BURLINGTON, Mass., Oct. 23, 2013 /PRNewswire/ -- ClickSoftware
Technologies Ltd. (NasdaqGS: CKSW), the leading provider of
automated mobile workforce management and optimization solutions
for the service industry, today announced results for the third
quarter ended September 30, 2013.
Highlights
- Revenues were $23.3 million
- GAAP EPS $(0.11); Non-GAAP EPS
$(0.10)
- Total cash and investments increased to $55.7 million
- Cash provided by operations was $3.3
million
For the third quarter ended September 30,
2013, total revenues were $23.3
million, down 15% from $27.3
million in the third quarter of 2012. Net loss for the third
quarter of 2013 was $3.6 million, or
$(0.11) per fully diluted share,
compared to net income of $2.8
million, or $0.09 per fully
diluted share, for the same period last year. Non-GAAP net loss for
the quarter was $3.3 million, or
$(0.10) per fully diluted share,
compared to Non-GAAP net income of $3.7
million, or $0.11 per fully
diluted share, for the same period last year.
Software license revenues for the third quarter of 2013 were
$4.7 million, down 58% compared with
software license revenues of $11.0
million for the same period last year.
Services revenues were $18.6
million, up 14% compared with services revenues of
$16.3 million in the same period last
year.
Gross profit in the third quarter of 2013 was $12.2 million, or 52% of revenues, compared to
$17.5 million, or 64% of revenues, in
the same period last year.
Following a $1.6 million cash
dividend payment, cash, cash equivalents and short and long-term
investments at the end of the third quarter of 2013 were
$55.7 million, an increase of
$1.3 million compared to the end of
the second quarter of 2013. Net cash provided by operating
activities was $3.3 million during
the third quarter of 2013.
Management Commentary
"During the third quarter we continued to experience a number of
positive trends that will increase recurring revenues and improve
the visibility and predictability of our business. With eight
new cloud customers signed in the third quarter, the number of new
cloud-based customers signed in the first nine months of 2013 has
doubled year-over-year. Our pipeline for the next twelve
months includes more than 100 large and mid-market prospects
considering our cloud-based solutions," said Dr. Moshe BenBassat, ClickSoftware's Founder and
CEO. "Along with strong demand for cloud-based solutions, we
also continue to see healthy demand for our on-premise offerings,
and in the first nine months of 2013 we closed a higher number of
on-premise deals compared to the same period last year.
Furthermore, our services revenues, which consist of recurring
support revenues and consulting revenues, both increased
during the quarter compared to the same period last year."
"Our ability to offer both cloud and on-premise solutions, while
offering the industry's most dynamic and scalable solution, provide
a solution that is highly differentiated from that of any of our
competitors. Specifically, we see increasing traction for our
mobility products driven by general high demand for business
mobility solutions. We remain an industry leader for field service
optimization software as recently recognized by Gartner's Magic
Quadrant for Field Service Management report, for the third
consecutive year," concluded Dr. BenBassat.
Financial Outlook
The Company expects revenues for the fourth quarter of 2013 to
be between $26 million to $28
million, which will bring 2013 annual revenues to be between
$98.5 million to $100.5 million.
Non-GAAP fully diluted earnings (loss) per share for the fourth
quarter of 2013 is expected to be in the range of $(0.04) loss to $0.01 earnings, which excludes share-based
compensation, deferred taxes expense (net of tax payment for
previous years retained earnings) and amortization of intangible
assets costs of approximately $0.02,
$0.00 and $0.00 per fully diluted share, respectively. GAAP
fully diluted loss per share is expected to be in the range of
$(0.06) to $(0.01).
Dividend
In light of the short-term challenges associated with our
transition to the cloud, ClickSoftware's Board of Directors has
decided to suspend its payment of dividends for the time being. The
Company does not have a formal policy governing dividend payments,
and the declaration and payment of future dividends, if any, is at
the discretion of the Company's Board of Directors.
