ClickSoftware Reports Record Revenues and More than Doubled Operating Income for the Third Quarter Ended September 30, 2011
Quarterly Revenues Up 33% Year-Over-Year, Reaching $23.2 Million
BURLINGTON, Massachusetts, October 31, 2011 /PRNewswire/ --
ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of automated workforce management and optimization solutions for the service industry, today announced results for the third quarter ended September 30, 2011.
For the third quarter ended September 30, 2011, total revenues were $23.2 million, up 33% from $17.5 million in the third quarter of 2010. Net income for the third quarter of 2011 was $4.5 million, or $0.14 per fully diluted share, compared to net income of $2.3 million, or $0.07 per fully diluted share, for the same period last year.
Non-GAAP net income for the quarter was $5.5 million, or $0.17 per fully diluted share, compared to $2.8 million, or $0.09 per fully diluted share, for the same period last year.
Software license revenues for the third quarter of 2011 were $8.9 million, up 48% compared with software license revenues of $6.0 million for the same period last year. Service and maintenance revenues were $14.3 million, up 24% compared with service and maintenance revenues of $11.5 million in the same period last year.
Gross profit in the third quarter of 2011 was $15.2 million, or 66% of revenues, compared to $10.9 million, or 62% of revenues, in the same period last year.
Net cash provided by operating activities was $3.0 million during the third quarter of 2011. Cash, cash equivalents and short and long-term investments at the end of the third quarter of 2011 increased to $56.7 million.
Management Commentary
"We continue to execute well on all business fronts. Record revenues of $23.2 million were highlighted by strong license revenues, and we also achieved record non-GAAP EPS and generated positive cash flow from operations", commented Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "In addition to strong financial performance, we are proud to be ranked in a prominent position in the Leaders section of Gartner's Field Service Magic Quadrant report for 2011, the most respected independent research firm in our industry. Furthermore, comparing the 2011 report with reports from earlier years clearly shows our continuous improvement and greater distance from the competition. Our efforts and investments in new areas are also paying off with wins of industry leaders in new areas such as the Oil and Gas industry. We are specifically pleased with the demand - and initial wins - for the new releases of our enterprise mobility products. These device-agnostic products, which are designed to run on the new tablets and smartphones, establish a new bar for mobile business applications", he added.
Outlook
As previously announced on October 2, 2011, the Company expects full year 2011 revenues to be in the approximate range of $85.0 to $87.0 million, representing about 20% to 23% growth over 2010.
Cash Dividend
On April 28, 2011, the Company announced that its Board of Directors approved the distribution of a $0.32 per share dividend to be distributed quarterly in four equal payments. The Board of Directors, at its meeting on October 27, 2011, set the dates for the third quarterly dividend payment of $0.08 per ordinary share. The record date will be November 8, 2011 and the payment date will be November 22, 2011. The dividend will be paid net of any required tax.
Investors Conference Call
ClickSoftware will host a conference call today at 9:00 a.m. ET to discuss its financial results and other matters discussed in this press release, as well as answer questions from the investment community. To participate, please call (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 or by calling (888) 326-9310 (international callers can dial +972-3-925-5904).
