anticipated
growth; ClickSoftware's pipeline for future sales, including the
size of potential transactions; greater involvement of strategic
and channel partners in transactions including IBM and the joint
IBM-ClickSoftware Project Office, and expectations regarding future
closing of contracts and related revenue recognition. Such
"forward-looking statements" involve known and unknown risks,
uncertainties and other factors, which may cause actual results or
performance to be materially different from those projected.
ClickSoftware's achievement of these results may be affected by
many factors, including among others, the following: risks and
uncertainties regarding the general economic outlook; the length of
or changes in the company's sales cycle; the company's ability to
identify potential customers and to close sales to potential
customers in a timely manner; the company's ability to generate
revenue from potential transactions it is pursuing, including the
probability of closure and the amount of revenue attributable to
each potential transaction; the company's ability to recognize
revenues, including deferred revenues, in a timely manner; the
company's ability to establish, maintain or increase relationships
with strategic partners, including the company's relationship with
IBM; the size of transactions the company is able to complete; the
ability of the company's professional services group to
successfully complete implementations; and the company's ability to
compete and the level of competition. The forward-looking
statements contained in this press release are subject to other
risks and uncertainties, including those discussed in
ClickSoftware's annual report on Form 10-K for the year ended
December 31, 2003 and subsequent filings with the Securities and
Exchange Commission. ClickSoftware Technologies Ltd. CONSOLIDATED
BALANCE SHEETS (In thousands, except share data) September 30,
December 31, 2004 2003 ____________________________ ASSETS CURRENT
ASSETS Cash and cash equivalents $ 3,404 $ 7,695 Short-term
investments 9,024 3,394 Trade receivables, net 2,734 3,362 Other
receivables and prepaid expenses 1,594 722
____________________________ Total current assets 16,756 15,173
____________________________ FIXED ASSETS Cost 4,398 4,118 Less -
accumulated depreciation 3,370 3,195 ____________________________
1,028 923 ____________________________ Long-term investments 264
580 Severance pay deposits 877 779 ____________________________
Total Assets $ 18,925 $ 17,455 ____________________________
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts
payable and accrued expenses $ 3,188 $ 4,077 Deferred revenues
3,767 2,275 ____________________________ Total current liabilities
6,955 6,352 ____________________________ LONG TERM LIABILITIES
Accrued severance pay 1,616 1,490 Total long-term
____________________________ liabilities 1,616 1,490
____________________________ Total liabilities 8,571 7,842
____________________________ SHAREHOLDERS' EQUITY Ordinary shares
of NIS 0.02 par value 110 109 Additional paid-in capital 70,872
70,276 Deferred Stock Compensation (341) - Accumulated deficit
(60,244) (60,729) Treasury stock, at cost: 39,000 shares (43) (43)
Total shareholders' ____________________________ equity 10,354
9,613 ____________________________ Total liability and
shareholders' equity $ 18,925 $ 17,455 ____________________________
ClickSoftware Technologies Ltd. CONSOLIDATED BALANCE SHEETS (In
thousands, except share data) September 30, December 31, 2004 2003
____________________________ ASSETS CURRENT ASSETS Cash and cash
equivalents $ 3,404 $ 7,695 Short-term investments 9,024 3,394
Trade receivables, net 2,734 3,362 Other receivables and prepaid
expenses 1,594 722 ____________________________ Total current
assets 16,756 15,173 ____________________________ FIXED ASSETS Cost
4,398 4,118 Less - accumulated depreciation 3,370 3,195
____________________________ 1,028 923 ____________________________
Long-term investments 264 580 Severance pay deposits 877 779
____________________________ Total Assets $ 18,925 $ 17,455
____________________________ LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES Accounts payable and accrued expenses $ 3,188 $
4,077 Deferred revenues 3,767 2,275 ____________________________
Total current liabilities 6,955 6,352 ____________________________
