ClickSoftware Reports Record Revenues for the First Quarter Ended March 31, 2011, Declares Cash Dividend
Quarterly Revenues Up 10% Year-Over-Year, Reaching $19.3 Million; Board Approves First Ever Cash Dividend in the Company's History
BURLINGTON, Massachusetts, April 28, 2011 /PRNewswire-FirstCall/ -- ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of automated workforce management and optimization solutions for the service industry, today announced results for the first quarter ended March 31, 2011.
For the first quarter ended March 31, 2011, total revenues were $19.3 million, up 10% from $17.5 million in the first quarter of 2010. Net income for the first quarter of 2011 was $2.2 million, or $0.07 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 income for the quarter was $3.2 million, or $0.10 per fully diluted share, compared to $3.7 million, or $0.11 per fully diluted share, for the same period last year.
Software license revenues for the first quarter of 2011 were $7.5 million, up 9% compared with software license revenues of $6.8 million for the same period last year. Service and maintenance revenues were $11.8 million, up 11% compared with service and maintenance revenues of $10.6 million in the same period last year.
Gross profit in the first quarter of 2011 was $11.8 million, or 61% of revenues, compared to $11.0 million, or 63% of revenues, in the same period last year.
Cash, cash equivalents and short and long-term investments at the end of the first quarter of 2011 increased to $51.9 million from $51.0 million at the end of the fourth quarter of 2010. Net cash provided by operating activities was $1.1 million during the first quarter of 2011.
Management Commentary
"The first quarter was an outstanding one. Revenues grew to a record level and strong bookings took our backlog and deferred revenues to new heights. Winning the DIRECTV contract - one of the largest and most competitive workforce management bids in recent years - further underscores our leadership position in the market and improves our visibility into 2011," commented Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "We continue to invest in expanding our enterprise mobility offerings, with specific emphasis on new tablets and new smartphones (Apple's, Android-based, Blackberry's and the like), aiming at becoming a market leader for mobile business apps. Our recent successes in deploying some of the largest and most challenging mobile implementations in the market, serve as evidence for the robustness and scalability of our products and deployment tools", he added.
Dividends
ClickSoftware also announced today that on April 27, 2011, its Board of Directors approved the distribution of a $0.32 per share dividend to be paid quarterly in four equal amounts over the next four quarters. The first quarterly dividend of $0.08 per ordinary share will be paid on May 26, 2011 to all shareholders of record as of the close of business on May 12, 2011. The dividend will be paid net of any required tax. This is the first cash dividend paid to shareholders in the Company's history. The declaration and payment of future dividends is at the discretion of the Company's Board of Directors.
Shmuel Arvatz, ClickSoftware's CFO said: "The current level of available cash and our projected steady cash flows from operations make a dividend payment a good vehicle to allow our shareholders to participate in our recent growth and success."
Outlook
The Company reiterates the previously provided year 2011 guidance of revenues in the approximate range of $81.5 to $85.0 million, representing about 15% to 20% growth over 2010.
2011 Analyst & Investor Day
The Company will host an Analyst & Investor Day on Tuesday, May 24th in NYC. For details and registration please contact Rob Fink or Marybeth Csaby at KCSA Strategic Communications, (212)896-1206 ([email protected], [email protected]), or visit ClickSoftware's website at: http://www.clicksoftware.com.
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)407-2553 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. Alternatively, a telephone replay of the call will be available for a week or by calling (888) 326-9310 (international callers can dial +972-3-925-5901).
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 over 200,000 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 ( http://twitter.com/#!/ClickSoftware), 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, visibility into future periods, growth and future rates of growth and expectations of future cash flows and dividends. For example, when we discuss our "Outlook" for 2011 revenues, continued growth in 2011, expected traction for our offerings and demand and visibility for future periods, we are using forward-looking statements. 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
March 31, 2011 March 31, 2010
--------------------- --------------------
% of % of
$ Revenues $ Revenues
--------------------- --------------------
Revenues:
Software license $ 7,452 39% $ 6,838 39%
Services 11,848 61% 10,645 61%
--------------------- --------------------
Total revenues 19,300 100% 17,483 100%
--------------------- --------------------
Cost of revenues:
Software license 657 3% 693 4%
Services 6,879 36% 5,826 33%
--------------------- --------------------
Total cost of
revenues 7,536 39% 6,519 37%
--------------------- --------------------
Gross profit 11,764 61% 10,964 63%
--------------------- --------------------
Operating expenses:
Research and
development costs,
net 1,861 10% 1,847 11%
Selling and
marketing expenses 5,512 29% 4,361 25%
General and
administrative
expenses 1,605 8% 1,556 9%
--------------------- --------------------
