UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the month of: February 2015
Commission File Number: 000-30827
CLICKSOFTWARE TECHNOLOGIES LTD.
(Translation of registrant's
name into English)
94 Em Hamoshavot Road
Petach Tikva 49527, Israel
(Address of principal
executive offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x
Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulations S-T Rule 101(b)(1): _____
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulations S-T Rule 101(b)(7):_____
Attached hereto and
incorporated by reference herein is: (1) the registrant's press release issued on February 4, 2015 announcing earnings results
for the fourth quarter and year ended December 31, 2014; and (2) the registrant’s supplemental slides for its related earnings
conference call to be held on February 4, 2015, both of which are also posted on the Investor Relations section of the registrant’s
website.
The GAAP financial statements in this
Form 6-K of CLICKSOFTWARE TECHNOLOGIES LTD. are incorporated by reference into the Registration Statements on Form S-8 (registration
numbers 333-42000, 333-115003, 333-135435, 333-141307, 333-149825, 333-158839, 333-166028,333-173200, 333-180433, and 333-187488)
of the Company, filed with the Securities and Exchange Commission, to be a part thereof from the date on which this report is submitted,
to the extent not superseded by documents or reports subsequently filed or furnished.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
CLICKSOFTWARE TECHNOLOGIES LTD. |
|
(Registrant) |
|
|
Name: |
Joel Jeselsohn |
|
|
|
Title: |
Executive Vice President and |
|
|
|
|
Chief Financial Officer |
|
Date: February 4, 2015
ClickSoftware Contact: |
Investor Relations Contact: |
Noa Schuman |
Christopher Harrison |
Investor Relations |
KCSA Strategic Communications |
+972-3-7659-467 |
212-896-1267 |
Noa.Schuman@ClickSoftware.com |
charrison@kcsa.com
|
ClickSoftware Reports Record Financial
Results for the Fourth Quarter and Year-Ended December 31, 2014
Annual Revenues
Increased 22% Year-Over-Year to Record $126.2 Million;
Quarterly Revenues Increased 12% Year-Over-Year to Record
$34.5 Million;
Quarterly Non-GAAP
Net Income Increased 59% Year-Over-Year to $3.6 Million;
68% of Quarterly
New Customers Purchased Cloud Solutions.
Burlington,
MA, February 4, 2015 – ClickSoftware Technologies Ltd. (Nasdaq GS: CKSW), the leading provider of automated mobile workforce
management and optimization solutions for the service industry, today announced results for the fourth quarter and year ended December
31, 2014.
Fourth Quarter 2014 Highlights
| · | Record revenues of $34.5 million, up 12%
year-over-year; |
| · | Strong win rate, added 22 new customers,
of which 15 were cloud subscriptions; |
| · | Cloud subscriptions revenues increased
to $5.7 million compared to $0.5 million last year; |
| · | Recurring revenues from cloud subscriptions
and support reached 41% of total revenues; |
| · | Non-GAAP net income of $3.6 million; Non-GAAP
EPS of $0.11 per fully diluted share. |
Full Year 2014 Highlights
| · | Record revenues of $126.2 million, up
22% year-over-year; |
| · | Annualized Recurring Revenues (ARR) from
cloud subscriptions entering 2015 were $22.7 million; |
| · | Non-GAAP
net income of $1.4 million; Non-GAAP EPS of $0.04 per fully diluted share. |
2015 Annual Guidance
| · | Revenues of $140 million – $145
million; |
| · | Non-GAAP EPS of $0.09 – $0.15 per
fully diluted share. |
“I am pleased to report the tremendous
progress in our efforts to grow the Company while we and the market transition to a cloud subscription model,” said Dr. Moshe
BenBassat, ClickSoftware’s Founder and CEO. “It is a remarkable achievement to have recorded year-over-year revenue
growth of 22% during such period of transition. Our existing user base in the cloud, combined with significant new cloud wins of
large customers, prove that we have become the premier cloud vendor in the service sector in terms of user base and solution breadth
for service companies of all sizes. Our leadership was also recognized in Gartner’s Magic Quadrant for Field Service Management
report, which selected ClickSoftware as leaders for the fourth consecutive year”.
“We are also very pleased to have
accomplished our goal of returning to profitability and positive cash flow. Our annual cloud subscriptions and support recurring
revenues represented 42% of total 2014 revenues and, together with strong bookings on the fourth quarter, we expect this trend
to continue to grow, providing us with good visibility into future revenues, and with stability going forward.”
"In the fourth quarter alone we added 22 new enterprise
customers, far above our historical average, 15 (68%) of which selected our cloud-based solutions. With large cloud customers,
we continue to experience a stair-step approach, whereby small initial contracts increase in size over time as customers progress
with their roll-out of our solution. A number of such large customers that had initially signed up a small number of users in
2014, represent substantial potential for additional paying users," Dr. BenBassat added.
"With our continuous innovations we have expanded
our addressable market, building a company that is now addressing a deeper and broader share of the service sector. First, our
solutions today cover the needs of individual service companies of all sizes, in all industry verticals, in the
cloud and on-premise, for both office users and mobile workers. Second, we also expanded to enable win-win harmony within business networks
of service providers which collaborate in a variety of outsourcing and contracting arrangements to deliver top quality
customer service. Our Optimization as a Service technology is now bringing to SMBs (Small/Medium Businesses)
advanced decision support and optimization that was previously only available to large companies," concluded Dr. BenBassat.
