ClickSoftware Reports Record Revenues of $100 Million for 2012 Annual Revenues Increase 15%; Fourth Quarter Revenues Increase 19% Year-Over-Year; Company Announces 2013 Revenue and EPS Guidance PR Newswire BURLINGTON, Mass., Feb. 4, 2013 BURLINGTON, Mass., Feb. 4, 2013 /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 fourth quarter and year ended December 31, 2012. Fourth Quarter and Full Year 2012 Highlights oFourth quarter 2012 revenues reach $28.4 million (19% growth); o2012 annual revenues reach $100 million mark (15% growth); oTotal cash and investments at $59.4 million; oAnnual cash from operations was $16.2 million. Fourth Quarter Results For the fourth quarter ended December 31, 2012, total revenues were $28.4 million, up 19% from $24.0 million in the fourth quarter of 2011. Net income for the fourth quarter of 2012 was $3.9 million, or $0.12 per fully diluted share, compared to net income of $2.9 million, or $0.09 per fully diluted share, for the same period last year. Non-GAAP net income for the quarter was $4.2 million, or $0.13 per fully diluted share, compared to $4.9 million, or $0.15 per fully diluted share, for the same period last year. Software license revenues for the fourth quarter of 2012 were $10.8 million, up 18% compared with software license revenues of $9.2 million for the same period last year. Service and maintenance revenues were $17.6 million, up 19% compared with service and maintenance revenues of $14.8 million in the same period last year. Gross profit in the fourth quarter of 2012 was $18.5 million, or 65% of revenues, compared to $15.0 million, or 63% of revenues, in the same period last year. Net cash provided by operating activities was $10.7 million during the fourth quarter of 2012. Following a $2.5 million cash dividend payment, cash, cash equivalents and short and long-term investments at the end of the fourth quarter of 2012 were $59.4 million, an increase of $7.8 million compared to the end of the third quarter of 2012. Full Year 2012 Results Total revenues for 2012 grew 15% over 2011 to $100.0 million, yielding net income of $7.5 million, or $0.23 per fully diluted share.This compares with revenues of $87.1 million and net income of $12.2 million, or $0.38 per fully diluted share, for 2011. Non-GAAP net income for 2012 was $10.2 million, or $0.31 per fully diluted share. This compares with Non-GAAP net income of $17.0 million, or $0.53 per fully diluted share, for 2011. Management Commentary "2012 was an exciting year for us as we broke the $100 million revenue mark and invested in initiatives that will expand our addressable market and allow us to accelerate long-term growth," commented Dr. Moshe BenBassat, ClickSoftware's Chairman and CEO. "Contributing to our annual results was a record fourth quarter with $28.4 million in revenues, which was solidified by strong wins with new customers and continued geographic expansion. The reduction of our profitability in 2012 is mostly attributable to our investments in cloud operations, research and development and sales and marketing. During 2012 we hired more than a hundred employees, growing our headcount by about 25%. These investments establish the groundwork for accelerated growth in 2013 and beyond, and will also allow us to further expand our product offering while creating higher barriers of entry for our competitors. For example, new developments that integrate mobility and our patent-pending ClickButler technology into shift optimization provide a differentiated product that meets the demands of an evolving market and delivers a unique value and functionality not offered by any other vendor." "The investments in our three major growth initiatives: mobility, cloud services and geographic expansion, continue to progress and we see increased return on these efforts. In mobility, there was a noticeable increase in interest in our solutions and, in 2012, 80% of our new customers purchased our mobile solution. In the cloud, we have added 10 new customers during the past year, and our pipeline for cloud-based solutions is considerably larger than what it was a year ago. We expect this growth to continue and translate into increased revenues going forward. Similarly, in terms of new territories, we are entering new markets and winning new deals. As we continue to execute our strategic long term plan, we are confident we will be able to accelerate growth beyond the historical rates we have been used to," Dr. BenBassat concluded. Financial Outlook For 2013, the Company currently expects top line growth of 20% to 25%, and to achieve revenues in the $120 to $125 million range. This outlook is based on approximately $33.2 million in backlog and deferred revenues, current visibility into a growing sales pipeline and expected expansion into new territories and industry verticals. Non-GAAP fully diluted earnings per share for 2013 is expected to be in the range of $0.24 to $0.30, which excludes share-based compensation, deferred taxes expense and amortization of intangible assets costs of approximately $0.08, $0.01 and $0.01 per fully diluted share respectively. GAAP fully diluted earnings per share is expected to be in the range of $0.14 to $0.20. Cash Dividend ClickSoftware also announced today that on February 3, 2013, its Board of Directors approved a $0.08 per share dividend to be paid on March 4, 2013 to all shareholders of record as of the close of business on February 18, 2013. 