ClickSoftware Reports Financial Results for the First Quarter Ended March 31, 2014

ClickSoftware Reports Financial Results for the First Quarter Ended March 31,
                                     2014

2014 Annual Revenue Guidance Increased to $126 - $132 million;

Cloud Annual Recurring Revenues (ARR) Expected to Grow to $26 - $30 million at
Year-End

PR Newswire

BURLINGTON, Mass., April 30, 2014

BURLINGTON, Mass., April 30, 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 first quarter ended March 31, 2014.

Highlights

  oFirst quarter 2014 total revenues reached $28.4 million (16% growth
    year-over-year);
  oCompleted the acquisition of Xora, Inc. on March 5, 2014 to expand reach
    into the SMB market via wireless carriers;
  oMajor wins at large enterprises for cloud based solutions in highly
    competitive bids, including a Fortune 100 company;
  oTotal cash and liquid investments as of March 31, 2014 were $50.3 million
    after payment of Xora's purchase price;
  oShort-term backlog and deferred revenues increased substantially to $47.3
    million (43% growth year-over-year);
  o2014 annual revenue guidance increased to $126 - $132 million; Non-GAAP
    EPS is expected to be in the range of $0.04 to $0.12;
  oAnnual Recurring Revenues (ARR) from cloud expected to grow to $26 - $30
    million by end of 2014.

For the first quarter ended March 31, 2014, total revenues were $28.4 million,
up 16% from $24.5 million in the first quarter of 2013. Net loss for the first
quarter of 2014 was $2.0 million, or $0.06 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 $1.0 million, or $0.03
per fully diluted share, compared to Non-GAAP net income of $0.8 million, or
$0.02 per fully diluted share, for the same period last year.

Software license revenues for the first quarter of 2014 were $7.0 million, up
4% compared with software license revenues of $6.7 million for the same period
last year. Cloud subscriptions revenues for the first quarter of 2014
increased significantly to $2.3 million from $0.3 million for the same period
last year. Support revenues were $8.3 million, up 13% compared with support
revenues of $7.3 million in the same period last year. Consulting revenues
were $10.7 million, up 6% compared with consulting revenues of $10.2 million
in the same period last year.

Gross profit in the first quarter of 2014 was $16.5 million, or 58% of
revenues, compared to $14.2 million, or 58% of revenues, in the same period
last year.

Cash and liquid investments at the end of the first quarter of 2014 were $50.3
million after payment of $12.7 million in cash for the acquisition of Xora
(net of Xora cash). This is a decrease of $7.7 million compared to the end of
the fourth quarter of 2013. Net cash provided by operating activities was $3.7
million during the first quarter of 2014.

Management Commentary

"We delivered solid financial results in the first quarter and continued to
establish a predictable stream of recurring subscription revenues which will
grow as we continue to ramp up existing cloud deployments and bring new
customers online. In parallel, the number of on premise opportunities in our
pipeline remains stable, which gives us confidence that we can achieve our
short-term growth targets," said Dr.Moshe BenBassat, ClickSoftware's Founder
and CEO.

"The acquisition of Xora, which we closed in March, extends ClickSoftware's
market reach into the SMB (Small and Medium Businesses) market and opens an
important distribution channel through leading U.S. wireless carriers
including AT&T, Sprint, and Verizon. We also intend to build on our existing
client-base of more than 50 telecommunication carriers around the world to
expand globally our sales into new SMB markets.

"During the quarter we secured several large cloud wins, including a major
Fortune 100 company, which were highly competitive and were won after long and
in-depth evaluation processes. Not only will these wins contribute
substantially to our future recurring revenues, but they also underscore our
leadership position as the company with the most powerful cloud-based
solutions for mobile workforce management and service optimization. With the
new cloud wins we have been reporting over past quarters and the installed
base of Xora, we believe we are now the #1 cloud company in our space, both in
terms of size of the user-base in the cloud, and the spectrum of our
state-of-the-art cloud solutions we offer for companies of all sizes," Dr.
BenBassat concluded.

Financial Outlook

Following the strong results of the first quarter and the addition of Xora,
the Company is raising its full year revenue guidance to be in the range of
$126 - $132 million (previously $111 - $115 million), based on a current
backlog of $47.3 million and projections for winning new business. This
outlook includes revenues of about $18 to $21 million from cloud subscriptions
and about $35 million from support contracts of existing on premise customers.