Investors Conference Call
ClickSoftware will host a conference call today at 9:00 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 (888) 668-9141 and ask for the
ClickSoftware conference call. International participants, please
call +972-3-918-0610. The call will be broadcasted by live webcast
on the internet (in listen mode only) at
http://ir.clicksoftware.com. A replay of this webcast will be
available on the ClickSoftware website and on the Investor
Relations App. Alternatively, a telephone replay of the call will
be available for a week by calling (888) 326-9310 (international
callers can dial +972-3-925-5901).
About ClickSoftware
ClickSoftware (NasdaqGS: CKSW) is the leading provider of
automated mobile workforce management and service optimization
solutions for the enterprise, both for mobile and in-house
resources. As pioneers of the "Service chain optimization" and "The
real-time service enterprise" concepts, our solutions provide
organizations with end-to-end visibility and control of the entire
service management chain by optimizing forecasting, planning, shift
and task scheduling, mobility and real-time management of resource
and customer communication.
Available via the cloud or on-premise, our products incorporate
best business practices and advanced decision-making algorithms to
manage service operations more efficiently, in a scalable,
integrated manner. Our solutions have become the backbone for many
leading organizations worldwide by addressing the fundamental
question of job fulfillment: Who does What, for Whom, With what,
Where and When.
ClickSoftware is the premier choice for delivering superb
business performance to service sector organizations of all sizes.
The Company is headquartered in the
United States and Israel,
with offices across Europe,
Latin America and Asia Pacific. For more information, please
visit www.clicksoftware.com and follow us on Twitter, the content
of which is not a part of this press release.
To download ClickSoftware's investor relations app, which offers
access to SEC documents, press releases, videos, audiocasts and
more, please visit
https://itunes.apple.com/us/app/cksw-ir/id530880886?mt=8 to
download on your iPhone and iPad, or
https://play.google.com/store/apps/details?id=com.theirapp.ckswir&hl=en
for your Android mobile device.
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, tax benefit related to the
update of deferred tax asset, previous years retained earnings tax
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, including
revenue growth, prospects, contribution of cloud-based sales,
pipeline, demand for our solutions and our outlook for the fourth
quarter and full year 2013 revenues and GAAP and Non-GAAP
earnings/loss per share. 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, the impact of the Cloud model on initial
transaction size and gross margins 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, 2012 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.
|
|
ClickSoftware
Contact:
|
Investor Relations
Contact:
|
Noa
Schuman
|
Rob Fink
|
Investor
Relations
|
KCSA Strategic
Communications
|
+972-3-7659-467
|
212-896-1206
|
Noa.Schuman@clicksoftware.com
|
rfink@kcsa.com
|
|
|
