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ClickSoftware Reports Financial Results for the Second Quarter Ended June 30, 2013

ClickSoftware Reports Financial Results for the Second Quarter Ended June 30,
                                     2013

Quarterly Revenues Increase 10% Year-Over-Year

PR Newswire

BURLINGTON, Mass., July 24, 2013

BURLINGTON, Mass., July 24, 2013 /PRNewswire/ --ClickSoftware Technologies
Ltd. (NasdaqGS: CKSW), the leading provider of automated mobile workforce
management and optimization solutions for the service industry, today
announced results for the second quarter ended June 30, 2013.

Highlights

  oRevenues were $24.7 million (10% year-over-year growth)
  oGAAP EPS $(0.09); Non-GAAP EPS $(0.07)
  oTotal cash and investments decreased to $54.4 million
  oCash used in operations was $2.5 million

For the second quarter ended June 30, 2013, total revenues were $24.7 million,
up 10% from $22.5 million in the second quarter of 2012. Net loss for the
second quarter of 2013 was $2.9 million, or ($0.09) loss per fully diluted
share, compared to net income of $0.1 million, or $0.00 per fully diluted
share, for the same period last year. Non-GAAP net loss for the quarter was
$2.3 million, or ($0.07) loss per fully diluted share, compared to $1.0
million, or $0.03 per fully diluted share, for the same period last year.

Software license revenues for the second quarter of 2013 were $6.1 million,
down 4% compared with software license revenues of $6.3 million for the same
period last year. Service and maintenance revenues were $18.6 million, up 15%
compared with service and maintenance revenues of $16.2 million in the same
period last year.

Gross profit in the second quarter of 2013 was $13.5 million, or 55% of
revenues, compared to $12.7 million, or 57% of revenues, in the same period
last year.

Net cash used in operating activities was $2.5 million during the second
quarter of 2013. Following a $2.5 million cash dividend payment, cash, cash
equivalents and short and long-term investments at the end of the second
quarter of 2013 were $54.4 million, a decrease of $5.9 million compared to the
end of the first quarter of 2013.

Management Commentary

"We continue to implement our strategy focused on growing our mobile and cloud
revenues and remain confident doing so will properly position us to extend our
leadership in the workforce management space and secure profitable revenue
growth over the long term. Revenues in the second quarter, while still
representing 10% year-over-year growth, came in lower than expected. This is
primarily due to a faster than expected shift in our revenues to cloud-based
software-as-a-service (SaaS) sales, which also caused some delays in deal
closing processes and smaller initial deal size. Still, the cloud trend is a
positive development for ClickSoftware that will benefit us over the
long-term," said Dr. Moshe BenBassat, ClickSoftware's CEO and Founder.
"Additionally, we continue to establish winning teams in our growth
territories – Latin America and Russia. In some countries, the macro economic
conditions are challenging resulting in longer than expected closing
processes."

"Operationally, the number of new accounts we signed in the second quarter and
the number of orders received from existing customers was considerably higher
than our average. Some of these are mid-market customers which bought our
cloud-based solutions that also include mobility components. This trend,
together with our growing enterprise mobility apps and the new partnerships
with Salesforce.com and others, will allow ClickSoftware to maintain our
premium positioning and sustain competitive advantages over our competition,"
Dr. BenBassat added.

Financial Outlook

As communicated on July 8, 2013, full year 2013 revenues are expected to be
between $110 million to $115 million, representing about 10% to 15% growth
over 2012. Non-GAAP fully diluted earnings per share for 2013 is expected to
be in the range of $0.10 to $0.18, which excludes share-based compensation,
deferred taxes expense (net of tax payment for previous years retained
earnings) and amortization of intangible assets costs of approximately $0.08,
$0.01 and $0.00 per fully diluted share, respectively. GAAP fully diluted
earnings per share is expected to be in the range of $0.02 to $0.10.

Cash Dividend

ClickSoftware also announced today that on July 22, 2013, its Board of
Directors approved a $0.05 per share dividend to be paid on August 21, 2013 to
all shareholders of record as of the close of business on August 7, 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. 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 and on the Investor Relations App. Alternatively, a
telephone replay of the call will be available for a week by calling (888)
782-4291 (international callers can dial +972-3-925-5927).

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, Latin America and
Asia Pacific. For more information, please visit www.clicksoftware.comand
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, previous years retained earnings
tax 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
expected increase in market share and revenue growth, contribution of
cloud-based sales, our outlook for full year 2013 revenues and GAAP and
non-GAAP earnings per share, and expectations of future 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, the impact of the Cloud model on
initial transaction size 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.



