ClickSoftware sees Q3 revenue shortfall
ClickSoftware Technologies, provider of software tools for workforce management, announced Monday that it estimates its third quarter revenues at $17.3 million, about 6% short of market expectations of $18.4 million. However, the company expects that its annual revenues for 2010 will fall within its target range of $71.5 million to $74.5 million.
If its expectations for the quarter that just ended hold true, the company will need $19.1 in revenues for the last quarter to hit its minimum annual target, after registering $35.1 million in the first half of the year. The forecast by market analysts for annual company revenues was $73.7 million, meaning that fourth quarter revenues would need to reach the sum of $21.3 million to bear that out, over $1 million more than the projected $20.1 million for that quarter.
"The timing of specific contracts somewhat impacted our third quarter revenues, which are anticipated to be 5% to 6% below plan," said Chairman and CEO Dr. Moshe BenBassat. "However, our business remains strong and we expect to close the gap with revenues of more than $20 million in the fourth quarter." Third quarter results will be announced on October 25.
"On an annual basis we expect revenues to be in line with our previously stated guidance," added BenBassat. "We believe that most of the contracts that have been delayed will be booked in the near term. Our projection for the fourth quarter is based on a concrete list of prospects for which the sales process is in advanced stages, as well as repeat orders to fulfill customers' operational needs that we believe will be placed during that quarter. We continue to see strong demand for our products, engage in new substantial partnerships and further develop our strong pipeline."
BenBassat pointed out that although there is no legal requirement to report a 5%-6% deviation in revenues, the company thought it important to make its expectations known, "especially since with regards to liquid reserves the direction is extremely positive."
The company expects the third quarter results to show an increase in its cash, cash-equivalents, short- and long-term investments of approximately $6 million, bringing these to an expected $48 million as of September 30, 2010.