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ClickSoftware Reports Record Revenues for the Third Quarter Ended September 30, 2012

 ClickSoftware Reports Record Revenues for the Third Quarter Ended September
                                   30, 2012

Quarterly Revenues Up 18% Year-Over-Year, Reaching $27.3 Million

PR Newswire

BURLINGTON, Massachusetts, October 31, 2012

BURLINGTON, Massachusetts, October 31, 2012 /PRNewswire/ --

ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of
automated workforce management and optimization solutions for the service
industry, today announced results for the third quarter ended September 30,
2012.

For the third quarter ended September 30, 2012, total revenues were $27.3
million, up 18% from $23.2 million in the third quarter of 2011. Net income
for the third quarter of 2012 was $2.8 million, or $0.09 per fully diluted
share, compared to net income of $4.5 million, or $0.14 per fully diluted
share, for the same period last year.

Non-GAAP net income for the quarter was $3.7 million, or $0.11 per fully
diluted share, compared to $5.5 million, or $0.17 per fully diluted share, for
the same period last year.

Software license revenues for the third quarter of 2012 were $11.0 million, up
24% compared to software license revenues of $8.9 million for the same period
last year. Service and maintenance revenues were $16.3 million, up 14%
compared to service and maintenance revenues of $14.3 million in the same
period last year.

Gross profit in the third quarter of 2012 was $17.5 million, or 64% of
revenues, compared to $15.2 million, or 66% of revenues, in the same period
last year.

Net cash provided by operating activities was $4.5 million during the third
quarter of 2012. After paying a cash dividend of $2.5 million, cash, cash
equivalents and short and long-term investments at the end of the third
quarter of 2012 were $51.6 million, an increase of $1.7 million compared to
the end of the second quarter of 2012.

Management Commentary

"We are pleased with the strong results for the third quarter. Significant
operational progress, healthy bookings and a strong pipeline of new business
provide us with confidence in our strategy and good visibility moving
forward. Specifically, investments to address increased market demand in the
workforce management market by enhancing our Mobility, Shift Planning and
Cloud offerings are paying off. We are seeing traction in new verticals while
successful deployments in traditional industries such as Telecommunication and
Utilities continue to support our value proposition and highlight the strength
of our market position. Growing market demand in the Americas - including
Latin America - and Russia have more than offset any weakness we've seen in
Europe. Our market position has again been supported by industry analysts and
independent market research. For the second year in a row, we were ranked as
Leader in Gartner's Magic Quadrant for Field Service Management report and we
continue to drive the workforce management and enterprise mobility market from
a leadership position," said Dr. Moshe BenBassat, ClickSoftware's Chairman and
CEO.

"As we look forward to the fourth quarter and beyond, we will continue to
differentiate ourselves through innovative product offerings that allow
service providers to better optimize their workforce and reduce
inefficiencies. As our investments continue to bear fruit, we look forward to
taking the company to the next level by potentially reaching, then surpassing,
the $100 million sales mark," Dr. BenBassat concluded.

Outlook

The Company reiterates the previously provided full year 2012 guidance of
revenues in the range of $98 to $103 million, representing about 13% to 18%
growth over 2011.

Cash Dividend

ClickSoftware also announced today that on October 29, 2012, its Board of
Directors approved a $0.08 per share dividend to be paid on November 28, 2012
to all shareholders of record as of the close of business on November 14,
2012. The dividend will be paid net of any required tax. The Company does not
have a formal policy governing the amounts and payment of dividends, and the
declaration and payment of future dividends, if any, is at the discretion of
the Company's Board of Directors. 

Investors Conference Call

ClickSoftware will host a conference call today at 9:00 a.m. EDT 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) 668-9141 and ask for the ClickSoftware conference call.
International participants, please call +972-3-918-0609. The call will be
broadcasted by live webcast on the internet (in listen mode only) at
http://ir.clicksoftware.com. A replay of this webcast will be available on
the ClickSoftware website. Alternatively, a telephone replay of the call will
be available for a week by calling (888) 326-9310 (international callers can
dial +972-3-925-5901).