Fourth Quarter Results
For the fourth quarter ended December 31,
2014, total revenues were $34.5 million, up 12% from $30.7 million for the fourth quarter of 2013. Net income on a GAAP basis for
the quarter was $2.6 million, or $0.08 per fully diluted share, compared with net income of $2.3 million, or $0.07 per fully diluted
share, for the same period last year. Operating expenses on a GAAP basis included $309,000 attributed to the restructuring of the
Company’s Xora operations. Non-GAAP net income for the quarter increased 59% to $3.6 million, or $0.11 per fully diluted
share, compared with Non-GAAP net income of $2.3 million, or $0.07 per fully diluted share, for the same period last year.
Software license revenues for the
fourth quarter of 2014 were $9.3 million, down 11% compared with $10.4 million for the same period last year. This decrease was
offset by a more than ten-fold increase in Cloud subscription revenues to $5.7 million, from $0.5 million for the same period
last year. Support revenues were $8.6 million, up 6% compared with support revenues of $8.1 million for the same period
last year. Consulting revenues were $11.0 million, down 6% compared with consulting revenues of $11.7 million for the same
period last year.
Gross profit for the fourth quarter of
2014 was $20.2 million, or 59% of revenues, compared with $19.0 million, or 62% of revenues, for the same period last year. The
decrease in gross profit margins was primarily due to the decrease in consulting revenues.
Cash and liquid investments at the end
of the fourth quarter of 2014 were $45.0 million, an increase of $1.3 million, compared with the end of the third quarter of 2014.
Net cash provided by operating activities was $0.6 million during the fourth quarter of 2014.
Full Year 2014 Results
Total revenues for 2014 increased 22% to
$126.2 million, compared with revenues of $103.2 million for the same period in 2013. The net loss on a GAAP basis for 2014 narrowed
to $3.0 million, or $(0.09) per fully diluted share, compared with a net loss of $4.2 million, or $(0.13) per fully diluted share,
for 2013. Non-GAAP net income for 2014 improved to $1.4 million, or $0.04 per fully diluted share, compared with Non-GAAP
net loss of $2.5 million, or $(0.08) per fully diluted share, for 2013.
2015 Annual Guidance
For 2015, the Company is providing the
following guidance:
| · | Revenues of $140 million to $145 million,
or top line growth of 11% to 15% compared with 2014. This outlook is based on the Company’s backlog and deferred revenues,
current visibility into cloud ARR and business pipeline; |
| · | Non-GAAP fully diluted earnings per share
of $0.09 to $0.15, excluding share-based compensation costs of approximately $0.12 per share, amortization of intangible assets
of approximately $0.04 per share, and deferred taxes of approximately $0.01 per share. |
Investors Conference Call and Supplemental
Slides
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. For reference during the call, the Company will post certain supplemental slides in the Investor
Relations section of ClickSoftware’s web site at http://ir.clicksoftware.com
To participate, please call (888) 668-9141
and ask for the ClickSoftware conference call. International participants, please call +972-3-918-0609. 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 +972-3-925-5900).
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” concept, 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, and Asia Pacific. For more information, please
visit http://www.clicksoftware.com. Follow us on Twitter, the content of which is not incorporated herein by reference.
To download ClickSoftware’s investor
relations app, which offers access to SEC documents, press releases, videos, audiocasts and more, the content of which is not
incorporated herein by reference, please visit Apple’s App Store to download on your iPhone and iPad, or Google
Play 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, tax payment for previous years retained earnings, impairment of intangible assets,