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,
2013
|
|
September 30,
2012
|
|
|
|
$
|
%
of
Revenues
|
|
$
|
%
of
Revenues
|
Revenues:
|
|
|
|
|
|
|
Software
license
|
$
4,650
|
20%
|
|
$
10,969
|
40%
|
|
Services
|
18,638
|
80%
|
|
16,348
|
60%
|
|
|
Total
revenues
|
23,288
|
100%
|
|
27,317
|
100%
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
Software
license
|
971
|
4%
|
|
967
|
4%
|
|
Services
|
10,101
|
43%
|
|
8,858
|
32%
|
|
|
Total cost of
revenues
|
11,072
|
48%
|
|
9,825
|
36%
|
|
|
|
|
|
|
|
|
Gross
Profit
|
12,216
|
52%
|
|
17,492
|
64%
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development costs, net
|
3,848
|
17%
|
|
3,625
|
13%
|
|
Selling and
marketing expenses
|
10,088
|
43%
|
|
8,515
|
31%
|
|
General and
administrative expenses
|
2,298
|
10%
|
|
2,247
|
8%
|
|
|
Total operating
expenses
|
16,234
|
70%
|
|
14,387
|
53%
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
(4,018)
|
(17%)
|
|
3,105
|
11%
|
Interest income
(expense), net
|
55
|
0%
|
|
(16)
|
0%
|
Net (loss) income
before taxes
|
$
(3,963)
|
(17%)
|
|
$
3,089
|
11%
|
Tax income
(expense), net
|
377
|
2%
|
|
(281)
|
(1%)
|
Net (loss)
income
|
$
(3,586)
|
(15%)
|
|
$
2,808
|
10%
|
|
|
|
|
|
|
|
|
Net (loss)
earnings per ordinary share:
|
|
|
|
|
|
|
Basic
|
$
(0.11)
|
|
|
$
0.09
|
|
|
Diluted
|
$
(0.11)
|
|
|
$
0.09
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic
net (loss) income
per share
|
32,238,308
|
|
|
31,597,918
|
|
Shares used in
computing diluted
net (loss) income
per share
|
33,025,833
|
|
|
32,740,287
|
|
ClickSoftware
Technologies Ltd.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited. In
thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
2013
|
|
September 30,
2012
|
|
|
|
$
|
%
of
Revenues
|
|
$
|
%
of
Revenues
|
Revenues:
|
|
|
|
|
|
|
Software
license
|
$
17,765
|
25%
|
|
$
23,694
|
33%
|
|
Services
|
54,723
|
75%
|
|
47,953
|
67%
|
|
|
Total
revenues
|
72,488
|
100%
|
|
71,647
|
100%
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
Software
license
|
3,032
|
4%
|
|
2,532
|
4%
|
|
Services
|
29,552
|
41%
|
|
26,457
|
37%
|
|
|
Total cost of
revenues
|
32,584
|
45%
|
|
28,989
|
40%
|
|
|
|
|
|
|
|
|
Gross
Profit
|
39,904
|
55%
|
|
42,658
|
60%
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development costs, net
|
11,572
|
16%
|
|
9,275
|
13%
|
|
Selling and
marketing expenses
|
28,813
|
40%
|
|
23,252
|
32%
|
|
General and
administrative expenses
|
6,643
|
9%
|
|
6,444
|
9%
|
|
|
Total operating
expenses
|
47,028
|
65%
|
|
38,971
|
54%
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
(7,124)
|
(10%)
|
|
3,687
|
5%
|
Interest income,
net
|
618
|
1%
|
|
210
|
0%
|
Net (loss) income
before taxes
|
$
(6,506)
|
(9%)
|
|
$
3,897
|
5%
|
Tax income
(expense), net
|
90
|
0%
|
|
(315)
|
(0%)
|
Net (loss)
income
|
$
(6,416)
|
(9%)
|
|
$
3,582
|
5%
|
|
|
|
|
|
|
|
|
Net (loss)
earnings per ordinary share:
|
|
|
|
|
|
|
Basic
|
$
(0.20)
|
|
|
$
0.11
|
|
|
Diluted
|
$
(0.19)
|
|
|
$
0.11
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic
net (loss) income
per share
|
31,954,737
|
|
|
31,520,923
|
|
Shares used in
computing diluted
net (loss) income
per share
|
32,964,007
|
|
|
32,869,186
|
|
ClickSoftware
Technologies Ltd.
