ClickSoftware Reports Financial Results for the Second Quarter Ended June 30, 2012
BURLINGTON, Massachusetts, July 25, 2012 /PRNewswire/ --
New substantial contracts signed following the closing of the second quarter provide good visibility for the remainder of the year;
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Company updates annual revenue guidance
ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of automated workforce management and optimization solutions for the service industry, today announced results for the second quarter ended June 30, 2012.
For the second quarter ended June 30, 2012, total revenues were $22.5 million, up 9% from $20.7 million in the second quarter of 2011, in line with the pre-announcement. Net income for the second quarter of 2012 was $0.1 million, or $0.00 per fully diluted share, compared to net income of $2.6 million, or $0.08 per fully diluted share, for the same period last year.
Non-GAAP net income for the quarter was $1.0 million, or $0.03 per fully diluted share, compared to $3.5 million, or $0.11 per fully diluted share, for the same period last year.
Software license revenues for the second quarter of 2012 were $6.3 million, up 4% compared to software license revenues of $6.1 million for the same period last year. Service and maintenance revenues were $16.2 million, up 11% compared to service and maintenance revenues of $14.6 million in the same period last year.
Gross profit in the second quarter of 2012 was $12.7 million, or 57% of revenues, compared to $13.5 million, or 65% of revenues, in the same period last year.
Net cash used in operating activities was $1.1 million during the second quarter of 2012. After paying a cash dividend of $2.5 million, cash, cash equivalents and short and long-term investments at the end of the second quarter of 2012 were $49.9 million, a decrease of $4.3 million compared to the end of the first quarter of 2012.
Management Commentary
"Despite macro-economic conditions in Europe and timing issues of specific contracts that affected our revenues in the first half of the year, we expect annual revenues to be close to our original guidance estimates. As announced earlier this month, right after the close of the second quarter we signed a major multi-million dollar contract. This contract, together with our healthy pipeline, provide good visibility for the remainder of the year, and keep us confident in our ability to execute our growth strategy," said Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "As a whole, demand in the workforce management and enterprise mobility market remains strong, as evidenced by the significant number of prospects in our pipeline expressing interest in our mobility offering. In particular, more than half of the opportunities generated in our pipeline during the second quarter contain our mobility solution. We are optimistic about our growth in the second half of 2012 and beyond," Dr. BenBassat concluded.
Outlook
The Company now believes that revenues for 2012 will be in the range of $98 to $103 million, representing about 13% to 18% growth over 2011. This is slightly below the previously provided guidance for annual revenues in the range of $100 to $105 million in 2012.
Cash Dividend
ClickSoftware also announced today that on July 23, 2012, its Board of Directors approved the distribution of a $0.08 per share dividend to be paid on August 22, 2012 to all shareholders of record as of the close of business on August 8, 2012. The dividend will be paid net of any required tax. The Company does not have a formal policy governing the amounts and payment of dividends, and the declaration and payment of future dividends, if any, is at the discretion of the Company's Board of Directors.
Annual Shareholders Meeting
ClickSoftware also reported that at its Annual Shareholders Meeting held on June 28, 2012, all items on the agenda as set forth in the proxy statement furnished on Form 6-K with the U.S. Securities and Exchange Commission on May 16, 2012, were approved.
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 +972-3-918-0609. 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. 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 is the leading provider of automated workforce management and optimization solutions for every size of service business. Our portfolio of solutions, available on demand and on premise, creates business value through higher levels of productivity, customer satisfaction and operational efficiency. Our patented concept of 'continuous planning and scheduling' incorporates customer demand forecasting, long and short term capacity planning, shift planning, real-time scheduling, mobility and location-based services, as well as on-going communication with the consumer on the expected arrival time of the service resource.
As the pioneers of the 'W6' concept more than 20 years ago, we have perfected solutions for solving a wide variety of problems on Who does What, for Whom, with What, Where and When. The combination of proven technology with educational services helps businesses find the right balance between reducing costs, increasing customer satisfaction, employee preferences and industry regulations/legislation. ClickSoftware's solutions manage hundreds of thousands of resources in service businesses across a variety of industries and geographies. Our flexible deployment approach, breadth and depth of solutions and strong partnerships with leading CRM/ERP vendors and system integrators makes us the number one choice to deliver superb business performance to any organization. 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 or follow us on Twitter, the content of which is not part of this press release.