the amortization of acquired intangible assets and restructuring and related expenses. 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 expected growth, profitability, cash flows, prospects, trends and opportunities in cloud subscriptions as well as recurring
revenues, pipeline, demand for our solutions, expectations regarding additional paying users, our guidance for 2015 revenues and
GAAP and Non-GAAP earnings per share, and our future expected ARR. 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, 2013 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, 2014 | | |
December 31, 2013 | |
| |
$ | | |
% of
Revenues | | |
$ | | |
% of
Revenues | |
Revenues: | |
| | | |
| | | |
| | | |
| | |
Software license | |
$ | 9,255 | | |
| 27 | % | |
$ | 10,408 | | |
| 34 | % |
Cloud subscriptions | |
| 5,674 | | |
| 16 | % | |
| 506 | | |
| 2 | % |
Support | |
| 8,611 | | |
| 25 | % | |
| 8,118 | | |
| 26 | % |
Cloud subscriptions and Support | |
| 14,285 | | |
| 41 | % | |
| 8,624 | | |
| 28 | % |
Consulting | |
| 10,951 | | |
| 32 | % | |
| 11,661 | | |
| 38 | % |
Total revenues | |
| 34,491 | | |
| 100 | % | |
| 30,693 | | |
| 100 | % |
| |
| | | |
| | | |
| | | |
| | |
Cost of revenues: | |
| | | |
| | | |
| | | |
| | |
Software license | |
| 631 | | |
| 2 | % | |
| 767 | | |
| 2 | % |
Cloud subscriptions and Support | |
| 4,340 | | |
| 12 | % | |
| 1,764 | | |
| 6 | % |
Consulting | |
| 9,327 | | |
| 27 | % | |
| 9,192 | | |
| 30 | % |
Total cost of revenues | |
| 14,298 | | |
| 41 | % | |
| 11,723 | | |
| 38 | % |
| |
| | | |
| | | |
| | | |
| | |
Gross Profit | |
| 20,193 | | |
| 59 | % | |
| 18,970 | | |
| 62 | % |
| |
| | | |
| | | |
| | | |
| | |
Operating expenses: | |
| | | |
| | | |
| | | |
| | |
Research and development costs, net | |
| 4,543 | | |
| 13 | % | |
| 4,398 | | |
| 14 | % |
Selling and marketing expenses | |
| 11,290 | | |
| 33 | % | |
| 10,893 | | |
| 36 | % |
General and administrative expenses | |
| 2,730 | | |
| 8 | % | |
| 2,478 | | |
| 8 | % |
Restructuring and related expenses | |
| 309 | | |
| 1 | % | |
| - | | |
| - | |
Total operating expenses | |
| 18,872 | | |
| 55 | % | |
| 17,769 | | |
| 58 | % |
| |
| | | |
| | | |
| | | |
| | |
Operating income | |
| 1,321 | | |
| 4 | % | |
| 1,201 | | |
| 4 | % |
Interest income, net | |
| 790 | | |
| 2 | % | |
| 221 | | |
| 1 | % |
Net income before taxes | |
$ | 2,111 | | |
| 6 | % | |
$ | 1,422 | | |
| 5 | % |
Tax benefit, net | |
| 498 | | |
| 2 | % | |
| 834 | | |
| 2 | % |
Net income | |
$ | 2,609 | | |
| 8 | % | |
$ | 2,256 | | |
| 7 | % |
| |
| | | |
| | | |
| | | |
| | |
Net income per ordinary share: | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | 0.08 | | |
| | | |
$ | 0.07 | | |
| | |
Diluted | |
$ | 0.08 | | |
| | | |
$ | 0.07 | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
Shares used in computing basic net income per share | |
| 33,112,941 | | |
| | | |
| 32,334,458 | | |
| | |
Shares used in computing diluted net income per share | |
| 33,381,221 | | |
| | | |
| 33,062,701 | | |
| | |
ClickSoftware Technologies Ltd. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except share and per share amounts) |
| |
| | |
| | |
| | |
| |
| |
Year Ended | |
| |
December 31, 2014 (Unaudited) | | |
December 31, 2013 (Audited) | |
| |
$ | | |
% of
Revenues | | |
$ | | |
% of
Revenues | |
Revenues: | |
| | | |
| | | |
| | | |
| | |
Software license | |
$ | 27,277 | | |
| 22 | % | |
$ | 27,083 | | |
| 26 | % |
Cloud Subscriptions | |
| 18,723 | | |
| 15 | % | |
| 1,596 | | |
| 2 | % |
Support | |
| 34,437 | | |
| 27 | % | |
| 31,040 | | |
| 30 | % |
Cloud subscriptions and Support | |
| 53,160 | | |
| 42 | % | |
| 32,636 | | |
| 32 | % |
Consulting | |
| 45,776 | | |
| 36 | % | |
| 43,462 | | |
| 42 | % |
Total revenues | |
| 126,213 | | |
| 100 | % | |
| 103,181 | | |
| 100 | % |
| |
| | | |
| | | |
| | | |
| | |
Cost of revenues: | |
| | | |
| | | |
| | | |
| | |
Software license | |
| 2,562 | | |
| 2 | % | |
| 2,471 | | |
| 2 | % |
Cloud subscriptions and Support | |
| 14,632 | | |
| 12 | % | |
| 6,189 | | |
| 6 | % |
Consulting | |
| 36,808 | | |
| 29 | % | |
| 35,647 | | |
| 35 | % |
Total cost of revenues | |
