ClickSoftware Reports Record Revenues for the Fourth Quarter and Year Ended December 31, 2013

 ClickSoftware Reports Record Revenues for the Fourth Quarter and Year Ended                               December 31, 2013  Quarterly Revenues Up 8% Year-Over-Year, Reaching Record $30.7 Million;  Quarterly Cloud Bookings More Than Doubled With 10 New Cloud Customer Wins  PR Newswire  BURLINGTON, Mass., Feb. 5, 2014  BURLINGTON, Mass., Feb.5, 2014 /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 fourth quarter and year ended December 31, 2013.  Highlights    oStrong win rate, added 19 new customers during the fourth quarter, 10 of     which are cloud;   oFourth quarter 2013 revenues reached $30.7 million (8% growth     year-over-year);   o2013 annual revenues reached $103.2 million (3% growth year-over-year);   oTotal cash and investments increased to $58.0 million;   oAnnual cash from operations was $6.4 million;   oShort-term backlog and deferred revenues increased substantially to $42.7     million (28% growth year-over-year);   oPromotion of Mr. Zvi Piritz to President of EMEA & APAC, and Mr. Stephen     Timms to President of Americas.  Fourth Quarter Results  For the fourth quarter ended December 31, 2013, total revenues were $30.7 million, up 8% from $28.4 million in the fourth quarter of 2012. Net income for the fourth quarter of 2013 was $2.3 million, or $0.07 per fully diluted share, compared to net income of $3.9 million, or $0.12 per fully diluted share, for the same period last year. Non-GAAP net income for the quarter was $2.3 million, or $0.07 per fully diluted share, compared to Non-GAAP net income of $4.2 million, or $0.13 per fully diluted share, for the same period last year.  Software license revenues for the fourth quarter of 2013 were $10.9 million, up 1% compared with software license revenues of $10.8 million for the same period last year. Services revenues were $19.8 million, up 13% compared with services revenues of $17.6 million in the same period last year.  Gross profit in the fourth quarter of 2013 was $19.0 million, or 62% of revenues, compared to $18.5 million, or 65% of revenues, in the same period last year.  Cash, cash equivalents and short and long-term investments at the end of the fourth quarter of 2013 were $58.0 million, an increase of $2.3 million compared to the end of the third quarter of 2013. Net cash provided by operating activities was $1.9 million during the fourth quarter of 2013.  Full Year 2013 Results  Total revenues for 2013 grew 3% over 2012 to $103.2 million, yielding net loss of $4.2 million, or $(0.13) per fully diluted share.This compares with revenues of $100.0 million and net income of $7.5 million, or $0.23 per fully diluted share, for 2012. Non-GAAP net loss for 2013 was $2.5 million, or $(0.08) per fully diluted share. This compares with Non-GAAP net income of $10.2 million, or $0.31 per fully diluted share, for 2012.  Executive Changes  The Company also announced today the appointment of Mr. Zvi Piritz as President of EMEA & APAC and Mr. Stephen Timms as President of Americas, reporting to the CEO - Dr. Moshe BenBassat.  Mr. Piritz has been with ClickSoftware for 15 years, managing our worldwide sales organization since 2005 as Senior VP World Wide Sales, and serving in various executive management roles since 1999. Mr. Piritz holds a B.A. degree in Economics from Tel Aviv University, Israel and an M.B.A. degree in Marketing & International Accounting from Fordham University, New York, USA.  Mr. Timms has been with ClickSoftware for 9 years, serving as Senior VP of Sales in Americas since 2010. Prior to moving to the United States, Mr. Timms held various positions in our sales organization, serving as our VP of Sales in EMEA and as the Director of Sales in West Region, EMEA. Mr. Timms graduated Harvard Business School Executive Education – General Manager Program, in 2013.  Management Commentary  "The results of the fourth quarter show that ClickSoftware has turned the corner. Strong execution was driven by a record number of new customers, growing traction for our cloud-based SaaS offering and increased market demand for mobility products," said Dr. Moshe BenBassat, ClickSoftware's Founder and CEO. "The win-rate against the competition was quite convincing, specifically for large clients. We added 19 new customers during the fourth quarter, 10 of which selected our cloud-based solution. For the full year of 2013, we had 54 new customer wins, which is 50% above the 34 new customers we had in 2012. The trend of large enterprise organizations considering a SaaS offering is on the rise and our ability to offer a best-of-breed solution, both on premise and in the cloud, is a key competitive advantage for ClickSoftware."  "While the shift to the cloud impacted up-front license revenues in 2013, we saw a significant increase in our base of recurring cloud revenues and expect greater visibility in 2014 as the stream continues to grow. We have a strong pipeline of new business opportunities for the year ahead and a healthy mix of perpetual and SaaS-based opportunities going forward. We continue to introduce new innovations in the cloud, mobile and the artificial intelligence (ClickButler) technologies that serve to ensure our competitive," added Dr. Moshe BenBassat.  Dr. BenBassat concluded, "Aiming at continuous agility, alignment and efficiency, we have made an organizational change that will empower our territories operations to be more autonomous in their processes and decision making, achieving our Company goals effectively, efficiently and with high velocity. I am pleased to announce the promotion of two ClickSoftware's veterans: Mr. Zvi Piritz to President of EMEA & APAC, and Mr. Stephen Timms to President of Americas."  Financial Outlook  For 2014, the Company currently expects top line growth of 8% to 11%, and to achieve revenues in the $111 to $115 million range. This outlook is based on approximately $42.7 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 2014 is expected to be in the range of $0.06 to $0.12, which excludes share-based compensation costs of approximately $0.09, and deferred taxes expense of approximately $0.01 per fully diluted share. GAAP fully diluted earnings per share is expected to be in the range of ($0.04) to $0.02.  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) 407-2553 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 +972-3-925-5904).  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" concept, 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 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, impairment of intangible assets 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 growth, expansion into new territories and industry verticals, prospects, trends and opportunities in SaaS offerings and cloud-based sales, pipeline, demand for our solutions and our outlook for 2014 revenues and GAAP and Non-GAAP earnings 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.  