Evolution of Cloud Subscriptions Revenues: Based on subscriptions from
existing users, signed contracts, anticipated roll-out progress with existing
customers and projections for signing new business this year, the Company
estimates exiting 2014 with an Annual Recurring Revenues (ARR)run rate for
cloud subscriptionsin the range of $26 - $30 million.

In addition, the Company is also updating its full year 2014 Non-GAAP earnings
per share to be in the range of $0.04 - $0.12 (previously $0.06- $0.12).
Non-GAAP earnings exclude share-based compensation costs of approximately
$0.11 and amortization of intangible assets of approximately $0.05 per fully
diluted share. GAAP fully diluted earnings per share is now expected to be in
the range of ($0.12) - ($0.04) (previously ($0.04)- $0.02).

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)
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" 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, prospects, trends and opportunities in SaaS offerings and
cloud-based sales, pipeline, demand for our solutions, our outlook for 2014
revenues and GAAP and Non-GAAP earnings per share, and our future expected
annual recurring revenues. Such "forward-looking statements" involve known and
unknown risks, uncertainties and other factors that may cause actual results
or performance to differ materially from those projected. Achievement of these
results by ClickSoftware may be affected by many factors, including, but not
limited to, risks and uncertainties regarding the general economic outlook,
the length of or changes in ClickSoftware's sales cycle, ClickSoftware's
ability to close sales to potential customers in a timely manner and maintain
or strengthen relationships with strategic partners, the timing of revenue
recognition, foreign currency exchange rate fluctuations, 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, 2013 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
                                March 31, 2014          March 31, 2013
                                $             % of      $             % of
                                              Revenues                Revenues
Revenues:
 Software license               $    7,014 25%       $   6,738  27%
  Cloud Subscriptions      2,290         8%        301           1%
  Support                  8,336         29%       7,349         30%
 Cloud subscriptions and        10,626        37%       7,650         31%
 Support
 Consulting                     10,740        38%       10,152        41%
      Total revenues            28,380        100%      24,540        100%
Cost of revenues:
 Software license               729           3%        707           3%
 Cloud subscriptions and        2,389         8%        1,310         5%
 Support
 Consulting                     8,749         31%       8,310         34%
      Total cost of revenues    11,867        42%       10,327        42%
Gross Profit                    16,513        58%       14,213        58%
Operating expenses:
 Research and development       4,463         16%       3,705         15%
 costs, net
 Selling and marketing expenses 11,146        39%       8,456         34%
 General and administrative     2,751         10%       2,053         8%
 expenses
      Total operating expenses  18,360        65%       14,214        58%
Operating loss                  (1,847)       (7%)      (1)           0%
Interest income, net            201           1%        273           1%
Net (loss) income before taxes  $ (1,646)    (6%)      $         1%
                                                        272
Tax income, net                 308           1%        187           1%
Net (loss) income               $ (1,954)    (7%)      $        0%
                                                        85
Net (loss) earnings per
ordinary share:
 Basic                          $                    $    0.00
                                (0.06)
 Diluted                        $                    $    0.00
                                (0.06)
Shares used in computing basic
                                32,568,790              31,688,726
net (loss) earnings per share
Shares used in computing
diluted                         33,568,790              32,899,269

net (loss) earnings per share



ClickSoftware Technologies Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
                                   March 31, 2014        December 31, 2013
                                   (Unaudited)           (Audited)
   ASSETS
CURRENT ASSETS
 Cash and cash equivalents         $      27,818    $     25,346
 Deposits                          2,955                 9,001
 Marketable securities             17,091                22,586
 Trade receivables, net            23,325                22,490
 Deferred taxes                    1,600                 1,740
 Other receivables and prepaid     5,738                 4,408
 expenses
  Total current assets             78,527                85,571
LONG TERM ASSETS
 Property and equipment, net       4,984                 5,023
 Deposits                          2,394                 1,072
 Other receivables and prepaid     314                   218
 expenses
 Deferred taxes                    2,150                 2,060
 Intangible assets and Goodwill,   13,446                1,572
 net
 Severance pay funds               2,086                 2,052
  Total long term assets           25,374                11,997
   Total Assets                    $    103,901      $     97,568
   LIABILITIES AND SHAREHOLDERS'
   EQUITY
CURRENT LIABILITIES
 Current maturities of debt        $        363  $          
                                                         -
 Accounts payable and accrued      18,743                17,707
 expenses
 Deferred revenues                 17,773                13,420
  Total current liabilities        36,879                31,127
LONG TERM LIABILITIES
 Debt, less current maturities     319                   -
 Accrued severance pay             4,809                 4,840
 Deferred taxes                    40                    40
 Deferred revenues                 4,919                 4,642
  Total long term liabilities      10,087                9,522
  Total liabilities                46,966                40,649
SHAREHOLDERS' EQUITY
 Ordinary shares of NIS 0.02 par   139                   137
 value
 Additional paid-in capital        94,188                92,301
 Accumulated deficit               (38,133)              (36,179)
 Accumulated other comprehensive   784                   703
 income
 Treasury stock, at cost: 39,000   (43)                  (43)
 shares
  Total shareholders' equity       56,935                56,919
   Total Liabilities and           $    103,901       $    97,568
   shareholders' equity



