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TheStreet Open House

ClickSoftware Reports Financial Results For The Second Quarter Ended June 30, 2012

Stock quotes in this article: CKSW

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, the possibility of future dividends, visibility into future periods and pipeline, growth opportunities in the workforce management and enterprise mobility markets, winning new business and future success in the area of mobility and cloud. 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
                                June 30, 2012            June 30, 2011
                             -------------------      ------------------
                                          % of                   % of
                                 $      Revenues        $      Revenues
                             -------------------      ------------------
    Revenues:
          Software license      $ 6,307      28%       $ 6,066       29%
          Services               16,175      72%        14,601       71%
                             -------------------      ------------------
          Total revenues         22,482     100%        20,667      100%
                             -------------------      ------------------
    Cost of revenues:
          Software license          640       3%           374        2%
          Services                9,115      41%         6,823       33%
                             -------------------      ------------------
          Total cost of
          revenues                9,755      43%         7,197       35%
                             -------------------      ------------------
    Gross profit                 12,727      57%        13,470       65%
                             -------------------      ------------------
    Operating expenses:
          Research and
          development costs,
          net                     2,979      13%         2,291       11%
          Selling and
          marketing expenses      7,403      33%         6,083       29%
          General and
          administrative
          expenses                2,255      10%         1,761        9%
                             -------------------      ------------------
          Total operating
          expenses               12,637      56%        10,135       49%
                             -------------------      ------------------
    Operating income                 90       0%         3,335       16%
    Interest income, net             27       0%          (46)        0%
                             -------------------      ------------------
    Net income before taxes       $ 117       1%       $ 3,289       16%
    Tax expense, net                 44       0%           690        3%
                             -------------------      ------------------
    Net income                     $ 73       1%       $ 2,599       13%
                             -------------------      ------------------
    Net earnings per
    ordinary share:
    Basic                        $ 0.00                 $ 0.08
                             -------------------      ------------------
    Diluted                      $ 0.00                 $ 0.08
                             -------------------      ------------------
    Shares used in
    computing basic
    net income per share     31,545,346             30,873,416
                             -------------------    --------------------
    Shares used in
    computing diluted
    net income per share     32,867,492             32,652,099
                             -------------------    --------------------
 
                         ClickSoftware Technologies Ltd.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
          (Unaudited. In thousands, except share and per share amounts)
 
                                             Six Months Ended
                                June 30, 2012            June 30, 2011
                             -------------------      ------------------
                                          % of                   % of
                                 $      Revenues        $      Revenues
                             -------------------      ------------------
    Revenues:
          Software license     $ 12,725      29%      $ 13,518       34%
          Services               31,605      71%        26,449       66%
                             -------------------      ------------------
          Total revenues         44,330     100%        39,967      100%
                             -------------------      ------------------
    Cost of revenues:
          Software license        1,565       4%         1,031        3%
          Services               17,599      40%        13,702       34%
                             -------------------      ------------------
          Total cost of
          revenues               19,164      43%        14,733       37%
                             -------------------      ------------------
    Gross profit                 25,166      57%        25,234       63%
                             -------------------      ------------------
    Operating expenses:
          Research and
          development costs,
          net                     5,650      13%         4,152       10%
          Selling and
          marketing expenses     14,737      33%        11,595       29%
          General and
          administrative
          expenses                4,197       9%         3,366        8%
                             -------------------      ------------------
          Total operating
          expenses               24,584      55%        19,113       48%
                             -------------------      ------------------
    Operating income                582       1%         6,121       15%
    Interest income, net            226       1%          (22)        0%
                             -------------------      ------------------
    Net income before taxes       $ 808       2%       $ 6,099       15%
    Tax expense, net                 34       0%         1,252        3%
                             -------------------      ------------------
    Net income                    $ 774       2%       $ 4,847       12%
                             -------------------      ------------------
    Net earnings per
    ordinary share:
    Basic                        $ 0.02                 $ 0.16
                             -------------------      ------------------
    Diluted                      $ 0.02                 $ 0.15
                             -------------------      ------------------
    Shares used in
    computing basic
    net income per share     31,479,942             30,767,584
                             -------------------    --------------------
    Shares used in
    computing diluted
    net income per share     32,925,309             32,376,192
                             -------------------    --------------------
 