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, 2013       December 31, 2012                                 $             % of      $             % of                                               Revenues                Revenues Revenues:  Software license               $   10,914 36%       $   10,847 38%  Services                       19,779        64%       17,552        62%      Total revenues             30,693        100%      28,399        100% Cost of revenues:  Software license               1,381         4%        1,154         4%  Services                       10,342        34%       8,728         31%      Total cost of revenues     11,723        38%       9,882         35% Gross Profit                    18,970        62%       18,517        65% Operating expenses:  Research and development       4,398         14%       3,871         14%  costs, net  Selling and marketing expenses 10,893        35%       8,725         31%  General and administrative     2,478         8%        2,335         8%  expenses      Total operating expenses   17,769        58%       14,931        53% Operating income                1,201         4%        3,586         13% Other income                    -             -         110           0% Interest income, net            221           1%        64            0% Net income before taxes         $  1,422     5%        $    3,760 13% Tax income, net                 834           2%        146           1% Net income                      $  2,256     7%        $    3,906 14% Net earnings per ordinary share:  Basic                          $    0.07            $    0.12  Diluted                        $    0.07            $    0.12 Shares used in computing basic                                 32,334,458              31,622,991 net income per share Shares used in computing diluted                         33,062,701              32,747,616  net income per share      ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts)                                Year Ended                                December 31, 2013        December 31, 2012                                 (Unaudited)              (Audited)                                $              % of      $             % of                                               Revenues                Revenues Revenues:   Software license             $   28,679  28%       $   34,541  35%   Services                     74,502         72%       65,505        65%          Total revenues        103,181        100%      100,046       100% Cost of revenues:   Software license             4,413          4%        3,686         4%   Services                     39,894         39%       35,185        35%          Total cost of         44,307         43%       38,871        39%          revenues Gross Profit                   58,874         57%       61,175        61% Operating expenses:   Research and development     15,970         15%       13,146        13%   costs, net   Selling and marketing        39,706         38%       31,977        32%   expenses   General and administrative   9,121          9%        8,779         9%   expenses          Total operating       64,797         63%       53,902        54%          expenses Operating (loss) income        (5,923)        (6%)      7,273         7% Other income                   -              -         110           0% Interest income, net           839            1%        274           0% Net (loss) income before taxes $  (5,084)    (5%)      $    7,657 8% Tax income (expense), net      924            1%        (169)         (0%) Net (loss) income              $  (4,160)    (4%)      $    7,488 7% Net (loss) earnings per ordinary share:   Basic                        $    (0.13)           $    0.24   Diluted                      $    (0.13)           $    0.23 Shares used in computing basic                                32,048,030               31,545,435 net (loss) income per share Shares used in computing diluted                        32,048,030               32,837,789  net (loss) income per share      ClickSoftware Technologies Ltd. CONSOLIDATED BALANCE SHEETS (In thousands, except share data)                                            December 31, 2013     December 31,                                                                  2012                                            (Unaudited)           (Audited)                ASSETS CURRENT ASSETS  Cash and cash equivalents                 $     25,346      $                                                                      12,793  Deposits                                  9,001                 30,310  Marketable securities                     22,586                15,635  Trade receivables, net                    22,490                21,792  Deferred taxes                            1,740                 220  Other receivables and prepaid expenses    4,408                 3,398        Total current assets                85,571                84,148 LONG TERM ASSETS  Property and equipment, net               5,023                 4,206  Deposits                                  1,072                 621  Other receivables and prepaid expenses    218                   275  Deferred taxes                            2,060                 1,230  Intangible assets, net                    -                     452  Goodwill                                  1,572                 1,572  Severance pay funds                       2,052                 1,965        Total long term assets              11,997                10,321                Total Assets                $     97,568     $                                                                      94,469                LIABILITIES AND                SHAREHOLDERS' EQUITY CURRENT LIABILITIES  Accounts payable and accrued expenses     $     17,707     $                                                                      16,536  Deferred revenues                         13,420                9,047        Total current liabilities           31,127                25,583 LONG TERM LIABILITIES  Accrued severance pay                     4,840                 4,465  Deferred taxes                            40                    -  Deferred revenues                         4,642                 1,503        Total long term liabilities         9,522                 5,968        Total liabilities                   40,649                31,551 SHAREHOLDERS' EQUITY  Ordinary shares of NIS 0.02 par value     137                   132  Additional paid-in capital                92,301                87,566  Accumulated deficit                       (36,179)              (25,296)  Accumulated other comprehensive income    703                   559  Treasury stock, at cost: 39,000 shares    (43)                  (43)        Total shareholders' equity          56,919                62,918                Total Liabilities and       $    97,568        $                   shareholders' equity                              94,469       ClickSoftware Technologies Ltd. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)                                                     Year Ended                                                     December 31,  December 31,                                                     2013          2012                                                      (Unaudited)   (Audited) CASH FLOWS FROM OPERATING ACTIVITIES  Net (loss) income                                  $        $                                                          (4,160)       7,488  Adjustments to reconcile net (loss) income to net  cash provided by operating activities:     Income and expense items not involving cash     flows:            Depreciation                             2,593         2,144            Amortization of deferred compensation    2,744         2,534            Amortization of acquired intangible      278           714            assets            Impairment of acquired intangible assets 174           -            Severance pay, net                       288           399            Gain on marketable securities            (429)         (146)            Other                                    92            13     Changes in operating assets and liabilities:            Trade receivables                        (698)         1,586            Deferred taxes                           (2,310)       (540)            Other receivables                        (809)         (104)            Accounts payable and accrued expenses    1,171         2,928            Deferred revenues                        7,512         (807)  Net cash provided by operating activities          $        $                                                          6,446         16,209 CASH FLOWS FROM INVESTING ACTIVITIES     Purchase of equipment                           (3,502)       (2,490)     Increase in deposits                            20,858        (1,595)     Investments in marketable securities            (15,686)      (7,459)     Proceeds from sale of marketable securities     9,164         2,915  Net cash provided by (used in) investment          $         $       activities                                         10,834       (8,629) CASH FLOWS FROM FINANCING ACTIVITIES     Dividend paid                                   (6,723)       (10,120)     Employee options exercised                      1,996         650  Net cash used in financing activities              $         $                                                          (4,727)      (9,470) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS    12,553        (1,890) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD    12,793        14,683 CASH AND CASH EQUIVALENTS AT END OF PERIOD          $         $                                                          25,346       12,793      ClickSoftware Technologies Ltd. SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (Unaudited. In thousands, except per share amounts)                               Three Months Ended                               December 31, 2013         December 31, 2012                               $               % of      $             % of                                               Revenues                Revenues GAAP Net income               $          7%        $        14%                               2,256                     3,906 Share-based compensation (1)  819                       652 Amortization of intangible    49                        150 assets (2) Impairment of other           174                       - intangible assets Deferred taxes                (1,010)                   (470) Non-GAAP Net income           $          7%        $         15%                               2,288                     4,238 GAAP Earnings per share       $                   $      (diluted)                     0.07                      0.12 Share-based compensation      0.02                      0.02 Amortization of intangible    0.00                      0.00 assets Impairment of other           0.01                      0.00 intangible assets Deferred taxes                (0.03)                    (0.01) Non-GAAP Earnings per share   $                   $      (diluted)                     0.07                      0.13 (1) Share-based compensation:    Cost of services           $                  $                                      95                       85    Research and development   80                        69    costs, net    Selling and marketing      245                       173    expenses    General and                399                       325    administrative expenses                               $                   $                                     819                      652 (2) Amortization of intangible assets:    Cost of revenues           $                  $                                     49                       121    Research and development   -                         29    costs, net                               $                  $                                     49                       150      ClickSoftware Technologies Ltd. SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (Unaudited. In thousands, except per share amounts)                                    Year Ended                                    December 31, 2013      December 31, 2012                                    $          % of        $          % of                                               Revenues               Revenues GAAP Net (loss) income             $      (4%)        $      7%                                    (4,160)                7,488 Share-based compensation (1)       2,744                  2,534 Amortization of intangible         278                    715 assets (2) Impairment of other intangible     174                    - assets Tax payment for previous years     744                    - retained earnings* Deferred taxes                     (2,310)                (540) Non-GAAP Net (loss) income         $      (2%)        $       10%                                    (2,530)                10,197 GAAP (Loss) earnings per share     $                  $     (diluted)                           (0.13)                0.23 Share-based compensation           0.09                   0.08 Amortization of intangible         0.00                   0.02 assets Impairment of other intangible     0.01 assets Tax payment for previous years     0.02                   0.00 retained earnings* Deferred taxes                     (0.07)                 (0.02) Non-GAAP (Loss) earnings per       $                  $     share (diluted)                     (0.08)                0.31 (1) Share-based compensation:       Cost of services             $                  $                                           357                312       Research and development     292                    254       costs, net       Selling and marketing        750                    611       expenses       General and                  1,345                  1,357       administrative expenses                                    $                  $                                         2,744               2,534 (2) Amortization of intangible assets:       Cost of revenues             $                  $                                          249                 597       Research and development     29                     118       costs, net                                    $                  $                                          278                 715 * 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  Website: http://www.clicksoftware.com