| 54,002 | | |
| 43 | % | |
| 44,307 | | |
| 43 | % |
| |
| | | |
| | | |
| | | |
| | |
Gross Profit | |
| 72,211 | | |
| 57 | % | |
| 58,874 | | |
| 57 | % |
| |
| | | |
| | | |
| | | |
| | |
Operating expenses: | |
| | | |
| | | |
| | | |
| | |
Research and development costs, net | |
| 19,163 | | |
| 15 | % | |
| 15,970 | | |
| 15 | % |
Selling and marketing expenses | |
| 45,753 | | |
| 36 | % | |
| 39,706 | | |
| 38 | % |
General and administrative expenses | |
| 10,901 | | |
| 8 | % | |
| 9,121 | | |
| 9 | % |
Restructuring and related expenses | |
| 749 | | |
| 1 | % | |
| - | | |
| - | |
Total operating expenses | |
| 76,566 | | |
| 60 | % | |
| 64,797 | | |
| 63 | % |
| |
| | | |
| | | |
| | | |
| | |
Operating loss | |
| (4,355 | ) | |
| (3 | %) | |
| (5,923 | ) | |
| (6 | %) |
Interest income, net | |
| 1,275 | | |
| 1 | % | |
| 839 | | |
| 1 | % |
Net loss before taxes | |
$ | (3,080 | ) | |
| (2 | %) | |
$ | (5,084 | ) | |
| (5 | %) |
Tax benefit, net | |
| 48 | | |
| 0 | % | |
| 924 | | |
| 1 | % |
Net loss | |
$ | (3,032 | ) | |
| (2 | %) | |
$ | (4,160 | ) | |
| (4 | %) |
| |
| | | |
| | | |
| | | |
| | |
Net loss per ordinary share: | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | (0.09 | ) | |
| | | |
$ | (0.13 | ) | |
| | |
Diluted | |
$ | (0.09 | ) | |
| | | |
$ | (0.13 | ) | |
| | |
| |
| | | |
| | | |
| | | |
| | |
Shares used in computing basic net loss per share | |
| 32,912,107 | | |
| | | |
| 32,048,030 | | |
| | |
Shares used in computing diluted net loss per share | |
| 32,912,107 | | |
| | | |
| 32,048,030 | | |
| | |
ClickSoftware Technologies Ltd. |
CONSOLIDATED BALANCE SHEETS |
(In thousands, except share data) |
|
| |
December 31, 2014 | | |
December 31, 2013 | |
| |
(Unaudited) | | |
(Audited) | |
ASSETS | |
| | | |
| | |
CURRENT ASSETS | |
| | | |
| | |
Cash and cash equivalents | |
$ | 30,605 | | |
$ | 25,346 | |
Deposits | |
| 3,205 | | |
| 9,001 | |
Marketable securities | |
| 9,855 | | |
| 22,586 | |
Trade receivables, net | |
| 25,849 | | |
| 22,490 | |
Deferred taxes | |
| 1,680 | | |
| 1,740 | |
Other receivables and prepaid expenses | |
| 3,957 | | |
| 4,408 | |
Total current assets | |
| 75,151 | | |
| 85,571 | |
| |
| | | |
| | |
LONG TERM ASSETS | |
| | | |
| | |
Property and equipment, net | |
| 4,979 | | |
| 5,023 | |
Deposits | |
| 1,335 | | |
| 1,072 | |
Other receivables and prepaid expenses | |
| 368 | | |
| 218 | |
Deferred taxes | |
| 3,280 | | |
| 2,060 | |
Intangible assets and Goodwill, net | |
| 11,878 | | |
| 1,572 | |
Severance pay funds | |
| 1,719 | | |
| 2,052 | |
Total long term assets | |
| 23,559 | | |
| 11,997 | |
Total Assets | |
$ | 98,710 | | |
$ | 97,568 | |
| |
| | | |
| | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |
| | | |
| | |
CURRENT LIABILITIES | |
| | | |
| | |
Current maturities of debt | |
$ | 103 | | |
$ | - | |
Accounts payable and accrued expenses | |
| 18,664 | | |
| 17,707 | |
Deferred revenues | |
| 13,930 | | |
| 13,420 | |
Total current liabilities | |
| 32,697 | | |
| 31,127 | |
| |
| | | |
| | |
LONG TERM LIABILITIES | |
| | | |
| | |
Debt, less current maturities | |
| 70 | | |
| - | |
Accrued severance pay | |
| 4,276 | | |
| 4,840 | |
Deferred taxes | |
| 20 | | |
| 40 | |
Deferred revenues | |
| 3,622 | | |
| 4,642 | |
Total long term liabilities | |
| 7,988 | | |
| 9,522 | |
Total liabilities | |
| 40,685 | | |
| 40,649 | |
| |
| | | |
| | |
SHAREHOLDERS’ EQUITY | |
| | | |
| | |
Ordinary shares of NIS 0.02 par value | |
| 140 | | |
| 137 | |
Additional paid-in capital | |
| 97,511 | | |
| 92,301 | |
Accumulated deficit | |
| (39,211 | ) | |
| (36,179 | ) |
Accumulated other comprehensive income | |
| (372 | ) | |
| 703 | |
Treasury stock, at cost: 39,000 shares | |
| (43 | ) | |
| (43 | ) |
Total shareholders' equity | |
| 58,025 | | |
| 56,919 | |
Total Liabilities and shareholders' equity | |
$ | 98,710 | | |
$ | 97,568 | |
ClickSoftware Technologies Ltd. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In thousands) |
| |
| | |
| |
|
Year Ended |
|
|
December 31, 2014 | |
December 31, 2013 |
|
|
(Unaudited) | |
(Audited) |
