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
 
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