Jacada Reports Second Quarter 2011 Results

Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer experience management and process optimization solutions, today reported financial results for the second quarter ended June 30, 2011.

Second Quarter Highlights
  • Software license revenues were $813,000, a 48% increase over second quarter 2010 software license revenues of $549,000
  • Reduced net loss to $1.1 million compared to a net loss of $1.7 million in the second quarter of 2010
  • Executed an agreement with a large banking and financial conglomerate in Canada for the license of Jacada’s Workspace products
  • Executed an agreement with a telecommunications company providing phone, internet and video services to over 750,000 customers for the license of Jacada’s agent scripting suite of products

“Our total revenues for the second quarter of 2011 were $3.7 million, representing significant growth over the two previous quarters,” commented Tom Clear, co-chief executive officer of Jacada. “Strong software license revenues, the result of signing two new customers during the quarter, contributed to this increase in total revenue. This improvement in revenue, combined with our continued cost controls, allowed us to improve our net loss to $1.1 million during the second quarter of 2011.”

“Jacada has continued to align our products and services with the solution needs of our customers,” said Gideon Hollander, founder and co-chief executive officer of Jacada. “During the second quarter, we introduced Jacada Agent Scripting version 6.0, our call center scripting tool, and executed an agreement for the license of this product with a US based telecommunications company.”

Financial Results

For the second quarter of 2011, total revenues were $3.7 million compared to $4.5 million in the second quarter of 2010. Software revenues for the 2011 second quarter were $813,000 compared to $549,000 during the 2010 second quarter. Services revenues were $2.2 million in the 2011 second quarter and $3.3 million in the 2010 second quarter. Maintenance revenues were $678,000 and $675,000 in the 2011 and 2010 second quarters, respectively.

Gross margins were 42% and 39% of total revenues during the 2011 and 2010 second quarters, respectively. Second quarter 2011 operating expenses of $2.6 million, reflecting the cost containment measures implemented during the third quarter of 2010, were significantly less than second quarter 2010 operating expenses of $3.5 million.

The 2011 second quarter net loss was $1.1 million or ($0.26) per share compared to a net loss of $1.7 million or ($0.41) per share in the second quarter of 2010.

Conference Call Details

Management will hold a conference call to discuss the second quarter 2011 financial results at 10:30am ET on August 16, 2011. To participate in the teleconference, please call toll-free 888-713-4217 or 617-213-4869 for international callers, and provide pass code 45719168 approximately 10 minutes prior to the start time. Interested parties may pre-register for the teleconference via this URL: https://www.theconferencingservice.com/prereg/key.process?key=PH64B9B37. A (live audio) webcast will also be available over the Internet at www.jacada.com (under “About Us” then “Investors”) or www.earnings.com.

A replay of the teleconference will be available for three days beginning at 1:30 p.m. ET on August 16, 2011. To access the replay, dial toll-free 888-286-8010, or for international callers 617-801-6888, and provide pass code 18858758.

About Jacada

Jacada provides solutions that optimize and improve the effectiveness of customer interactions. Jacada unified desktop and process optimization solutions help companies reduce the cost of their operations, drive customer satisfaction and provide a complete return on investment in as little as 12 months after deployment.

Founded in 1990, Jacada operates globally with offices in Atlanta, USA; Herzliya, Israel; London, England; Munich, Germany; and Stockholm, Sweden. More information is available at www.jacada.com, www.jacada.com/blog, www.jacada.com/facebook and www.jacada.com/twitter.

This news release may contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. The words "may," "could," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions or variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of the future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control. Actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the performance and continued acceptance of our products, general economic conditions and other Risk Factors specifically identified in our reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made. Jacada is a trademark of Jacada Inc. All other brands or product names are trademarks of their respective owners.
JACADA LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
 
  Three months ended

June 30,
Six months ended

June 30,
2011   2010 2011   2010
Unaudited  
Revenues:
Software licenses $ 813 $ 549 $ 1,060 $ 1,130
Services 2,190 3,274 4,282 7,132
Maintenance   678     675     1,335     1,205  
 
Total revenues   3,681     4,498     6,677     9,467  
 
Cost of revenues:
Software licenses 12 66 75 132
Services 1,940 2,481 4,038 5,341
Maintenance   174     199     363     383  
 
Total cost of revenues   2,126     2,746     4,476     5,856  
 
Gross profit 1,555 1,752 2,201 3,611
 
Operating expenses:
Research and development 660 924 1,336 1,820
Sales and marketing 871 1,373 1,668 2,905
General and administrative   1,034     1,169     2,067     2,453  
 
Total operating expenses   2,565     3,466     5,071     7,178  
 
Operating loss (1,010 ) (1,714 ) (2,870 ) (3,567 )
Financial income, net   (73 )   28     (56 )   49  
 
