ClickSoftware Tech Sees Q2 Below View; Cuts FY13 Revenue Guidance - Quick Facts

(RTTNews) - ClickSoftware Technologies Ltd. (CKSW), the provider of automated workforce management and optimization solutions for the service industry, announced that it expects net loss for the second-quarter quarter ended June 30, 2013 to be in the range of $2.7 million to $3.1 million or a loss of $0.08 to $0.10 per share. Non-GAAP net loss is expected to be between $2.1 million to $2.5 million, or a loss of $0.06 to $0.08 per share.

The non-GAAP net income excludes amortization of intangible assets expenses of about $50,000, share-based compensation expenses of about $600,000, and tax benefit of about $70,000 in the second quarter of 2013.

The company anticipates revenues for the second quarter to be about $24.5 million, representing about 9% growth year over year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.03 per share and revenues of $27.75 million for the second-quarter. Analysts' estimates typically exclude special items.

The company primarily attributes the lower than expected growth rate in revenues to a faster than expected shift in its revenues to cloud-based software-as-a-service (SaaS) sales. As this revenue shift is happening, there are some delays in closing certain contracts with customers that are performing additional due diligence comparing our cloud and on-premise offerings. The transition to a SaaS model is a positive development for ClickSoftware's long term growth prospects; however this shift and the tendency of customers to lower up-front investment are having an impact on the Company's short term growth rate.

Additionally, while the company has started to gain traction in its geographical expansion, the deal closing processes are taking longer than expected, ClickSoftware said.

While the long-term prospects of the company remain positive, the company reduced its full year 2013 revenues guidance due to a faster than anticipated transition into Cloud SaaS-based revenues and slow ramp-up of revenues from new territories.

Revenues for the full year 2013 are now expected to be between $110 million to $115 million, representing 10% to 15% growth over 2012. While announcing the first-quarter result, the company anticipated revenues for the full year 2013 to be in the range of $120 million to $125 million, representing about 20% to 25% growth over 2012.

Analysts expect the company to report revenues of $120.52 million for fiscal 2013.

The company stated that it expects to further update the earnings per share guidance in the quarterly earnings release later this month.