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Last updated on April 16, 2014 at 11:32 EDT

ClickSoftware Reports Record Revenues of $100 Million for 2012

February 4, 2013

BURLINGTON, Mass., Feb. 4, 2013 /PRNewswire/ — 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, 2012.

Fourth Quarter and Full Year 2012 Highlights

  • Fourth quarter 2012 revenues reach $28.4 million (19% growth);
  • 2012 annual revenues reach $100 million mark (15% growth);
  • Total cash and investments at $59.4 million;
  • Annual cash from operations was $16.2 million.

Fourth Quarter Results

For the fourth quarter ended December 31, 2012, total revenues were $28.4 million, up 19% from $24.0 million in the fourth quarter of 2011. Net income for the fourth quarter of 2012 was $3.9 million, or $0.12 per fully diluted share, compared to net income of $2.9 million, or $0.09 per fully diluted share, for the same period last year.

Non-GAAP net income for the quarter was $4.2 million, or $0.13 per fully diluted share, compared to $4.9 million, or $0.15 per fully diluted share, for the same period last year.

Software license revenues for the fourth quarter of 2012 were $10.8 million, up 18% compared with software license revenues of $9.2 million for the same period last year. Service and maintenance revenues were $17.6 million, up 19% compared with service and maintenance revenues of $14.8 million in the same period last year.

Gross profit in the fourth quarter of 2012 was $18.5 million, or 65% of revenues, compared to $15.0 million, or 63% of revenues, in the same period last year.

Net cash provided by operating activities was $10.7 million during the fourth quarter of 2012. Following a $2.5 million cash dividend payment, cash, cash equivalents and short and long-term investments at the end of the fourth quarter of 2012 were $59.4 million, an increase of $7.8 million compared to the end of the third quarter of 2012.

Full Year 2012 Results

Total revenues for 2012 grew 15% over 2011 to $100.0 million, yielding net income of $7.5 million, or $0.23 per fully diluted share. This compares with revenues of $87.1 million and net income of $12.2 million, or $0.38 per fully diluted share, for 2011. Non-GAAP net income for 2012 was $10.2 million, or $0.31 per fully diluted share. This compares with Non-GAAP net income of $17.0 million, or $0.53 per fully diluted share, for 2011.

Management Commentary

“2012 was an exciting year for us as we broke the $100 million revenue mark and invested in initiatives that will expand our addressable market and allow us to accelerate long-term growth,” commented Dr. Moshe BenBassat, ClickSoftware’s Chairman and CEO. “Contributing to our annual results was a record fourth quarter with $28.4 million in revenues, which was solidified by strong wins with new customers and continued geographic expansion. The reduction of our profitability in 2012 is mostly attributable to our investments in cloud operations, research and development and sales and marketing. During 2012 we hired more than a hundred employees, growing our headcount by about 25%. These investments establish the groundwork for accelerated growth in 2013 and beyond, and will also allow us to further expand our product offering while creating higher barriers of entry for our competitors. For example, new developments that integrate mobility and our patent-pending ClickButler technology into shift optimization provide a differentiated product that meets the demands of an evolving market and delivers a unique value and functionality not offered by any other vendor.”

“The investments in our three major growth initiatives: mobility, cloud services and geographic expansion, continue to progress and we see increased return on these efforts. In mobility, there was a noticeable increase in interest in our solutions and, in 2012, 80% of our new customers purchased our mobile solution. In the cloud, we have added 10 new customers during the past year, and our pipeline for cloud-based solutions is considerably larger than what it was a year ago. We expect this growth to continue and translate into increased revenues going forward. Similarly, in terms of new territories, we are entering new markets and winning new deals. As we continue to execute our strategic long term plan, we are confident we will be able to accelerate growth beyond the historical rates we have been used to,” Dr. BenBassat concluded.

