ClickSoftware Reports Financial Results for the Third Quarter Ended September 30, 2013

ClickSoftware Reports Financial Results for the Third Quarter Ended September
                                   30, 2013

Quarterly cloud bookings more than doubled with 8 new cloud customer wins

PR Newswire

BURLINGTON, Mass., Oct. 23, 2013

BURLINGTON, Mass., Oct. 23, 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 third quarter ended September 30, 2013.

Highlights

  oRevenues were $23.3 million 
  oGAAP EPS $(0.11); Non-GAAP EPS $(0.10)
  oTotal cash and investments increased to $55.7 million
  oCash provided by operations was $3.3 million

For the third quarter ended September 30, 2013, total revenues were $23.3
million, down 15% from $27.3 million in the third quarter of 2012. Net loss
for the third quarter of 2013 was $3.6 million, or $(0.11) per fully diluted
share, compared to net income of $2.8 million, or $0.09 per fully diluted
share, for the same period last year. Non-GAAP net loss for the quarter was
$3.3 million, or $(0.10) per fully diluted share, compared to Non-GAAP net
income of $3.7 million, or $0.11 per fully diluted share, for the same period
last year.

Software license revenues for the third quarter of 2013 were $4.7 million,
down 58% compared with software license revenues of $11.0 million for the same
period last year. Servicesrevenues were $18.6 million, up 14% compared with
servicesrevenues of $16.3 million in the same period last year.

Gross profit in the third quarter of 2013 was $12.2 million, or 52% of
revenues, compared to $17.5 million, or 64% of revenues, in the same period
last year.

Following a $1.6 million cash dividend payment, cash, cash equivalents and
short and long-term investments at the end of the third quarter of 2013 were
$55.7 million, an increase of $1.3 million compared to the end of the second
quarter of 2013. Net cash provided by operating activities was $3.3 million
during the third quarter of 2013.

Management Commentary

"During the third quarter we continued to experience a number of positive
trends that will increase recurring revenues and improve the visibility and
predictability of our business. With eight new cloud customers signed in the
third quarter, the number of new cloud-based customers signed in the first
nine months of 2013 has doubled year-over-year. Our pipeline for the
nexttwelve months includes more than 100 large and mid-market prospects
considering our cloud-based solutions," said Dr. Moshe BenBassat,
ClickSoftware's Founder and CEO."Along with strong demand for cloud-based
solutions, we also continue to see healthy demand for our on-premise
offerings, and in the first nine months of 2013 we closed a higher number of
on-premise deals compared to the same period last year. Furthermore, our
services revenues, which consist of recurring support revenues and consulting
revenues, bothincreased during the quarter compared to the same period last
year."

"Our ability to offer both cloud and on-premise solutions, while offering the
industry's most dynamic and scalable solution, provide a solution that is
highly differentiated from that of any of our competitors. Specifically, we
see increasingtraction for our mobility products driven by general high
demand for business mobility solutions. We remain an industry leader for field
service optimization software as recently recognized by Gartner's Magic
Quadrant for Field Service Management report, for the third consecutive year,"
concluded Dr. BenBassat.

Financial Outlook

The Company expects revenues for the fourth quarter of 2013 to be between $26
million to $28 million, which will bring 2013 annual revenues to be between
$98.5 million to $100.5 million. Non-GAAP fully diluted earnings (loss) per
share for the fourth quarter of 2013 is expected to be in the range of $(0.04)
loss to $0.01 earnings, 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 $0.02, $0.00 and
$0.00 per fully diluted share, respectively. GAAP fully diluted loss per share
is expected to be in the range of $(0.06) to $(0.01).