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
September 30,
2013
|
|
December 31,
2012
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
23,782
|
|
$
12,793
|
|
Deposits
|
9,841
|
|
30,310
|
|
Marketable
securities
|
21,032
|
|
15,635
|
|
Trade receivables,
net
|
20,376
|
|
21,792
|
|
Deferred
taxes
|
1,020
|
|
220
|
|
Other receivables
and prepaid expenses
|
4,009
|
|
3,398
|
|
|
Total current
assets
|
80,060
|
|
84,148
|
|
|
|
|
|
|
|
LONG TERM
ASSETS
|
|
|
|
|
Property and
equipment, net
|
5,156
|
|
4,206
|
|
Deposits
|
1,075
|
|
621
|
|
Other receivables
and prepaid expenses
|
152
|
|
275
|
|
Deferred
taxes
|
1,730
|
|
1,230
|
|
Intangible assets,
net
|
223
|
|
452
|
|
Goodwill
|
1,572
|
|
1,572
|
|
Severance pay
funds
|
2,183
|
|
1,965
|
|
|
Total long term
assets
|
12,091
|
|
10,321
|
|
|
|
Total
Assets
|
$
92,151
|
|
$
94,469
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Accounts payable
and accrued expenses
|
$
14,995
|
|
$
16,536
|
|
Deferred
revenues
|
14,836
|
|
9,047
|
|
|
Total current
liabilities
|
29,831
|
|
25,583
|
|
|
|
|
|
|
|
LONG TERM
LIABILITIES
|
|
|
|
|
Accrued severance
pay
|
5,004
|
|
4,465
|
|
Deferred
revenues
|
4,374
|
|
1,503
|
|
|
Total long term
liabilities
|
9,378
|
|
5,968
|
|
|
Total
liabilities
|
39,209
|
|
31,551
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Ordinary shares of
NIS 0.02 par value
|
135
|
|
132
|
|
Additional paid-in
capital
|
90,655
|
|
87,566
|
|
Accumulated
deficit
|
(38,435)
|
|
(25,296)
|
|
Accumulated other
comprehensive income
|
630
|
|
559
|
|
Treasury stock, at
cost: 39,000 shares
|
(43)
|
|
(43)
|
|
|
Total
shareholders' equity
|
52,942
|
|
62,918
|
|
|
|
Total Liabilities
and shareholders' equity
|
$
92,151
|
|
$
94,469
|
ClickSoftware
Technologies Ltd.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited. In
thousands)
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
2013
|
|
September
30,
2012
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net (loss)
income
|
$
(6,416)
|
|
$
3,582
|
|
Adjustments to
reconcile net (loss) income to net cash
provided by
operating activities:
|
|
|
|
|
|
Income and expense
items not involving cash flows:
|
|
|
|
|
|
|
Depreciation
|
1,881
|
|
1,572
|
|
|
|
Amortization of
deferred compensation
|
1,925
|
|
1,882
|
|
|
|
Amortization of
acquired intangible assets
|
229
|
|
565
|
|
|
|
Severance pay,
net
|
321
|
|
325
|
|
|
|
Gain on marketable
securities
|
(336)
|
|
(123)
|
|
|
|
Other
|
75
|
|
4
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
Trade
receivables
|
1,416
|
|
(3,562)
|
|
|
|
Deferred
taxes
|
(1,300)
|
|
(70)
|
|
|
|
Other
receivables
|
(417)
|
|
203
|
|
|
|
Accounts payable
and accrued expenses
|
(1,541)
|
|
841
|
|
|
|
Deferred
revenues
|
8,660
|
|
322
|
|
Net cash provided
by operating activities
|
$
4,497
|
|
$
5,541
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of
equipment
|
(2,906)
|
|
(1,998)
|
|
|
Increase in
deposits
|
20,015
|
|
9,704
|
|
|
Investments in
marketable securities
|
(12,278)
|
|
(1,075)
|
|
|
Proceeds from sale
of marketable securities
|
7,217
|
|
1,948
|
|
Net cash provided
by investment activities
|
$
12,048
|
|
$
8,579
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Dividend
paid
|
(6,723)
|
|
(7,590)
|
|
|
Employee options
exercised
|
1,167
|
|
558
|
|
Net cash used in
financing activities
|
$
(5,556)
|
|
$
(7,032)
|
|
|
|
|
|
INCREASE IN CASH
AND CASH EQUIVALENTS
|
10,989
|
|
7,088
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
12,793
|
|
14,683
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
$
23,782
|
|
$
21,771
|
ClickSoftware
Technologies Ltd.
