BURLINGTON, Mass., May 6, 2015 /PRNewswire/ -- ClickSoftware
Technologies Ltd. (Nasdaq GS: CKSW), the leading provider of
automated mobile workforce management and optimization solutions
for the service industry, today announced results for the first
quarter ended March 31, 2015.
First Quarter 2015 Highlights
- Revenues of $26.7 million, down
6% year-over-year;
- Recurring revenues from cloud subscriptions and support reached
52% of total revenues;
- 82% of new customers purchased cloud solutions;
- Non-GAAP net loss of $3.7
million, or $0.11 per fully
diluted share;
- Cash increased to $46.5 million,
from $45 million at the end of the
last quarter;
- As announced on April 30, 2015,
the Company signed a definitive agreement to be acquired by
Francisco Partners, a private equity firm. Upon closing of the
transaction, ClickSoftware will become a private company.
"Our quarterly results were disappointing due primarily to lower
than expected revenues which were caused by slippage of key
contracts to the second quarter. By now, the majority of these
contracts have already been signed or are in their final contract
stages. This slippage, coupled with currency weakness of the Euro
and a decrease in consulting revenues, accounted for most of our
reported softness for the first quarter," said Dr. Moshe BenBassat, ClickSoftware's Founder and
Chief Executive Officer. "The trend of large enterprises shifting
to the cloud keeps intensifying, as reflected in our new deals. We
are excited to report that 82% of our new enterprise customers in
the first quarter were cloud customers."
"We are very pleased to have announced our recent decision to be
acquired by Francisco Partners, a private equity firm. The firm has
an outstanding industry reputation, and we are confident that their
expertise together with our highly capable employees and management
team will position ClickSoftware for long term growth," concluded
Dr. BenBassat.
First Quarter Results
For the first quarter ended March 31,
2015, total revenues were $26.7
million, down 6% from $28.4
million for the first quarter of 2014. Net loss on a GAAP
basis for the quarter was $4.7
million, or $0.14 per fully
diluted share, compared with net loss of $2.0 million, or $0.06 per fully diluted share, for the same
period last year. Non-GAAP net loss for the quarter was
$3.7 million, or $0.11 per fully diluted share, compared with
Non-GAAP net loss of $1.0 million, or
$0.03 per fully diluted share, for
the same period last year.
Software license revenues for the first quarter of 2015
were $4.3 million, down 39% compared
with $7.0 million for the same period
last year. Cloud subscription revenues were $5.6 million, up 145% compared with $2.3 for the same period last year.
Support revenues were $8.4
million, up 1% compared with support revenues of
$8.3 million for the same period last
year. Consulting revenues were $8.5
million, down 6% compared with consulting revenues of
$10.7 million for the same period
last year.
Gross profit for the first quarter of 2015 was $13.7 million, or 51% of revenues, compared with
$16.5 million, or 58% of revenues,
for the same period last year. The decrease in gross profit margins
was primarily due to the decrease in consulting revenues and lower
license revenues.
Cash and liquid investments at the end of the first quarter of
2015 were $46.5 million, an increase
of $1.5 million, compared with the
end of the fourth quarter of 2014. Net cash provided by operating
activities was $1.2 million during
the first quarter of 2015.
In light of the pending acquisition by Francisco Partners,
ClickSoftware no longer intends to issue updates to its 2015 annual
guidance regarding revenues and earnings per share.
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) 407-2553 and ask for the ClickSoftware conference
call. International participants, please call +972-3-918-0610. 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 and on the
Investor Relations App. Alternatively, a telephone replay of the
call will be available for a week by calling (888) 326-9310
(international callers can dial +972-3-925-5900).
About ClickSoftware
ClickSoftware (NasdaqGS: CKSW) is the leading provider of
automated mobile workforce management and service optimization
solutions for the enterprise, both for mobile and in-house
resources. As pioneers of the "Service chain optimization" concept,
our solutions provide organizations with end-to-end visibility and
control of the entire service management chain by optimizing
forecasting, planning, shift and task scheduling, mobility and
real-time management of resource and customer communication.
