This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

ClickSoftware Announces Preliminary 2013 Second Quarter Financial Results

Stocks in this article: CKSW

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.  

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs