|Net Income (loss)||$0.12||$0.08||$(0.07)||$0.03||$0.06||$(0.40)|
Revenue has more than doubled in the last 5 years giving it a compounded annual growth rate (CAGR) on a revenue basis of about 15%. 2006 saw a revenue growth rate of about 35% and 2007 growth is expected to be slightly below that level. ClickSoftware has managed to be only marginally profitable over the years. It is projected to have a net income of $0.12 per share this year and close to $0.20 per share next year. That level of profitability will result in a forward PE of 24 at the current price. They are expected to grow at a 30-35% revenue and earnings growth going forward.
Software license as a percentage of total revenue has consistently clocked in below 50%. It dropped as low as 34% in 2004 before rebounding to the current run rate of 42% for fiscal 2007. To see margin improvement, it is imperative that management focus on driving that number up to the 75% range to be allied with highly profitable software enterprises.
ClickSoftware (CKSW) Analysis:
1. ClickSoftware (CKSW) - Part 1 - Introduction.
2. ClickSoftware (CKSW) - Part 2 - Business Issues.
3. ClickSoftware (CKSW) - Part 3 - Outlook.