ClickSoftware Reports Record Revenues for the Third Quarter Ended September 30, 2012
Quarterly Revenues Up 18% Year-Over-Year, Reaching $27.3 Million
BURLINGTON, Massachusetts, October 31, 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 third quarter ended September 30, 2012.
For the third quarter ended September 30, 2012, total revenues were $27.3 million, up 18% from $23.2 million in the third quarter of 2011. Net income for the third quarter of 2012 was $2.8 million, or $0.09 per fully diluted share, compared to net income of $4.5 million, or $0.14 per fully diluted share, for the same period last year.
Non-GAAP net income for the quarter was $3.7 million, or $0.11 per fully diluted share, compared to $5.5 million, or $0.17 per fully diluted share, for the same period last year.
Software license revenues for the third quarter of 2012 were $11.0 million, up 24% compared to software license revenues of $8.9 million for the same period last year. Service and maintenance revenues were $16.3 million, up 14% compared to service and maintenance revenues of $14.3 million in the same period last year.
Gross profit in the third quarter of 2012 was $17.5 million, or 64% of revenues, compared to $15.2 million, or 66% of revenues, in the same period last year.
Net cash provided by operating activities was $4.5 million during the third 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 third quarter of 2012 were $51.6 million, an increase of $1.7 million compared to the end of the second quarter of 2012.
Management Commentary
"We are pleased with the strong results for the third quarter. Significant operational progress, healthy bookings and a strong pipeline of new business provide us with confidence in our strategy and good visibility moving forward. Specifically, investments to address increased market demand in the workforce management market by enhancing our Mobility, Shift Planning and Cloud offerings are paying off. We are seeing traction in new verticals while successful deployments in traditional industries such as Telecommunication and Utilities continue to support our value proposition and highlight the strength of our market position. Growing market demand in the Americas - including Latin America - and Russia have more than offset any weakness we've seen in Europe. Our market position has again been supported by industry analysts and independent market research. For the second year in a row, we were ranked as Leader in Gartner's Magic Quadrant for Field Service Management report and we continue to drive the workforce management and enterprise mobility market from a leadership position," said Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO.
"As we look forward to the fourth quarter and beyond, we will continue to differentiate ourselves through innovative product offerings that allow service providers to better optimize their workforce and reduce inefficiencies. As our investments continue to bear fruit, we look forward to taking the company to the next level by potentially reaching, then surpassing, the $100 million sales mark," Dr. BenBassat concluded.
Outlook
The Company reiterates the previously provided full year 2012 guidance of revenues in the range of $98 to $103 million, representing about 13% to 18% growth over 2011.
Cash Dividend
ClickSoftware also announced today that on October 29, 2012, its Board of Directors approved a $0.08 per share dividend to be paid on November 28, 2012 to all shareholders of record as of the close of business on November 14, 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.
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 +972-3-925-5901).
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 and 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, market demand and the results of our increased investment to address such market demand. 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
September 30, 2012 September 30, 2011
% of % of
$ Revenues $ Revenues
Revenues:
Software license $ 10,969 40% $ 8,861 38%
Services 16,348 60% 14,300 62%
-------- ------ ------- -----
Total revenues 27,317 100% 23,161 100%
-------- ------ ------- -----
Cost of revenues:
Software license 967 4% 733 3%
Services 8,858 32% 7,255 31%
-------- ------ ------- -----
Total cost of
revenues 9,825 36% 7,988 34%
-------- ------ ------- -----
Gross profit 17,492 64% 15,173 66%
-------- ------ ------- -----
Operating expenses:
Research and
development costs, net 3,625 13% 2,266 10%
Selling and marketing
expenses 8,515 31% 5,682 25%
General and
administrative expenses 2,247 8% 1,925 8%
-------- ------ ------- -----
Total operating
expenses 14,387 53% 9,873 43%
-------- ------ ------- -----
Operating income 3,105 11% 5,300 23%
Interest expenses, net 16 0% 150 1%
-------- ------ ------- -----
Net income before taxes $ 3,089 11% $ 5,150 22%
Tax expense 281 1% 658 3%
-------- ------ ------- -----
Net income $ 2,808 10% $ 4,492 19%
-------- ------ ------- -----
Net earnings per
ordinary share:
Basic $ 0.09 $ 0.14
-------- -------
Diluted $ 0.09 $ 0.14
-------- -------
Shares used in
computing basic
net income per share 31,597,918 31,220,275
---------- ----------
Shares used in
computing diluted
net income per share 32,740,287 32,645,964
---------- ----------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited. In thousands, except share and per share amounts)
Nine Months Ended
September 30, 2012 September 30, 2011
% of % of
$ Revenues $ Revenues
Revenues:
Software license $ 23,694 33% $ 22,379 35%
Services 47,953 67% 40,749 65%
-------- ------ ------- -----
Total revenues 71,647 100% 63,128 100%
-------- ------ ------- -----
Cost of revenues:
Software license 2,532 4% 1,764 3%
Services 26,457 37% 20,957 33%
-------- ------ ------- -----
Total cost of
revenues 28,989 40% 22,721 36%
-------- ------ ------- -----
Gross profit 42,658 60% 40,407 64%
-------- ------ ------- -----
Operating expenses:
Research and
development costs, net 9,275 13% 6,418 10%
