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What: Shares of ClickSoftware Technologies Ltd (NASDAQ:CKSW) rose 12% Wednesday after the automated mobile-workforce-solutions company released mixed fourth-quarter results.
So what: Quarterly revenue climbed 12% year over year, to $34.5 million, helped by the addition of 22 new customers during the quarter. Of those, 15 were cloud subscriptions, bringing cloud subscription revenue to $5.7 million, compared to just $0.5 million in the same year-ago period. As a result, recurring revenue from cloud subscriptions and support reached 41% of ClickSoftware's total. This translated to adjusted net income of $3.6 million, or $0.11 per diluted share.
Analysts, on average, were expecting earnings of just $0.08 per share on slightly higher sales of $36.1 million.
"I am pleased to report the tremendous progress in our efforts to grow the Company while we and the market transition to a cloud subscription model," said ClickSoftware's founding CEO Dr. Moshe BenBassat. Despite its transition to a could-centric model, ClickSoftware's full-year 2014 revenue climbed 22% year over year, to $126.2 million.
Now what: For the full fiscal year 2015, ClickSoftware expects revenue of $140 million to $145 million, which should result in adjusted per-share earnings of $0.09 to $0.15. Wall Street was only modeling earnings of $0.11 per share on roughly the same sales of $142.5 million. While I personally prefer watching from the sidelines to monitor ClickSoftware's progress in its continuing transition, it's no surprise the market is bidding up ClickSoftware stock today.
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