ClickSoftware Reports Financial Results for the First Quarter Ended March 31, 2015

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

* 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.

 

 

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SOURCE ClickSoftware