Financial Outlook

For 2013, the Company currently expects top line growth of 20% to 25%, and to achieve revenues in the $120 to $125 million range. This outlook is based on approximately $33.2 million in backlog and deferred revenues, current visibility into a growing sales pipeline and expected expansion into new territories and industry verticals. Non-GAAP fully diluted earnings per share for 2013 is expected to be in the range of $0.24 to $0.30, which excludes share-based compensation, deferred taxes expense and amortization of intangible assets costs of approximately $0.08, $0.01 and $0.01 per fully diluted share respectively. GAAP fully diluted earnings per share is expected to be in the range of $0.14 to $0.20.

Cash Dividend

ClickSoftware also announced today that on February 3, 2013, its Board of Directors approved a $0.08 per share dividend to be paid on March 4, 2013 to all shareholders of record as of the close of business on February 18, 2013. The dividend will be paid net of any required tax. The Company does not have a formal policy governing the amounts and payment of dividends, and the declaration and payment of future dividends, if any, is at the discretion of the Company’s Board of Directors.

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 by calling (888) 326-9310 (international callers can dial +972-3-925-5901).

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” and “The real-time service enterprise” concepts, 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 www.clicksoftware.com and follow us on Twitter, the content of which is not a part of this press release.

To download ClickSoftware’s investor relations app, which offers access to SEC documents, press releases, videos, audiocasts and more, please visit https://itunes.apple.com/us/app/cksw-ir/id530880886?mt=8 to download on your iPhone and iPad, or https://play.google.com/store/apps/details?id=com.theirapp.ckswir&hl=en 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 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 2013 revenues and non-GAAP earnings per share, visibility into future periods and pipeline, winning new business, expected growth in mobility solutions and cloud services and demand for those offerings, expected expansion in new territories and new markets, 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, 2011 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.

    ClickSoftware Contact:        Investor Relations Contact:
    Noa Schuman                   Rob Fink
    Investor Relations            KCSA Strategic Communications
    +972-3-7659-467               212-896-1206
    Noa.Schuman@clicksoftware.com rfink@kcsa.com

Note: Financial Schedules Attached


                                                                                                               ClickSoftware Technologies Ltd.
                                                                                                            CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                (Unaudited. In thousands, except share and per share amounts)

                                                                                                                                                                                                                                                                    Three Months Ended
                                                                                                                                                                                                                                                                    December 31, 2012                          December 31, 2011
                                                                                                                                                                                                                                                                    -----------------                          -----------------
                                                                                                                                                                                                                                                                                             $  % of Revenues                              $     % of
                                                                                                                                                                                                                                                                                                                                               Revenues
                                                                                                                                                                                                                                                                                           ---  -------------                            ---   --------
    Revenues:
                                                                                                                                                                                                                                                           Software license                           $10,847                 38%                $9,163    38%
                                                                                                                                                                                                                                                           Services                                    17,552                 62%                14,796    62%
                                                                                                                                                                                                                                                           --------                                    ------                                    ------
                                                                                                                                                                                                                                                                   Total revenues                      28,399                100%                23,959   100%
                                                                                                                                                                                                                                                           --------------                              ------                                    ------
    Cost of revenues:
                                                                                                                                                                                                                                                           Software license                             1,154                  4%                   755     3%
                                                                                                                                                                                                                                                           Services                                     8,728                 31%                 8,220    34%
                                                                                                                                                                                                                                                           --------                                     -----                                     -----
                                                                                                                                                                                                                                                                   Total cost of revenues               9,882                 35%                 8,975    37%
    Gross profit                                                                                                                                                                                                                                                                        18,517             65%                        14,984         63%
                                                                                                                                                                                                                                                                                        ------            ---                         ------        ---
    Operating expenses:
                                                                                                                                                                                                                                                           Research and development costs, net          3,871                 14%                 2,601    11%
                                                                                                                                                                                                                                                           Selling and marketing expenses               8,725                 31%                 6,105    25%
                                                                                                                                                                                                                                                           General and administrative expenses          2,335                  8%                 2,095     9%
                                                                                                                                                                                                                                                           Impairment of goodwill                           -                  -                    939     4%
                                                                                                                                                                                                                                                                   Total operating expenses            14,931                 53%                11,740    49%
                                                                                                                                                                                                                                                           ---------------                             ------                                    ------
    Operating income                                                                                                                                                                                                                                                                     3,586             13%                         3,244         14%
    Other income                                                                                                                                                                                                                                                                           110              0%                             -          -
    Interest income, net                                                                                                                                                                                                                                                                    64              0%                           179          1%
                                                                                                                                                                                                                                                                                           ---            ---                            ---        ---
    Net income before taxes                                                                                                                                                                                                                                                             $3,760             13%                        $3,423         14%
    Tax (benefit) expense, net                                                                                                                                                                                                                                                            (146)           (1)%                           552          2%
                                                                                                                                                                                                                                                                                          ----            ---
    Net income                                                                                                                                                                                                                                                                          $3,906             14%                        $2,871         12%