Loss before taxes (1,083 ) (1,686 ) (2,926 ) (3,518 )
Taxes   (2 )   (1 )   (3 )   (1 )
 
Net loss $ (1,085 ) $ (1,687 ) $ (2,929 ) $ (3,519 )
 
 
Basic and diluted net loss per share $ (0.26 ) $ (0.41 ) $ (0.70 ) $ (0.85 )
 

Weighted average number of shares used in  computing basic and diluted net loss per share
  4,159,134     4,159,134     4,159,134     4,157,545  
 

JACADA LTD. AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
 
  June 30,   December 31,
2011 2010
Unaudited Audited
ASSETS
 
CURRENT ASSETS:
Cash and cash equivalents $ 5,240 $ 5,945
Marketable securities 561 1,240
Trade receivables 3,834 4,081
Restricted cash 497 493
Other current assets   897     1,079  
 
Total current assets   11,029     12,838  
 
LONG-TERM INVESTMENTS:
Marketable securities 10,562 10,809
Severance pay fund   210     186  
 
Total long-term investments 10,772 10,995
 
PROPERTY AND EQUIPMENT, NET   731     856  
 
Total assets $ 22,532   $ 24,689  
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES:
Trade payables $ 1,543 $ 1,566
Deferred revenues 1,120 1,076
Accrued expenses and other liabilities   1,518     1,478  
 
Total current liabilities   4,181     4,120  
 
LONG-TERM LIABILITIES:
Accrued severance pay 405 366
Other long-term liabilities   4     44  
 
Total long-term liabilities   409     410  
 
SHAREHOLDERS' EQUITY:
Share capital 60 60
Additional paid-in capital 75,930 75,829
Treasury shares at cost (17,863 ) (17,863 )
Accumulated other comprehensive profit (loss) 1,098 487
Accumulated deficit   (41,283 )   (38,354 )
 
Total shareholders' equity   17,942     20,159  
 
Total liabilities and shareholders' equity $ 22,532   $ 24,689  
 

JACADA LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
 
  Three months ended

June 30,
  Six months ended

June 30,
2011   2010 2011   2010
Unaudited

Cash flows from operating activities:

 

Net loss
(1,085 ) (1,687 ) (2,929 ) (3,519 )
 

Adjustments required to reconcile net loss to net  cash used in operating activities
Depreciation and amortization 100 123 211 247

Stock-based compensation related to options  granted to employees, non-employees and  directors

 

47

 

117

 

101

289
Increase in restricted cash (4 ) (4 )

Accrued interest and amortization of premium on  marketable securities
20

20

6
127
Other than temporary loss on marketable securities 159 - 205 -
Loss (gain) from sales of marketable securities - - - (9 )
Increase (decrease) in accrued severance pay, net 5 (25 ) 16 (8 )
Decrease (Increase) in trade receivables, net (369 ) 2,064 352 38
Decrease in other current assets 88 799 161 764
Increase (decrease) in trade payables 264 (571 ) (39 ) (319 )
Increase in deferred revenues 147 300 38 598

Increase (decrease) in accrued expenses and other  liabilities
(51 ) (20 ) 24 (181 )
Decrease in other long-term liabilities (20 ) (19 ) (40 ) (39 )
Other -   (6 ) 15   41  
 
Net cash provided by (used in) operating activities (699 ) 1,095 (1,883 ) (1,971 )
 
 

Cash flows from investing activities:

Investment in available-for-sale marketable  securities

 
- - - (10,992 )

Proceeds from sale and redemption of available-  for-sale marketable securities

1,210
- 1,210 9,727
Decrease in restricted cash - 157 - 141
Proceeds from sale of property and equipment - 7 - 7
Purchase of property and equipment (22 ) (143 ) (86 ) (338 )
 

Net cash provided by (used in) investing activities.

1,188
 

21
 

1,124
  (1,455 )
 

JACADA LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
U.S. dollars in thousands
 
  Three months ended

June 30,
  Six months ended

June 30,
2011   2010 2011   2010
Unaudited
 

Cash flows from financing activities:
 
Proceeds from exercise of stock options - -   -   75  
 
Net cash provided by financing activities.   -     75  
 
Effect of exchange rate changes on cash 30 (77 ) 54 (340 )
 
Increase (decrease) in cash and cash equivalents 519 1,039 (705 ) (3,691 )

Cash and cash equivalents at the beginning of the  period
4,721 7,894   5,945   12,624  
 
Cash and cash equivalents at the end of the period 5,240 8,933   5,240   8,933  
 

Supplemental Information: Cash and Investments    
 
June 30, December 31,
2011 2010
Unaudited Audited
Cash and cash equivalents cash: 5,240

5,945
Marketable securities 11,123 12,049
Restricted cash   497   493
 
Total cash and investments including restricted cash $ 16,860 $ 18,487
 

Copyright Business Wire 2010

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