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 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 our outlook for full year 2012 revenues, the possibility of future dividends, visibility into future periods and pipeline, growth opportunities in the workforce management and enterprise mobility markets, winning new business and future success in the area of mobility and cloud. 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, more attractive investments than dividends that may become available, 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, 2011 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
June 30, 2012 June 30, 2011
------------------- ------------------
% of % of
$ Revenues $ Revenues
------------------- ------------------
Revenues:
Software license $ 6,307 28% $ 6,066 29%
Services 16,175 72% 14,601 71%
------------------- ------------------
Total revenues 22,482 100% 20,667 100%
------------------- ------------------
Cost of revenues:
Software license 640 3% 374 2%
Services 9,115 41% 6,823 33%
------------------- ------------------
Total cost of
revenues 9,755 43% 7,197 35%
------------------- ------------------
Gross profit 12,727 57% 13,470 65%
------------------- ------------------
Operating expenses:
Research and
development costs,
net 2,979 13% 2,291 11%
Selling and
marketing expenses 7,403 33% 6,083 29%
General and
administrative
expenses 2,255 10% 1,761 9%
------------------- ------------------
Total operating
expenses 12,637 56% 10,135 49%
------------------- ------------------
Operating income 90 0% 3,335 16%
Interest income, net 27 0% (46) 0%
------------------- ------------------
Net income before taxes $ 117 1% $ 3,289 16%
Tax expense, net 44 0% 690 3%
------------------- ------------------
Net income $ 73 1% $ 2,599 13%
------------------- ------------------
Net earnings per
ordinary share:
Basic $ 0.00 $ 0.08
------------------- ------------------
Diluted $ 0.00 $ 0.08
------------------- ------------------
Shares used in
computing basic
net income per share 31,545,346 30,873,416
------------------- --------------------
Shares used in
computing diluted
net income per share 32,867,492 32,652,099
------------------- --------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited. In thousands, except share and per share amounts)
Six Months Ended
June 30, 2012 June 30, 2011
------------------- ------------------
% of % of
$ Revenues $ Revenues
------------------- ------------------
Revenues:
Software license $ 12,725 29% $ 13,518 34%
Services 31,605 71% 26,449 66%
------------------- ------------------
Total revenues 44,330 100% 39,967 100%
------------------- ------------------
Cost of revenues:
Software license 1,565 4% 1,031 3%
Services 17,599 40% 13,702 34%
------------------- ------------------
Total cost of
revenues 19,164 43% 14,733 37%
------------------- ------------------
Gross profit 25,166 57% 25,234 63%
------------------- ------------------
Operating expenses:
Research and
development costs,
net 5,650 13% 4,152 10%
Selling and
marketing expenses 14,737 33% 11,595 29%
General and
administrative
expenses 4,197 9% 3,366 8%
------------------- ------------------
Total operating
expenses 24,584 55% 19,113 48%
------------------- ------------------
Operating income 582 1% 6,121 15%
Interest income, net 226 1% (22) 0%
------------------- ------------------
Net income before taxes $ 808 2% $ 6,099 15%
Tax expense, net 34 0% 1,252 3%
------------------- ------------------
Net income $ 774 2% $ 4,847 12%
------------------- ------------------
Net earnings per
ordinary share:
Basic $ 0.02 $ 0.16
------------------- ------------------
Diluted $ 0.02 $ 0.15
------------------- ------------------
Shares used in
computing basic
net income per share 31,479,942 30,767,584
------------------- --------------------
Shares used in
computing diluted
net income per share 32,925,309 32,376,192
------------------- --------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
June 30, 2012 December 31, 2011
(Unaudited) (Audited)
---------------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 13,923 $ 14,683
Deposits 24,437 28,243
Marketable securities 10,896 10,945
Trade receivables,net 21,631 23,378
Deferred taxes 590 540
Other receivables and prepaid expenses 2,932 2,610
---------------------------------
Total current assets 74,409 80,399
---------------------------------
LONG TERM ASSETS
Property and equipment, net 4,461 3,873
Deposits 596 1,093
Other receivables and prepaid expenses 121 233
Deferred taxes 680 550
Intangible assets, net 752 1,166
Goodwill 1,572 1,572
Severance pay funds 1,801 1,746
---------------------------------
Total long term assets 9,983 10,233
---------------------------------
Total Assets $ 84,392 $ 90,632
=================================
LIABILITIES AND SHAREHOLDERS'EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 11,725 $ 13,608
Dividend payable - 2,536
Deferred revenues 7,668 9,529
---------------------------------
Total current liabilities 19,393 25,673
---------------------------------
LONG TERM LIABILITIES
Accrued severance pay 4,187 3,847
Deferred taxes liability 240 180
Deferred revenues 1,342 1,828
