A good day for CKCM. It continued to move higher in after hours trading. Earnings were 6 cents above estimates.
Click Commerce Reports Q3 2005 Non-GAAP EPS of 40 cents, GAAP EPS of 31 cents
Thursday November 3, 9:00 am ET
Company Posts Record Profits and Revenues
CHICAGO--(BUSINESS WIRE)--Nov. 3, 2005--Click Commerce, Inc. (Nasdaq:CKCM - News), a provider of on-demand collaborative commerce solutions, today announced record results for its third quarter ended Sept. 30, 2005.
Total third quarter 2005 revenues were $16.2 million, representing a 130% growth over third quarter 2004 revenue of $7.0 million. On a non-GAAP basis, excluding certain charges as described below, net income was $4.9 million, or $0.40 per share on a diluted basis. This represents an improvement of approximately $3.3 million over Q3 2004's non-GAAP net income of $1.6 million, an increase of 200%. On a GAAP basis, net income was $3.8 million, or $0.31 per share, an improvement of approximately $2.4 million over the third quarter of 2004's net income of $1.4 million, an increase of 176%. The Company's third quarter results represent its ninth consecutive profitable quarter, with a non-GAAP profit margin of 30% in the third quarter. GAAP profit margins were 23% in the third quarter.
The Company's third quarter results include a $0.15 million non-recurring charge related to certain leasehold improvements that were abandoned as part of the Company's relocation of its Chicago corporate headquarters.
The Company's cash and cash equivalents were $11.1 million as of the third quarter compared to $11.8 million at the end of the second quarter. Cash flows from operations in the quarter were a net use of $0.4 million. This amount includes third quarter net reductions in accounts payable and accruals of $1.8 million, primarily from cash outlays related to liabilities assumed in the Company's acquisitions in the first half of 2005. Accounts receivable increased from the second quarter by $0.6 million to $16.5 million due to increased revenue in the third quarter, while days sales outstanding decreased during this period by 15 days to 93 days. Deferred revenue was $11.0 million as of Sept. 30, 2005, a decrease of $1.0 million from the end of the second quarter as a result of normal calendar year-based renewal cycles.
Conference Call
The Company will hold a conference call to discuss the results today, Nov. 3, at 4:30 p.m. (EST), with remarks from Chairman and CEO Michael W. Ferro, Jr. and Chief Financial Officer Michael W. Nelson. The call will also be broadcast live over the Internet. Investors interested in listening to the Webcast should go to the "Investor Center" on Click Commerce's Web site, located at www.clickcommerce.com, at least 15 minutes prior to the call.
Information Concerning Forward-Looking Statements
Information contained in this release that are not historical facts and refer to the Company's future operations are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such statements involve expectations, beliefs, hopes, plans or strategies regarding the future. These statements are subject to risks and uncertainties and actual results may differ materially from those indicated by these forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to: success of our suite of applications, impact of acquisitions or investments in other companies, general economic trends, introduction of new products or services by competitors, and security risks and regulation related to the Internet. We refer you to the risk factors listed in our annual report on Form 10-K, quarterly reports on Form 10-Q and other filings, which are on file with the Securities and Exchange Commission. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company's expectations with regard thereto or to reflect any change in any event, condition or circumstance on which such forward-looking statement is based, in whole or in part.
Non-GAAP Financial Measures
The non-GAAP financial measures contained in this earnings press release exclude amortization of intangible assets. The Company uses these measures for planning and forecasting its future business as well as analyzing such forecasts against past performance. In addition, excluding these charges enhances the Company's understanding of trends developing in its operations as well as its performance in its market and against its competitors. The Company believes that providing specific financial information on the cost of such expense, as well as providing non-GAAP net income measures that exclude such charges, best allows investors to understand the Company's ongoing business activities during the quarter. The Company believes that inclusion of certain non-GAAP financial measures provides comparability to similar companies in the Company's industry, many of which present similar non-GAAP financial measures to investors. The non-GAAP financial measures should not be considered as a substitute for, or preferable to, measures of financial performance prepared in accordance with GAAP and may be different from non-GAAP financial measures used by others.
The Company believes that these non-GAAP financial measures provide an additional tool for investors to evaluate its ongoing operating results and trends. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures as detailed below (in thousands, except earnings per share and margins):
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