"Reporting record revenues, strong profit growth and significant cash generation in the first quarter provides a solid start to 2010. We made strategic progress on all fronts, and are excited to build on this momentum," is how ClickSoftware chairman and CEO Dr. Moshe Ben Bassat sums up the company's first quarter results. "We saw growth in the form of new customers as well as a significant increase in repeat business. We believe additional orders from existing customers are a positive signal and a testament to the value our products offer."
ClickSoftware provides workforce management and service optimization solutions. For the first quarter, its total revenue was a company record at $17.5 million, up 35% compared with revenue of $13.0 million for the same period in 2009. Net profit for the first quarter of 2010 was $2.8 million, or $0.09 per fully diluted share, compared with net income of $2.6 million, or $0.09 per fully diluted share, for the same period last year.
Non-GAAP net profit for the quarter was $3.7 million, or $0.11 per fully diluted share, compared with $2.8 million, or $0.09 per fully diluted share, for the same period last year.
The company's orders backlog fell from $27.4 million at the end of 2009 to $23.2 million at the end of the first quarter of 2010, with the book to bill ratio below 1. Ben Bassat is unconcerned: "In the previous quarter, the orders backlog really was sky high because the fourth quarter is the end of the budget year. The orders backlog could be boosted by giving customers discounts, but I'm not worried about it. In absolute terms, we have a substantial orders backlog, which we will carry out in the coming quarters.
The company has recently launched several new growth engines, among them support services for service technicians in the filed, software for managing shift work, and products for small service companies.
ClickSoftware currently has $38.8 million cash. "In 2002, we had $2 million. Now we have more than $38 million, and the growth comes entirely from activity." That is due to change, after the company filed a shelf prospectus two weeks ago for an offering amounting to up to 50% of its share capital. The company has a market cap of $208 million.
"The prospectus is a procedural matter; we have no intention of raising that much," Ben Bassat says. "The money we will raise is mainly earmarked for acquisitions."
Published by Globes [online], Israel business news - www.globes-online.com - on April 28, 2010
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