ClickSoftware Reports Record Revenues for the Fourth Quarter and Year Ended December 31, 2011
BURLINGTON, MA, February 8, 2012 – ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of automated workforce management and optimization solutions for the service industry, today announced results for the fourth quarter and year ended December 31, 2011.
For the fourth quarter ended December 31, 2011, total revenues were $24.0 million, up 30% from $18.5 million in the fourth quarter of 2010. Net income for the fourth quarter of 2011 was $2.9 million, or $0.09 per fully diluted share, compared to net income of $1.6 million, or $0.05 per fully diluted share, for the same period last year.
Non-GAAP net income for the quarter was $4.9 million, or $0.15 per fully diluted share, compared to $2.2 million, or $0.07 per fully diluted share, for the same period last year.
Software license revenues for the fourth quarter of 2011 were $9.2 million, up 35% compared with software license revenues of $6.8 million for the same period last year. Service and maintenance revenues were $14.8 million, up 26% compared with service and maintenance revenues of $11.7 million in the same period last year.
Gross profit in the fourth quarter of 2011 was $15.0 million, or 63% of revenues, compared to $11.4 million, or 62% of revenues, in the same period last year.
Net cash provided by operating activities was $1.3 million during the fourth quarter of 2011. Cash, cash equivalents and short and long-term investments at the end of the fourth quarter of 2011 were $55.0 million, a decrease of $1.7 million compared to the end of the third quarter of 2011. During the fourth quarter the Company paid a cash dividend of $2.5 million.
Full Year Results
Total revenues for 2011 grew 23% over 2010 to $87.1 million, yielding net income of $12.2 million, or $0.38 per fully diluted share. This compares with revenues of $71.0 million and net income of $9.0 million, or $0.28 per fully diluted share, for 2010. Non-GAAP net income for 2011 was $17.0 million, or $0.53 per fully diluted share. This compares with Non-GAAP net income of $12.0 million, or $0.37 per fully diluted share, for 2010.
Management Commentary
“We are very pleased with the financial results of 2011 which show considerable improvement in just about every parameter. Record revenues and profitability were achieved from strong execution, a significant number of new customer wins and further expansion into the mobility market. All of these, collectively, contributed to annual revenue growth of 23%. In late 2011 we also expanded our geographic footprint, as we initiated activity in Latin America, South Africa and Russia. In Russia we were even able to close the first two deals during the fourth quarter. We are also focused on strategic initiatives in the mobility and cloud markets that will substantially broaden our offerings and increase our addressable market,” commented Dr. Moshe BenBassat, ClickSoftware’s Chairman and CEO.
“Our success in the enterprise mobility market positively contributed to 2011 results, and, based on our pipeline, we expect this trend to continue in 2012 and beyond. As the world is looking for mobile business applications on smartphones and tablets, we are right there with proven mobile ClickApps whose number keeps increasing every month. In addition, growth in the cloud market and enhancements made to our SaaS offering will position us to better meet market demand with competitive solutions geared for the small to medium-sized business, including mobile ClickApps. Finally, let me also note ClickSoftware’s impressive ranking in Gartner’s magic quadrant, and several awards we received in 2011, which clearly reflect our widely recognized position as the market leader in mobile workforce management and service optimization," Dr. BenBassat added.
Outlook
For 2012, the Company currently expects to achieve revenues in the approximate range of $100 to $105 million, representing about 15% to 21% growth over 2011. This outlook is based on about $30 million in backlog and deferred revenues and current visibility into a growing sales pipeline.
Cash Dividend
On April 28, 2011, the Company announced that its Board of Directors approved the distribution of a $0.32 per share dividend to be distributed quarterly in four equal payments. The Board of Directors, at its meeting on February 6, 2012, set the dates for the fourth quarterly dividend payment of $0.08 per ordinary share. The record date will be February 22, 2012 and the payment date will be March 7, 2012. The dividend will be paid net of any required tax.
Investors Conference Call
ClickSoftware will host a conference call today at 9:00 a.m. EST 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. Alternatively, a telephone replay of the call will be available for a week or by calling (888) 326-9310 (international callers can dial +972-3-925-5900).
About ClickSoftware
ClickSoftware is the leading provider of automated workforce management and optimization solutions for every size of service business. Our portfolio of solutions, available on demand and on premise, creates business value through higher levels of productivity, customer satisfaction and operational efficiency. Our patented concept of ‘continuous planning and scheduling’ incorporates customer demand forecasting, long and short term capacity planning, shift planning, real-time service scheduling, mobility and location-based services, as well as on-going communication with the consumer on the expected arrival time of the service resource.
As the pioneers of the ‘W6’ concept more than 20 years ago, we have perfected solutions for solving a wide variety of problems on Who does What, for Whom, with What, Where and When. The combination of proven technology with educational services helps businesses find the right balance between reducing costs, increasing customer satisfaction, employee preferences and industry regulations/legislation. ClickSoftware’s solutions manage hundreds of thousands of resources in service businesses across a variety of industries and geographies. Our flexible deployment approach, breadth and depth of solutions and strong partnerships with leading CRM/ERP vendors and system integrators makes us the number one choice to deliver superb business performance to any organization. The Company is headquartered in the United States and Israel, with offices across Europe, and Asia Pacific.
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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 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 our outlook for full year 2012 revenues, visibility into future periods and pipeline, winning new business, future success in the area of mobility, meeting market demand with our cloud based products and SaaS offering, penetrating and expanding our sales in new territories, strengthening the Company’s position as the market leader, growth and future rates of growth and expectations of future cash flows and dividends. 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, more attractive investments than dividends that may become available, 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, 2010 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
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