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What: Shares of ClickSoftware Technologies Ltd. (NASDAQ:CKSW) rose more than 21% Monday after the company increased fourth-quarter revenue expectations.
So what: Quarterly revenue is now expected to be approximately $30.5 million, handily exceeding the company's own guidance for sales of $26 million to $28 million. Better yet, based on preliminary operating cost results, ClickSoftware says it expects to achieve profitability in Q4 as well. By contrast, analysts were expecting ClickSoftware to turn in a $0.04-per-share loss on sales of $26.02 million.
Now what: ClickSoftware Founder and CEO Dr. Moshe BenBassat said, "We saw a remarkable improvement in our business during the fourth quarter, leading to strong results that exceeded expectations."
To be sure, BenBassat also pointed out that the company added 19 customers in the quarter, 50% of which will use ClickSoftware's promising cloud-based offerings. As a result, and noting this should go a long way toward boosting ClickSoftware's important recurring revenue stream going forward, I think investors would be wise to at least add it to their watch lists. If ClickSoftware can indeed achieve sustained profitability over the long-term, the stock could still reward patient investors handsomely.
Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.