|
CASH FLOWS FROM OPERATING ACTIVITIES | |
| | | |
| | |
Net loss | |
$ | (3,032 | ) | |
$ | (4,160 | ) |
Adjustments
to reconcile net loss to net cash (used in) provided by operating activities: | |
| | | |
| | |
Income and expense items not involving cash flows: | |
| | | |
| | |
Depreciation | |
| 2,854 | | |
| 2,593 | |
Amortization of deferred compensation | |
| 3,468 | | |
| 2,744 | |
Amortization of acquired intangible assets | |
| 1,092 | | |
| 278 | |
Impairment of acquired intangible assets | |
| - | | |
| 174 | |
Severance pay, net | |
| (231 | ) | |
| 288 | |
Gain on marketable securities | |
| (1,536 | ) | |
| (429 | ) |
Other | |
| 199 | | |
| 92 | |
Changes in operating assets and liabilities: | |
| | | |
| | |
Trade receivables | |
| (856 | ) | |
| (698 | ) |
Deferred taxes | |
| (1,180 | ) | |
| (2,310 | ) |
Other receivables | |
| 881 | | |
| (809 | ) |
Accounts payable and accrued expenses | |
| (1,635 | ) | |
| 1,171 | |
Deferred revenues | |
| (963 | ) | |
| 7,512 | |
Net cash (used in) provided by operating activities | |
$ | (939 | ) | |
$ | 6,446 | |
| |
| | | |
| | |
CASH FLOWS FROM INVESTING ACTIVITIES | |
| | | |
| | |
Purchase of equipment | |
| (2,544 | ) | |
| (3,502 | ) |
Acquisition of subsidiary (*) | |
| (12,136 | ) | |
| - | |
Decrease in deposits | |
| 5,533 | | |
| 20,858 | |
Investments in marketable securities | |
| (7,469 | ) | |
| (15,686 | ) |
Proceeds from sale of marketable securities | |
| 21,736 | | |
| 9,164 | |
Net cash provided by investment activities | |
$ | 5,120 | | |
$ | 10,834 | |
| |
| | | |
| | |
CASH FLOWS FROM FINANCING ACTIVITIES | |
| | | |
| | |
Prepayments of long-term debts | |
| (667 | ) | |
| - | |
Dividend paid | |
| - | | |
| (6,723 | ) |
Employee options exercised | |
| 1,745 | | |
| 1,996 | |
Net cash provided by (used in) financing activities | |
$ | 1,078 | | |
$ | (4,727 | ) |
| |
| | | |
| | |
INCREASE IN CASH AND CASH EQUIVALENTS | |
| 5,259 | | |
| 12,553 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | |
| 25,346 | | |
| 12,793 | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | |
$ | 30,605 | | |
$ | 25,346 | |
| |
| | | |
| | |
(*) Acquisition of subsidiary | |
| | | |
| | |
Working capital (excluding cash and cash equivalents) | |
| 233 | | |
| | |
Property and Equipment | |
| 445 | | |
| | |
Intangible assets | |
| 12,298 | | |
| | |
Long-term liabilities | |
| (840 | ) | |
| | |
Cash paid for the acquisition of a subsidiary, net | |
$ | 12,136 | | |
| | |
| |
| | | |
| | |
Supplemental schedule of non-cash investing and operating activities | |
| | | |
| | |
Deferred tax assets related to acquired intangible assets | |
| 349 | | |
| | |
ClickSoftware Technologies Ltd. |
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS |
(Unaudited. In thousands, except per share amounts) |
| |
Three
Months Ended | |
| |
December
31, 2014 | | |
December
31, 2013 | |
| |
| $ | | |
| % of
Revenues | | |
| $ | | |
| % of
Revenues | |
GAAP Operating income | |
$ | 1,321 | | |
| 4 | % | |
$ | 1,201 | | |
| 4 | % |
Share-based compensation (1) | |
| 988 | | |
| | | |
| 819 | | |
| | |
Amortization of intangible assets (2) | |
| 329 | | |
| | | |
| 49 | | |
| | |
Impairment of other intangible assets | |
| - | | |
| | | |
| 174 | | |
| | |
Restructuring and related expenses | |
| 309 | | |
| | | |
| - | | |
| | |
Non-GAAP Operating income | |
$ | 2,947 | | |
| 8 | % | |
$ | 2,243 | | |
| 7 | % |
| |
| | | |
| | | |
| | | |
| | |
GAAP Net income | |
$ | 2,609 | | |
| 8 | % | |
$ | 2,256 | | |
| 7 | % |
Share-based compensation (1) | |
| 988 | | |
| | | |
| 819 | | |
| | |
Amortization of intangible assets (2) | |
| 329 | | |
| | | |
| 49 | | |
| | |
Impairment of other intangible assets | |
| - | | |
| | | |
| 174 | | |
| | |
Restructuring and related expenses | |
| 309 | | |
| | | |
| - | | |
| | |
Deferred taxes | |
| (601 | ) | |
| | | |
| (1,010 | ) | |
| | |
Non-GAAP Net income | |
$ | 3,634 | | |
| 11 | % | |
$ | 2,288 | | |
| 7 | % |
| |
| | | |
| | | |
| | | |
| | |
GAAP income per share (diluted) | |
$ | 0.08 | | |
| | | |
$ | 0.07 | | |
| | |
Share-based compensation | |
