News! ClickSoftware Reports Record Revenues for the Second Quarter of 2007
Revenues Rise 32% YOY to $10.5M; Net Income More Than Doubled YOY
BURLINGTON, Massachusetts, July 25 /PRNewswire-FirstCall/ -- ClickSoftware Technologies Ltd. (NasdaqCM: CKSW), the leading provider of mobile workforce management and service optimization solutions, today announced results for the second quarter ended June 30, 2007.
For the second quarter ended June 30, 2007, total revenues were $10.5 million, an increase of 32% compared with $8.0 million for the second quarter of 2006 and 16% compared with the first quarter of 2007. Net income for the quarter was $1.0 million, or $0.03 per share, an increase of 118% compared with $0.4 million, or $0.02 per share, for the second quarter of 2006, and 111% compared with the first quarter of 2007. Excluding the effects of share-based compensation expenses related to the adoption of SFAS-123R, net income for the second quarter of 2007 was $1.1 million, or $0.04 per share.
The increase in revenues derives from both software licenses and services. Software license revenues for the second quarter of 2007 were $4.4 million, an increase of 36% compared to the second quarter of 2006, and 20% compared to the first quarter of 2007. Services revenues for the period were $6.1 million, a 29% increase compared to the second quarter of 2006 and a 13% increase compared to the first quarter of 2007.
Gross profit increased 36% on a year-over-year basis to $6.8 million, or 64% of revenues, compared to $5.0 million, or 62% of revenues, in the second quarter of 2006, and $5.3 million, or 58% of revenues, in the first quarter of 2007.
For the quarter, net cash used in operating activities was $0.5 million, contributing to a reduction in the balance of cash, cash equivalents, and short and long term investments to $20.2 million from $20.7 million in the first quarter of 2007. On the other hand, working capital increased by about $1.0 million from the first quarter of 2007.
"The second quarter was another period of considerable growth for ClickSoftware, with strong financial results, operational achievements and strategic progress across all parameters," said Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "In response to an increasing demand from both existing customers and new prospects, we continue to scale up the organization, such as a new subsidiary we just formed in Japan. Our new products for leveraging mobility and GPS-based location reports in workforce optimization are gaining recognition as the leading products for the real time service enterprise. Gartner's Magic Quadrant report for field service management published in May 2007 further validates our overall leadership position. Looking forward, we believe that we are positioned for continued strong growth," BenBassat added.
Outlook
Based on recent wins, backlog, deferred revenues and the current pipeline, the Company is raising its guidance, projecting annual revenues in the range of about $41 million to $42 million for 2007, compared to $32.4 million for 2006. This represents annual revenue growth of about 26.5% to 29.5%, compared to the 20% growth projection given at the beginning of the year.
Investors Conference Call
ClickSoftware will host a conference call today at 9:30 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 888-321-3075 and ask for the ClickSoftware conference call. International participants, please call +1-973-582-2855. The call will be available live on the internet (in listen mode only) at http://www.clicksoftware.com. A replay of this call will be available on the ClickSoftware website, or by calling 877-519-4471 (international callers can dial +1-973-341-3080), ID Code: 8987538.
About ClickSoftware
ClickSoftware is the leading provider of mobile workforce management and service optimization solutions that create business value for service operations through higher levels of productivity, customer satisfaction and cost effectiveness. Combining educational, implementation and support services with best practices and its industry leading solutions, ClickSoftware drives service decision making across all levels of the organization. From proactive customer demand forecasting and capacity planning to real-time decision-making, incorporating scheduling, mobility and location based services, ClickSoftware helps service organizations get the most out of their resources. With over 100 customers across a variety of industries and geographies, and strong partnerships with leading platform and system integration partners - ClickSoftware is uniquely positioned to deliver superb business performance to any organization. The company is headquartered in Burlington, MA and Israel, with offices in Europe, and Asia Pacific.