ClickSoftware Technologies Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                                         Three Months Ended
                                         March 31, 2014      March 31, 2013

                                         (Unaudited)         (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
  Net (loss) income                      $              $        
                                         (1,954)            85
  Adjustments to reconcile net (loss)
  income to net cash provided by
  operating activities:
     Income and expense items not
     involving cash flows:
            Depreciation                 661                 582
            Amortization of deferred     736                 569
            compensation
            Amortization of acquired     145                 130
            intangible assets
            Severance pay, net           (65)                26
            Gain on marketable           (441)               (152)
            securities
            Other                        (1)                 46
     Changes in operating assets and
     liabilities:
            Trade receivables            1,668               2,468
            Deferred taxes               50                  (720)
            Other receivables            310                 (284)
            Accounts payable and accrued (1,556)             (3,975)
            expenses
            Deferred revenues            4,177               4,975
  Net cash provided by operating         $      3,730  $      
  activities                                                 3,750
CASH FLOWS FROM INVESTING ACTIVITIES
     Purchase of equipment               (176)               (791)
     Acquisition of subsidiary (*)       (12,737)            -
     Decrease in deposits                4,724               6,472
     Investments in marketable           (2,920)             (3,752)
     securities
     Proceedsfrom sale of marketable    8,856               1,802
     securities
  Net cash (used in) provided by         $     (2,253)   $      
  investment activities                                      3,731
CASH FLOWS FROM FINANCING ACTIVITIES
     Prepayments of long-term debts      (158)               -
     Dividend paid                       -                   (2,539)
     Employee options exercised          1,153               357
  Net cash provided by (used in)         $       995  $     
  financing activities                                       (2,182)
INCREASE IN CASH AND CASH EQUIVALENTS    2,472               5,299
CASH AND CASH EQUIVALENTS AT BEGINNING   25,346              12,793
OF PERIOD
CASH AND CASH EQUIVALENTS AT END OF      $     27,818   $     
PERIOD                                                       18,092
(*)Acquisition of subsidiary
     Working capital (excluding cash and 1,113
     cash equivalents)
     Property and Equipment              445
     Intangible assets                   12,019
     Long-term liabilities               (840)
  Cash paid for the acquisition of a     $     12,737
  subsidiary, net



ClickSoftware Technologies Ltd.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(Unaudited. In thousands, except per share amounts)
                                    Three Months Ended
                                    March 31, 2014          March 31, 2013
                                    $             % of      $         % of
                                                  Revenues            Revenues
GAAP Net (loss) income              $         (7%)      $     0%
                                    (1,954)                  85
Share-based compensation (1)        736                     569
Amortization of intangible assets   145                     130
(2)
Tax payment for previous years      -                       744
retained earnings*
Deferred taxes                      50                      (720)
Non-GAAP Net (loss) income          $         (4%)      $     3%
                                    (1,023)                 808
GAAP Earnings per share (diluted)   $                  $    
                                    (0.06)                  0.00
Share-based compensation            0.02                    0.02
Amortization of intangible assets   0.01                    0.00
Tax payment for previous years      0.00                    0.02
retained earnings*
Deferred taxes                      0.00                    (0.02)
Non-GAAP (loss) earnings per share  $                 $    
(diluted)                           (0.03)                   0.02
(1) Share-based compensation:
    Cost of revenues                $                 $    
                                      102                    79
    Research and development costs, 84                      61
    net
    Selling and marketing expenses  234                     152
    General and administrative      316                     277
    expenses
                                    $                 $    
                                    736                      569
(2) Amortization of intangible
assets:
    Cost of revenues                $                 $    
                                     145                    101
    Research and development costs, -                       29
    net
                                    $                 $    
                                     145                    130


* 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
 
Press spacebar to pause and continue. Press esc to stop.