    Net earnings per ordinary share:
    Basic                                                                                                                                                                                                                                                                                $0.12                                         $0.09
                                                                                                                                                                                                                                                                                         -----                                         -----
    Diluted                                                                                                                                                                                                                                                                              $0.12                                         $0.09
                                                                                                                                                                                                                                                                                         -----                                         -----
    Shares used in computing basic                                                                                                                                                                                                                                                  31,622,991                                    31,297,842
    net income per share

    Shares used in computing diluted                                                                                                                                                                                                                                                32,747,616                                    32,758,847
    net income per share

                                                                                                                     ClickSoftware Technologies Ltd.
                                                                                                                  CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                           (In thousands, except share and per share amounts)

                                                                                                                                                                                                                                                                                   Year Ended
                                                                                                                                                                                                                                                                               December 31, 2012                          December 31, 2011
                                                                                                                                                                                                                                                                                  (Unaudited)                                 (Audited)
                                                                                                                                                                                                                                                                                   ----------                                  --------
                                                                                                                                                                                                                                                                                                        $  % of Revenues                              $  % of Revenues
                                                                                                                                                                                                                                                                                                      ---  -------------                            ---  -------------
    Revenues:
                                                                                                                                                                                                                                                                      Software license                           $34,541                 35%                   $31,542    36%
                                                                                                                                                                                                                                                                      Services                                    65,505                 65%                    55,545    64%
                                                                                                                                                                                                                                                                      --------                                    ------                                        ------
                                                                                                                                                                                                                                                                      Total revenues                             100,046                100%                    87,087   100%
                                                                                                                                                                                                                                                                      --------------                             -------                                        ------
    Cost of revenues:
                                                                                                                                                                                                                                                                      Software license                             3,686                  4%                     2,519     3%
                                                                                                                                                                                                                                                                      Services                                    35,185                 35%                    29,177    34%
                                                                                                                                                                                                                                                                      --------                                    ------                                        ------
                                                                                                                                                                                                                                                                      Total cost of revenues                      38,871                 39%                    31,696    36%
    Gross profit                                                                                                                                                                                                                                                                                   61,175             61%                        55,391             64%
                                                                                                                                                                                                                                                                                                   ------            ---                         ------            ---
    Operating expenses:
                                                                                                                                                                                                                                                                      Research and development costs, net         13,146                 13%                     9,019    10%
                                                                                                                                                                                                                                                                      Selling and marketing expenses              31,977                 32%                    23,382    27%
                                                                                                                                                                                                                                                                      General and administrative expenses          8,779                  9%                     7,386     8%
                                                                                                                                                                                                                                                                      Impairment of goodwill                           -                  -                        939     1%
                                                                                                                                                                                                                                                                      Total operating expenses                    53,902                 54%                    40,726    47%
                                                                                                                                                                                                                                                                      ---------------                             ------                                        ------
    Operating income                                                                                                                                                                                                                                                                                7,273              7%                        14,665             17%
    Other income                                                                                                                                                                                                                                                                                      110              0%                             -              -
    Interest income, net                                                                                                                                                                                                                                                                              274              0%                             7              0%
                                                                                                                                                                                                                                                                                                      ---            ---                            ---            ---
    Net income before taxes                                                                                                                                                                                                                                                                        $7,657              8%                       $14,672             17%
    Tax expense, net                                                                                                                                                                                                                                                                                  169              0%                         2,462              3%
                                                                                                                                                                                                                                                                                                      ---            ---
    Net income                                                                                                                                                                                                                                                                                     $7,488              8%                       $12,210             14%

