Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer service experience and process optimization solutions, today reported financial results for the first quarter ending March 31, 2011 and the adjustment of its 2010 unaudited financial results.
First Quarter 2011 Financial Results
For the first quarter of 2011, total revenues were $3.0 million compared to $5.0 million in the first quarter of 2010. First quarter revenues were impacted by weak bookings during the fourth quarter of 2010.
Software revenues for the 2011 first quarter were $247 thousand compared to $581 thousand during the 2010 first quarter. Services revenues were $2.1 million in the 2011 first quarter and $3.9 million in the 2010 first quarter. Maintenance revenues were $657 thousand and $530 thousand in the 2011 and 2010 first quarters, respectively.Gross margin during the first quarter of 2011 was 22%, compared to gross margins of 37% in the first quarter of 2010. Total operating expenses for the 2011 and 2010 first quarters were $2.5 million and $3.7 million, respectively, reflecting the savings of the cost reduction plans implemented during late 2010. The 2011 first quarter net loss was $1.8 million or $0.44 per share compared to a net loss of $1.8 million or $0.44 per share in the first quarter of 2010. At the end of the 2011 first quarter, cash and investments were $17.8 million, compared to $18.5 million at December 31, 2010. “While our first quarter 2011 results were disappointing, we have seen positive initiatives throughout the company, including the continued development of the next generation versions of Jacada WorkSpace and Jacada WinFuse and a growing interest in our Jacada JumpStart program,” commented Tom Clear, chief executive officer of Jacada. Adjustment of 2010 Unaudited Financial Results Events subsequent to February 10, 2011, the date of our press release announcing our 2010 annual financial results, have led to a change in estimates associated with the percentage of completion used to calculate revenue on a certain project, the company’s goodwill valuation and the classification of the loss on one of the company’s marketable securities to other-than-temporary. These subsequent events provided additional evidence about conditions that existed as of the balance sheet date of December 31, 2010 and are thus “recognized” subsequent events, requiring adjustments to the December 31, 2010 unaudited financial results as previously reported in the Company's February 10, 2011 press release.