ClickSoftware Reports Financial Results: Record Booking, Strong Cash Increase for the 4th Quarter and Year Ended December 31, 2007
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BURLINGTON, Massachusetts, January 30 /PRNewswire-FirstCall/ -- ClickSoftware Technologies, Ltd., (NasdaqCM: CKSW), the leading provider of mobile workforce management and service optimization solutions, today announced results for the fourth quarter and year ended December 31, 2007.
For the fourth quarter ended December 31, 2007, total revenues were $10.4 million, with net income of $0.5 million, or $0.02 per share. This compares with revenues of $9.3 million and net income of $1.1 million, or $0.04 per share, for the same period last year, and revenues of $10.1 million and net income of $0.7 million, or $0.03 per share, for the third quarter of 2007. Excluding the effects of share-based compensation expenses related to the adoption of SFAS-123R, net income was $0.7 million, or $0.02 per share, for the fourth quarter of 2007.
Software license revenues for the fourth quarter of 2007 were $3.2 million, while service and maintenance revenues were $7.2 million. This compares to software license revenues of $3.4 million and service and maintenance revenues of $5.9 million for the same period last year, and $4.3 million and $5.8 million, respectively, in the third quarter of 2007.
Gross profit in the fourth quarter of 2007 was $6.7 million, or 64% of revenues, compared to $5.9 million, or 63% of revenues, in the same period last year, and $6.0 million, or 59% of revenues, in the third quarter of 2007.
Cash, cash equivalents and short and long-term investments in the fourth quarter of 2007 increased significantly to $24.7 million from $21.3 million at the end of the third quarter of 2007. Net cash provided from operating activities was $3.6 million during the fourth quarter of 2007.
Full Year Results
Total revenues for 2007 grew 23% over 2006 to $40.0 million, with consolidated net income of $2.6 million, or $0.09 per share. This compares with revenues of $32.4 million and net income of $2.1 million, or $0.08 per share, for 2006. Excluding the effects of share-based compensation expenses related to the adoption of SFAS-123R, net income for 2007 was $3.3 million, or $0.11 per share.
Management Commentary
"2007 was an excellent year for ClickSoftware. Not only did we increase our revenues by 23% over 2006 to $40 million - slightly below the lower end of our guidance range of $41-$42 million - but we are also starting 2008 with a very comfortable backlog level and deferred revenues of approximately $20.5 million dollars. Record total bookings for 2007 were approximately $46 million, representing a nearly 1.15 book-to-revenues ratio. Significant growth in our cash position has strengthened our balance sheet as we proactively seek growth opportunities in 2008. We continue to win industry leaders as customers, further bolstering our market leadership," said Dr. Moshe BenBassat, ClickSoftware's Chairman and Chief Executive Officer. "Our accomplishments in 2007 reflect the tremendous efforts and dedication of our employees and management to achieve our goals. We are starting 2008 well-staffed, with a healthy backlog and a strong pipeline, and with an excellent portfolio of existing and new product offerings," he added.
Outlook
The Company currently believes that revenues in 2008 will grow by approximately 20%-25% over 2007, reaching approximately $48-$50 million. This estimate is based on the current levels of deferred revenue, current backlog of firm commitments, and current visibility into a growing sales pipeline.
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 (800)-762-8779 and ask for the ClickSoftware conference call. International participants, please call +1-480-629-9031. 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 (800)-406-7325 (international callers can dial +1-303-590-3030), ID Code: 3827400.
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 +1-888-438-3308, or visit http://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)
December 31 December 31
-------------------------------
2007 2006
-------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 9,054 $ 13,385
Short-term investments 15,054 5,918
Trade receivables, net 6,883 6,465
Other receivables and prepaid
expenses 1,040 953
-------------------------------
Total current assets 32,031 26,721
-------------------------------
FIXED ASSETS
Cost 2,885 1,692
Less - accumulated depreciation 1,448 888
-------------------------------
Total fixed assets 1,437 804
-------------------------------
Long-term investments 602 451
Severance pay deposits 1,163 996
-------------------------------
Total Assets $ 35,233 $ 28,972
-------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued
Expenses $ 7,281 $ 5,945
Deferred revenues 5,803 5,965
-------------------------------
Total current liabilities 13,084 11,910
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LONG TERM LIABILITIES
Accrued severance pay 2,418 2,031
Deferred revenues - Long term 2,919 2,490
-------------------------------
Total long-term liabilities 5,337 4,521
-------------------------------
Total liabilities 18,421 16,431
-------------------------------
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 0.02 par value 115 113
Additional paid-in capital 73,803 72,205
Deferred Stock Compensation - (63)
Accumulated deficit (57,063) (59,671)
Treasury stock, at cost: 39,000
shares (43) (43)
-------------------------------
Total shareholders' equity 16,812 12,541
-------------------------------
Total liability and
shareholders' equity $ 35,233 $ 28,972