    Net earnings per ordinary share:
    Basic                                                                                                                                                                                                                                                                                           $0.24                                         $0.39
                                                                                                                                                                                                                                                                                                    -----                                         -----
    Diluted                                                                                                                                                                                                                                                                                         $0.23                                         $0.38
                                                                                                                                                                                                                                                                                                    -----                                         -----
    Shares used in computing basic                                                                                                                                                                                                                                                             31,545,435                                    31,014,373
    net income per share

    Shares used in computing diluted                                                                                                                                                                                                                                                           32,837,789                                    32,226,883
    net income per share

                                                           ClickSoftware Technologies Ltd.
                                                             CONSOLIDATED BALANCE SHEETS
                                                          (In thousands, except share data)
                                                                                       December 31, 2012                      December 31, 2011
                                                                                           (Unaudited)                             (Audited)
                                                                                           ----------                              --------
                          ASSETS
    CURRENT ASSETS
                                                                 Cash and cash equivalents                                               $12,793  $14,683
                                                                 Deposits                                                                 30,310   28,243
                                                                 Marketable securities                                                    15,635   10,945
                                                                 Trade receivables, net                                                   21,792   23,378
                                                                 Deferred taxes                                                              220      540
                                                                  Other receivables and prepaid
                                                                  expenses                                                                 3,398    2,610
                                                                       Total current assets                                               84,148   80,399
                                                                 -------------------                                                      ------
    LONG TERM ASSETS
                                    Property and equipment, net                                                         4,206              3,873
                                    Deposits                                                                              621              1,093
                       Other receivables and prepaid expenses                                                             275                233
                       Deferred taxes                                                                                   1,230                550
                       Intangible assets, net                                                                             452              1,166
                       Goodwill                                                                                         1,572              1,572
                       Severance pay funds                                                                              1,965              1,746
                                                                                                                        -----              -----
                                                                      Total long term assets                                              10,321   10,233
                                                                 -------------------                                                      ------
                                                                                    Total Assets                                         $94,469  $90,632
                                                                                                                                         =======  =======
                                                                                    LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES
                                                                  Accounts payable and accrued
                                                                  expenses                                                               $16,536  $13,608
                                                                 Dividend payable                                                              -    2,536
                                                                 Deferred revenues                                                         9,047    9,529
                                                                      Total current liabilities                                           25,583   25,673
                                                                 -------------------                                                      ------

    LONG TERM LIABILITIES
                                                                 Accrued severance pay                                                     4,465    3,847
                                                                 Deferred taxes liability                                                      -      180
                                                                 Deferred revenues                                                         1,503    1,828
                                                                      Total long term liabilities                                          5,968    5,855
                                                                 -------------------                                                       -----
                                                                      Total liabilities                                                   31,551   31,528
                                                                 -----------------                                                        ------
    SHAREHOLDERS' EQUITY
                                                                  Ordinary shares of NIS 0.02 par
                                                                  value                                                                      132      131
                                                                 Additional paid-in capital                                               87,566   84,383
                                                                 Accumulated deficit                                                     (25,296) (25,200)
                                                                  Accumulated other
                                                                  comprehensive
                                                                  income                                                                     559     (167)
                                                                  Treasury stock, at cost: 39,000
                                                                  shares                                                                     (43)     (43)
                                                                      Total shareholders' equity                                          62,918   59,104
                                                                 -------------------                                                      ------
                                                                                          Total Liabilities and shareholders'
                                                                                           equity                                        $94,469  $90,632
                                                                 ===================                                                     =======

