ClickSoftware Technologies Ltd. (Nasdaq: CKSW) expects double digit revenue growth but little, if any, profit growth in 2013, after reporting double digit revenue growth, but lower net profit for the fourth quarter and full year of 2012.
Fourth quarter revenue rose 19% to $28.4 million from $24 million for the corresponding quarter of 2011. GAAP-based net profit rose 33% to $3.9 million ($0.12 per share) from $2.9 million for the corresponding quarter, but non-GAAP net profit fell to $4.2 million $0.13 per share from $4.9 million.
For the year as a whole, revenue rose 15% to $100 million from $87.1 million in 2011. GAAP-based net profit fell to $7.5 million ($0.23 per share) from $12.2 million for the corresponding quarter, and non-GAAP net profit fell to $10.2 million ($0.31 per share) from $17 million.
Software license revenues rose 18% to $10.8 million for the fourth quarter from $9.2 million for the corresponding quarter, and service and maintenance revenue rose 19% to $17.6 million $14.8 million. Cash flow from operations totaled $10.7 million for the fourth quarter, boosting cash and cash equivalents to $59.4 million at the end of the year, after payment of a $2.5 million dividend.
In its guidance, ClickSoftware expects 20-25% revenue growth in 2013 to $120-125 million, based on $33.2 million in backlog and deferred revenue, its growing sales pipeline, and expansion into new markets. It predicts non-GAAP earnings per share to be $0.24-0.30 and GAAP-based earnings per share of $0.14-0.20.
ClickSoftware chairman and CEO Moshe BenBassat said, "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."
Published by Globes [online], Israel business news - www.globes-online.com - on February 4, 2013
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