ClickSoftware Reports Record Revenues of $100 Million for 2012

        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 rfink@kcsa.com 

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