                           ClickSoftware Technologies Ltd.
                            CONSOLIDATED BALANCE SHEETS
                         (In thousands, except share data)
                                                                   
                                            June 30, 2012     December 31, 2011
                                             (Unaudited)          (Audited)
                                            ---------------------------------------
              ASSETS
     CURRENT ASSETS
      Cash and cash equivalents                 $ 13,923           $ 14,683
      Deposits                                    24,437             28,243
      Marketable securities                       10,896             10,945
      Trade receivables,net                       21,631             23,378
      Deferred taxes                                 590                540
      Other receivables and prepaid expenses       2,932              2,610
                                            ---------------------------------
                   Total current assets           74,409             80,399
                                            ---------------------------------
     LONG TERM ASSETS
      Property and equipment, net                  4,461              3,873
      Deposits                                       596              1,093
      Other receivables and prepaid expenses         121                233
      Deferred taxes                                 680                550
      Intangible assets, net                         752              1,166
      Goodwill                                     1,572              1,572
      Severance pay funds                          1,801              1,746
                                            ---------------------------------
                   Total long term assets          9,983             10,233
                                            ---------------------------------
                Total Assets                    $ 84,392           $ 90,632
                                            =================================
            
              LIABILITIES AND SHAREHOLDERS'EQUITY
     CURRENT LIABILITIES
      Accounts payable and accrued expenses     $ 11,725           $ 13,608
      Dividend payable                                 -              2,536
      Deferred revenues                            7,668              9,529
                                            ---------------------------------
                   Total current liabilities      19,393             25,673
                                            ---------------------------------
 
     LONG TERM LIABILITIES
      Accrued severance pay                       4,187               3,847
      Deferred taxes liability                      240                 180
      Deferred revenues                           1,342               1,828
                                            ---------------------------------
                   Total long term liabilities    5,769               5,855
                                            ---------------------------------
                   Total liabilities             25,162              31,528
                                            ---------------------------------
     SHAREHOLDERS' EQUITY
      Ordinary shares of NIS 0.02 par value         132                 131
      Additional paid-in capital                 86,091              84,383
      Accumulated deficit                       (26,951)            (25,200)
      Accumulated other comprehensive income          1                (167)
      Treasury stock, at cost: 39,000 shares        (43)                (43)
                                            ---------------------------------
                   Total shareholders'equity     59,230              59,104
                                            ---------------------------------
             Total Liabilities and
             shareholders' equity              $ 84,392            $ 90,632
                                            =================================
 
                                                     ClickSoftware Technologies Ltd.
                                                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                        (Unaudited, In thousands)
                                                                
                                                               Six Months Ended
                                                        June 30, 2012        June 30, 2011
                                                     ------------------------------------
 
    CASH FLOWS FROM OPERATING ACTIVITIES
       Net income                                               $ 774              $ 4,847
       Adjustments to reconcile net income to
       net cash provided by operating activities:
        Income and expense items not involving cash flows:
             Depreciation                                       1,008                  690
             Amortization of deferred compensation              1,232                  712
             Amortization of acquired intangible assets           415                  404
             Severance pay, net                                   285                  288
             Gain on marketable securities                        (71)                 (43)
             Other                                                  3                   10
        Changes in operating assets and liabilities:
             Trade receivables                                  1,747               (2,206)
             Deferred taxes                                      (120)                 750
             Other receivables                                    (42)                (199)
             Accounts payable and accrued expenses             (1,883)                (246)
             Deferred revenues                                 (2,347)               2,642
                                                       ---------------   ------------------
        Net cash provided by operating activities             $ 1,001              $ 7,649
                                                       ---------------   ------------------
    CASH FLOWS FROM INVESTING ACTIVITIES
         Purchase of equipment                                 (1,600)                (976)
         Decrease (increase) in deposits                        4,303               (8,116)
         Investments in marketable securities                    (725)              (4,743)
         Proceeds from sale of marketable securities              845                3,133
                                                       ---------------   ------------------
        Net cash provided by (used in) investment
        activities                                          $ 2,823            $ (10,702)
                                                      ---------------   ------------------
    CASH FLOWS FROM FINANCING ACTIVITIES
         Dividend paid                                         (5,061)              (2,476)
         Employee options exercised                               477                1,218
                                                       ---------------   ------------------
        Net cash used in financing activities                $ (4,584)            $ (1,258)
                                                       ---------------   ------------------
    DECREASE IN CASH AND CASH EQUIVALENTS                        (760)              (4,311)
    CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD           14,683               25,749
                                                       ---------------   ------------------
    CASH AND CASH EQUIVALENTS AT END OF PERIOD               $ 13,923             $ 21,438
                                                       ---------------   ------------------
 