LONG TERM LIABILITIES Accrued severance pay 1,616 1,490 Total
long-term ____________________________ liabilities 1,616 1,490
____________________________ Total liabilities 8,571 7,842
____________________________ SHAREHOLDERS' EQUITY Ordinary shares
of NIS 0.02 par value 110 109 Additional paid-in capital 70,872
70,276 Deferred Stock Compensation (341) - Accumulated deficit
(60,244) (60,729) Treasury stock, at cost: 39,000 shares (43) (43)
Total shareholders' ____________________________ equity 10,354
9,613 ____________________________ Total liability and
shareholders' equity $ 18,925 $ 17,455 ____________________________
ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except share and per share amounts) Three
Months Ended September 30, 2004 September 30, 2003
___________________ _____________________ % of % of $ Revenues $
Revenues ___________________ _____________________ Revenues:
Software license $ 2,478 45% $ 3,116 53% Services 2,979 55% 2,786
47% ___________________ _____________________ Total revenues 5,457
100% 5,902 100% ___________________ _____________________ Cost of
revenues: Software license 210 4% 347 6% Services 1,572 29% 1,670
28% Total cost of ___________________ _____________________
revenues 1,782 33% 2,017 34% ___________________
_____________________ Gross profit 3,675 67% 3,885 66%
___________________ _____________________ Operating expenses:
Research and development costs, net 612 11% 414 7% Selling and
Marketing expenses 2,218 41% 1,998 34% General and administrative
expenses 727 13% 1,007 17% Amortization of deferred stock-based
compensation 3 0% - 0% ___________________ _____________________
Total operating expenses 3,560 65% 3,419 58% ___________________
_____________________ Income from operations 115 2% 466 8% Interest
and other income, net 68 1% 221 4% ___________________
_____________________ Net Income $ 183 3% $ 687 12%
___________________ _____________________ Net Income per ordinary
share: Basic $ 0.01 $ 0.03 ___________________
_____________________ Diluted $ 0.01 $ 0.03 ___________________
_____________________ Shares used in computing basic Net income per
share 27,296,008 25,729,470 ___________________
_____________________ Shares used in computing diluted Net Income
per share 27,964,757 27,046,509 ___________________
_____________________ ClickSoftware Technologies Ltd. CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except share and per share
amounts) Nine Months Ended September 30, 2004 September 30, 2003
___________________ __________________ % of % of $ Revenues $
Revenues ___________________ __________________ Revenues: Software
license $ 6,660 42% $ 7,671 48% Services 9,224 58% 8,432 52%
___________________ __________________ Total revenues 15,884 100%
16,103 100% ___________________ __________________ Cost of
revenues: Software license 586 4% 783 5% Services 4,630 29% 4,769
29% ___________________ __________________ Total cost of revenues
5,216 33% 5,552 34% ___________________ __________________ Gross
profit 10,668 67% 10,551 66% ___________________ __________________
Operating expenses: Research and development costs, net 1,953 13%
1,408 9% Selling and Marketing expenses 6,226 39% 5,780 36% General
and administrative expenses 2,101 13% 2,504 15% Amortization of
deferred stock-based compensation 6 0% 101 1% ___________________
__________________ Total operating expenses 10,286 65% 9,793 61%
___________________ __________________ Income from operations 382
2% 758 5% Interest and other income, net 103 1% 260 1%
___________________ __________________ Net Income $ 485 3% $ 1,018
6% ___________________ __________________ Net Income per ordinary
share: Basic $ 0.01 $ 0.04 ___________________ __________________
Diluted $ 0.01 $ 0.04 ___________________ __________________ Shares
used in computing basic Net income per share 27,176,170 25,664,058
___________________ __________________ Shares used in computing
diluted Net Income per share 28,066,292 26,219,769
___________________ __________________ Contacts: Shmuel Arvatz
Howard Kalt Chief Financial Officer Kalt Rosen & Co.
+972-3-7659467 +1-415-397-2686 DATASOURCE: ClickSoftware
Technologies Ltd CONTACT: Shmuel Arvatz, Chief Financial,
+972-3-7659467, Howard Kalt, Officer Kalt Rosen & Co.
+1-415-397-2686
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