BURLINGTON, Massachusetts, July 8, 2013 /PRNewswire/ --
ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of automated workforce management and optimization solutions for the service industry, today announced that it anticipates revenues for the second quarter ended June 30, 2013 to be approximately $24.5 million, representing about 9% growth year over year.
The Company primarily attributes the lower than expected growth rate in revenues to a faster than expected shift in its revenues to cloud-based software-as-a-service (SaaS) sales. As this revenue shift is happening, there are some delays in closing certain contracts with customers that are performing additional due diligence comparing our cloud and on-premise offerings. The transition to a SaaS model is a positive development for ClickSoftware's long term growth prospects; however this shift and the tendency of customers to lower up-front investment are having an impact on the Company's short term growth rate. Additionally, while the Company has started to gain traction in its geographical expansion, the deal closing processes are taking longer than expected.
Based on preliminary estimates of operating costs, a net loss is anticipated for the quarter ended June 30, 2013 in the range of $2.7 to $3.1 million or a loss of $0.08 to $0.10 per share. Non-GAAP net loss is expected to be between $2.1 to $2.5 million, or a loss of $0.06 to $0.08 per share (Non-GAAP net income excludes amortization of intangible assets expenses of about $50,000, share-based compensation expenses of about $600,000, and tax benefit of about $70,000 in the second quarter of 2013).The Company estimates that its cash, cash-equivalents, short and long-term investments were approximately $54.4 million as of June 30, 2013. "Overall we view the transition to cloud SaaS-based revenues as a positive development. Our shift to cloud-based sales - including for large enterprises - is occurring faster than we anticipated, and, by its very nature, impacts our ability to grow our short term top line at the rate we originally expected, therefore influencing our quarterly earnings," said Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "During the second quarter we closed a relatively higher number of new contracts, including a growing number of cloud-based engagements. Some of these customers are initially implementing our service to a smaller user base but have the potential for a larger number of users once a full roll-out is completed. We also have a number of prospect customers in advanced stages of closing during the remainder of 2013 and are encouraged by our pipeline. In fact, one large deal already closed in the first week of the third quarter. In addition to our internal sales efforts, our workforce and service optimization app is now included in SalesForce.com's marketplace under the name ClickWorkforce and is expected to contribute to our pipeline as well," he concluded.