Available via the cloud or on-premise, our products incorporate
best business practices and advanced decision-making algorithms to
manage service operations more efficiently, in a scalable,
integrated manner. Our solutions have become the backbone for many
leading organizations worldwide by addressing the fundamental
question of job fulfillment: Who does What, for Whom, With what,
Where and When.
ClickSoftware is the premier choice for delivering superb
business performance to service sector organizations of all sizes.
The company is headquartered in the
United States and Israel,
with offices across Europe, and
Asia Pacific. For more
information, please visit http://www.clicksoftware.com. Follow us
on Twitter, the content of which is not incorporated herein by
reference.
To download ClickSoftware's investor relations app, which offers
access to SEC documents, press releases, videos, audiocasts and
more, the content of which is not incorporated herein by reference,
please visit Apple's App Store to download on your iPhone and iPad,
or Google Play for your Android mobile device.
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, tax payment for previous years
retained earnings, impairment of intangible assets, the
amortization of acquired intangible assets and restructuring and
related expenses. 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 the potential acquisition of the
Company by Francisco Partners, including statements regarding the
long-term investments, growth and other benefits, prospects,
trends and opportunities in cloud subscriptions as well as
recurring revenues and, demand for our solutions. 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 ability to close the proposed acquisition by
Francisco Partners on the proposed terms and within the anticipated
time period, or at all, which is dependent on the parties' ability
to satisfy certain closing conditions, including the approval by
ClickSoftware's shareholders; the risk that the benefits of the
potential transaction may not be fully realized or may take longer
to realize than expected; the impact of the proposed transaction on
third-party relationships; actions taken by either of the
companies; changes in regulatory, social and political conditions,
as well as general economic conditions, 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, 2014 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
ClickSoftware
Technologies Ltd.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited. In
thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2015
|
|
March 31,
2014
|
|
|
|
$
|
% of
Revenues
|
|
$
|
% of
Revenues
|
Revenues:
|
|
|
|
|
|
|
Software
license
|
$ 4,279
|
16%
|
|
$ 7,014
|
25%
|
|
Cloud
subscriptions
|
5,607
|
21%
|
|
2,290
|
8%
|
|
Support
|
8,406
|
31%
|
|
8,336
|
29%
|
|
Cloud
subscriptions and Support
|
14,013
|
52%
|
|
10,626
|
37%
|
|
Consulting
|
8,454
|
32%
|
|
10,740
|
38%
|
|
|
Total
revenues
|
26,746
|
100%
|
|
28,380
|
100%
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
Software
license
|
599
|
2%
|
|
729
|
3%
|
|
Cloud
subscriptions and Support
|
4,254
|
16%
|
|
2,389
|
8%
|
|
Consulting
|
8,169
|
31%
|
|
8,749
|
31%
|
|
|
Total cost of
revenues
|
13,022
|
49%
|
|
11,867
|
42%
|
|
|
|
|
|
|
|
|
Gross
Profit
|
13,724
|
51%
|
|
16,513
|
58%
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development costs, net
|
4,834
|
18%
|
|
4,463
|
16%
|
|
Selling and
marketing expenses
|
11,143
|
42%
|
|
11,146
|
39%
|
|
General and
administrative expenses
|
2,241
|
8%
|
|
2,751
|
10%
|
|
|
Total operating
expenses
|
18,218
|
68%
|
|
18,360
|
65%
|
|
|
|
|
|
|
|
|
Operating
loss
|
(4,494)
|
(17%)
|
|
(1,847)
|
(7%)
|
Interest (expense)
income, net
|
(13)
|
0%
|
|
201
|
1%
|
Net loss before
taxes
|
$ (4,507)
|
(17%)
|
|
$ (1,646)
|
(6%)
|
Taxes on
income
|
149
|
0%
|
|
308
|
1%
|
Net
loss
|
$ (4,656)
|
(17%)
|
|
$ (1,954)
|
(7%)
|
|
|
|
|
|
|
|
|
Net loss per
ordinary share:
|
|
|
|
|
|
|
Basic
|
$ (0.14)
|
|
|
$
(0.06)
|
|
|
Diluted
|
$ (0.14)
|
|
|
$
(0.06)
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic
net loss per
share
|
33,180,280
|
|
|
32,568,790
|
|
Shares used in
computing diluted
net loss per
share
|
33,180,280
|
|
|
33,568,790
|
|
|
|
|
|
|
|
|
|
|
ClickSoftware
Technologies Ltd.
