CLICKSOFTWARE REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2007
Reiterating 2007 Full Year Revenue Guidance
- October 31, 2007
BURLINGTON, MA, October 31, 2007 ClickSoftware Technologies Ltd. (NasdaqCM: CKSW), the leading provider of mobile workforce management and service optimization solutions, today announced the financial results for the third quarter ended September 30, 2007.For the third quarter ended September 30, 2007, total revenues were $10.1 million, an increase of 16% compared with $8.7 million for the parallel quarter of 2006, and a decrease of 4% compared with the previous quarter. Net income for the period was $0.7 million, or $0.02 per share, compared with $0.8 million, or $0.03 per share, for the parallel quarter of 2006. Excluding expenses for share-based compensation related to the adoption of SFAS-123R, net income for the third quarter was $0.9 million, or $0.03 per share. Shares outstanding for the quarter on a fully diluted basis were 30,409,632, up 9% compared to the parallel quarter of 2006.
Software license revenues for the third quarter of 2007 were $4.3 million, an increase of 33% compared to the third quarter of 2006. Services revenues for the period were $5.8 million, an increase of 6% compared to the third quarter of 2006.
Gross profit for the quarter increased 16% to $6 million, compared to $5.1 million in the third quarter of 2006. Gross margin for the period remained stable at 59%.
Cash, cash equivalents and short and long-term investments increased to $21.3 million, up $1.1 million from $20.2 million at the end of the second quarter of 2007. Net cash provided from operating activities during the period was $0.5 million.
The third quarter was another period of excellent execution as reflected in strong year-over-year growth in revenues, profits and cash flow, as well as important strategic progress, said Dr. Moshe BenBassat, ClickSoftwares Chairman and CEO. Our revenues are down slightly from the second quarter, reflecting the specific timing of several multi-million dollar deals. One of these deals, with a major telecommunications company in India, has already closed in the fourth quarter.
Dr. BenBassat continued, We are very excited about the momentum that continues to build in our business. We are in the final stage of signing a deal with a large utility in North America. We have also been selected as the winner in another large, highly competitive deal, and are currently in final negotiations. Internationally, we have been selected by an important customer in France, and are deploying a pilot solution for one of Japans largest utility companies. As a result, not only we are able to confirm our full-year revenue guidance, but we are also building a nice book of orders that will make us start 2008 with comfortable backlog of contractually committed orders. On the product front, we have just released the IMRS package, our exciting Microsoft-integration-ready offering for the mid-market, which we believe will prove especially attractive to the Microsoft Partners community. In addition, we have formed a partnership with ServiceBench, a move designed to open new opportunities in the service market.
Outlook
Based on the reported activity and the current pipeline, management maintains the annual guidance provided in the second quarter earnings release: annual revenues ranging from $41-$42 million, an increase of 26.5%-29.5% compared to 2006 revenues of $32.4 million.
Investors Conference Call
ClickSoftware will host a conference call today at 9:30 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) 321-3075 and ask for the ClickSoftware conference call. International participants, please call (973) 582-2855. 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 (877) 519-4471 (international callers can dial (973) 341-3080), ID Code: 9343639.