Click Software (Nasdaq: CKSW), a provider of service chain optimization solutions, today announced it would restate its financial statements for 2000 and 2001 and for the first six months of 2002.
Click Software has appointed Shmuel Arvatz as executive vice president and CFO, effective immediately. From 1999 to 2001, Arvatz served as the CFO of Tecnomatix Technologies (Nasdaq: TCNO), a provider of software for manufacturing process management solutions. He replaces Shimon Rojany, who served as Click Software CFO since the company’s formation.
The restated financial results will affect Click Software's balance sheet at the end of the second quarter by reducing trade receivables by $1.2 million from $5.2 million to $4 million. Property and equipment was reduced by $300,000 from $3.2 million to $2.9 million, while shareholders' equity was cut by $1.5 million, from $14.5 million to $13 million.
The company's audit committee has decided to recommend to shareholders that the company terminate its relationship with Luboshitz Kasierer, formerly a member firm of Arthur Andersen, as its auditors and appoint new auditors. Under Israeli law, the shareholders at a general meeting are the corporate entity that is authorized to appoint and dismiss a company's external auditors. Click Software intends to convene a shareholders meeting to appoint new auditors during November.
For the first six months of 2002, revenue is reduced by $1.2 million from $8.3 million to $7.1 million and net loss will remain $3.7 million. The reduction in revenue is primarily attributable to $872,000 in reseller customer sales not properly recognized, and $304,000 in revenue expected to be recognized in the fourth quarter of 2002. Offsetting the decrease in revenue for the period is a $1 million reduction in bad debt expense, Click Software said.
For 2001, revenue is reduced by $930,000 from $18.2 million to $17.3 million and net loss is reduced by $246,000 from $9.1 million to $8.9 million. The revenue adjustments relate primarily to revenue from sales to reseller customers that the company determined should not have been recognized. Offsetting this revenue decrease is a $807,000 reduction in bad debt expense.
For 2000, revenue is reduced by $2.5 million from $15.7 million to $13.3 million and net loss is increased by $1.9 million from $13.0 million to $14.9 million. Again, the revenue adjustments relate to revenue from sales to reseller customers and other customers that the company determined should not have been recognized. Offsetting this revenue decrease is primarily a $546,000 reduction in bad debt expense.
Separately, the company has also decided to close its Campbell, California office and move its executive offices to its Burlington, Massachusetts office. Cost cutting considerations and several business considerations drove this geographic change. The primary business consideration is that most of the company's customers and employees are located in the East and Central regions of the US and Canada, and in Europe, the company stated.
Click Software shares closed on Nasdaq on Friday at $0.37.
Published by Globes [online] - www.globes.co.il - on 21 October, 2002