ClickSoftware Announces Preliminary 2013 Second Quarter Financial Results

  ClickSoftware Announces Preliminary 2013 Second Quarter Financial Results

Quarterly Revenues Expected to be approximately $24.5 Million, Representing
About 9% Year over Year Growth

PR Newswire

BURLINGTON, Massachusetts, July 8, 2013

BURLINGTON, Massachusetts, July 8, 2013 /PRNewswire/ --

ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of
automated workforce management and optimization solutions for the service
industry, today announced that it anticipates revenues for the second quarter
ended June 30, 2013 to be approximately $24.5 million, representing about 9%
growth year over year.

The Company primarily attributes the lower than expected growthrate in
revenues to a faster than expected shift in its revenuesto cloud-based
software-as-a-service (SaaS) sales. As this revenue shift is happening, there
are some delays in closing certain contracts with customers that are
performing additional due diligence comparing our cloud and on-premise
offerings. The transition to a SaaS model is a positive development for
ClickSoftware's long term growth prospects; however this shift and the
tendency of customers to lower up-front investment are having an impact on the
Company's short term growth rate. Additionally, while the Company has started
to gain traction in its geographical expansion, the deal closing processes are
taking longer than expected.

Based on preliminary estimates of operating costs, a net loss is anticipated
for the quarter ended June 30, 2013 in the range of $2.7 to $3.1 million or a
loss of $0.08 to $0.10 per share. Non-GAAP net loss is expected to be between
$2.1 to $2.5 million, or a loss of $0.06 to $0.08 per share (Non-GAAP net
income excludes amortization of intangible assets expenses of about $50,000,
share-based compensation expenses of about $600,000, and tax benefit of about
$70,000 in the second quarter of 2013).

The Company estimates that its cash, cash-equivalents, short and long-term
investments were approximately $54.4 million as of June 30, 2013.

"Overall we view the transition to cloud SaaS-based revenues as a positive
development. Our shift to cloud-based sales - including for large enterprises
- is occurring faster than we anticipated, and, by its very nature, impacts
our ability to grow our short term top line at the rate we originally
expected, therefore influencing our quarterly earnings," said Dr. Moshe
BenBassat, ClickSoftware's Chairman and CEO.

"During the second quarter we closed a relatively higher number of new
contracts, including a growing number of cloud-based engagements. Some of
these customers are initially implementing our service to a smaller user base
but have the potential for a larger number of users once a full roll-out is
completed. We also have a number of prospect customers in advanced stages of
closing during the remainder of 2013 and are encouraged by our pipeline. In
fact, one large deal already closed in the first week of the third quarter. In
addition to our internal sales efforts, our workforce and service optimization
app is now included in SalesForce.com's marketplace under the name
ClickWorkforce and is expected to contribute to our pipeline as well," he
concluded. 

Financial Outlook

While the long-term prospects of the Company remain positive, the Company is
reducing the previously provided full year 2013 guidance due to a faster than
anticipated transition into Cloud SaaS-based revenues and slow ramp-up of
revenues from new territories. Revenues are now expected to be between $110
million to $115 million, representing 10% to 15% growth over 2012. The Company
expects to further update the EPS guidance in the quarterly earnings release
later this month.

The above assessment for the second quarter of 2013 is based on the Company's
initial analysis and is subject to change as additional financial information
becomes available. ClickSoftware will release its second quarter financial
results on Wednesday, July 24, 2013, during pre-market hours. A press release
announcing dial-in and webcasting details for the related conference call will
be issued in advance.

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 http://www.clicksoftware.com, follow us on
Twitter, the content of which is not incorporated herein by reference.

To download ClickSoftware's investor relations app, which offers access to SEC
documents, press releases, videos, audiocasts and more, the content of which
is not incorporated herein by reference, please visit Apple's App Store to
download on your iPhone and iPad, or Google Play for your Android mobile
device.

Use of Non-GAAP Financial Results

In addition to disclosing preliminary estimates of our financial results
calculated in accordance with U.S. generally accepted accounting principles
(GAAP), this press 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. 

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 our expected revenues, net loss, net
loss per share and cash, cash equivalents, short and long-term investments for
and as of the end of the second quarter of 2013, future trends in SaaS
cloud-based revenues and prospects for the remainder of 2013 and long-term,
closing of contracts, expansion into new territories and our outlook for full
year 2013 revenues. 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,
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, 2012 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:
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
 
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