ClickSoftware Reports Record Revenues for the Fourth Quarter and Year Ended December 31, 2011
Quarterly Revenues Up 30% Year-Over-Year, Reaching Record $24 Million; Annual Revenue Growth of 23% Reaching Record $87.1 Million; 2012 Revenues Expected to Exceed $100 Million
BURLINGTON, Massachusetts, February 8, 2012 /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 fourth quarter and year ended December 31, 2011.
For the fourth quarter ended December 31, 2011, total revenues were $24.0 million, up 30% from $18.5 million in the fourth quarter of 2010. Net income for the fourth quarter of 2011 was $2.9 million, or $0.09 per fully diluted share, compared to net income of $1.6 million, or $0.05 per fully diluted share, for the same period last year.
Non-GAAP net income for the quarter was $4.9 million, or $0.15 per fully diluted share, compared to $2.2 million, or $0.07 per fully diluted share, for the same period last year.
Software license revenues for the fourth quarter of 2011 were $9.2 million, up 35% compared with software license revenues of $6.8 million for the same period last year. Service and maintenance revenues were $14.8 million, up 26% compared with service and maintenance revenues of $11.7 million in the same period last year.
Gross profit in the fourth quarter of 2011 was $15.0 million, or 63% of revenues, compared to $11.4 million, or 62% of revenues, in the same period last year.
Net cash provided by operating activities was $1.3 million during the fourth quarter of 2011. Cash, cash equivalents and short and long-term investments at the end of the fourth quarter of 2011 were $55.0 million, a decrease of $1.7 million compared to the end of the third quarter of 2011. During the fourth quarter the Company paid a cash dividend of $2.5 million.
Full Year Results
Total revenues for 2011 grew 23% over 2010 to $87.1 million, yielding net income of $12.2 million, or $0.38 per fully diluted share. This compares with revenues of $71.0 million and net income of $9.0 million, or $0.28 per fully diluted share, for 2010. Non-GAAP net income for 2011 was $17.0 million, or $0.53 per fully diluted share. This compares with Non-GAAP net income of $12.0 million, or $0.37 per fully diluted share, for 2010.
Management Commentary
"We are very pleased with the financial results of 2011 which show considerable improvement in just about every parameter. Record revenues and profitability were achieved from strong execution, a significant number of new customer wins and further expansion into the mobility market. All of these, collectively, contributed to annual revenue growth of 23%. In late 2011 we also expanded our geographic footprint, as we initiated activity in Latin America, South Africa and Russia. In Russia we were even able to close the first two deals during the fourth quarter. We are also focused on strategic initiatives in the mobility and cloud markets that will substantially broaden our offerings and increase our addressable market," commented Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO.
"Our success in the enterprise mobility market positively contributed to 2011 results, and, based on our pipeline, we expect this trend to continue in 2012 and beyond. As the world is looking for mobile business applications on smartphones and tablets, we are right there with proven mobile ClickApps whose number keeps increasing every month. In addition, growth in the cloud market and enhancements made to our SaaS offering will position us to better meet market demand with competitive solutions geared for the small to medium-sized business, including mobile ClickApps. Finally, let me also note ClickSoftware's impressive ranking in Gartner's magic quadrant, and several awards we received in 2011, which clearly reflect our widely recognized position as the market leader in mobile workforce management and service optimization," Dr. BenBassat added.
Outlook
For 2012, the Company currently expects to achieve revenues in the approximate range of $100 to $105 million, representing about 15% to 21% growth over 2011. This outlook is based on about $30 million in backlog and deferred revenues and current visibility into a growing sales pipeline.
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 February 6, 2012, set the dates for the fourth quarterly dividend payment of $0.08 per ordinary share. The record date will be February 22, 2012 and the payment date will be March 7, 2012. 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. EST 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 +972-3-925-5900).