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
33,004
|
|
$
30,605
|
|
Deposits
|
3,197
|
|
3,205
|
|
Marketable
securities
|
9,471
|
|
9,855
|
|
Trade receivables,
net
|
19,429
|
|
25,849
|
|
Deferred
taxes
|
1,710
|
|
1,680
|
|
Other receivables
and prepaid expenses
|
5,192
|
|
3,957
|
|
|
Total current
assets
|
72,003
|
|
75,151
|
|
|
|
|
|
|
|
LONG TERM
ASSETS
|
|
|
|
|
Property and
equipment, net
|
4,631
|
|
4,979
|
|
Deposits
|
829
|
|
1,335
|
|
Other receivables
and prepaid expenses
|
1,112
|
|
368
|
|
Deferred
taxes
|
3,470
|
|
3,280
|
|
Intangible assets
and Goodwill, net
|
11,480
|
|
11,878
|
|
Severance pay
funds
|
1,714
|
|
1,719
|
|
|
Total long term
assets
|
23,236
|
|
23,559
|
|
|
|
Total
Assets
|
$
95,239
|
|
$
98,710
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Current maturities
of debt
|
$
51
|
|
$
103
|
|
Accounts payable
and accrued expenses
|
16,078
|
|
18,664
|
|
Deferred
revenues
|
16,457
|
|
13,930
|
|
|
Total current
liabilities
|
32,586
|
|
32,697
|
|
|
|
|
|
|
|
LONG TERM
LIABILITIES
|
|
|
|
|
Debt, less current
maturities
|
-
|
|
70
|
|
Accrued severance
pay
|
4,170
|
|
4,276
|
|
Deferred
taxes
|
10
|
|
20
|
|
Deferred
revenues
|
3,412
|
|
3,622
|
|
|
Total long term
liabilities
|
7, 592
|
|
7,988
|
|
|
Total
liabilities
|
40,178
|
|
40,685
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Ordinary shares of
NIS 0.02 par value
|
141
|
|
140
|
|
Additional paid-in
capital
|
98,993
|
|
97,511
|
|
Accumulated
deficit
|
(43,867)
|
|
(39,211)
|
|
Accumulated other
comprehensive income
|
(163)
|
|
(372)
|
|
Treasury stock, at
cost: 39,000 shares
|
(43)
|
|
(43)
|
|
|
Total
shareholders' equity
|
55,061
|
|
58,025
|
|
|
|
Total Liabilities
and shareholders' equity
|
$
95,239
|
|
$
98,710
|
ClickSoftware
Technologies Ltd.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2015
(Unaudited)
|
|
March 31,
2014
(Unaudited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net
loss
|
$
(4,656)
|
|
$
(1,954)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
Income and expense
items not involving cash flows:
|
|
|
|
|
|
|
Depreciation
|
701
|
|
661
|
|
|
|
Amortization of
deferred compensation
|
863
|
|
736
|
|
|
|
Amortization of
acquired intangible assets
|
332
|
|
145
|
|
|
|
Severance pay,
net
|
(101)
|
|
(65)
|
|
|
|
Gain on marketable
securities
|
(56)
|
|
(441)
|
|
|
|
Loss on sale and
disposal of property and equipment
|
5
|
|
-
|
|
|
|
Other
|
-
|
|
(1)
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
Trade
receivables
|
6,420
|
|
1,668
|
|
|
|
Deferred
taxes
|
(230)
|
|
50
|
|
|
|
Other
receivables
|
(1,770)
|
|
310
|
|
|
|
Accounts payable
and accrued expenses
|
(2,586)
|
|
(1,556)
|
|
|
|
Deferred
revenues
|
2,317
|
|
4,177
|
|
Net cash provided
by operating activities
|
$
1,239
|
|
$
3,730
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of
equipment
|
(358)
|
|
(176)
|
|
|
Acquisition of
subsidiary (*)
|
66
|
|
(12,737)
|
|
|
Decrease in
deposits
|
514
|
|
4,724
|
|
|
Investments in
marketable securities
|
(1,142)
|