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 2011 revenues, visibility into future periods, winning new business, future success in the area of mobility, strengthening the Company's position as the market leader, growth and future rates of growth and expectations of future cash flows and dividends. 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, 2010 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
September 30, 2011 September 30, 2010
--------------------------------------------
% of % of
$ Revenues $ Revenues
--------------------------------------------
Revenues:
Software license $ 8,861 38% $ 5,969 34%
Services 14,300 62% 11,509 66%
--------------------------------------------
Total revenues 23,161 100% 17,478 100%
--------------------------------------------
Cost of revenues:
Software license 733 3% 617 4%
Services 7,255 31% 5,986 34%
--------------------------------------------
Total cost of
revenues 7,988 34% 6,603 38%
--------------------------------------------
Gross profit 15,173 66% 10,875 62%
--------------------------------------------
Operating expenses:
Research and
development
costs, net 2,266 10% 2,128 12%
Selling and
marketing
expenses 5,682 25% 4,727 27%
General and
administrative
expenses 1,925 8% 1,579 9%
--------------------------------------------
Total operating
expenses 9,873 43% 8,434 48%
--------------------------------------------
Operating income 5,300 23% 2,441 14%
Interest (expense)
income, net (150) (1)% 69 0%
--------------------------------------------
Net income before
taxes $ 5,150 22% $ 2,510 14%
Tax expense, net 658 3% 183 1%
--------------------------------------------
Net income $ 4,492 19% $ 2,327 13%
--------------------------------------------
Net earnings per
ordinary share:
Basic $ 0.14 $ 0.08
--------------------------------------------
Diluted $ 0.14 $ 0.07
--------------------------------------------
Shares used in
computing basic
net income per share 31,220,275 30,451,473
--------------------------------------------
Shares used in
computing diluted
net income per share 32,645,964 31,951,042
--------------------------------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited. In thousands, except share and per share amounts)
Nine Months Ended
September 30, 2011 September 30, 2010
--------------------------------------------
% of % of
$ Revenues $ Revenues
--------------------------------------------
Revenues:
Software license $ 22,379 35% $ 19,056 36%
Services 40,749 65% 33,487 64%
--------------------------------------------
Total revenues 63,128 100% 52,543 100%
--------------------------------------------
Cost of revenues:
Software license 1,764 3% 1,648 3%
Services 20,957 33% 18,210 35%
--------------------------------------------
Total cost of
revenues 22,721 36% 19,858 38%
--------------------------------------------
Gross profit 40,407 64% 32,685 62%
--------------------------------------------
Operating expenses:
Research and
development
costs, net 6,418 10% 5,867 11%
Selling and
marketing
expenses 17,277 27% 13,900 26%
General and
administrative
expenses 5,291 8% 4,559 9%
--------------------------------------------
Total operating
expenses 28,986 46% 24,326 46%
--------------------------------------------
Operating income 11,421 18% 8,359 16%
Interest (expense)
income, net (172) 0% 120 0%
--------------------------------------------
Net income before
taxes $ 11,249 18% $ 8,479 16%
Tax expense, net 1,910 3% 1,027 2%
--------------------------------------------
Net income $ 9,339 15% $ 7,452 14%
--------------------------------------------
Net earnings per
ordinary share:
Basic $ 0.30 $ 0.25
--------------------------------------------
Diluted $ 0.29 $ 0.23
--------------------------------------------
Shares used in
computing basic
net income per share 30,921,921 30,361,887
--------------------------------------------
Shares used in
computing diluted
net income per share 32,270,766 31,981,518
--------------------------------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
September 30, December
2011 31, 2010
(Unaudited) (Audited)
-----------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 14,468 $ 25,749
Short term deposits 31,214 16,747
Marketable securities 10,439 7,839
Trade receivables, net 18,472 14,255
Deferred taxes 1,210 2,220
Other receivables and
prepaid expenses 1,817 2,431
-----------------------------
Total current assets 77,620 69,241
-----------------------------
LONG TERM ASSETS
Property and equipment, net 3,562 3,384
Long term deposits 611 620
Other receivables and
prepaid expenses 258 364
Intangible assets, net 1,398 2,004
Goodwill 2,511 2,511
Severance pay funds 1,757 1,703
-----------------------------
Total long term assets 10,097 10,586
-----------------------------
Total Assets $ 87,717 $ 79,827
=============================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and
accrued expenses $ 11,583 $ 12,574
Dividend payable 5,041 -
Deferred revenues 9,839 7,957
-----------------------------
Total current liabilities 26,433 20,531
-----------------------------
LONG TERM LIABILITIES
Accrued severance pay 3,629 3,431
Deferred revenues 2,170 1,777