About ClickSoftware

ClickSoftware (NasdaqGS: CKSW) is the leading provider of automated mobile
workforce management and service optimization solutions for the enterprise,
both for mobile and in-house resources. As pioneers of the "Service chain
optimization" concept, our solutions provide organizations with end-to-end
visibility and control of the entire service management chain by optimizing
forecasting, planning, shift and task scheduling, mobility and real-time
management of resource and customer communication.

Available via the cloud or on-premise, our products incorporate best business
practices and advanced decision-making algorithms to manage service operations
more efficiently, in a scalable, integrated manner. Our solutions have become
the backbone for many leading organizations worldwide by addressing the
fundamental question of job fulfillment: Who does What, for Whom, With what,
Where and When.

ClickSoftware is the premier choice for delivering superb business performance
to service sector organizations of all sizes. 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 and 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, market demand and the
results of our increased investment to address such market demand. 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
                                 September 30, 2012        September 30, 2011
                                               % of                    % of
                                      $      Revenues        $       Revenues
    Revenues:
        Software license          $ 10,969      40%       $ 8,861        38%
        Services                    16,348      60%        14,300        62%
                                  --------   ------       -------      -----
            Total revenues          27,317     100%        23,161       100%
                                  --------   ------       -------      -----
    Cost of revenues:
        Software license               967       4%           733         3%
        Services                     8,858      32%         7,255        31%
                                  --------   ------       -------      -----
            Total cost of
            revenues                 9,825      36%         7,988        34%
                                  --------   ------       -------      -----
    Gross profit                    17,492      64%        15,173        66%
                                  --------   ------       -------      -----
    Operating expenses:
        Research and
        development costs, net       3,625      13%         2,266        10%
        Selling and marketing
        expenses                     8,515      31%         5,682        25%
        General and
        administrative expenses      2,247       8%         1,925         8%
                                  --------   ------       -------      -----
           Total operating
           expenses                 14,387      53%         9,873        43%
                                  --------   ------       -------      -----
    Operating income                 3,105      11%         5,300        23%
    Interest expenses, net              16       0%           150         1%
                                  --------   ------       -------      -----
    Net income before taxes        $ 3,089      11%       $ 5,150        22%
    Tax expense                        281       1%           658         3%
                                  --------   ------       -------      -----
    Net income                     $ 2,808      10%       $ 4,492        19%
                                  --------   ------       -------      -----
    Net earnings per
    ordinary share:
    Basic                           $ 0.09                 $ 0.14
                                  --------                -------     
    Diluted                         $ 0.09                 $ 0.14
                                  --------                -------    
    Shares used in
    computing basic            
    net income per share        31,597,918             31,220,275
                                ----------             ----------
    Shares used in
    computing diluted         
    net income per share        32,740,287             32,645,964
                                ----------             ----------

                          ClickSoftware Technologies Ltd.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
           (Unaudited. In thousands, except share and per share amounts)

                                             Nine Months Ended
                              September 30, 2012        September 30, 2011
                                           % of                    % of
                                  $      Revenues        $       Revenues
    Revenues:
        Software license       $ 23,694      33%      $ 22,379        35%
        Services                 47,953      67%        40,749        65%
                               --------   ------       -------      -----
            Total revenues       71,647     100%        63,128       100%
                               --------   ------       -------      -----
    Cost of revenues:
        Software license          2,532       4%         1,764         3%
        Services                 26,457      37%        20,957        33%
                               --------   ------       -------      -----
            Total cost of
            revenues             28,989      40%        22,721        36%
                               --------   ------       -------      -----
    Gross profit                 42,658      60%        40,407        64%
                               --------   ------       -------      -----
    Operating expenses:
        Research and
        development costs, net    9,275      13%         6,418        10%
        Selling and marketing
        expenses                 23,252      32%        17,277        27%
        General and 
        administrative expenses   6,444       9%         5,291         8%
                               --------   ------       -------      -----
             Total operating
             expenses            38,971      54%        28,986        46%
                               --------   ------       -------      -----
    Operating income              3,687       5%        11,421        18%
    Interest income
    (expenses), net                 210       0%         (172)         0%
                              --------   ------       -------      -----
    Net income before taxes     $ 3,897       5%      $ 11,249        18%
    Tax expense, net                315       0%         1,910         3%
                               --------   ------       -------      -----
    Net income                  $ 3,582       5%       $ 9,339        15%
                               --------   ------       -------      -----
    Net earnings per
    ordinary share:
    Basic                        $ 0.11                 $ 0.30
                               --------                -------
    Diluted                      $ 0.11                 $ 0.29
                               --------                -------
    Shares used in
    computing basic         
    net income per share     31,520,923             30,921,921
                             ----------             ----------
    Shares used in
    computing diluted      
    net income per share     32,869,186             32,270,766
                             ----------             ----------


