ClickSoftware Widens Discount to Peers: Israel OvernightJessica Summers
ClickSoftware Technologies Ltd.’s biggest plunge in 15 months widened the Israeli software developer’s discount to global peers after it reported profit and revenue that trailed analysts’ projections.
The shares dropped 10 percent to $7.56 in New York on trading volume that was seven times the average of the past 90 days. The Bloomberg Israel-US Equity Index fell for the first time in three days as Mellanox Technologies Ltd. traded at the biggest discount to its Tel Aviv shares among dual-listed companies. Cellcom Israel Ltd. rebounded from last week’s plunge to close at a 0.5 percent premium to its shares in Israel.
ClickSoftware said yesterday that its second-quarter loss was as much as 8 cents a share on revenue of about $24.5 million, below analysts’ estimates, as more customers buy software that runs over the Internet instead of being installed in users’ computers. Stock of the Petach Tikva, Israel-based company trades at 3.8 times book value, or assets minus liabilities, compared with an average valuation for its global peers of 5.3, according to data compiled by Bloomberg.
“It was disappointing earnings and the problem of the company was obviously people were expecting a much higher level,” Andrew S. Zamfotis, an analyst at EVA Dimensions in New York who rates ClickSoftware a hold, said in a telephone interview. “We haven’t seen a turn yet.”
The Bloomberg Israel-US gauge slipped 0.5 percent to 91.33 yesterday, trimming this year’s advance to 5.7 percent. The benchmark TA-25 Index fell for the first time in four days, slipping less that 0.1 percent to 1,206.63 at 10:02 a.m. in Tel Aviv.
ClickSoftware had the largest decline in the index of the biggest Israeli companies in New York, falling the most since April 9, 2012.
Mellanox, an Israeli maker of equipment that speeds data transfers, dropped for the first time in three days in New York. The stock fell 3 percent to $47.80, leaving it at a 1.4 percent discount to its Tel Aviv-listed shares.
Cellcom, based in Netanya, Israel, rallied 3 percent to $9.32, extending this year’s gain to 13 percent. The nation’s largest mobile phone provider rose 2.7 percent in Tel Aviv to 33.93 shekels, or $9.27, the highest price since May 9.
BioLineRX Ltd., a biopharmaceutical development company, shares in Israel this morning dropped 2.6 percent. The New York shares yesterday climbed 1.8 percent to $1.69. One ADR represents 10 underlying shares. The Jerusalem-based company has “enough cash” until mid-2015, Chief Financial Officer Philip Serlin said in an interview yesterday at Bloomberg headquarters in New York.