|
(2,920)
|
|
|
Proceeds from sale
of marketable securities
|
1,582
|
|
8,856
|
|
Net cash provided
by (used in) investment activities
|
$
662
|
|
$
(2,253)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Prepayments of
long-term debts
|
(122)
|
|
(158)
|
|
|
Employee options
exercised
|
620
|
|
1,153
|
|
Net cash provided
by financing activities
|
$
498
|
|
$
995
|
|
|
|
|
|
INCREASE IN CASH
AND CASH EQUIVALENTS
|
2,399
|
|
2,472
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
30,605
|
|
25,346
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
$
33,004
|
|
$
27,818
|
|
|
|
|
|
|
(*) Acquisition of
subsidiary
|
|
|
|
|
Working capital
(excluding cash and cash equivalents)
|
-
|
|
1,113
|
|
|
Property and
equipment
|
-
|
|
445
|
|
|
Intangible assets,
net of deferred taxes
|
(66)
|
|
12,019
|
|
|
Long-term
debt
|
-
|
|
(840)
|
|
Cash paid for the
acquisition of a subsidiary, net
|
$
(66)
|
|
$
12,737
|
|
|
|
|
|
|
ClickSoftware
Technologies Ltd.
|
SUPPLEMENTAL
RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
|
(Unaudited. In
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2015
|
|
March 31,
2014
|
|
|
|
$
|
% of
Revenues
|
|
$
|
% of
Revenues
|
|
|
|
|
|
|
GAAP Operating
income
|
$
(4,494)
|
(17%)
|
|
$
(1,847)
|
(7%)
|
Share-based
compensation (1)
|
863
|
|
|
736
|
|
Amortization of
intangible assets (2)
|
332
|
|
|
145
|
|
Non-GAAP Operating
income
|
$
(3,299)
|
(12%)
|
|
$
(966)
|
(3%)
|
|
|
|
|
|
|
GAAP Net
loss
|
$
(4,656)
|
(17%)
|
|
$
(1,954)
|
(7%)
|
Share-based
compensation (1)
|
863
|
|
|
736
|
|
Amortization of
intangible assets (2)
|
332
|
|
|
145
|
|
Deferred
taxes
|
(190)
|
|
|
50
|
|
Non-GAAP Net
loss
|
$
(3,651)
|
(14%)
|
|
$
(1,023)
|
(4%)
|
|
|
|
|
|
|
GAAP loss per
share (diluted)
|
$
(0.14)
|
|
|
$
(0.06)
|
|
Share-based
compensation
|
0.03
|
|
|
0.02
|
|
Amortization of
intangible assets
|
0.01
|
|
|
0.01
|
|
Deferred
taxes
|
(0.01)
|
|
|
0.00
|
|
Non-GAAP Net loss
per share (diluted)
|
$
(0.11)
|
|
|
$
(0.03)
|
|
|
|
|
|
|
|
|
(1)
Share-based compensation:
|
|
|
|
|
|
|
Cost of
revenues
|
$
115
|
|
|
$
102
|
|
|
Research and
development costs, net
|
134
|
|
|
84
|
|
|
Selling and
marketing expenses
|
246
|
|
|
234
|
|
|
General and
administrative expenses
|
368
|
|
|
316
|
|
|
$
863
|
|
|
$
736
|
|
|
|
|
|
|
|
(2)
Amortization of intangible assets:
|
|
|
|
|
|
|
Cost of
revenues
|
$
332
|
|
|
$
145
|
|
|
|
|
$
329
|
|
|
$
145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* See Note 14.A to our consolidated financial statements for
the year ended December 31, 2012
included in our Annual Report on Form 20-F, regarding November 2012 law.
ClickSoftware
Contact:
|
Investor Relations
Contact:
|
Noa
Schuman
|
Christopher
Harrison
|
Investor
Relations
|
KCSA Strategic
Communications
|
+972-3-7659-467
|
212-896-1267
|
Noa.Schuman@ClickSoftware.com
|
charrison@kcsa.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/clicksoftware-reports-financial-results-for-the-first-quarter-ended-march-31-2015-300078438.html
SOURCE ClickSoftware