                             ClickSoftware Technologies Ltd.
                               CONSOLIDATED BALANCE SHEETS
                            (In thousands, except share data)
                                                      September 30,  December 31,
                                                           2012         2011
                                                       (Unaudited)   (Audited)
              ASSETS
     CURRENT ASSETS
      Cash and cash equivalents                          $ 21,771    $ 14,683
      Deposits                                             18,538      28,243
      Marketable securities                                10,195      10,945
      Trade receivables, net                               26,940      23,378
      Deferred taxes                                          680         540
      Other receivables and prepaid expenses                2,874       2,610
                                                          -------     -------
               Total current assets                        80,998      80,399
                                                          -------     -------
     LONG TERM ASSETS
      Property and equipment, net                           4,294       3,873
      Deposits                                              1,094       1,093
      Other receivables and
      prepaid expenses                                         90         233
      Deferred taxes                                          580         550                
      Intangible assets,net                                   602       1,166
      Goodwill                                              1,572       1,572
      Severance pay funds                                   1,874       1,746
                                                          -------     -------
                Total long term assets                     10,106      10,233
                                                          -------     -------
              Total Assets                               $ 91,104    $ 90,632
                                                         ========    ========
                                                       
                LIABILITIES AND SHAREHOLDERS' EQUITY
     CURRENT LIABILITIES
      Accounts payable and accrued expenses              $ 14,449    $ 13,608
      Dividend payable                                          -       2,536
      Deferred revenues                                     9,886       9,529
                                                          -------     -------
                 Total current liabilities                 24,335      25,673
                                                          -------     -------
     LONG TERM LIABILITIES
      Accrued severance pay                                 4,300       3,847
      Deferred taxes liability                                280         180
      Deferred revenues                                     1,793       1,828
                                                          -------     -------        
                 Total long term liabilities                6,373       5,855
                                                          -------     -------
                  Total liabilities                        30,708      31,528
                                                          -------     -------
     SHAREHOLDERS' EQUITY
      Ordinary shares of NIS
      0.02 par value                                          132         131
      Additional paid-in capital                           86,822      84,383
      Accumulated deficit                                 (26,672)    (25,200)
      Accumulated other comprehensive income                  157        (167)
      Treasury stock, at cost: 39,000 shares                  (43)        (43)
                                                          -------     -------             
                 Total shareholders' equity                60,396      59,104
                                                          -------     -------
             Total Liabilities and
             shareholders' equity                        $ 91,104    $ 90,632
                                                         ========    ========
                                                       


                                   ClickSoftware Technologies Ltd.
                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                      (Unaudited, In thousands)
                                                                Nine Months Ended
                                                          September 30,    September 30,
                                                                2012             2011
    CASH FLOWS FROM OPERATING ACTIVITIES
       Net income                                            $ 3,582          $ 9,339
       Adjustments to reconcile net income to
       net cash provided by operating activities:
        Income and expense items not involving cash flows:
             Depreciation                                      1,572            1,084
             Amortization of deferred compensation             1,882            1,221
             Amortization of acquired intangible assets          565              606
             Severance pay, net                                  325              144
             Gain on marketable securities                      (123)             (71)
             Other                                                 4               10
        Changes in operating assets and liabilities:
             Trade receivables                                (3,562)          (4,217)
             Deferred taxes                                      (70)           1,010
             Other receivables                                   203              265
             Accounts payable and accrued expenses               841             (991)
             Deferred revenues                                   322            2,275
                                                             -------          -------
        Net cash provided by operating activities            $ 5,541         $ 10,675
                                                             -------          -------
    CASH FLOWS FROM INVESTING ACTIVITIES
         Purchase of equipment                                (1,998)          (1,272)
         Decrease (increase) in deposits                       9,704          (14,458)
         Investments in marketable securities                 (1,075)          (7,360)
         Proceeds from sale of marketable securities           1,948            4,831
                                                             -------          -------
       Net cash provided by (used in) investment activities  $ 8,579        $ (18,259)
                                                             -------          -------
    CASH FLOWS FROM FINANCING ACTIVITIES                                               
         Dividend paid                                        (7,590)          (4,976)
         Employee options exercised                              558            1,279
                                                             -------          -------
       Net cash used in financing activities                $ (7,032)        $ (3,697)
                                                             -------          -------
    DECREASE IN CASH AND CASH EQUIVALENTS                      7,088          (11,281)
    CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD          14,683           25,749
                                                             -------          -------
    CASH AND CASH EQUIVALENTS AT END OF PERIOD              $ 21,771         $ 14,468
                                                             -------          -------