| 0.03 | | |
| | | |
| 0.02 | | |
| | |
Amortization of intangible assets | |
| 0.01 | | |
| | | |
| 0.00 | | |
| | |
Impairment of other intangible assets | |
| - | | |
| | | |
| 0.01 | | |
| | |
Restructuring and related expenses | |
| 0.01 | | |
| | | |
| - | | |
| | |
Deferred taxes | |
| (0.02 | ) | |
| | | |
| (0.03 | ) | |
| | |
Non-GAAP Net income per share (diluted) | |
$ | 0.11 | | |
| | | |
$ | 0.07 | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
(1) Share-based compensation: | |
| | | |
| | | |
| | | |
| | |
Cost of revenues | |
$ | 123 | | |
| | | |
$ | 95 | | |
| | |
Research and development costs, net | |
| 147 | | |
| | | |
| 80 | | |
| | |
Selling and marketing expenses | |
| 304 | | |
| | | |
| 245 | | |
| | |
General and administrative expenses | |
| 414 | | |
| | | |
| 399 | | |
| | |
| |
$ | 988 | | |
| | | |
$ | 819 | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
(2) Amortization of intangible assets: | |
| | | |
| | | |
| | | |
| | |
Cost of revenues | |
$ | 329 | | |
| | | |
$ | 49 | | |
| | |
Research and development costs, net | |
| - | | |
| | | |
| - | | |
| | |
| |
$ | 329 | | |
| | | |
$ | 49 | | |
| | |
ClickSoftware Technologies Ltd. |
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS |
(Unaudited. In thousands, except per share amounts) |
| |
| | |
| | |
| |
| |
Year Ended | |
| |
December 31, 2014 | | |
December 31, 2013 | |
| |
$ | | |
% of
Revenues | | |
$ | | |
% of
Revenues | |
| |
| | |
| | |
| |
GAAP Operating loss | |
$ | (4,355 | ) | |
| (4 | %) | |
$ | (5,923 | ) | |
| (6 | %) |
Share-based compensation (1) | |
| 3,468 | | |
| | | |
| 2,744 | | |
| | |
Amortization of intangible assets (2) | |
| 1,092 | | |
| | | |
| 278 | | |
| | |
Impairment of other intangible assets | |
| - | | |
| | | |
| 174 | | |
| | |
Restructuring and related expenses | |
| 749 | | |
| | | |
| - | | |
| | |
Non-GAAP Operating income (loss) | |
$ | 954 | | |
| 1 | % | |
$ | (2,727 | ) | |
| (3 | %) |
| |
| | | |
| | | |
| | | |
| | |
GAAP Net loss | |
$ | (3,032 | ) | |
| (2 | %) | |
$ | (4,160 | ) | |
| (4 | %) |
Share-based compensation (1) | |
| 3,468 | | |
| | | |
| 2,744 | | |
| | |
Amortization of intangible assets (2) | |
| 1,092 | | |
| | | |
| 278 | | |
| | |
Impairment of other intangible assets | |
| - | | |
| | | |
| 174 | | |
| | |
Restructuring and related expenses | |
| 749 | | |
| | | |
| - | | |
| | |
Tax payment for previous years retained earnings* | |
| - | | |
| | | |
| 744 | | |
| | |
Deferred taxes | |
| (831 | ) | |
| | | |
| (2,310 | ) | |
| | |
Non-GAAP Net income (loss) | |
$ | 1,446 | | |
| 1 | % | |
$ | (2,530 | ) | |
| (2 | %) |
| |
| | | |
| | | |
| | | |
| | |
GAAP loss per share (diluted) | |
$ | (0.09 | ) | |
| | | |
$ | (0.13 | ) | |
| | |
Share-based compensation | |
| 0.10 | | |
| | | |
| 0.09 | | |
| | |
Amortization of intangible assets | |
| 0.03 | | |
| | | |
| 0.00 | | |
| | |
Impairment of other intangible assets | |
| - | | |
| | | |
| 0.01 | | |
| | |
Restructuring and related expenses | |
| 0.02 | | |
| | | |
| - | | |
| | |
Tax payment for previous years retained earnings* | |
| - | | |
| | | |
| 0.02 | | |
| | |
Deferred taxes | |
| (0.02 | ) | |
| | | |
| (0.07 | ) | |
| | |
Non-GAAP Net income (loss) per share (diluted) | |
$ | 0.04 | | |
| | | |
$ | (0.08 | ) | |
| | |
| |
| | | |
| | | |
| | | |
| | |
(1) Share-based compensation: | |
| | | |
| | | |
| | | |
| | |
Cost of revenues | |
$ | 434 | | |
| | | |
$ | 357 | | |
| | |
Research and development costs, net | |
| 489 | | |
| | | |
| 292 | | |
| | |
Selling and marketing expenses | |
| 997 | | |
| | | |
| 750 | | |
| | |
General and administrative expenses | |
| 1,548 | | |
| | | |
| 1,345 | | |
| | |
| |
$ | 3,468 | | |
| | | |
$ | 2,744 | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
(2) Amortization of intangible assets: | |
| | | |
| | | |
| | | |
| | |
Cost of revenues | |
$ | 1,092 | | |
| | | |
$ | 249 | | |
| | |
Research and development costs, net | |
| - | | |
| | | |
| 29 | | |
| | |
| |
$ | 1,092 | | |
| | | |
$ | 278 | | |
| | |
* 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.