-----------------------------
Total long term liabilities 5,799 5,208
-----------------------------
Total liabilities 32,262 25,739
-----------------------------
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 0.02 par value 130 126
Additional paid-in capital 83,666 81,170
Accumulated deficit (28,071) (27,393)
Accumulated other comprehensive
income (227) 228
Treasury stock, at cost: 39,000
shares (43) (43)
-----------------------------
Total shareholders' equity 55,455 54,088
-----------------------------
Total Liabilities and
shareholders' equity $ 87,717 $ 79,827
=============================
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited. In thousands)
Nine Months Ended
September September
30, 2011 30, 2010
-------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 9,339 $ 7,452
Adjustments to reconcile net income to
net cash provided by operating activities:
Income and expense items not involving cash flows:
Depreciation 1,084 936
Amortization of deferred compensation 1,221 841
Amortization of acquired intangible assets 606 597
Severance pay, net 144 173
Gain on marketable securities (71) (59)
Other 10 3
Changes in operating assets and liabilities:
Trade receivables (4,217) 558
Deferred taxes 1,010 820
Other receivables 265 20
Accounts payable and accrued expenses (991) (1,186)
Deferred revenues 2,275 3,440
-------------------------
Net cash provided by operating activities $ 10,675 $ 13,595
-------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (1,272) (1,205)
Increase in deposits (14,458) (4,064)
Investments in marketable securities (7,360) (8,255)
Proceeds from sale of marketable securities 4,831 1,419
-------------------------
Net cash used in investment activities $ (18,259) $ (12,105)
-------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (4,976) -
Employee options exercised 1,279 857
-------------------------
Net cash (used in) provided by
financing activities $ (3,697) $ 857
-------------------------
(DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS (11,281) 2,347
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 25,749 15,594
-------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 14,468 $ 17,941
-------------------------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Three Months Ended
September 30, 2011 September 30, 2010
---------------------------------------------
% of % of
$ Revenues $ Revenues
---------------------------------------------
GAAP Net income $ 4,492 19% $ 2,327 13%
Share-based
compensation (1) 509 179
Amortization of
intangible assets (2) 202 199
Deferred taxes 260 100
---------------------------------------------
Non-GAAP Net income $ 5,463 24% $ 2,805 16%
---------------------------------------------
GAAP Earnings per
share (diluted) $ 0.14 $ 0.07
Share-based
compensation 0.02 0.01
Amortization of
intangible assets 0.00 0.01
Deferred taxes 0.01 0.00
---------------------------------------------
Non-GAAP Earnings per
share (diluted) $ 0.17 $ 0.09
---------------------------------------------
(1) Share-based
compensation:
Cost of services 53 41
Research and development
costs, net 43 36
Selling and marketing
expenses 101 80
General and
administrative expenses 312 22
---------------------------------------------
$ 509 $ 179
---------------------------------------------
(2) Amortization of
intangible assets:
Cost of revenues 172 170
Research and
development costs,
net 30 29
---------------------------------------------
$ 202 $ 199
---------------------------------------------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Nine Months Ended
September 30, September 30,
2011 2010
------------------------------------------------
% of % of
$ Revenues $ Revenues
------------------------------------------------
GAAP Net income $ 9,339 15% $ 7,452 14%
Share-based
compensation (1) 1,221 841
Amortization of
intangible assets (2) 606 597
Deferred taxes 1,010 820
------------------------------------------------
Non-GAAP Net income $ 12,176 19% $ 9,710 18%
------------------------------------------------
GAAP Earnings per
share (diluted) $ 0.29 $ 0.23
Share-based
compensation 0.04 0.03
Amortization of
intangible assets 0.02 0.02
Deferred taxes 0.03 0.02
------------------------------------------------
Non-GAAP Earnings per
share (diluted) $ 0.38 $ 0.30
------------------------------------------------
(1) Share-based
compensation:
Cost of services 150 128
Research and development
costs, net 126 109
Selling and marketing
expenses 288 253
General and
administrative expenses 657 351
------------------------------------------------
$ 1,221 $ 841
------------------------------------------------
(2) Amortization of
intangible assets:
Cost of revenues 517 508
Research and
development costs,
net 89 89
------------------------------------------------
$ 606 $ 597
------------------------------------------------
ClickSoftware Contact:
Noa Schuman
Investor Relations
+972-3-7659-467
[email protected]
Investor Relations Contact:
Rob Fink
KCSA Strategic Communications
+1-212-896-1206
[email protected]
.
SOURCE ClickSoftware Technologies Ltd
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