- Report of Foreign Issuer (6-K)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

Form 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of: July 2011

Commission File Number: 000-30827

CLICKSOFTWARE TECHNOLOGIES LTD.         

 (Translation of registrant's name into English)

94 Em Hamoshavot Road

Petach Tikva 49527, Israel

 (Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F   x      Form 40-F  o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulations S-T Rule 101(b)(1):_____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulations S-T Rule 101(b)(7):_____

Indicate by check mark, whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes   o      No   x

 

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): _____

Attached hereto and incorporated by reference herein is the registrant's press release issued on July 28, 2011 announcing earnings results of its second quarter ended June 30, 2011.

 

 

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The GAAP financial statements in this Form 6-K of CLICKSOFTWARE TECHNOLOGIES LTD. are incorporated by reference into the Registration Statements on Form S-8 (registration numbers 333-42000, 333-115003, 333-135435, 333-141307, 333-149825, 333-158839, 333-166028 and 333-173200) and Form F-3 (registration number 333-166046) of the Company, filed with the Securities and Exchange Commission, to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports  subsequently filed or furnished.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CLICKSOFTWARE TECHNOLOGIES LTD. (Registrant)
	By:	/s/ Shmuel Arvatz
	Name:	Shmuel Arvatz
	Title:	Executive Vice President and
		Chief Financial Officer

Date: July 28, 2011

 

 

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ClickSoftware Contact:	Investor Relations Contact:
Noa Schuman	Rob Fink /Chi-Chi Millaway
Investor Relations	KCSA Strategic Communications
[phone]	212-896-1206 / 212-896-1269
[e-mail]	[e-mail] / [e-mail]

ClickSoftware Reports Record Revenues for the Second Quarter Ended June 30, 2011

Quarterly Revenues Up 18% Year-Over-Year, Reaching $20.7 Million

BURLINGTON , MA, July 28, 2011 – ClickSoftware Technologies Ltd. (NasdaqGS: CKSW), the leading provider of automated workforce management and optimization solutions for the service industry, today announced results for the second quarter ended June 30, 2011.

For the second quarter ended June 30, 2011, total revenues were $20.7 million, up 18% from $17.6 million in the second quarter of 2010. Net income for the second quarter of 2011 was $2.6 million, or $0.08 per fully diluted share, compared to net income of $2.4 million, or $0.07 per fully diluted share, for the same period last year.

Non-GAAP net income for the quarter was $3.5 million, or $0.11 per fully diluted share, compared to $3.3 million, or $0.10 per fully diluted share, for the same period last year.

Software license revenues for the second quarter of 2011 were $6.1 million, down 3% compared with software license revenues of $6.2 million for the same period last year. Service and maintenance revenues were $14.6 million, up 29% compared with service and maintenance revenues of $11.3 million in the same period last year.

Gross profit in the second quarter of 2011 was $13.5 million, or 65% of revenues, compared to $10.8 million, or 62% of revenues, in the same period last year.

Cash, cash equivalents and short and long-term investments at the end of the second quarter of 2011 increased to $56.4 million from $51.9 million at the end of the first quarter of 2011. Net cash provided by operating activities was $6.6 million during the second quarter of 2011. During this quarter the Company paid its first quarterly dividend payment in the amount of $2.5 million.

Management Commentary

“We are pleased with the strong financial performance of the second quarter.  Revenues reached a record level of $20.7 million, and we continued to generate positive cash flow from operations.  We also remain committed to investing in our business, and the launch of the ClickAppStore furthered our aim to become a market leader for mobile business apps,” commented Dr. Moshe BenBassat, ClickSoftware’s Chairman and CEO.  “We are winning new business in competitive situations and are confident about our future prospects.  The market’s increasing demand for workforce and service optimization as well as for mobility solutions keeps us optimistic that we can continue to grow our business and take it to the next level.”

Outlook

The Company reiterates the previously provided full year 2011 guidance of revenues in the approximate range of $81.5 to $85.0 million, representing about 15% to 20% growth over 2010.

 

 

 

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Cash Dividend

The Board of Directors, at its meeting on July 25, 2011, set the dates for the second quarterly dividend payment of $0.08 per ordinary share. The record date will be August 11, 2011 and the payment date will be August 25, 2011. The dividend will be paid net of any required tax.

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.

