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Bank Hapoalim reiterates high-risk Hold for Jacada

Although Jacada blames the Sept. 11 attacks for its woes, it also cut its forecasts for Q2, the bank notes

Bank Hapoalim today reiterated a high-risk Hold rating for Jacada (Nasdaq:JCDA) (JCDA) after the Israeli company issued a results warning on Wednesday.

Jacada, which makes software to convert legacy computer systems to Internet-based applications, blames its woes on customers canceling orders after the September 11 attacks on the U.S.

But Hapoalim research department analyst Racheli Gershon points out that Jacada had lowered its guidance for the previous quarter as well.

The company also implemented cost-cutting measures, including chopping its staff by 10%, in preparation for an expected revenues slide.

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Jacada, which maintains headquarters in Atlanta, Georgia, Herzliya and London, says it expects third-quarter revenues of $5 million to $5.3 million, compared with $6.8 million for the same quarter last year.

The company also warns that its loss per share will exceed the consensus forecast of 5 cents.

Hapoalim will publish forecasts for Jacada shortly before month-end.

CIBC Oppenheimer analysts haven't waited. They lowered their revenue forecast for 2001 by 10%, from $28.5 million to $25.7 million, and slashed the prediction for 2002 by 22%, from $34.6 million to $27 million.