-------------------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
Three Months Ended
December 31, 2007 December 31, 2006
----------------- ------------------
$ % of $ % of
Revenues Revenues
----------------- ------------------
Revenues:
Software license $ 3,184 31% $ 3,442 37%
Services 7,230 69% 5,880 63%
----------------- ------------------
Total revenues 10,414 100% 9,322 100%
----------------- ------------------
Cost of revenues:
Software license 429 4% 456 5%
Services 3,268 31% 2,982 32%
----------------- ------------------
Total cost of revenues 3,697 36% 3,438 37%
----------------- ------------------
Gross profit 6,717 64% 5,884 63%
----------------- ------------------
Operating expenses:
Research and development costs,
Net 1,618 16% 1,148 12%
Selling and Marketing
expenses 3,612 35% 2,866 31%
General and administrative
Expenses 1,168 11% 874 9%
----------------- ------------------
Total operating
expenses 6,398 61% 4,888 52%
----------------- ------------------
Income from operations 319 3% 996 11%
Interest, net 206 2% 158 2%
----------------- ------------------
Net income before taxes $ 525 5% $ 1,154 12%
----------------- ------------------
Taxes on income 62 1% 95 1%
----------------- ------------------
Net income $ 463 4% $ 1,059 11%
----------------- ------------------
Net income per ordinary
share:
Basic $ 0.02 $ 0.04
----------------- ------------------
Diluted $ 0.02 $ 0.04
----------------- ------------------
Shares used in computing
basic Net income per share 28,455,972 27,932,444
------------------ -------------------
Shares used in computing
diluted Net income per
share 30,452,219 29,197,188
------------------ -------------------
ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
Year Ended
December 31, 2007 December 31, 2006
-------------------- ------------------
$ % of $ % of
Revenues Revenues
-------------------- ------------------
Revenues:
Software license $ 15,602 39% $ 12,145 37%
Services 24,417 61% 20,286 63%
-------------------- ------------------
Total revenues 40,019 100% 32,431 100%
-------------------- ------------------
Cost of revenues:
Software license 2,358 6% 1,979 6%
Services 12,937 32% 10,582 33%
-------------------- ------------------
Total cost of
revenues 15,295 38% 12,561 39%
-------------------- ------------------
Gross profit 24,724 62% 19,870 61%
-------------------- ------------------
Operating expenses:
Research and development
costs, net 5,767 14% 4,113 13%
Selling and Marketing
Expenses 13,203 33% 10,337 32%
General and
administrative expenses 4,399 11% 3,671 11%
-------------------- -----------------
Total operating
expenses 23,369 58% 18,121 56%
-------------------- -----------------
Income from operations 1,355 3% 1,749 5%
Other income 404 1% - -
Interest, net 899 2% 484 1%
-------------------- -----------------
Net income before taxes $ 2,658 7% $ 2,233 7%
-------------------- -----------------
Taxes on income 50 0% 95 0%
-------------------- -----------------
Net income $ 2,608 7% $ 2,138 7%
--------------------- -----------------
Net income per ordinary
share:
Basic $ 0.09 $ 0.08
-------------------- -----------------
Diluted $ 0.09 $ 0.08
-------------------- -----------------
Shares used in computing
basic Net income per
share 28,254,926 27,767,748
-------------------- ------------------
Shares used in computing
diluted Net income per
share 29,794,261 28,442,887
-------------------- ------------------
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
December 31, 2007 December 31, 2006
--------------------- -----------------
$ % of $ % of
Revenues Revenues
--------------------- -----------------
GAAP Net income: $ 463 4% $ 1,059 11%
Adjustment of
share-based
compensation within:
Cost of Services 25 22
Research and development
costs, net 24 18
Selling and Marketing
Expenses 47 31
General and
administrative Expenses 115 85
--------------------- -------------------
Net income excluding
share-based
compensation $ 674 6% $ 1,215 13%
--------------------- -------------------
GAAP Net income per
ordinary share:
Basic $ 0.02 $ 0.04
--------------------- -------------------
Diluted $ 0.02 $ 0.04
--------------------- -------------------
Net income per ordinary
share excluding share
-based compensation:
--------------------- ------------------
Basic $ 0.02 $ 0.04
--------------------- ------------------
Diluted $ 0.02 $ 0.04
--------------------- ------------------
ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(In thousands, except share and per share amounts)
Year Ended
December 31, 2007 December 31, 2006
--------------------- ------------------
$ % of $ % of
Revenues Revenues
--------------------- ------------------
GAAP Net income: $ 2,608 7% $ 2,138 7%
Adjustment of share-based
compensation within:
Cost of Services 98 68
Research and development
costs, Net 86 61
Selling and Marketing
expenses 156 83
General and administrative
Expenses 373 312
--------------------- ------------------
Net income excluding share
-based Compensation $ 3,321 8% $ 2,662 8%
--------------------- ------------------
GAAP Net income per
ordinary share:
Basic $ 0.09 $ 0.08
--------------------- ------------------
Diluted $ 0.09 $ 0.08
--------------------- ------------------
Net income per ordinary share
excluding share-based
compensation:
--------------------- ------------------
Basic $ 0.12 $ 0.10
--------------------- ------------------
Diluted $ 0.11 $ 0.09
--------------------- ------------------
Contacts:
Shmuel Arvatz
Chief Financial Officer
+972-3-765-9467
Shmuel.Arvatz@clicksoftware.com
Adam J. Rosen
+1-646-536-3865
arosen@rkequity.com
ClickSoftware Technologies Ltd
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