                           ClickSoftware Technologies Ltd.
              SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
                 (Unaudited. In thousands, except per share amounts)
 
                                        Three Months Ended
                            June 30, 2012               June 30, 2011
                         -------------------          -----------------------
                                   % of                            % of
                            $    Revenues               $        Revenues
                         -------------------          -----------------------
 
    GAAP Net income        $    73      0%             $ 2,599             13%
    Share-based
    compensation (1)           684                         401
    Amortization of
    intangible assets (2)      174                         202
    Deferred taxes              40                         310
                         -------------------          -----------------------
    Non-GAAP Net income    $   971      4%             $ 3,512             17%
                         -------------------          -----------------------
 
    GAAP Earnings per      
    share (diluted)        $  0.00                      $ 0.08
    Share-based
    compensation              0.02                        0.01
    Amortization of
    intangible assets         0.01                        0.01
    Deferred taxes            0.00                        0.01
                         -------------------          -----------------------
    Non-GAAP Earnings per     
    share (diluted)        $  0.03                      $ 0.11
                         -------------------          -----------------------
 
    (1) Share-based
    compensation:
            Cost of
            services            82                          58
            Research and
            development
            costs, net          64                          49
            Selling and
            marketing
            expenses           156                         110
            General and
            administrative
            expenses           382                         184
                         -------------------          -----------------------
                            $  684                       $ 401
                         -------------------          -----------------------
 
    (2) Amortization of
    intangible assets:
    Cost of revenues           144                         173
    Research and
    development costs,
    net                         30                          29
                         -------------------          -----------------------
                            $  174                       $ 202
                         -------------------          -----------------------
 
   
                           ClickSoftware Technologies Ltd.
               SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
                 (Unaudited. In thousands, except per share amounts)
 
                                            Six Months Ended
                                June 30, 2012                 June 30, 2011   
                          -------------------    ------------------------------
                                       % of                            % of
                             $       Revenues               $        Revenues
                          -------------------    ------------------------------
 
    GAAP Net income        $    774      2%             $ 4,847             12%
    Share-based
    compensation (1)          1,232                         712
    Amortization of
    intangible assets (2)       415                         404
    Deferred taxes             (120)                        750
                          -------------------    ------------------------------
    Non-GAAP Net income    $  2,301      5%             $ 6,713             17%
                          -------------------    ------------------------------
 
    GAAP Earnings per         
    share (diluted)        $   0.02                      $ 0.15
    Share-based
    compensation               0.04                        0.02
    Amortization of
    intangible assets          0.01                        0.01
    Deferred taxes             0.00                        0.03
                          -------------------    ------------------------------
    Non-GAAP Earnings per     
    share (diluted)        $   0.07                      $ 0.21
                          -------------------    ------------------------------
 
    (1) Share-based
    compensation:
            Cost of
            services            141                          97
            Research and
            development
            costs, net          113                          83
            Selling and
            marketing
            expenses            273                         187
            General and
            administrative
            expenses            705                         345
                          -------------------    ------------------------------
                           $  1,232                       $ 712
                          -------------------    ------------------------------
 
    (2) Amortization of
    intangible assets:
    Cost of revenues            355                         345
    Research and
    development costs,
    net                          60                          59
                          -------------------    ------------------------------
                           $    415                       $ 404
                          -------------------    ------------------------------
 

ClickSoftware Contact: Noa Schuman Investor Relations +972-3-7659-467 Noa.Schuman@clicksoftware.com Investor Relations Contact: Rob Fink KCSA Strategic

+1-212-896-1206 rfink@kcsa.com

 

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