Total operating
expenses 8,978 47% 7,764 44%
--------------------- --------------------
Net income from
operations 2,786 14% 3,200 18%
Interest income
(expense), net 24 0% (4) 0%
--------------------- --------------------
Net income before taxes $ 2,810 15% $ 3,196 18%
Tax expense, net 562 3% 422 2%
--------------------- --------------------
Net income $ 2,248 12% $ 2,774 16%
--------------------- --------------------
Net earnings per
ordinary share:
Basic $ 0.07 $ 0.09
--------------------- --------------------
Diluted $ 0.07 $ 0.09
--------------------- --------------------
Shares used in
computing basic
net income per share 30,661,754 30,263,328
--------------------- --------------------
Shares used in
computing diluted
net income per share 32,339,473 32,042,427
--------------------- --------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
March 31, 2011 December31, 2010
(Unaudited) (Audited)
---------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 16,305 $ 25,749
Short term deposits 26,383 16,747
Marketable securities 8,537 7,839
Trade receivables, net 17,127 14,255
Deferred taxes 1,780 2,220
Other receivables and prepaid
expenses 2,752 2,431
---------------------------------
Total current assets 72,884 69,241
---------------------------------
LONG TERM ASSETS
Property and Equipment, net 3,385 3,384
Long term deposits 634 620
Other receivables and
prepaid expenses 384 364
Intangible assets, net 1,802 2,004
Goodwill 2,511 2,511
Severance pay funds 1,799 1,703
---------------------------------
Total long term assets 10,515 10,586
---------------------------------
Total Assets $ 83,399 $ 79,827
---------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 11,810 $ 12,574
Deferred revenues 9,383 7,957
---------------------------------
Total current liabilities 21,193 20,531
---------------------------------
LONG TERM LIABILITIES
Accrued severance pay 3,619 3,431
Deferred revenues 1,704 1,777
---------------------------------
Total long term liabilities 5,323 5,208
---------------------------------
Total liabilities 26,516 25,739
---------------------------------
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 0.02 par value 127 126
Additional paid-in capital 81,637 81,170
Accumulated deficit (25,145) (27,393)
Accumulated other comprehensive income 307 228
Treasury stock,at cost: 39,000 shares (43) (43)
---------------------------------
Total shareholders' equity 56,883 54,088
---------------------------------
Total Liabilities and
shareholders' equity $ 83,399 $ 79,827
---------------------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited. In thousands)
Three Months Ended
March 31, March 31,
2011 2010
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 2,248 $ 2,774
Adjustments to reconcile net income to
net cash provided by operating activities:
Income and expense items not involving cash flows:
Depreciation 325 305
Amortization of deferred compensation 311 339
Amortization of acquired intangible assets 202 199
Severance pay, net 92 46
Gain on marketable securities (18) (20)
Other 3 2
Changes in operating assets and liabilities:
Increase in trade receivables (2,872) (124)
Decrease in deferred taxes 440 340
Increase in other receivables (262) (299)
Increase in accounts payable and
accrued expenses (764) (1,535)
Increase in deferred revenues 1,353 1,967
---------- ---------
Net cash provided by operating activities $ 1,058 $ 3,994
---------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (328) (462)
Decrease (Increase) in deposits (9,650) 2,920
Investments in marketable securities (2,552) (4,112)
Proceeds from sale of marketable securities 1,872 45
---------- ---------
Net cash used in investment activities $ (10,658) $ (1,609)
---------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Employee options exercised 156 249
---------- ---------
Net cash provided by financing activities $ 156 $ 249
---------- ---------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (9,444) 2,634
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 25,749 15,594
---------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 16,305 $ 18,228
---------- ---------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Three Months Ended
March 31, 2011 March 31, 2010
------------------ ---------------------
% of % of
$ Revenues $ Revenues
------------------ ---------------------
GAAP Net income $ 2,248 12% $ 2,774 16%
Share-based compensation (1) 311 339
Amortization of
intangible assets (2) 202 199
Deferred taxes 440 340
------------------ ---------------------
Non-GAAP Net income $ 3,201 17% $ 3,652 21%
------------------ ---------------------
GAAP Earnings per
share (diluted) $ 0.07 $ 0.09
Share-based compensation 0.01 0.01
Amortization of
intangible assets 0.01 0.00
Deferred taxes 0.01 0.01
------------------ ---------------------
Non-GAAP Earnings per
share (diluted) $ 0.10 $ 0.11
------------------ ---------------------
(1)Share-based compensation:
Cost of services 39 44
Research and development
costs, net 34 36
Selling and marketing
expenses 77 88
General and
administrative expenses 161 171
------------------ ---------------------
$ 311 $ 339
------------------ ---------------------
(2)Amortization of
intangible assets:
Cost of revenues 172 169
Research and
development costs, net 30 30
------------------ ---------------------
$ 202 $ 199
------------------ ---------------------
ClickSoftware Contact: Investor Relations Contact:
Noa Schuman Marybeth Csaby / Rob Fink
Investor Relations KCSA Strategic Communications
+972-3-7659-467 +1-212-896-1236 / +1-212-896-1206
[email protected] [email protected] / [email protected]
SOURCE ClickSoftware Technologies Ltd
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