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. EST 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" and "The real-time service enterprise" concepts, 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 www.clicksoftware.com and follow us on Twitter, the content of which is not a part of this press release. To download ClickSoftware's investor relations app, which offers access to SEC documents, press releases, videos, audiocasts and more, please visit https://itunes.apple.com/us/app/cksw-ir/id530880886?mt=8 to download on your iPhone and iPad, or https://play.google.com/store/apps/details?id=com.theirapp.ckswir&hl=en for your Android mobile device. 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 2013 revenues and non-GAAP earnings per share, visibility into future periods and pipeline, winning new business, expected growth in mobility solutions and cloud services and demand for those offerings, expected expansion in new territories and new markets, growth and future rates of growth and expectations of future cash flows and dividends. 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. ClickSoftware Contact: Investor Relations Contact: Noa Schuman Rob Fink Investor Relations KCSA Strategic Communications +972-3-7659-467 212-896-1206 Noa.Schuman@clicksoftware.com firstname.lastname@example.org Note: Financial Schedules Attached ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited. In thousands, except share and per share amounts) Three Months Ended December 31, 2012 December 31, 2011 $ % of $ % of Revenues Revenues Revenues: Software license $ 38% $ 38% 10,847 9,163 Services 17,552 62% 14,796 62% Total revenues 28,399 100% 23,959 100% Cost of revenues: Software license 1,154 4% 755 3% Services 8,728 31% 8,220 34% Total cost of 9,882 35% 8,975 37% revenues Gross profit 18,517 65% 14,984 63% Operating expenses: Research and development 3,871 14% 2,601 11% costs, net Selling and marketing 8,725 31% 6,105 25% expenses General and administrative 2,335 8% 2,095 9% expenses Impairment of goodwill - - 939 4% Total operating 14,931 53% 11,740 49% expenses Operating income 3,586 13% 3,244 14% Other income 110 0% - - Interest income, net 64 0% 179 1% Net income before taxes $ 13% $ 14% 3,760 3,423 Tax (benefit) expense, net (146) (1)% 552 2% Net income $ 14% $ 12% 3,906 2,871 Net earnings per ordinary share: Basic $ $ 0.12 0.09 Diluted $ $ 0.12 0.09 Shares used in computing basic 31,622,991 31,297,842 net income per share Shares used in computing diluted 32,747,616 32,758,847 net income per share ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Year Ended December 31, 2012 December 31, 2011 (Unaudited) (Audited) $ % of $ % of Revenues Revenues Revenues: Software license $ 35% $ 36% 34,541 31,542 Services 65,505 65% 55,545 64% Total revenues 100,046 100% 87,087 100% Cost of revenues: Software license 3,686 4% 2,519 3% Services 35,185 35% 29,177 34% Total cost of revenues 38,871 39% 31,696 36% Gross profit 61,175 61% 55,391 64% Operating expenses: Research and development 13,146 13% 9,019 10% costs, net Selling and marketing 31,977 32% 23,382 27% expenses General and 8,779 9% 7,386 8% administrative expenses Impairment of goodwill - - 939 1% Total operating expenses 53,902 54% 40,726 47% Operating income 7,273 7% 14,665 17% Other income 110 0% - - Interest income, net 274 0% 7 0% Net income before taxes $ 8% $ 17% 7,657 14,672 Tax expense, net 169 0% 2,462 3% Net income $ 8% $ 14% 7,488 12,210 Net earnings per ordinary share: Basic $ $ 0.24 0.39 Diluted $ $ 0.23 0.38 Shares used in computing basic 31,545,435 31,014,373 net income per share Shares used in computing diluted 32,837,789 32,226,883 net income per share ClickSoftware Technologies Ltd. CONSOLIDATED BALANCE SHEETS (In thousands, except share data) December 31, December 31, 2012 2011 (Unaudited) (Audited) ASSETS CURRENT ASSETS Cash and cash equivalents $ $ 12,793 14,683 Deposits 30,310 28,243 Marketable securities 15,635 10,945 Trade receivables, net 21,792 23,378 Deferred taxes 220 540 Other receivables and prepaid expenses 3,398 2,610 Total current assets 84,148 80,399 LONG TERM ASSETS Property and 4,206 3,873 