Selling and marketing
expenses 23,252 32% 17,277 27%
General and
administrative expenses 6,444 9% 5,291 8%
-------- ------ ------- -----
Total operating
expenses 38,971 54% 28,986 46%
-------- ------ ------- -----
Operating income 3,687 5% 11,421 18%
Interest income
(expenses), net 210 0% (172) 0%
-------- ------ ------- -----
Net income before taxes $ 3,897 5% $ 11,249 18%
Tax expense, net 315 0% 1,910 3%
-------- ------ ------- -----
Net income $ 3,582 5% $ 9,339 15%
-------- ------ ------- -----
Net earnings per
ordinary share:
Basic $ 0.11 $ 0.30
-------- -------
Diluted $ 0.11 $ 0.29
-------- -------
Shares used in
computing basic
net income per share 31,520,923 30,921,921
---------- ----------
Shares used in
computing diluted
net income per share 32,869,186 32,270,766
---------- ----------
ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
September 30, December 31,
2012 2011
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 21,771 $ 14,683
Deposits 18,538 28,243
Marketable securities 10,195 10,945
Trade receivables, net 26,940 23,378
Deferred taxes 680 540
Other receivables and prepaid expenses 2,874 2,610
------- -------
Total current assets 80,998 80,399
------- -------
LONG TERM ASSETS
Property and equipment, net 4,294 3,873
Deposits 1,094 1,093
Other receivables and
prepaid expenses 90 233
Deferred taxes 580 550
Intangible assets,net 602 1,166
Goodwill 1,572 1,572
Severance pay funds 1,874 1,746
------- -------
Total long term assets 10,106 10,233
------- -------
Total Assets $ 91,104 $ 90,632
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 14,449 $ 13,608
Dividend payable - 2,536
Deferred revenues 9,886 9,529
------- -------
Total current liabilities 24,335 25,673
------- -------
LONG TERM LIABILITIES
Accrued severance pay 4,300 3,847
Deferred taxes liability 280 180
Deferred revenues 1,793 1,828
------- -------
Total long term liabilities 6,373 5,855
------- -------
Total liabilities 30,708 31,528
------- -------
SHAREHOLDERS' EQUITY
Ordinary shares of NIS
0.02 par value 132 131
Additional paid-in capital 86,822 84,383
Accumulated deficit (26,672) (25,200)
Accumulated other comprehensive income 157 (167)
Treasury stock, at cost: 39,000 shares (43) (43)
------- -------
Total shareholders' equity 60,396 59,104
------- -------
Total Liabilities and
shareholders' equity $ 91,104 $ 90,632
======== ========
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, In thousands)
Nine Months Ended
September 30, September 30,
2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 3,582 $ 9,339
Adjustments to reconcile net income to
net cash provided by operating activities:
Income and expense items not involving cash flows:
Depreciation 1,572 1,084
Amortization of deferred compensation 1,882 1,221
Amortization of acquired intangible assets 565 606
Severance pay, net 325 144
Gain on marketable securities (123) (71)
Other 4 10
Changes in operating assets and liabilities:
Trade receivables (3,562) (4,217)
Deferred taxes (70) 1,010
Other receivables 203 265
Accounts payable and accrued expenses 841 (991)
Deferred revenues 322 2,275
------- -------
Net cash provided by operating activities $ 5,541 $ 10,675
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (1,998) (1,272)
Decrease (increase) in deposits 9,704 (14,458)
Investments in marketable securities (1,075) (7,360)
Proceeds from sale of marketable securities 1,948 4,831
------- -------
Net cash provided by (used in) investment activities $ 8,579 $ (18,259)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (7,590) (4,976)
Employee options exercised 558 1,279
------- -------
Net cash used in financing activities $ (7,032) $ (3,697)
------- -------
DECREASE IN CASH AND CASH EQUIVALENTS 7,088 (11,281)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 14,683 25,749
------- -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 21,771 $ 14,468
------- -------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Three Months Ended
September 30, 2012 September 30, 2011
% of % of
$ Revenues $ Revenues
GAAP Net income $ 2,808 10% $ 4,492 19%
Share-based
compensation (1) 650 509
Amortization of
intangible assets (2) 150 202
Deferred taxes 50 260
------- -------
Non-GAAP Net income $ 3,658 13% $ 5,463 24%
------- ----- ------- -----
GAAP Earnings per
share (diluted) $ 0.09 $ 0.14
Share-based
compensation 0.02 0.02
Amortization of
intangible assets 0.00 0.00
Deferred taxes 0.00 0.01
------- -------
Non-GAAP Earnings per
share (diluted) $ 0.11 $ 0.17
------- -------
(1) Share-based compensation:
Cost of services 86 53
Research and development
costs, net 72 43
Selling and marketing
expenses 165 101
General and administrative
expenses 327 312
------- -------
$ 650 $ 509
------- -------
(2) Amortization of
intangible assets:
Cost of revenues 121 172
Research and development
costs, net 29 30
------- -------
$ 150 $ 202
------- -------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
Nine Months Ended
September 30, 2012 September 30, 2011
% of % of
$ Revenues $ Revenues
GAAP Net income $ 3,582 5% $ 9,339 15%
Share-based
compensation (1) 1,882 1,221
Amortization of
intangible assets (2) 565 606
Deferred taxes (70) 1,010
------- -------
Non-GAAP Net income $ 5,959 8% $ 12,176 19%
------- ----- -------- -----
GAAP Earnings per
share (diluted) $ 0.11 $ 0.29
Share-based
compensation 0.06 0.04
Amortization of
intangible assets 0.01 0.02
Deferred taxes 0.00 0.03
------- -------
Non-GAAP Earnings per
share (diluted) $ 0.18 $ 0.38
------- -------
(1) Share-based compensation:
Cost of services 227 150
Research and development
costs, net 185 126
Selling and marketing
expenses 438 288
General and administrative
expenses 1,032 657
------- -------
$ 1,882 $ 1,221
------- -------
(2) Amortization of
intangible assets:
Cost of revenues 476 517
Research and development
costs, net 89 89
------- -------
$ 565 $ 606
------- -------
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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