Dividend

In light of the short-term challenges associated with our transition to the
cloud, ClickSoftware's Board of Directors has decided to suspend its payment
of dividends for the time being. The Company does not have a formal policy
governing dividend payments, 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 +972-3-918-0610. 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)
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, Latin America 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, 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
revenue growth, prospects, contribution of cloud-based sales, pipeline, demand
for our solutions and our outlook for the fourth quarter and full year 2013
revenues and GAAP and Non-GAAP earnings/loss per share. 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, the impact of the Cloud model on initial transaction size and
gross margins 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:        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
                               September 30, 2013       September 30, 2012
                                              % of                    % of
                               $                        $
                                              Revenues                Revenues
Revenues:
  Software license             $   4,650   20%       $   10,969 40%
  Services                     18,638         80%       16,348        60%
         Total revenues        23,288         100%      27,317        100%
Cost of revenues:
  Software license             971            4%        967           4%
  Services                     10,101         43%       8,858         32%
         Total cost of         11,072         48%       9,825         36%
         revenues
Gross Profit                   12,216         52%       17,492        64%
Operating expenses:
  Research and development     3,848          17%       3,625         13%
  costs, net
  Selling and marketing        10,088         43%       8,515         31%
  expenses
  General and administrative   2,298          10%       2,247         8%
  expenses
         Total operating       16,234         70%       14,387        53%
         expenses
Operating (loss) income        (4,018)        (17%)     3,105         11%
Interest income (expense), net 55             0%        (16)          0%
Net (loss) income before taxes $  (3,963)    (17%)     $    3,089 11%
Tax income (expense), net      377            2%        (281)         (1%)
Net (loss) income              $  (3,586)    (15%)     $    2,808 10%
Net (loss) earnings per
ordinary share:
  Basic                        $    (0.11)           $    0.09
  Diluted                      $    (0.11)           $    0.09
Shares used in computing basic
                               32,238,308               31,597,918
net (loss) income per share
Shares used in computing
diluted                        33,025,833               32,740,287

net (loss) income per share



ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited. In thousands, except share and per share amounts)
                               Nine Months Ended
                               September 30, 2013       September 30, 2012
                                              % of                    % of
                               $                        $
                                              Revenues                Revenues
Revenues:
  Software license             $   17,765  25%       $   23,694  33%
  Services                     54,723         75%       47,953        67%
         Total revenues        72,488         100%      71,647        100%
Cost of revenues:
  Software license             3,032          4%        2,532         4%
  Services                     29,552         41%       26,457        37%
         Total cost of         32,584         45%       28,989        40%
         revenues
Gross Profit                   39,904         55%       42,658        60%
Operating expenses:
  Research and development     11,572         16%       9,275         13%
  costs, net
  Selling and marketing        28,813         40%       23,252        32%
  expenses
  General and administrative   6,643          9%        6,444         9%
  expenses
         Total operating       47,028         65%       38,971        54%
         expenses
Operating (loss) income        (7,124)        (10%)     3,687         5%
Interest income, net           618            1%        210           0%
Net (loss) income before taxes $  (6,506)    (9%)      $    3,897 5%
Tax income (expense), net      90             0%        (315)         (0%)
Net (loss) income              $  (6,416)    (9%)      $    3,582 5%
Net (loss) earnings per
ordinary share:
  Basic                        $    (0.20)           $    0.11
  Diluted                      $    (0.19)           $    0.11
Shares used in computing basic
                               31,954,737               31,520,923
net (loss) income per share
Shares used in computing
diluted                        32,964,007               32,869,186

net (loss) income per share



ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
                                         September 30, 2013  December 31, 2012
                                         (Unaudited)         (Audited)
   ASSETS
CURRENT ASSETS
 Cash and cash equivalents               $     23,782    $     12,793
 Deposits                                9,841               30,310
 Marketable securities                   21,032              15,635
 Trade receivables, net                  20,376              21,792
 Deferred taxes                          1,020               220
 Other receivables and prepaid expenses  4,009               3,398
  Total current assets                   80,060              84,148
LONG TERM ASSETS
 Property and equipment, net             5,156               4,206
 Deposits                                1,075               621
 Other receivables and prepaid expenses  152                 275
 Deferred taxes                          1,730               1,230
 Intangible assets, net                  223                 452
 Goodwill                                1,572               1,572
 Severance pay funds                     2,183               1,965
  Total long term assets                 12,091              10,321
   Total Assets                          $     92,151   $     94,469
   LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
 Accounts payable and accrued expenses   $     14,995   $     16,536
 Deferred revenues                       14,836              9,047
  Total current liabilities              29,831              25,583
LONG TERM LIABILITIES
 Accrued severance pay                   5,004               4,465
 Deferred revenues                       4,374               1,503
  Total long term liabilities            9,378               5,968
  Total liabilities                      39,209              31,551
SHAREHOLDERS' EQUITY
 Ordinary shares of NIS 0.02 par value   135                 132
 Additional paid-in capital              90,655              87,566
 Accumulated deficit                     (38,435)            (25,296)
 Accumulated other comprehensive income  630                 559
 Treasury stock, at cost: 39,000 shares  (43)                (43)
  Total shareholders' equity             52,942              62,918
   Total Liabilities and shareholders'   $    92,151      $    94,469
   equity



ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited. In thousands)
                                            Nine Months Ended
                                            September 30,        September 30,