                            ClickSoftware Technologies Ltd.
                SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
                  (Unaudited. In thousands, except per share amounts)

                                            Three Months Ended
                             September 30, 2012        September 30, 2011
                                          % of                       % of
                               $        Revenues         $         Revenues

    GAAP Net income           $ 2,808        10%        $ 4,492         19%
    Share-based
    compensation (1)              650                       509
    Amortization of
    intangible assets (2)         150                       202
    Deferred taxes                 50                       260
                              -------                   -------                                  
    Non-GAAP Net income       $ 3,658        13%        $ 5,463         24%
                              -------      -----        -------       -----

    GAAP Earnings per         
    share (diluted)            $ 0.09                    $ 0.14
    Share-based
    compensation                 0.02                      0.02
    Amortization of
    intangible assets            0.00                      0.00
    Deferred taxes               0.00                      0.01
                              -------                   -------  
    Non-GAAP Earnings per     
    share (diluted)            $ 0.11                    $ 0.17
                              -------                   -------  

   (1) Share-based compensation:
        Cost of services           86                        53
        Research and development
        costs, net                 72                        43
        Selling and marketing
        expenses                  165                       101
        General and administrative
        expenses                  327                       312
                              -------                   -------  
                                $ 650                     $ 509
                              -------                   -------   
   (2) Amortization of
       intangible assets:
        Cost of revenues          121                       172
        Research and development
        costs, net                 29                        30
                              -------                   -------  
                                $ 150                     $ 202
                              -------                   -------  


                            ClickSoftware Technologies Ltd.
                SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
                  (Unaudited. In thousands, except per share amounts)

                                        Nine Months Ended                            
                          September 30, 2012         September 30, 2011
                                        % of                          % of
                             $        Revenues           $          Revenues

    GAAP Net income           $ 3,582      5%           $ 9,339         15%
    Share-based
    compensation (1)            1,882                     1,221
    Amortization of
    intangible assets (2)         565                       606
    Deferred taxes               (70)                    1,010
                              -------                   -------                                 
    Non-GAAP Net income       $ 5,959      8%          $ 12,176         19%
                              -------   -----          --------       -----

    GAAP Earnings per         
    share (diluted)            $ 0.11                    $ 0.29
    Share-based
    compensation                 0.06                      0.04
    Amortization of
    intangible assets            0.01                      0.02
    Deferred taxes               0.00                      0.03
                              -------                   -------  
    Non-GAAP Earnings per     
    share (diluted)            $ 0.18                    $ 0.38
                              -------                   -------  

    (1) Share-based compensation:
          Cost of services        227                       150
          Research and development
          costs, net              185                       126
          Selling and marketing
          expenses                438                       288
          General and administrative
          expenses              1,032                       657
                              -------                   -------                               
                              $ 1,882                   $ 1,221
                              -------                   -------  
    (2) Amortization of
        intangible assets:
          Cost of revenues        476                       517
          Research and development
          costs, net               89                        89
                              -------                   -------  
                                $ 565                     $ 606
                              -------                   -------  

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

Investor Relations Contact:
Rob Fink
KCSA Strategic Communications
+1-212-896-1206
rfink@kcsa.com

SOURCE ClickSoftware Technologies Ltd