![](ex99x2_001.jpg)
This presentation contains information that is proprietary to ClickSoftware . Any copying, distribution, display, transmission or dissemination of the information contained in this presentation to third parties without the prior written consent of ClickSoftware is strictly prohibited . No part of this presentation may be reproduced, translated or transmitted in any form or by any means, electronic, optic or mechanical, including photocopying, recording, or any information storage or retrieval system without written prior permission from the owner of the copyright . © 2015 ClickSoftware Technologies Ltd . All rights reserved . ClickSoftware (CKSW) Q4 & YE 2014 Earnings Call February 4, 2015 Dr. Moshe BenBassat, CEO Joel Jeselsohn, CFO
![](ex99x2_002.jpg)
SAFE HARBOR STATEMENT This presentation 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 regarding future results of operations, including our outlook for full year 2015 revenues, visibility into future periods, growth and rates of growth, expectations of future cash flows and dividends, and expectations regarding closing of contracts, receipt of orders, recognition of revenues and deferred revenues . 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 : uncertainties regarding the general economic outlook ; the length of or change 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 maintain relationships with strategic partners, the ability of the Company’s professional services group to successfully complete implementations ; and the Company’s ability to predict and control expenses and to align revenues and expenses . The forward - looking statements contained in this presentation 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 , 2013 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 . Please note that ClickSoftware reports net income and net earnings per share on both a GAAP basis and on an adjusted non - GAAP basis . ClickSoftware’s financial reports include a reconciliation of non - GAAP information to the most directly comparable GAAP information and is posted in the Investors section of the Company's website at www . clicksoftware . com . Reconciliation of the Non - GAAP fully diluted EPS for 2015 to the most directly comparable GAAP information is detailed in the press release which was issued on February 4 , 2015 , and which is posted in the Investors section of the Company's website .
![](ex99x2_003.jpg)
1. RECORD revenues $126.2 million, representing 22% growth year - over - year (y/y) 2. Recurring revenues (Cloud subscriptions and Support) are 42% of revenues 3. Exceptional 10 fold growth of Cloud subscriptions revenues y/y 4. Gross profit of 58% 5. Return to profitability: a. Net Income $1.4 million (compared with Net loss of $2.5 million last year) b. EPS $0.04 (compared with a loss of $(0.08) last year) 6. 741 Employees: Increase of 139 from 2013 7. 48 new customers, 26 of which are cloud 3 YEAR 2014 HIGHLIGHTS (Non - GAAP Results*) 54% 46% 2014 New Customers Cloud On-Premise * Gross profit and margin, operating income and margin, net income and margin, and EPS, are non - GAAP numbers
![](ex99x2_004.jpg)
1. RECORD revenues $34.5 million, representing 12% growth year - over - year (y/y) 2. Recurring revenues (Cloud subscriptions and Support) are 41% of revenues 3. ARR End of 2014: $22.7 million 4. Gross profit of 60% 5. Return to profitability: a. Net Income $3.6 million (compared with $2.3 million in Q4’13, an increase of 59% y/y) b. EPS $0.11 (compared $0.07 in Q4’13) 6. We ended the year with $45 million in cash and cash equivalents with positive cash flow in the quarter 7. 22 new customers (record number!), 15 of which are cloud 4 Q4 HIGHLIGHTS (Non - GAAP Results*) 68% 32% Q4'14 New Customers Cloud On-Premise * Gross profit and margin, operating income and margin, net income and margin, and EPS, are non - GAAP numbers
![](ex99x2_005.jpg)
LEADER IN GARTNER'S MAGIC QUADRANT 4 CONSECUTIVE YEARS “ A tight focus on field service as well as its position as the largest and most stable company of its kind, gives ClickSoftware credibility and appeal to prospects .” “ ClickSoftware continues to invest in innovative mobile features, such as a collaborative workflow engine, social collaboration, intelligent automated agents and gamification.” “ With its acquisition of Xora, ClickSoftware now has products to address enterprises, the midmarket and smaller companies. Additionally, ClickSoftware has increased its support for third - party services through its Service Marketplace.” 5
![](ex99x2_006.jpg)
CLOUD TRACTION We have become a PREMIER CLOUD VENDOR in terms of USER BASE and SOLUTION BREADTH for companies of ALL SIZES Pipeline ▪ Cloud pipeline increased by 75% . ▪ Cloud customers represent 45% of total opportunities at end of 2014. 61% 32% 45% 39% 68% 55% Americas EMEA APAC Pipeline in Territories Cloud On-Premise $ 1,596 $ 18,723 2013 2014 Exceptional 10 fold growth of Cloud subscriptions revenues y/y (in $000)