                                                                                                              ClickSoftware Technologies Ltd.
                                                                                                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                      (In thousands)
                                                                                                                                                                                                                                                                                                                                      Year Ended
                                                                                                                                                                                                                                                                                                               December 31, 2012  December 31, 2011
                                                                                                                                                                                                                                                                                                                  (Unaudited)         (Audited)
                                                                                                                                                                                                                                                                                                                   ----------          --------
    CASH FLOWS FROM OPERATING ACTIVITIES
                                                                                                                                                                                                                                                        Net income                                                                                     $7,488       $12,210
                                                                                                                                                                                                                                                        Adjustments to reconcile net income to
                                                                                                                                                                                                                                                        net cash provided by operating activities:
                                                                                                                                                                                                                                                           Income and expense items not involving cash flows:
                                                                                                                                                                                                                                                        Depreciation                                                                                    2,144         1,519
                                                                                                                                                                                                                                                        Amortization of deferred compensation                                                           2,534         1,731
                                                                                                                                                                                                                                                        Amortization of acquired intangible assets                                                        715           782
                                                                                                                                                                                                                                                        Impairment of goodwill                                                                              -           939
                                                                                                                                                                                                                                                        Impairment of acquired intangible assets                                                            -            55
                                                                                                                                                                                                                                                        Severance pay, net                                                                                399           373
                                                                                                                                                                                                                                                        Gain on marketable securities                                                                    (146)          (94)
                                                                                                                                                                                                                                                        Other                                                                                              12            11
                                                                                                                                                                                                                                                           Changes in operating assets and liabilities:
                                                                                                                                                                                                                                                        Trade receivables                                                                               1,586        (9,123)
                                                                                                                                                                                                                                                        Deferred taxes                                                                                   (540)        1,310
                                                                                                                                                                                                                                                        Other receivables                                                                                (104)         (443)
                                                                                                                                                                                                                                                        Accounts payable and accrued expenses                                                           2,928         1,034
                                                                                                                                                                                                                                                        Deferred revenues                                                                                (807)        1,623
                                                                                                                                                                                                                                                        Net cash provided by operating activities                                                     $16,209       $11,927

    CASH FLOWS FROM INVESTING ACTIVITIES
                                                                                                                                                                                                                                                          Purchase of equipment                                                                        (2,490)       (2,018)
                                                                                                                                                                                                                                                          Increase  in deposits                                                                        (1,595)      (11,969)
                                                                                                                                                                                                                                                          Investments in marketable securities                                                         (7,459)       (8,298)
                                                                                                                                                                                                                                                          Proceeds from sale of marketable securities                                                   2,915         5,286
                                                                                                                                                                                                                                                        Net cash used in investment activities                                                        $(8,629)     $(16,999)

    CASH FLOWS FROM FINANCING ACTIVITIES
                                                                                                                                                                                                                                                         Dividend paid                                                                               (10,120)        (7,481)
                                                                                                                                                                                                                                                         Employee options exercised                                                                       650         1,487
                                                                                                                                                                                                                                                        Net cash used in financing activities                                                         $(9,470)      $(5,994)

    DECREASE IN CASH AND CASH EQUIVALENTS                                                                                                                                                                                                                                                              (1,890)                              (11,066)
    CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                                                                                                                                                                                                                   14,683                                25,749
    CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                                                                                                                                                                                                                                           $12,793                      $14,683
                                                                                                                                                                                                                                                                                                                         -------                      -------

                                                                                         ClickSoftware Technologies Ltd.
                                                                             SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
                                                                               (Unaudited. In thousands, except per share amounts)