For more information about ClickSoftware, please call +1-781-272-5903 or 888-438-3308, or visit www.clicksoftware.com.
This press release contains express or implied forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. These forward-looking statements include, but are not limited to, those regarding future results of operations, visibility into future periods, continued growth and rate of growth, and expectations regarding future closing of contracts and receipt of orders, recognition of revenues and deferred revenues. Such "forward-looking statements" involve known and unknown risks, uncertainties and other factors, which may cause actual results or performance to be materially different from those projected. Achievement of these results by ClickSoftware and its subsidiaries may be affected by many factors, including among others, the following: risks and uncertainties regarding the general economic outlook; the length of or change in the Company's sales cycle; the Company's ability to close sales to potential customers in a timely manner; the Company's ability to penetrate new markets; the Company's ability to maintain or increase relationships with strategic partners; timing of revenue recognition; and the Company'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 ClickSoftware's annual report on Form 20F for the year ended December 31, 2006 and subsequent filings with the Securities and Exchange Commission. The Company 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.
ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
June 30 December 31
____________________
2007 2006
____________________
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 11,696 $ 13,385
Short-term investments 7,744 5,918
Trade receivables, net 8,394 6,465
Other receivables and prepaid
expenses 1,100 953
____________________
Total current assets 28,934 26,721
____________________
FIXED ASSETS
Cost 2,563 1,692
Less - accumulated
depreciation 1,141 888
____________________
Total fixed assets 1,422 804
____________________
Long-term investments 770 451
Severance pay deposits 958 996
____________________
Total Assets $ 32,084 $ 28,972
____________________
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued
expenses $ 7,487 $ 5,945
Deferred revenues 5,549 5,965
_____________________
Total current liabilities 13,036 11,910
_____________________
LONG TERM LIABILITIES
Accrued severance pay 2,068 2,031
Deferred revenues - Long term 2,351 2,490
Total long-term _____________________
liabilities 4,419 4,521
_____________________
Total liabilities 17,455 16,431
_____________________
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 0.02 par
value 114 113
Additional paid-in capital 72,809 72,205
Deferred Stock
Compensation - (63)
Accumulated deficit (58,251) (59,671)
Treasury stock, at cost:
39,000 shares (43) (43)
Total shareholders' equity 14,629 12,541
Total liability and shareholders' ____________________
equity $ 32,084 $ 28,972
____________________
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
Three Months Ended
June 30, 2007 June 30, 2006
____________________ _________________
% of % of
$ Revenues $ Revenues
____________________ _______________
Revenues:
Software license $ 4,436 42% $ 3,272 41%
Services 6,056 58% 4,696 59%
____________________ ________________
Total revenues 10,492 100% 7,968 100%
____________________ ________________
Cost of revenues:
Software license 529 5% 564 7%
Services 3,209 31% 2,444 31%
___________________ ________________
Total cost of revenues 3,738 36% 3,008 38%
____________________ ________________
Gross profit 6,754 64% 4,960 62%
____________________ ________________
Operating expenses:
Research and development
costs, net 1,427 14% 927 11%
Selling and Marketing
expenses 3,408 32% 2,681 34%
General and
administrative expenses 1,235 12% 1,014 13%
____________________ ________________
Total operating expenses 6,070 58% 4,622 58%
____________________ ________________
Income from operations 684 7% 338 4%
Other income - - - -
Interest, net 293 3% 105 2%
________________________________________
Net income before taxes 977 9% 443 6%
Taxes on income 13 - - -
________________________________________
Net income $ 964 9% $ 443 6%
________________________________________
Net income per ordinary share:
Basic $ 0.03 $ 0.02
________________________________________
Diluted $ 0.03 $ 0.02