![](ex99x2_007.jpg)
2013 2014 2015 Future Years Full Potential Roll-Out from Current Paying Users Potential Roll-Out from Current Paying Users Paying Users 7 EVOLUTION OF CLOUD REVENUES (in $000s) ARR OF ENTERPRISE PAYING USERS AT FULL POTENTIAL ROLL OUT $6.2M $2.0M $5M+ $6.2M ▪ Does not include users of Smart app from SMB market (SMART - Xora - product) ▪ Does not include revenues from NEW cloud enterprise customers in 2015 ~$9M
![](ex99x2_008.jpg)
8 EXPANDING OUR ADDRESSABLE MARKET TO SERVICE PROVIDERS OF ALL SIZES AND SERVICE NETWORKS ENTERPRISE MEDIUM SMALL INDIVIDUAL SERVICE COMPANIES OF ALL SIZES NETWORK OF SERVICE PROVIDERS 1000’s 100’s 10’s A MULTI - TIER NETWORK OF SERVICE PROVIDERS WORKING TOGETHER IN A VARIETY OF OUTSOURCING OR SUB - CONTRACTING ROLES
![](ex99x2_009.jpg)
Intelligent automation is ClickSoftware’s most powerful unique differentiator, and generates the most value for our customers INTEGRATE INTELLIGENT AUTOMATION WITH MOBILITY - BASED CONNECTIVITY AND YOU GET: ▪ REAL TIME, CONTEXT - AWARE INTELLIGENT AUTOMATIC ACTIONS ▪ PROACTIVE, AUTONOMOUS, OR AT USER’S REQUEST SERVICE PROVIDERS SENSORS ASSETS CUSTOMER PARTS VEHICLES TECHNICIANS CONNECT & OPTIMIZE ALL “THINGS” IN THE SERVICE WORLD 9
![](ex99x2_010.jpg)
10 ( OPTIMIZATION AS A SERVICE) O aa S BRINGS ENTERPRISE - GRADE SOPHISTICATION TO THE MID - MARKET AT AN AFFORDABLE PRICE Unique technology that brings optimization and decision services to organizations of all sizes at an affordable price. INFORMATION MANAGEMENT (CRM, ERP, HR, OTHERS) INTELLIGENT AUTOMATION & OPTIMIZATION
![](ex99x2_011.jpg)
11 PARTNERSHIP WITH SALESFORCE.COM STRONG MOMENTUM IN BOTH ENTERPRISE AND MID MARKETS ▪ 100% Salesforce1 mobile ready for employees and managers ▪ Integrates with wearable devices like Samsung Gear 2 11 ShiftExpert by ClickSoftware ▪ Advanced scheduling and real - time optimization ▪ Powerful mobile solution for field employees in AppExchange ClickWorkforce by ClickSoftware
![](ex99x2_012.jpg)
12 2015 GUIDANCE ▪ Revenues of $140 to $145 million, representing growth of 11% to 15 % ▪ Non - GAAP fully diluted EPS of $0.09 to $ 0.15
![](ex99x2_013.jpg)
CONSISTENT REVENUE GROWTH (in $000s) Last 5 - year CAGR – 16% 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Guidance Mid - Range 13
![](ex99x2_014.jpg)
14 STEPPING OUT OF CLOUD TRANSITION – BACK TO PROFITABILITY (0.20) (0.10) - 0.10 0.20 0.30 0.40 0.50 0.60 (4,000) (2,000) - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 Guidance Mid-Range Net Income (Non-GAAP) EPS (Non-GAAP) (in $000s)
![](ex99x2_015.jpg)
▪ WE ARE A MARKET LEADER in service delivery optimization and automated mobile workforce management solutions ▪ ~750,000 SERVICE STAFF managed by our products ▪ ~ 350,000 USERS of our MOBILE APPS ▪ Estimated 700 million CONSUMERS serviced by our customers (this is 10% of the world’s population!) ▪ SERVICE DELIVERY IS OUR FOCUS - We give field organizations of all sizes, in all industry verticals the ability to brilliantly organize themselves, work in harmony with incredible productivity, and solve complex challenges through intelligent decision - making ▪ DRIVING GROWTH in 2015 through: (1) Cloud, (2) SMB, (3) Service Networks 15 SUMMARY
![](ex99x2_016.jpg)
APPENDIX
![](ex99x2_017.jpg)
ANNUAL P&L STATEMENTS (Non - GAAP Results*) 2014 2013 2012 2011 License 27,277 27,083 33,882 31,270 Cloud Subscriptions 18,723 1,596 659 272 Support 34,437 31,040 26,564 21,788 Consulting 45,776 43,462 38,941 33,757 Total Revenues ($K) 126,213 103,181 100,046 87,087 Y/Y Growth (%) 22% 3% 15% 23% Gross Profit ($K) 73,738 59,655 62,084 56,312 Gross Margin (%) 58% 58% 62% 65% Operating (Loss) Income ($K) 954 (2,727) 10,522 18,172 Operating Margin (%) 1% (3%) 11% 21% Net (Loss) Income ($K) 1,446 (2,530) 10,197 17,027 Net Margin (%) 1% (2%) 10% 20% EPS ($) 0.04 (0.08) 0.31 0.53 * Gross profit and margin, operating income and margin, net income and margin, and EPS, are non - GAAP numbers 17
![](ex99x2_018.jpg)
QUARTERLY P&L STATEMENTS (Non - GAAP Results*) Q4 2014 Q3 2014 Q2 2014 Q1 2014 Q4 2013 License 9,255 5,024 5,984 7,014 10,408 Cloud Subscriptions 5,674 5,346 5,413 2,290 506 Support 8,611 8,708 8,782 8,336 8,118 Consulting 10,951 12,155 11,930 10,740 11,661 Total Revenues ($K) 34,491 31,233 32,109 28,380 30,693 Gross Profit ($K) 20,645 17,326 19,007 16,760 19,288 Gross Margin (%) 60% 55% 59% 59% 63% Operating Income (Loss) ($K) 2,947 (86) (941) (966) 2,243 Operating Margin (%) 9% 0% (3%) (3%) 7% Net Income (Loss) ($K) 3,634 (114) (1,051) (1,023) 2,288 Net Margin (%) 11% 0% (3%) (4%) 7% EPS ($) 0.11 0.00 (0.03) (0.03) 0.07 * Gross profit and margin, operating income and margin, net income and margin, and EPS, are non - GAAP numbers 18
Clicksoftware (NASDAQ:CKSW)
Historical Stock Chart
From Jul 2024 to Aug 2024
Clicksoftware (NASDAQ:CKSW)
Historical Stock Chart
From Aug 2023 to Aug 2024