                                            2013                 2012
CASH FLOWS FROM OPERATING ACTIVITIES
 Net (loss) income                          $      (6,416)  $      
                                                                 3,582
 Adjustments to reconcile net (loss) income
 to net cash

 provided by operating activities:
    Income and expense items not involving
    cash flows:
         Depreciation                       1,881                1,572
         Amortization of deferred           1,925                1,882
         compensation
         Amortization of acquired           229                  565
         intangible assets
         Severance pay, net                 321                  325
         Gain on marketable securities      (336)                (123)
         Other                              75                   4
    Changes in operating assets and
    liabilities:
         Trade receivables                  1,416                (3,562)
         Deferred taxes                     (1,300)              (70)
         Other receivables                  (417)                203
         Accounts payable and accrued       (1,541)              841
         expenses
         Deferred revenues                  8,660                322
 Net cash provided by operating activities  $     4,497     $      
                                                                 5,541
CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of equipment                   (2,906)              (1,998)
    Increase in deposits                   20,015               9,704
    Investments in marketable securities    (12,278)             (1,075)
    Proceeds from sale of marketable        7,217                1,948
    securities
 Net cash provided by investment activities $    12,048      $      
                                                                 8,579
CASH FLOWS FROM FINANCING ACTIVITIES
    Dividend paid                           (6,723)              (7,590)
    Employee options exercised              1,167                558
 Net cash used in financing activities      $     (5,556)    $     
                                                                 (7,032)
INCREASE IN CASH AND CASH EQUIVALENTS       10,989               7,088
CASH AND CASH EQUIVALENTS AT BEGINNING OF   12,793               14,683
PERIOD
CASH AND CASH EQUIVALENTS AT END OF PERIOD  $     23,782    $     
                                                                 21,771



ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
                                Three Months Ended
                                September 30, 2013        September 30, 2012
                                                % of                  % of
                                $                         $
                                                Revenues              Revenues
GAAP Net (loss) income          $   (3,586)  (15%)     $      10%
                                                          2,808
Share-based compensation (1)    736                       650
Amortization of intangible      48                        150
assets (2)
Deferred taxes                  (510)                     50
Non-GAAP Net (loss) income      $    (3,312) (14%)     $       13%
                                                          3,658
GAAP (loss) Earnings per share  $                     $     
(diluted)                       (0.11)                   0.09
Share-based compensation        0.02                      0.02
Amortization of intangible      0.00                      0.00
assets
Deferred taxes                  (0.01)                    0.00
Non-GAAP (loss) Earnings per
share                           $                     $     
                                (0.10)                    0.11
(diluted)
(1) Share-based compensation:
   Cost of services             $                  $     
                                92                          86
   Research and development     76                        72
   costs, net
   Selling and marketing        176                       165
   expenses
   General and administrative   392                       327
   expenses
                                $                   $     
                                736                        650
(2) Amortization of intangible
assets:
   Cost of revenues             $                   $     
                                48                         121
   Research and development     -                         29
   costs, net
                                $                   $     
                                48                         150



ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
                                  Nine Months Ended
                                  September 30, 2013      September 30, 2012
                                                % of                  % of
                                  $                       $
                                                Revenues              Revenues
GAAP Net (loss) income            $         (9%)      $       5%
                                  (6,416)                 3,582
Share-based compensation (1)      1,925                   1,882
Amortization of intangible assets 229                     565
(2)
Tax payment for previous years
retained                          744                     -

earnings*
Deferred taxes                    (1,300)                 (70)
Non-GAAP Net (loss) income        $         (7%)      $       8%
                                  (4,818)                 5,959
GAAP (loss) Earnings per share    $                  $     
(diluted)                         (0.19)                  0.11
Share-based compensation          0.06                    0.06
Amortization of intangible assets 0.00                    0.01
Tax payment for previous years
retained                          0.02                    0.00

earnings*
Deferred taxes                    (0.04)                  0.00
Non-GAAP (loss) Earnings per
share                             $                  $     
                                  (0.15)                  0.18
(diluted)
(1) Share-based compensation:
     Cost of services             $                 $     
                                   262                    227
     Research and development     212                     185
     costs, net
     Selling and marketing        505                     438
     expenses
     General and administrative   946                     1,032
     expenses
                                  $                  $    
                                  1,925                  1,882
(2) Amortization of intangible
assets:
     Cost of revenues             $                 $     
                                  200                      476
     Research and development     29                      89
     costs, net
                                  $                 $     
                                  229                      565
* 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





SOURCE ClickSoftware Technologies Ltd.

Website: http://www.clicksoftware.com
 
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