________________________________________
Shares used in computing basic
Net income per share 28,167,420 27,692,856
______________ ______________
Shares used in computing
diluted Net income per share 29,545,429 27,692,856
______________ ______________
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
Six Months Ended
June 30, 2007 June 30, 2006
__________________ __________________
% of % of
$ Revenues $ Revenues
__________________ __________________
Revenues:
Software license $ 8,125 42% $ 5,479 38%
Services 11,425 58% 8,950 62%
__________________ __________________
Total revenues 19,550 100% 14,429 100%
Cost of revenues: __________________ __________________
Software license 1,217 6% 855 6%
Services 6,283 32% 4,730 33%
Total cost of revenues 7,500 38% 5,585 39%
__________________ __________________
Gross profit 12,050 62% 8,844 61%
Operating expenses: __________________ __________________
Research and development
costs, net 2,653 14% 1,928 13%
Selling and Marketing
expenses 6,369 33% 4,999 34%
General and
administrative expenses 2,192 11% 1,838 13%
__________________ __________________
Total operating expenses 11,214 57% 8,765 60%
__________________ __________________
Income from operations 836 4% 79 1%
Other income 188 1% - -
Interest, net 444 2% 203 1%
__________________ __________________
Net income before taxes 1,468 8% 282 2%
Taxes on income 48 - - -
__________________ __________________
Net income $ 1,420 7% $ 282 2%
__________________ __________________
Net income per ordinary share:
Basic $ 0.05 $ 0.01
__________________ __________________
Diluted $ 0.05 $ 0.01
__________________ __________________
Shares used in computing basic
Net income per share 28,106,315 27,669,804
__________________ __________________
Shares used in computing
diluted Net income per share 28,551,294 27,669,804
__________________ __________________
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 that exclude the effects of share-based compensation and the requirements of SFAS No. 123R, "Share-based Payment" ("123R"). The non-GAAP financial measures used by management and disclosed by the Company exclude the income statement effects of all forms of share-based compensation .The non-GAAP financial measures disclosed by the Company should not be considered 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.
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(In thousands, except share and per share amounts)
Three Months Ended
June 30, 2007 June 30, 2006
__________________ _________________
% of % of
$ Revenues $ Revenues
__________________ _________________
GAAP Net income: $ 964 9% $ 443 6%
Adjustment of share-based
compensation within:
Cost of Services 23 14
Research and development
costs, net 19 14
Selling and Marketing
expenses 34 15
General and
administrative expenses 78 71
_________________ __________________
Net income excluding share-based
compensation $ 1,118 11% $ 557 7%
_________________ __________________
GAAP Net income per ordinary
share:
Basic $ 0.03 $ 0.02
__________________ __________________
Diluted $ 0.03 $ 0.02
__________________ __________________
Net income per ordinary share
excluding share-based
compensation:
Basic $ 0.04 $ 0.02
__________________ __________________
Diluted $ 0.04 $ 0.02
__________________ __________________
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(In thousands, except share and per share amounts)
Six Months Ended
June 30, 2007 June 30, 2006
__________________ _______________
% of % of
$ Revenues $ Revenues
__________________ _______________
GAAP Net income: $ 1,420 7% $ 282 2%
Adjustment of share-based
compensation within:
Cost of Services 43 24
Research and development
costs, net 35 25
Selling and Marketing
expenses 63 22
General and
administrative expenses 161 140
Net income excluding share-based __________________ _________________
compensation $ 1,722 9% $ 493 3%
__________________ _________________
GAAP Net income per ordinary
share:
Basic $ 0.05 $ 0.01
__________________ __________________
Diluted $ 0.05 $ 0.01
__________________ __________________
Net income per ordinary share
excluding share-based
compensation:
__________________ __________________
Basic $ 0.06 $ 0.02
__________________ __________________
Diluted $ 0.06 $ 0.02
Contacts:
Shmuel Arvatz
Chief Financial Officer
+972-3-765-9467
Shmuel.Arvatz@clicksoftware.com
Adam J. Rosen
+1-646-536-3865
arosen@rkequity.com
SOURCE ClickSoftware Technologies Ltd