Shares in ClickSoftware Technologies Ltd. (Nasdaq: CKSW) fell 15.7% in premarket trading today to $10.56, giving a market cap of $323 million, after the company published a revenue and profit warning for the first quarter of 2012. The company estimates that it will report $21.6 million revenue for the quarter, $2 million less than the analysts' consensus.
The share price fell even though the company said that the estimate reflects 12% revenue growth over the corresponding quarter of 2011, and even though it reiterated its full-year guidance of $100-105 million revenue.
ClickSoftware develops automated workforce management solutions for telephone, cable, electricity, and water utilities. ClickSoftware chairman and CEO Dr. Moshe BenBassat said, "While first quarter revenues came in somewhat below expectations, I would not read into this more than a seasonal first quarter softness. We continue to make intense progress with our new mobility initiative and other growth plans, and are very excited with the opportunities in the market."
ClickSoftware estimates that it had $54.3 million in cash, cash-equivalents, short and long-term investments at the end of March. This figure is only $700,00 less than at the end of 2011, after the distribution of a $2.5 million dividend.
ClickSoftware will publish its financial report on May 2. The company's share price rose 26% from January 1 through April 5.
RBC Capital Markets has taken the revised guidance in stride, reiterating its "Outperform" recommendation for the share at $13 target price. Analyst Daniel Miron says that the company might lose some investor confidence in the short term, but that this is only a blip that has no affect on company's strong demand, a big market, and promising position in the industry.
Published by Globes [online], Israel business news - www.globes-online.com - on April 10, 2012
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