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ClickSoftware Sinks as Co-CEO Resigns: Israel Overnight

ClickSoftware Technologies Ltd. (CKSW), the Israeli developer whose largest investor is George Soros’s fund, tumbled in New York as the departure of its co-chief executive officer raised concern about the company’s outlook.

Shares of the Petach Tikva, Israel-based company sank 1.5 percent, extending this year’s decline to 19 percent. The Bloomberg Israel-US Equity Index of the most-traded Israeli stocks in New York was little changed and the shekel dropped the most in a week on speculation the U.S. is moving closer to striking Syria. Partner Communications Co. (PTNR) widened the discount to its Tel Aviv shares to the biggest since July 21. The Israeli stock market is closed today for a holiday.

Hannan Carmeli, who took the job of ClickSoftware’s co-CEO in June, is leaving the company after more than 17 years, according to a statement yesterday. Founder Moshe BenBassat will continue as CEO, as the board determined that having two leaders at the top of the company was not practical, it said. ClickSoftware posted the biggest plunge in 15 months on July 8 after its preliminary revenue trailed analysts’ projections.

“It raises the question of what’s going on there,” Nathan Schneiderman, an analyst at Roth Capital Partners LLC, in Newport Beach, California, who rates the shares the equivalent of hold, said by phone yesterday. “That’s an issue. There are a number of concerns. There is a question if this is an indication of a conflict over the company’s strategy.”

ClickSoftware signed new contracts in the third quarter, including two “significant” cloud-based deals with new customers, BenBassat said yesterday in the statement. The company announced a plan in January to bolster revenue by focusing on software applications for smartphones, expanding into regions including Latin America and enhancing its cloud computing services.

License Revenues

The company reported second quarter loss of 9 cents a share, wider than the mean estimate of two analysts surveyed by Bloomberg. Software license revenues for the three-month period ended June 30 dropped 4 percent to $6.1 million, it said in a July 24 statement.

ClickSoftware slid to $6.78 yesterday, the lowest level since Aug. 22.

Israeli stocks fell yesterday as the nation said it carried out a joint missile-defense test with the U.S. in the Mediterranean Sea. U.S. House Speaker John Boehner said he will support President Barack Obama’s call for action on Syria. The TA-25 Index slid 0.9 percent to 1,179.73, while the Israeli currency dropped for the first time in five days.

The Bloomberg Israel-US gauge rose less than 0.1 percent to 95.09. Partner sank 4.7 percent to $6.91, for the biggest decline on the measure. Radware Ltd. (RDWR), an Israeli software maker, jumped 3.2 percent to $14.72.

To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net

To contact the editor responsible for this story: Tal Barak Harif at tbarak@bloomberg.net

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