ATLANTA -- (Business Wire)
Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer experience
management and process optimization solutions, today reported financial
results for the fourth quarter and full year period ended December 31,
2010.
Fourth Quarter and Year-end 2010 Results
-
Fourth quarter revenues were $3.4 million. Annual revenues were $17.9
million, representing a 7% increase over 2009 annual revenues.
-
Fourth quarter net loss was $1.6 million. The Company posted a net
loss of $6.7 million for the year ended December 31, 2010, as compared
to a net loss of $7.0 million during 2009.
“Our total revenues are up 7% for the twelve months ending December 31,
2010 as compared to year end 2009,” commented Tom Clear, chief executive
officer of Jacada. “The 2010 revenue growth was driven by a strong
backlog exiting 2009, significant business from a new customer early in
the year, and continued additional services from existing customers.
Fourth quarter bookings, however, were disappointing, impacting fourth
quarter revenues and causing a $1.6 million decline in revenues from the
third quarter of 2010. Despite the decline in revenues, our loss did not
appreciably increase, a result of our cost containment programs
instituted in the third quarter of 2010.”
“Throughout 2010, Jacada continued to make progress towards our
objectives of improving the fundamentals of our business and better
aligning our products and services with the solution needs of our
customers,” said Giddeon Hollander, founder and current chairman of the
board of directors for Jacada. “While business in the near future will
be challenging, I see opportunity for an improved second half of 2011.”
Financial Results
For the fourth quarter of 2010, total revenues were $3.4 million
compared to $5.7 million in the fourth quarter of 2009. Software
revenues for the 2010 fourth quarter were $169K compared to $678K during
the 2009 fourth quarter. Services revenues were $2.6 million in the 2010
fourth quarter and $4.5 million in the 2009 fourth quarter. Maintenance
revenues were $621K and $532K in the 2010 and 2009 fourth quarters,
respectively.
Gross margins were 33% and 46% of total revenues during the 2010 and
2009 fourth quarters, respectively. Fourth quarter 2010 operating
expenses of $2.8 million marked a decline as compared to $3.5 million in
operating expenses in the fourth quarter of 2009, a reflection of the
cost containment measures implemented during the third quarter of 2010.
The 2010 fourth quarter net loss was $1.6 million or ($0.39) per share
compared to a net loss of $103K or ($0.02) per share in the fourth
quarter of 2009. The fourth quarter 2009 results included income from
discontinued operations of $583K.
For the twelve month periods ending on December 31, 2010 and 2009,
respectively, total revenues were $17.9 million and $16.7 million and
gross profits were $6.7 million or 37% of total revenues and $5.7
million or 34% of total revenues. During the twelve month period ending
December 31, 2010, we incurred a net loss of $6.7 million or ($1.60) per
share and, in the comparable 2009 period, we posted a net loss of $7.0
million or ($1.69) per share.
At the end of the 2010 fourth quarter, cash and investments were $18.5
million, compared to $19.5 million at the end of the 2010 third quarter
and $23.8 million at December 31, 2009.
Conference Call Details
Management will hold a conference call to discuss the fourth quarter
2010 financial results at 10:30am ET on February 10, 2011. To
participate in the teleconference, please call toll-free 888-713-4199 or
617-213-4861 for international callers, and provide pass code 66288677
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=PU4UFYY69.
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 February 10, 2011. To access the replay,
dial toll-free 888-286-8010, or for international callers 617-801-6888,
and provide pass code 29986867.
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.
