ClickSoftware Reports Record 3rd Quarter Revenues, Net Income (email this article)

BURLINGTON, Massachusetts, November 1 /PRNewswire-FirstCall/ -- ClickSoftware Technologies (Company Profile, Past Stories, Case Studies), Ltd., (Nasdaq: CKSW - News), the leading provider of workforce and service optimization solutions, today announced results for the third quarter ended September 30, 2006.

For the third quarter ended September 30, 2006, total revenues reached a record $8.7 million, with record net income of $797,000, or $0.03 per share. This compares with revenues of $6.1 million and a net loss of $307,000, or a loss of $0.01 per share, for the same period last year, and revenues of $8.0 million and net income of $443,000, or $0.02 per share, for the second quarter of 2006. Excluding the effects of share-based compensation expenses related to the adoption of SFAS-123R, net income was $954,000, or $0.03 per share.

Software license revenues for the third quarter of 2006 were $3.2 million, while service and maintenance revenues were $5.5 million. This compares to software license revenues of $1.8 million and service and maintenance revenues of $4.3 million for the same period last year, and $3.3 million and $4.7 million, respectively, in the second quarter of 2006.

Gross profit in the third quarter of 2006 was $5.1 million, or 59% of revenues, compared to $3.5 million, or 58% of revenues, in the same period last year, and $5.0 million, or 62% of revenues, in the second quarter of 2006.

As of September 30, 2006, the Company had cash, cash equivalents and short and long-term investments of $16.4 million, up $1.6 million from $14.8 million at June 30, 2006. Net cash provided from operating activities was $1.5 million during the third quarter of 2006.

"For three consecutive quarters in 2006 we have reported significant increases in revenues over respective prior year quarters and we expect the same for the fourth quarter. At the same time, deferred revenues and backlog--which give insight into revenues to be recognized in future quarters--continue to be solid. As a result, we are pleased with our progress this year and look forward to continued growth ahead," said Dr. Moshe BenBassat, Chairman and Chief Executive Officer.

Outlook
For the fourth quarter the Company currently projects revenues of approximately $9 million. This would bring total 2006 revenues to approximately $32 million, representing annual growth of about 33% over 2005. The Company initially projected 2006 revenue growth at 15% at the beginning of the year, and revised that projection upward to 25% following its report of second quarter results.

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 +1-888-321-3075 and ask for the ClickSoftware conference call. International participants, please call +1-973-582-2855. 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 +1-877-519-4471 (international callers can dial +1-973-341-3080), ID Code: 8007630.

About ClickSoftware
ClickSoftware is the leading provider of workforce and service optimization solutions that maximize workforce productivity and customer satisfaction while minimizing operations costs. ClickSoftware's ServiceOptimization Suite provides an integrated, intelligent solution for automatic, efficient, and effective decisions over the entire service decision-making chain. It includes reliable customer demand and workload forecasting, strategic and tactical capacity planning, optimized shift planning, daily service scheduling, troubleshooting and repair support, wireless workforce management, location based services and business analytics, connecting all organizational levels and functions.

The Company has offices in Burlington, MA; Tel-Aviv, Israel; Europe; and Asia Pacific. For more information about ClickSoftware, call +1-781-272-5903 or +1-888-438-3308 or visit http://www.clicksoftware.com

This press release contains express or implied forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. These forward-looking statements include, but are not limited to, those regarding future results of operations, visibility into future periods, continued growth and rate of growth, and expectations regarding future closing of contracts and receipt of orders, recognition of revenues and deferred revenues. Such "forward-looking statements" involve known and unknown risks, uncertainties and other factors, which may cause actual results or performance to be materially different from those projected. Achievement of these results by ClickSoftware and its subsidiaries may be affected by many factors, including among others, the following: risks and uncertainties regarding the general economic outlook; the length of or change in the Company's sales cycle; the Company's ability to close sales to potential customers in a timely manner; the Company's ability to maintain or increase relationships with strategic partners; timing of revenue recognition; and the Company'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 ClickSoftware's annual report on Form 20F for the year ended December 31, 2005 and subsequent filings with the Securities and Exchange Commission. The Company 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.