Quarterly Revenues Up 35% Year-Over-Year
Burlington, MA - April 28, 2010 – ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of workforce management and service optimization solutions, today announced results for the first quarter ended March 31, 2010.
For the first quarter ended March 31, 2010, total revenues were a Company record $17.5 million, up 35% compared with revenues of $13.0 million for the same period in 2009. Net income for the first quarter of 2010 was $2.8 million, or $0.09 per fully diluted share, compared with net income of $2.6 million, or $0.09 per fully diluted share, for the same period last year.
Non-GAAP net income for the quarter was $3.7 million, or $0.11 per fully diluted share, compared with $2.8 million, or $0.09 per fully diluted share, for the same period last year.
Software license revenues for the first quarter of 2010 were $6.8 million, while service and maintenance revenues were $10.7 million. This compares to software license revenues of $4.3 million and service revenues of $8.7 million for the same period last year.
Gross profit in the first quarter of 2010 was $11.0 million, or 63% of revenues, compared to $8.7 million, or 67% of revenues, in the same period last year.
Cash, cash equivalents and short and long-term investments at the end of the first quarter of 2010 increased to $38.8 million from $35.0 million at the end of the fourth quarter of 2009. Net cash provided by operating activities was $4.0 million during the first quarter of 2010.
Comments of Management
“Reporting record revenues, strong profit growth and significant cash generation in the first quarter provides a solid start to 2010. We made strategic progress on all fronts, and are excited to build on this momentum,” commented Dr. Moshe BenBassat, ClickSoftware’s Chairman and CEO. “We saw growth in the form of new customers as well as a significant increase in repeat business. We believe additional orders from existing customers are a positive signal and a testament to the value our products offer. As we also announced during the quarter, we had some strategic wins to our newly launched ClickSoftware Mobility Suite, including SoCalGas and SDG&E in California, and ETSA Utilities in Australia. The SAP relationship continues to pay off and develop”, he added.
Outlook
The Company reiterates the previously provided year 2010 guidance of revenues in the approximate range of $71.5 to $74.5 million, representing about 17% to 22% growth over 2009.
Investors Conference Call
ClickSoftware will host a conference call today at 9:00 a.m. ET 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) 846-5003 and ask for the ClickSoftware conference call. International participants, please call (480) 629-9856. The call will be available live on the internet (in listen mode only) at http://www.clicksoftware.com. A replay of this call will be available on the ClickSoftware website, or by calling (800) 406-7325 (international callers can dial (303) 590-3030), ID Code: 4281091.
About ClickSoftware
ClickSoftware is the leading provider of workforce management and service optimization solutions that create business value for service operations through higher levels of productivity, customer satisfaction and cost effectiveness. Combining educational, implementation and support services with best practices and its industry leading solutions, ClickSoftware drives service decision making across all levels of the organization. From proactive customer demand forecasting, capacity planning and shift scheduling to real-time decision-making, incorporating scheduling, mobility and location based services, ClickSoftware helps service organizations get the most out of their resources. With over 150 customers across a variety of industries and geographies, and strong partnerships with leading platform and system integration partners – ClickSoftware is uniquely positioned to deliver superb business performance to any organization. The Company is headquartered in Burlington, MA and Israel, with offices in Europe and Asia Pacific.
For more information about ClickSoftware, please call (781) 272-5903 or (888) 438-3308, or visit www.clicksoftware.com, the content of which is not part of this press release.
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 in accordance with the requirements of ASC 718 (originally issued as SFAS No. 123R, "Share-based Payment" ("123R")), tax benefit related to the update of deferred tax asset 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, visibility into future periods, growth and rates of growth, and expectations regarding future closing of contracts, receipt of orders, recognition of revenues and deferred revenues. For example, when we discuss our “Outlook” for 2010, our future strategic progress and expected development from our SAP relationship, we are using forward-looking statements. 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, 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, 2009 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.
Click here to download 2010 Q1 Financial Results (PDF)