Wednesday, July 10, 2013

Why ClickSoftware Shares Plunged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ClickSoftware (NASDAQ: CKSW  ) have plunged today by as much as 13% after the company warned that second-quarter results would fall short of expectations.

So what: Revenue in the quarter is expected to come in around $24.5 million, translating into just 9% growth. The company's adjusted net loss should be in the range of $0.06 to $0.08 per share. Analysts had been modeling for $27.8 million in sales and positive earnings per share of $0.03.

Now what: The company said customers are transitioning to its cloud-based software-as-a-service, or SaaS, sales faster than expected. As customers contemplate the shift, contracts are being delayed as they conduct due diligence. ClickSoftware sees the trend as positive in the long term, although some short-term bumps may be in store. As a result, the company is reducing its full-year outlook and 2013 revenue should be $110 million to $115 million.

Interested in more info on ClickSoftware? Add it to your watchlist by clicking here.

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