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, visibility into future periods and pipeline, winning new business, future success in the area of mobility, meeting market demand with our cloud based products and SaaS offering, penetrating and expanding our sales in new territories, 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
December 31, 2011 December 31, 2010
------------------ -----------------
% of % of
$ Revenues $ Revenues
------------------ -----------------
Revenues:
Software license $ 9,163 38% $ 6,769 37%
Services 14,796 62% 11,707 63%
------------------ -----------------
Total revenues 23,959 100% 18,476 100%
------------------ -----------------
Cost of revenues:
Software license 755 3% 651 4%
Services 8,220 34% 6,404 35%
------------------ -----------------
Total cost of
revenues 8,975 37% 7,055 38%
------------------ -----------------
Gross profit 14,984 63% 11,421 62%
------------------ -----------------
Operating expenses:
Research and
development costs,
net 2,601 11% 2,053 11%
Selling and
marketing expenses 6,105 25% 5,313 29%
General and
administrative
expenses 2,095 9% 2,188 12%
Impairment of
goodwill 939 4% - -
------------------ -----------------
Total operating
expenses 11,740 49% 9,554 52%
------------------ -----------------
Operating income 3,244 14% 1,867 10%
Interest income, net 179 1% 69 0%
------------------ -----------------
Net income before taxes $ 3,423 14% $ 1,936 10%
Tax expense, net 552 2% 343 2%
------------------ -----------------
Net income $ 2,871 12% $ 1,593 9%
------------------ -----------------
Net earnings per
ordinary share:
Basic $ 0.09 $ 0.05
------------------ -----------------
Diluted $ 0.09 $ 0.05
------------------ -----------------
Shares used in
computing basic
net income per share 31,297,842 30,581,063
------------------ -----------------
Shares used in
computing diluted
net income per share 32,758,847 32,169,050
------------------ -----------------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
Year Ended
December 31, 2011 December 31, 2010
(Unaudited) (Audited)
------------------ -----------------
% of % of
$ Revenues $ Revenues
------------------ -----------------
Revenues:
Software license $ 31,542 36% $ 25,825 36%
Services 55,545 64% 45,194 64%
------------------ -----------------
Total revenues 87,087 100% 71,019 100%
------------------ -----------------
Cost of revenues:
Software license 2,519 3% 2,299 3%
Services 29,177 34% 24,614 35%
------------------ -----------------
Total cost of
revenues 31,696 36% 26,913 38%
------------------ -----------------
Gross profit 55,391 64% 44,106 62%
------------------ -----------------
Operating expenses:
Research and
development
costs, net 9,019 10% 7,920 11%
Selling and
marketing
expenses 23,382 27% 19,213 27%
General and
administrative
expenses 7,386 8% 6,747 10%
Impairment of
goodwill 939 1% - -
------------------ -----------------
Total operating
expenses 40,726 47% 33,880 48%
------------------ -----------------
Operating income 14,665 17% 10,226 14%
Interest income, net 7 0% 189 0%
------------------ -----------------
Net income before
taxes $ 14,672 17% $ 10,415 15%
Tax expense, net 2,462 3% 1,370 2%
------------------ -----------------
Net income $ 12,210 14% $ 9,045 13%
------------------ -----------------
Net earnings per
ordinary share:
Basic $ 0.39 $ 0.30
------------------ -----------------
Diluted $ 0.38 $ 0.28
------------------ -----------------
Shares used in
computing basic
net income per share 31,014,373 30,415,679
------------------ -----------------
Shares used in
computing diluted
net income per share 32,226,883 32,037,399
------------------ -----------------
ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December December
31, 2011 31, 2010
(Unaudited) (Audited)
-----------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 14,683 $ 25,749
Deposits 28,243 16,747
Marketable securities 10,945 7,839
Trade receivables, net 23,378 14,255
Deferred taxes 540 2,220
Other receivables and prepaid expenses 2,610 2,431
-----------------------
Total current assets 80,399 69,241
-----------------------
LONG TERM ASSETS
Property and
equipment, net 3,873 3,384
Deposits 1,093 620
Other receivables and prepaid expenses 233 364
Deferred taxes 550 -
Intangible assets,net 1,166 2,004
Goodwill 1,572 2,511
Severance pay funds 1,746 1,703
-----------------------
Total long term assets 10,233 10,586
-----------------------
Total Assets $ 90,632 $ 79,827
-----------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and
accrued expenses $ 13,608 $ 12,574
Dividend payable 2,536 -
Deferred revenues 9,529 7,957
-----------------------
Total current liabilities 25,673 20,531
-----------------------
LONG TERM LIABILITIES
Accrued severance pay 3,847 3,431
Deferred taxes liability 180 -
Deferred revenues 1,828 1,777
-----------------------
Total long term liabilities 5,855 5,208
-----------------------
Total liabilities 31,528 25,739
-----------------------