equipment, net Deposits 621 1,093 Other receivables and 275 233 prepaid expenses Deferred taxes 1,230 550 Intangible assets, net 452 1,166 Goodwill 1,572 1,572 Severance pay funds 1,965 1,746 Total long term assets 10,321 10,233 Total Assets $ $ 94,469 90,632 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ $ 16,536 13,608 Dividend payable - 2,536 Deferred revenues 9,047 9,529 Total current liabilities 25,583 25,673 LONG TERM LIABILITIES Accrued severance pay 4,465 3,847 Deferred taxes liability - 180 Deferred revenues 1,503 1,828 Total long term liabilities 5,968 5,855 Total liabilities 31,551 31,528 SHAREHOLDERS' EQUITY Ordinary shares of NIS 0.02 par value 132 131 Additional paid-in capital 87,566 84,383 Accumulated deficit (25,296) (25,200) Accumulated other comprehensive income 559 (167) Treasury stock, at cost: 39,000 shares (43) (43) Total shareholders' equity 62,918 59,104 Total Liabilities $ $ and shareholders' equity 94,469 90,632 ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2012 December 31, 2011 (Unaudited) (Audited) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 7,488 $ 12,210 Adjustments to reconcile net income to net cash provided by operating activities: Income and expense items not involving cash flows: Depreciation 2,144 1,519 Amortization of deferred 2,534 1,731 compensation Amortization of acquired 715 782 intangible assets Impairment of goodwill - 939 Impairment of acquired intangible - 55 assets Severance pay, net 399 373 Gain on marketable securities (146) (94) Other 12 11 Changes in operating assets and liabilities: Trade receivables 1,586 (9,123) Deferred taxes (540) 1,310 Other receivables (104) (443) Accounts payable and accrued 2,928 1,034 expenses Deferred revenues (807) 1,623 Net cash provided by operating $ 16,209 $ 11,927 activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of equipment (2,490) (2,018) Increase in deposits (1,595) (11,969) Investments in marketable (7,459) (8,298) securities Proceeds from sale of 2,915 5,286 marketable securities Net cash used in investment $ (8,629) $ (16,999) activities CASH FLOWS FROM FINANCING ACTIVITIES Dividend paid (10,120) (7,481) Employee options exercised 650 1,487 Net cash used in financing $ (9,470) $ (5,994) activities DECREASE IN CASH AND CASH (1,890) (11,066) EQUIVALENTS CASH AND CASH EQUIVALENTS AT 14,683 25,749 BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END $ 12,793 $ 14,683 OF PERIOD ClickSoftware Technologies Ltd. SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (Unaudited. In thousands, except per share amounts) Three Months Ended December 31, December 31, 2012 2011 $ % of $ % of Revenues Revenues $ $ GAAP Net income 14% 12% 3,906 2,871 Share-based compensation (1) 652 510 Amortization of intangible assets (2) 150 176 Impairment of goodwill and other intangible assets - 994 Deferred taxes (470) 300 $ $ Non-GAAP Net income 15% 20% 4,238 4,851 $ $ GAAP Earnings per share (diluted) 0.12 0.09 Share-based compensation 0.02 0.02 Amortization of intangible assets 0.00 0.00 Impairment of goodwill and other intangible assets 0.00 0.03 Deferred taxes (0.01) 0.01 $ $ Non-GAAP Earnings per share (diluted) 0.13 0.15 (1) Share-based compensation: $ $ Cost of services 85 52 Research and development costs, net 69 42 Selling and marketing expenses 173 101 General and administrative expenses 325 315 $ $ 652 510 (2) Amortization of intangible assets: $ $ Cost of revenues 121 147 Research and development costs, net 29 29 $ $ 150 176 ClickSoftware Technologies Ltd. SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (Unaudited. In thousands, except per share amounts) Year Ended December 31, December 31, 2012 2011 $ % of $ % of Revenues Revenues $ $ GAAP Net income 7% 14% 7,488 12,210 Share-based compensation (1) 2,534 1,731 Amortization of intangible assets (2) 715 782 Impairment of goodwill and other intangible assets - 994 Deferred taxes (540) 1,310 $ $ Non-GAAP Net income 10% 20% 10,197 17,027 $ $ GAAP Earnings per share (diluted) 0.23 0.38 Share-based compensation 0.08 0.05 Amortization of intangible assets 0.02 0.03 Impairment of goodwill and other intangible assets 0.00 0.03 Deferred taxes (0.02) 0.04 $ $ Non-GAAP Earnings per share (diluted) 0.31 0.53 (1) Share-based compensation: $ $ Cost of services 312 202 Research and development costs, net 254 168 Selling and marketing expenses 611 389 General and administrative expenses 1,357 972 $ $ 2,534 1,731 (2) Amortization of intangible assets: $ Cost of $ revenues 597 664 Research and development costs, net 118 118 $ $ 715 782 SOURCE ClickSoftware Technologies Ltd. Website: http://www.clicksoftware.com
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ClickSoftware Reports Record Revenues of $100 Million for 2012
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