|
SUPPLEMENTAL
RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
|
(Unaudited. In
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September 30,
2013
|
|
September 30,
2012
|
|
|
|
$
|
%
of
Revenues
|
|
$
|
%
of
Revenues
|
|
|
|
|
|
|
GAAP Net (loss)
income
|
$
(3,586)
|
(15%)
|
|
$
2,808
|
10%
|
Share-based
compensation (1)
|
736
|
|
|
650
|
|
Amortization of
intangible assets (2)
|
48
|
|
|
150
|
|
Deferred
taxes
|
(510)
|
|
|
50
|
|
Non-GAAP Net
(loss) income
|
$
(3,312)
|
(14%)
|
|
$
3,658
|
13%
|
|
|
|
|
|
|
GAAP (loss)
Earnings per share (diluted)
|
$
(0.11)
|
|
|
$
0.09
|
|
Share-based
compensation
|
0.02
|
|
|
0.02
|
|
Amortization of
intangible assets
|
0.00
|
|
|
0.00
|
|
Deferred
taxes
|
(0.01)
|
|
|
0.00
|
|
Non-GAAP (loss)
Earnings per share
(diluted)
|
$
(0.10)
|
|
|
$
0.11
|
|
|
|
|
|
|
|
|
(1)
Share-based compensation:
|
|
|
|
|
|
|
Cost of
services
|
$
92
|
|
|
$
86
|
|
|
Research and
development costs, net
|
76
|
|
|
72
|
|
|
Selling and
marketing expenses
|
176
|
|
|
165
|
|
|
General and
administrative expenses
|
392
|
|
|
327
|
|
|
$
736
|
|
|
$
650
|
|
|
|
|
|
|
|
(2)
Amortization of intangible assets:
|
|
|
|
|
|
|
Cost of
revenues
|
$
48
|
|
|
$
121
|
|
|
Research and
development costs, net
|
-
|
|
|
29
|
|
|
|
|
$
48
|
|
|
$
150
|
|
ClickSoftware
Technologies Ltd.
|
SUPPLEMENTAL
RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
|
(Unaudited. In
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September 30,
2013
|
|
September 30,
2012
|
|
|
$
|
%
of
Revenues
|
|
$
|
%
of
Revenues
|
|
|
|
|
|
|
GAAP Net (loss)
income
|
$
(6,416)
|
(9%)
|
|
$
3,582
|
5%
|
Share-based
compensation (1)
|
1,925
|
|
|
1,882
|
|
Amortization of
intangible assets (2)
|
229
|
|
|
565
|
|
Tax payment for
previous years retained
earnings*
|
744
|
|
|
-
|
|
Deferred
taxes
|
(1,300)
|
|
|
(70)
|
|
Non-GAAP Net
(loss) income
|
$
(4,818)
|
(7%)
|
|
$
5,959
|
8%
|
|
|
|
|
|
|
GAAP (loss)
Earnings per share (diluted)
|
$
(0.19)
|
|
|
$
0.11
|
|
Share-based
compensation
|
0.06
|
|
|
0.06
|
|
Amortization of
intangible assets
|
0.00
|
|
|
0.01
|
|
Tax payment for
previous years retained
earnings*
|
0.02
|
|
|
0.00
|
|
Deferred
taxes
|
(0.04)
|
|
|
0.00
|
|
Non-GAAP (loss)
Earnings per share
(diluted)
|
$
(0.15)
|
|
|
$
0.18
|
|
|
|
|
|
|
|
|
(1)
Share-based compensation:
|
|
|
|
|
|
|
Cost of
services
|
$
262
|
|
|
$
227
|
|
|
Research and
development costs, net
|
212
|
|
|
185
|
|
|
Selling and
marketing expenses
|
505
|
|
|
438
|
|
|
General and
administrative expenses
|
946
|
|
|
1,032
|
|
|
$
1,925
|
|
|
$
1,882
|
|
|
|
|
|
|
|
(2)
Amortization of intangible assets:
|
|
|
|
|
|
|
Cost of
revenues
|
$
200
|
|
|
$
476
|
|
|
Research and
development costs, net
|
29
|
|
|
89
|
|
|
|
$
229
|
|
|
$
565
|
|
|
|
|
|
|
|
|
* See Note 14.A to
our consolidated financial statements for the year ended December
31, 2012 included in
our Annual Report
on Form 20-F, regarding November 2012 law
|
SOURCE ClickSoftware Technologies Ltd.