Annual Shareholders Meeting

The Company also today announced that at its Annual Shareholders Meeting held on July 21, 2011, all items on the agenda as set forth in the proxy statement furnished on Form 6-K with the U.S. Securities and Exchange Commission on June 8, 2011, were approved.

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 [phone] and ask for the ClickSoftware conference call.  International participants, please call [phone].  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 [phone] (international callers can dial [phone]).

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 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 over 250,000 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.

For more information, please visit www.clicksoftware.com or follow us on Twitter , 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, 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.

 
 

 

 

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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 future rates of growth and expectations of future cash flows and dividends. For example, when we discuss our “Outlook” for 2011 revenues, continued growth in 2011, future prospects and potential market demand and the Company’s market leadership, 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,  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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ClickSoftware Technologies Ltd.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited. In thousands, except share and per share amounts)

 

		Three Months Ended
		June 30, 2011								June 30, 2010
		$				% of Revenues				$				% of Revenues
Revenues:
Software license		$	6,066				29	%		$	6,249				36	%
Services			14,601				71	%			11,333				64	%
Total revenues			20,667				100	%			17,582				100	%
Cost of revenues:
Software license			374				2	%			338				2	%
Services			6,823				33	%			6,398				36	%
Total cost of revenues			7,197				35	%			6,736				38	%
Gross profit			13,470				65	%			10,846				62	%
Operating expenses:
Research and development costs, net			2,291				11	%			1,892				11	%
Selling and marketing expenses			6,083				29	%			4,812				27	%
General and administrative expenses			1,761				9	%			1,424				8	%
Total operating expenses			10,135				49	%			8,128				46	%
Operating income			3,335				16	%			2,718				15	%
Interest income (expense), net			(46	)			0	%			55				0	%
Net income before taxes		$	3,289				16	%		$	2,773				16	%
Tax expense, net			690				3	%			422				2	%
Net income		$	2,599				13	%		$	2,351				13	%
Net earnings per ordinary share:
Basic		$	0.08							$	0.08
Diluted		$	0.08							$	0.07
Shares used in computing basic net income per share			30,873,416								30,366,473
Shares used in computing diluted net income per share			32,652,099								31,946,699

 

 

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ClickSoftware Technologies Ltd.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited. In thousands, except share and per share amounts)

 

		Six Months Ended
		June 30, 2011								June 30, 2010
		$				% of Revenues				$				% of Revenues
Revenues:
Software license		$	13,518				34	%		$	13,087				37	%
Services			26,449				66	%			21,978				63	%
Total revenues			39,967				100	%			35,065				100	%
Cost of revenues:
Software license			1,031				3	%			1,031				3	%
Services			13,702				34	%			12,224				35	%
Total cost of revenues			14,733				37	%			13,255				38	%
Gross profit			25,234				63	%			21,810				62	%
Operating expenses:
Research and development costs, net			4,152				10	%			3,739				11	%
Selling and marketing expenses			11,595				29	%			9,173				26	%
General and administrative expenses			3,366				8	%			2,980				8	%
Total operating expenses			19,113				48	%			15,892				45	%
Operating income			6,121				15	%			5,918				17	%
Interest income (expense), net			(22	)			0	%			51				0	%
Net income before taxes		$	6,099				15	%		$	5,969				17	%
Tax expense, net			1,252				3	%			844				2	%
Net income		$	4,847				12	%		$	5,125				15	%
Net earnings per ordinary share:
Basic		$	0.16							$	0.17
Diluted		$	0.15							$	0.16
Shares used in computing basic net income per share			30,767,584								30,314,900
Shares used in computing diluted net income per share			32,376,192								31,994,563

 

 

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ClickSoftware Technologies Ltd. CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