---------------------------------
Total long term liabilities 5,769 5,855
---------------------------------
Total liabilities 25,162 31,528
---------------------------------
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 0.02 par value 132 131
Additional paid-in capital 86,091 84,383
Accumulated deficit (26,951) (25,200)
Accumulated other comprehensive income 1 (167)
Treasury stock, at cost: 39,000 shares (43) (43)
---------------------------------
Total shareholders'equity 59,230 59,104
---------------------------------
Total Liabilities and
shareholders' equity $ 84,392 $ 90,632
=================================
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, In thousands)
Six Months Ended
June 30, 2012 June 30, 2011
------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 774 $ 4,847
Adjustments to reconcile net income to
net cash provided by operating activities:
Income and expense items not involving cash flows:
Depreciation 1,008 690
Amortization of deferred compensation 1,232 712
Amortization of acquired intangible assets 415 404
Severance pay, net 285 288
Gain on marketable securities (71) (43)
Other 3 10
Changes in operating assets and liabilities:
Trade receivables 1,747 (2,206)
Deferred taxes (120) 750
Other receivables (42) (199)
Accounts payable and accrued expenses (1,883) (246)
Deferred revenues (2,347) 2,642
--------------- ------------------
Net cash provided by operating activities $ 1,001 $ 7,649
--------------- ------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (1,600) (976)
Decrease (increase) in deposits 4,303 (8,116)
Investments in marketable securities (725) (4,743)
Proceeds from sale of marketable securities 845 3,133
--------------- ------------------
Net cash provided by (used in) investment
activities $ 2,823 $ (10,702)
--------------- ------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (5,061) (2,476)
Employee options exercised 477 1,218
--------------- ------------------
Net cash used in financing activities $ (4,584) $ (1,258)
--------------- ------------------
DECREASE IN CASH AND CASH EQUIVALENTS (760) (4,311)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 14,683 25,749
--------------- ------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 13,923 $ 21,438
--------------- ------------------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Three Months Ended
June 30, 2012 June 30, 2011
------------------- -----------------------
% of % of
$ Revenues $ Revenues
------------------- -----------------------
GAAP Net income $ 73 0% $ 2,599 13%
Share-based
compensation (1) 684 401
Amortization of
intangible assets (2) 174 202
Deferred taxes 40 310
------------------- -----------------------
Non-GAAP Net income $ 971 4% $ 3,512 17%
------------------- -----------------------
GAAP Earnings per
share (diluted) $ 0.00 $ 0.08
Share-based
compensation 0.02 0.01
Amortization of
intangible assets 0.01 0.01
Deferred taxes 0.00 0.01
------------------- -----------------------
Non-GAAP Earnings per
share (diluted) $ 0.03 $ 0.11
------------------- -----------------------
(1) Share-based
compensation:
Cost of
services 82 58
Research and
development
costs, net 64 49
Selling and
marketing
expenses 156 110
General and
administrative
expenses 382 184
------------------- -----------------------
$ 684 $ 401
------------------- -----------------------
(2) Amortization of
intangible assets:
Cost of revenues 144 173
Research and
development costs,
net 30 29
------------------- -----------------------
$ 174 $ 202
------------------- -----------------------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Six Months Ended
June 30, 2012 June 30, 2011
------------------- ------------------------------
% of % of
$ Revenues $ Revenues
------------------- ------------------------------
GAAP Net income $ 774 2% $ 4,847 12%
Share-based
compensation (1) 1,232 712
Amortization of
intangible assets (2) 415 404
Deferred taxes (120) 750
------------------- ------------------------------
Non-GAAP Net income $ 2,301 5% $ 6,713 17%
------------------- ------------------------------
GAAP Earnings per
share (diluted) $ 0.02 $ 0.15
Share-based
compensation 0.04 0.02
Amortization of
intangible assets 0.01 0.01
Deferred taxes 0.00 0.03
------------------- ------------------------------
Non-GAAP Earnings per
share (diluted) $ 0.07 $ 0.21
------------------- ------------------------------
(1) Share-based
compensation:
Cost of
services 141 97
Research and
development
costs, net 113 83
Selling and
marketing
expenses 273 187
General and
administrative
expenses 705 345
------------------- ------------------------------
$ 1,232 $ 712
------------------- ------------------------------
(2) Amortization of
intangible assets:
Cost of revenues 355 345
Research and
development costs,
net 60 59
------------------- ------------------------------
$ 415 $ 404
------------------- ------------------------------
ClickSoftware Contact:
Noa Schuman
Investor Relations
+972-3-7659-467
[email protected]
Investor Relations Contact:
Rob Fink
KCSA Strategic
+1-212-896-1206
[email protected]
SOURCE ClickSoftware Technologies Ltd
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