                                                                                                                                                     Three Months Ended
                                                                                                                                           December 31, 2012                            December 31, 2011
                                                                                                                                           -----------------                            -----------------
                                                                                                                                                                    $     % of                              $   % of
                                                                                                                                                                        Revenues                              Revenues
                                                                                                                                                                  ---    --------                         ---   --------

    GAAP Net income                                                                                                                                            $3,906          14%                     $2,871         12%
    Share-based compensation (1)                                                                                                                                  652                                     510
    Amortization of intangible assets (2)                                                                                                                         150                                     176
    Impairment of goodwill and other intangible assets                                                                                                              -                                     994
    Deferred taxes                                                                                                                                               (470)                                    300
    Non-GAAP Net income                                                                                                                                        $4,238          15%                     $4,851         20%
                                                                                                                                                               ------         ---                      ------        ---

    GAAP Earnings per share (diluted)                                                                                                                           $0.12                                   $0.09
    Share-based compensation                                                                                                                                     0.02                                    0.02
    Amortization of intangible assets                                                                                                                            0.00                                    0.00
    Impairment of goodwill and other intangible assets                                                                                                           0.00                                    0.03
    Deferred taxes                                                                                                                                              (0.01)                                   0.01
    Non-GAAP Earnings per share (diluted)                                                                                                                       $0.13                                   $0.15
                                                                                                                                                                -----                                   -----

    (1) Share-based compensation:
                                         Cost of services                                                                                                         $85                                     $52
                                         Research and development costs, net                                                                                       69                                      42
                                         Selling and marketing expenses                                                                                           173                                     101
                                         General and administrative expenses                                                                                      325                                     315
                                                                                                                                                                 $652                                    $510
                                                                                                                                                                 ----                                    ----

    (2) Amortization of intangible assets:
    Cost of revenues                                                                                                                  $121                                         $147
    Research and development costs, net                                                                                                 29                                           29
                                                                                                                                                                 $150                                    $176
                                                                                                                                                                 ----                                    ----


                                                                       ClickSoftware Technologies Ltd.
                                                           SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
                                                             (Unaudited. In thousands, except per share amounts)

                                                                                                                             Year Ended
                                                                                                               December 31, 2012                     December 31, 2011
                                                                                                               -----------------                     -----------------
                                                                                                                                       $    % of                        $   % of
                                                                                                                                          Revenues                        Revenues
                                                                                                                    ---                    --------                   ---   --------

    GAAP Net income                                                                                                               $7,488          7%              $12,210          14%
    Share-based compensation (1)                                                                                                   2,534                            1,731
    Amortization of intangible assets (2)                                                                                            715                              782
    Impairment of goodwill and other intangible assets                                                                                 -                              994
    Deferred taxes                                                                                                                  (540)                           1,310
    Non-GAAP Net income                                                                                                          $10,197         10%              $17,027          20%
                                                                                                                                 -------        ---               -------         ---

    GAAP Earnings per share (diluted)                                                                                              $0.23                            $0.38
    Share-based compensation                                                                                                        0.08                             0.05
    Amortization of intangible assets                                                                                               0.02                             0.03
    Impairment of goodwill and other intangible assets                                                                              0.00                             0.03
    Deferred taxes                                                                                                                 (0.02)                            0.04
    Non-GAAP Earnings per share (diluted)                                                                                          $0.31                            $0.53
                                                                                                                                   -----                            -----

    (1) Share-based compensation:
                       Cost of services                                                                                             $312                             $202
                       Research and development costs, net                                                                           254                              168
                       Selling and marketing expenses                                                                                611                              389
                       General and administrative expenses                                                                         1,357                              972
                                                                                                                                  $2,534                           $1,731
                                                                                                                                  ------                           ------

    (2) Amortization of intangible assets:
    Cost of revenues                                                                                                                $597                             $664
    Research and development costs, net                                                                                              118                              118
                                                                                                                                    $715                             $782
                                                                                                                                    ----                             ----

SOURCE ClickSoftware Technologies Ltd.


Source: PR Newswire