		June 30, 2011				December 31, 2010
		(Unaudited)				( Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	21,438			$	25,749
Short term deposits			24,830				16,747
Marketable securities			9,492				7,839
Trade receivables, net			16,461				14,255
Deferred taxes			1,470				2,220
Other receivables and prepaid expenses			2,656				2,431
Total current assets			76,347				69,241
LONG TERM ASSETS
Property and equipment, net			3,661				3,384
Long term deposits			653				620
Other receivables and prepaid expenses			311				364
Intangible assets, net			1,600				2,004
Goodwill			2,511				2,511
Severance pay funds			1,886				1,703
Total long term assets			10,622				10,586
Total Assets		$	86,969			$	79,827
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses		$	12,328			$	12,574
Dividend payable			7,541				-
Deferred revenues			10,274				7,957
Total current liabilities			30,143				20,531
LONG TERM LIABILITIES
Accrued severance pay			3,902				3,431
Deferred revenues			2,102				1,777
Total long term liabilities			6,004				5,208
Total liabilities			36,147				25,739
SHAREHOLDERS’ EQUITY
Ordinary shares of NIS 0.02 par value			129				126
Additional paid-in capital			83,098				81,170
Accumulated deficit			(32,563	)			(27,393	)
Accumulated other comprehensive income			201				228
Treasury stock, at cost: 39,000 shares			(43	)			(43	)
Total shareholders' equity			50,822				54,088
Total Liabilities and shareholders' equity		$	86,969			$	79,827

 

 

 

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ClickSoftware Technologies Ltd.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited. In thousands)

 

		Six Months Ended
		June 30, 2011				June 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$	4,847			$	5,125
Adjustments to reconcile net income to
net cash provided by operating activities:
Income and expense items not involving cash flows:
Depreciation			690				618
Amortization of deferred compensation			712				662
Amortization of acquired intangible assets			404				398
Severance pay, net			288				85
(Gain) Loss on marketable securities			(43	)			15
Other			10				(1	)
Changes in operating assets and liabilities:
Increase in trade receivables			(2,206	)			(198	)
Decrease in deferred taxes			750				720
Increase in other receivables			(199	)			(314	)
Increase in accounts payable and accrued expenses			(246	)			(614	)
Increase in deferred revenues			2,642				1,503
Net cash provided by operating activities		$	7,649			$	7,999
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment			(976	)			(1,018	)
(Increase)  Decrease in deposits			(8,116	)			2,020
Investments in marketable securities			(4,743	)			(5,266	)
Proceeds from sale of marketable securities			3,133				1,057
Net cash used in investment activities		$	(10,702	)		$	(3,207	)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid			(2,476	)			-
Employee options exercised			1,218				581
Net cash provided by (used in) financing activities		$	(1,258	)		$	581
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS			(4,311	)			5,373
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD			25,749				15,594
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	21,438			$	20,967

 

 

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ClickSoftware Technologies Ltd.

SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS

(Unaudited. In thousands, except per share amounts)

 

		Three Months Ended
		June 30, 2011								June 30, 2010
		$				% of Revenues				$				% of Revenues
GAAP Net income		$	2,599				13	%		$	2,351				13	%
Share-based compensation (1)			401								323
Amortization of intangible assets (2)			202								199
Deferred taxes			310								380
Non-GAAP Net income		$	3,512				17	%		$	3,253				19	%
GAAP Earnings per share (diluted)		$	0.08							$	0.07
Share-based compensation			0.01								0.01
Amortization of intangible assets			0.01								0.01
Deferred taxes			0.01								0.01
Non-GAAP Earnings per share (diluted)		$	0.11							$	0.10
(1) Share-based compensation:
Cost of services			58								43
Research and development costs, net			49								37
Selling and marketing expenses			110								85
General and administrative expenses			184								158
		$	401							$	323
(2) Amortization of intangible assets:
Cost of revenues			173								169
Research and development costs, net			29								30
		$	202							$	199

 

 

 

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ClickSoftware Technologies Ltd.

SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS

(Unaudited. In thousands, except per share amounts)

 

		Six Months Ended
		June 30, 2011								June 30, 2010
		$				% of Revenues				$				% of Revenues
GAAP Net income		$	4,847				12	%		$	5,125				15	%
Share-based compensation (1)			712								662
Amortization of intangible assets (2)			404								398
Deferred taxes			750								720
Non-GAAP Net income		$	6,713				17	%		$	6,905				20	%
GAAP Earnings per share (diluted)		$	0.15							$	0.16
Share-based compensation			0.02								0.02
Amortization of intangible assets			0.01								0.01
Deferred taxes			0.03								0.03
Non-GAAP Earnings per share (diluted)		$	0.21							$	0.22
(1) Share-based compensation:
Cost of services			97								87
Research and development costs, net			83								73
Selling and marketing expenses			187								173
General and administrative expenses			345								329
		$	712							$	662
(2) Amortization of intangible assets:
Cost of revenues			345								338
Research and development costs, net			59								60
		$	404							$	398

 

 

 

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