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 0.02 par value 131 126
Additional paid-in capital 84,383 81,170
Accumulated deficit (25,200) (27,393)
Accumulated other comprehensive income (167) 228
Treasury stock, at cost: 39,000 shares (43) (43)
-----------------------
Total shareholders' equity 59,104 54,088
-----------------------
Total Liabilities and shareholders'
equity $ 90,632 $ 79,827
-----------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended
December 31, 2011 December 31, 2010
(Unaudited) (Audited)
--------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 12,210 $ 9,045
Adjustments to reconcile net income to
net cash provided by operating activities:
Income and expense items not involving cash flows:
Depreciation 1,519 1,254
Amortization of deferred compensation 1,731 1,169
Amortization of acquired intangible assets 782 796
Impairment of goodwill 939 -
Impairment of acquired intangible assets 55 -
Severance pay, net 373 334
Gain on marketable securities (94) (59)
Other 11 8
Changes in operating assets and liabilities:
Trade receivables (9,123) 2,155
Deferred taxes 1,310 940
Other receivables (443) (669)
Accounts payable and accrued expenses 1,034 955
Deferred revenues 1,623 441
------------- --------------
Net cash provided by operating activities $ 11,927 $ 16,369
------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (2,018) (1,517)
(Increase) decrease in deposits (11,969) 681
Investments in marketable securities (8,298) (8,451)
Proceeds from sale of marketable securities 5,286 2,003
------------- --------------
Net cash used in investment activities $ (16,999) $ (7,284)
------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (7,481) -
Employee options exercised 1,487 1,070
------------- --------------
Net cash (used in) provided by financing
activities $ (5,994) $ 1,070
------------- --------------
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (11,066) 10,155
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 25,749 15,594
------------- --------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 14,683 $ 25,749
------------- --------------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Three Months Ended
December 31, 2011 December 31, 2010
--------------------- -----------------------
% of % of
$ Revenues $ Revenues
--------------------- -----------------------
GAAP Net income $ 2,871 12% $ 1,593 9%
Share-based compensation (1) 510 328
Amortization of intangible
assets (2) 176 199
Impairment of goodwill and
other intangible assets 994 -
Deferred taxes 300 120
--------------------- -----------------------
Non-GAAP Net income $ 4,851 20% $ 2,240 12%
--------------------- -----------------------
GAAP Earnings per
share (diluted) $ 0.09 $ 0.05
Share-based compensation 0.01 0.01
Amortization of
intangible assets 0.04 0.01
Deferred taxes 0.01 0.00
--------------------- -----------------------
Non-GAAP Earnings per
share (diluted) $ 0.15 $ 0.07
--------------------- -----------------------
(1) Share-based compensation:
Cost of services 52 42
Research and
development costs, net 42 36
Selling and marketing
expenses 101 81
General and
administrative expenses 315 169
--------------------- -----------------------
$ 510 $ 328
--------------------- -----------------------
(2) Amortization of
intangible assets:
Cost of revenues 147 170
Research and
development costs, net 29 29
--------------------- -----------------------
$ 176 $ 199
--------------------- -----------------------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Year Ended
December 31,2011 December 31, 2010
--------------------- -----------------------
% of % of
$ Revenues $ Revenues
--------------------- -----------------------
GAAP Net income $ 12,210 14% $ 9,045 13%
Share-based compensation
(1) 1,731 1,169
Amortization of intangible
assets (2) 782 796
Impairment of goodwill
and other intangible
assets 994 -
Deferred taxes 1,310 940
--------------------- -----------------------
Non-GAAP Net income $ 17,027 20% $ 11,950 17%
--------------------- -----------------------
GAAP Earnings per
share (diluted) $ 0.38 $ 0.28
Share-based compensation 0.05 0.04
Amortization of intangible
assets 0.06 0.02
Deferred taxes 0.04 0.03
--------------------- -----------------------
Non-GAAP Earnings per
share (diluted) $ 0.53 $ 0.37
--------------------- -----------------------
(1) Share-based compensation:
Cost of services 202 170
Research and development
costs, net 168 145
Selling and
marketing expenses 389 334
General and
administrative
expenses 972 520
--------------------- -----------------------
$ 1,731 $ 1,169
--------------------- -----------------------
(2) Amortization of
intangible assets:
Cost of revenues 664 678
Research and development
costs, net 118 118
--------------------- -----------------------
$ 782 $ 796
--------------------- -----------------------
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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