Note: Financial Schedules Attached



ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited. In thousands, except share and per share amounts)
                                 Three Months Ended
                                 June 30, 2013          June 30, 2012
                                 $            % of      $             % of
                                              Revenues                Revenues
Revenues:
 Software license                $   6,076 25%       $   6,307  28%
 Services                        18,584       75%       16,175        72%
      Total revenues             24,660       100%      22,482        100%
Cost of revenues:
 Software license                1,004        4%        640           3%
 Services                        10,181       41%       9,115         41%
      Total cost of revenues     11,185       45%       9,755         43%
Gross Profit                     13,475       55%       12,727        57%
Operating expenses:
 Research and development costs, 4,019        16%       2,979         13%
 net
 Selling and marketing expenses  10,269       42%       7,403         33%
 General and administrative      2,292        9%        2,255         10%
 expenses
      Total operating expenses   16,580       67%       12,637        56%
Operating (loss) income          (3,105)      (13%)     90            0%
Interest income, net             290          1%        27            0%
Net (loss) income before taxes   $  (2,815)  (11%)     $     117 1%
Tax expense, net                 100          0%        44            0%
Net (loss) income                $  (2,915)  (12%)     $        0%
                                                        73
Net (loss) earnings per ordinary
share:
 Basic                           $                   $    0.00
                                 (0.09)
 Diluted                         $                   $    0.00
                                 (0.09)
Shares used in computing basic
                                 31,926,052             31,545,346
net (loss) income per share
Shares used in computing diluted
                                 32,955,793             32,867,492
net (loss) income per share





ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited. In thousands, except share and per share amounts)
                                Six Months Ended
                                June 30, 2013           June 30, 2012
                                $             % of      $             % of
                                              Revenues                Revenues
Revenues:
 Software license               $   13,115 27%       $   12,725  29%
 Services                       36,085        73%       31,605        71%
      Total revenues            49,200        100%      44,330        100%
Cost of revenues:
 Software license               2,061         4%        1,565         4%
 Services                       19,451        40%       17,599        40%
      Total cost of revenues    21,512        44%       19,164        43%
Gross Profit                    27,688        56%       25,166        57%
Operating expenses:
 Research and development       7,724         16%       5,650         13%
 costs, net
 Selling and marketing expenses 18,725        38%       14,737        33%
 General and administrative     4,345         9%        4,197         9%
 expenses
      Total operating expenses  30,794        63%       24,584        55%
Operating (loss) income         (3,106)       (6%)      582           1%
Interest income, net            563           1%        226           1%
Net (loss) income before taxes  $  (2,543)   (5%)      $     808 2%
Tax expense, net                287           1%        34            0%
Net (loss) income               $  (2,830)   (6%)      $        2%
                                                        774
Net (loss) earnings per
ordinary share:
 Basic                          $                    $    0.02
                                (0.09)
 Diluted                        $                    $    0.02
                                (0.09)
Shares used in computing basic
                                31,807,389              31,479,942
net (loss) income per share
Shares used in computing
diluted                         32,927,531              32,925,309

net (loss) income per share





ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
                                          June 30, 2013      December 31, 2012
                                          (Unaudited)        (Audited)
   ASSETS
CURRENT ASSETS
 Cash and cash equivalents                $     19,231   $     12,793
 Deposits                                 13,475             30,310
 Marketable securities                    20,770             15,635
 Trade receivables, net                   21,011             21,792
 Deferred taxes                           890                220
 Other receivables and prepaid expenses   4,622              3,398
  Total current assets                    79,999             84,148
LONG TERM ASSETS
 Property and equipment, net              5,356              4,206
 Deposits                                 897                621
 Other receivables and prepaid expenses   204                275
 Deferred taxes                           1,350              1,230
 Intangible assets, net                   271                452
 Goodwill                                 1,572              1,572
 Severance pay funds                      2,171              1,965
  Total long term assets                  11,821             10,321
   Total Assets                           $     91,820  $     94,469
   LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
 Accounts payable and accrued expenses    $     15,256  $     16,536
 Deferred revenues                        13,361             9,047
  Total current liabilities               28,617             25,583
LONG TERM LIABILITIES
 Accrued severance pay                    4,818              4,465
 Deferred revenues                        821                1,503
  Total long term liabilities             5,639              5,968
  Total liabilities                       34,256             31,551
SHAREHOLDERS' EQUITY
 Ordinary shares of NIS 0.02 par value    135                132
 Additional paid-in capital               89,881             87,566
 Accumulated deficit                      (33,237)           (25,296)
 Accumulated other comprehensive income   828                559
 Treasury stock, at cost: 39,000 shares   (43)               (43)
  Total shareholders' equity              57,564             62,918
   Total Liabilities and shareholders'    $    91,820     $    94,469
   equity





ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                                            Six Months Ended
                                            June 30, 2013      June 30, 2012
                                            (Unaudited)        (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
 Net (loss) income                          $             $       
                                            (2,830)            774
 Adjustments to reconcile net (loss) income
 to net cash provided by operating
 activities:
    Income and expense items not involving
    cash flows:
            Depreciation                    1,206              1,008
            Amortization of deferred        1,189              1,232
            compensation
            Amortization of acquired        181                415
            intangible assets
            Severance pay, net              147                285
            Gain on marketable securities   (172)              (71)
            Other                           46                 3
    Changes in operating assets and
    liabilities:
            Trade receivables               781                1,747
            Deferred taxes                  (790)              (120)
            Other receivables               (884)              (42)
            Accounts payable and accrued    (1,280)            (1,883)
            expenses
            Deferred revenues               3,632              (2,347)
 Net cash provided by operating activities  $     1,226   $      
                                                               1,001
CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of equipment                   (2,402)            (1,600)
    Increase in deposits                   16,559             4,303
    Investments in marketable securities    (9,034)            (725)
    Proceeds from sale of marketable        4,071              845
    securities
 Net cash provided by investment activities $     9,194    $      
                                                               2,823
CASH FLOWS FROM FINANCING ACTIVITIES
    Dividend paid                           (5,111)            (5,061)
    Employee options exercised              1,129              477
 Net cash used in financing activities      $     (3,982)  $     
                                                               (4,584)
INCREASE (DECREASE) IN CASH AND CASH        6,438              (760)
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF   12,793             14,683
PERIOD
CASH AND CASH EQUIVALENTS AT END OF PERIOD  $     19,231  $     
                                                               13,923





ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
                                    Three Months Ended
                                    June 30, 2013           June 30, 2012
                                    $             % of      $         % of
                                                  Revenues            Revenues
GAAP Net (loss) income              $           (12%)     $     0%
                                    (2,915)                   73
Share-based compensation (1)        620                     684
Amortization of intangible assets   51                      174
(2)
Deferred taxes                      (70)                    40
Non-GAAP Net (loss) income          $          (9%)      $     4%
                                    (2,314)                   971
GAAP (loss) Earnings per share      $                   $    
(diluted)                           (0.09)                  0.00
Share-based compensation            0.02                    0.02
Amortization of intangible assets   0.00                    0.01
Deferred taxes                      0.00                    0.00
Non-GAAP (loss) Earnings per share  $                   $    
(diluted)                           (0.07)                   0.03
(1) Share-based compensation:
   Cost of services                 $                 $    
                                     91                       82
   Research and development costs,  75                      64
   net
   Selling and marketing expenses   177                     156
   General and administrative       277                     382
   expenses
                                    $                 $    
                                    620                       684
(2) Amortization of intangible
assets:
   Cost of revenues                 $                 $    
                                    51                        144
   Research and development costs,  -                       30
   net
                                    $                 $    
                                    51                        174





ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
                                     Six Months Ended
                                     June 30, 2013          June 30, 2012
                                     $            % of      $         % of
                                                  Revenues            Revenues
GAAP Net (loss) income               $        (6%)      $     2%
                                     (2,830)                  774
Share-based compensation (1)         1,189                  1,232
Amortization of intangible assets    181                    415
(2)
Tax payment for previous years       744                    -
retained earnings*
Deferred taxes                       (790)                  (120)
Non-GAAP Net (loss) income           $        (3%)      $     5%
                                     (1,506)                2,301
GAAP (loss) Earnings per share       $                 $    
(diluted)                            (0.09)                  0.02
Share-based compensation             0.04                   0.04
Amortization of intangible assets    0.00                   0.01
Tax payment for previous years       0.02                   0.00
retained earnings*
Deferred taxes                       (0.02)                 0.00
Non-GAAP (loss) Earnings per share   $                 $    
(diluted)                            (0.05)                  0.07
(1) Share-based compensation:
    Cost of services                 $                 $    
                                       170                  141
    Research and development costs,  136                    113
    net
    Selling and marketing expenses   329                    273
    General and administrative       554                    705
    expenses
                                     $                 $    
                                     1,189                 1,232
(2) Amortization of intangible
assets:
    Cost of revenues                 $                 $    
                                      152                    355
    Research and development costs,  29                     60
    net
                                     $                 $    
                                      181                    415
* See Note 14.A to our consolidated financial statements for the year ended
December 31, 2012 included in
our Annual Report on Form 20-F, regarding November 2012 law





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



SOURCE ClickSoftware Technologies Ltd.

Website: http://www.clicksoftware.com
 
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