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| U.S. dollars in thousands, except per share data |
|
|
|
| Three months ended
December 31, |
| Year ended
December 31, |
| | 2010 |
| 2009 | | 2010 |
| 2009 |
| | Unaudited |
|
Revenues:
| | | | | | | | |
|
Software licenses
| |
$
|
169
| | |
$
|
678
| | |
$
|
1,754
| | |
$
|
1,370
| |
|
Services
| | |
2,614
| | | |
4,536
| | | |
13,624
| | | |
12,967
| |
|
Maintenance
| |
|
621
|
| |
|
532
|
| |
|
2,477
|
| |
|
2,324
|
|
| | | | | | | |
|
|
Total revenues
| |
|
3,404
|
| |
|
5,746
|
| |
|
17,855
|
| |
|
16,661
|
|
| | | | | | | |
|
|
Cost of revenues:
| | | | | | | | |
|
Software licenses
| | |
152
| | | |
64
| | | |
349
| | | |
238
| |
|
Services
| | |
1,930
| | | |
2,928
| | | |
10,064
| | | |
10,047
| |
|
Maintenance
| |
|
196
|
| |
|
128
|
| |
|
778
|
| |
|
648
|
|
| | | | | | | |
|
|
Total cost of revenues
| |
|
2,278
|
| |
|
3,120
|
| |
|
11,191
|
| |
|
10,933
|
|
| | | | | | | |
|
|
Gross profit
| |
|
1,126
|
| |
|
2,626
|
| |
|
6,664
|
| |
|
5,728
|
|
| | | | | | | |
|
|
Operating expenses:
| | | | | | | | |
|
Research and development
| | |
732
| | | |
797
| | | |
3,478
| | | |
3,490
| |
|
Sales and marketing
| | |
852
| | | |
1,775
| | | |
4,993
| | | |
6,205
| |
|
General and administrative
| | |
1,210
| | | |
891
| | | |
4,789
| | | |
4,433
| |
|
Restructuring
| |
|
-
|
| |
|
-
|
| |
|
196
|
| |
|
-
|
|
| | | | | | | |
|
|
Total operating expenses
| |
|
2,794
|
| |
|
3,463
|
| |
|
13,456
|
| |
|
14,128
|
|
| | | | | | | |
|
|
Operating loss
| | |
(1,668
|
)
| | |
(837
|
)
| | |
(6,792
|
)
| | |
(8,400
|
)
|
|
Financial income, net
| |
|
67
|
| |
|
39
|
| |
|
174
|
| |
|
708
|
|
| | | | | | | |
|
|
Pretax loss from continuing operations
| | |
(1,601
|
)
| | |
(798
|
)
| | |
(6,618
|
)
| | |
(7,692
|
)
|
|
Tax benefit (expense)
| |
|
(38
|
)
| |
|
112
|
| |
|
(49
|
)
| |
|
93
|
|
|
Net loss from continuing operations
| | |
(1,639
|
)
| | |
(686
|
)
| | |
(6,667
|
)
| | |
(7,599
|
)
|
Income from discontinued operations, net of
taxes
| |
|
-
|
| |
|
583
|
| |
|
-
|
| |
|
583
|
|
| | | | | | | |
|
|
Net loss
| |
$
|
(1,639
|
)
| |
$
|
(103
|
)
| |
$
|
(6,667
|
)
| |
$
|
(7,016
|
)
|
| | | | | | | |
|
|
Basic and diluted net income (loss) per share:
| | | | | | | | |
|
Continuing operations
| |
$
|
(0.39
|
)
| |
$
|
(0.17
|
)
| |
$
|
(1.60
|
)
| |
$
|
(1.83
|
)
|
|
Discontinued operations
| |
$
|
-
|
| |
$
|
0.14
|
| |
|
-
|
| |
$
|
0.14
|
|
|
Total
| |
$
|
(0.39
|
)
| |
$
|
(0.02
|
)
| |
$
|
(1.60
|
)
| |
$
|
(1.69
|
)
|
| | | | | | | |
|
Weighted average number of shares used in
computing basic
and diluted net earnings
(loss) per share
| |
|
4,159,133
|
| |
|
4,143,249
|
| |
|
4,158,227
|
| |
|
4,141,331
|
|
| | | | | | | | | | | | | | | |
|
| CONSOLIDATED BALANCE SHEETS |
| U.S. dollars in thousands |
|
|
|
| December 31, |
| | 2010 |
| 2009 |
| | Unaudited |
|
ASSETS
| | | | |
| | | |
|
|
CURRENT ASSETS:
| | | | |
|
Cash and cash equivalents
| |
$
|
6,022
| | |
$
|
12,624
| |
|
Marketable securities
| | |
1,240
| | | |
6,210
| |
|
Trade receivables
| | |
4,781
| | | |
4,949
| |
|
Restricted cash
| | |
416
| | | |
557
| |
|
Other current assets
| |
|
1,079
|
| |
|
1,885
|
|
| | | |
|
|
Total current assets
| |
|
13,538
|
| |
|
26,225
|
|
| | | |
|
|
LONG-TERM INVESTMENTS:
| | | | |
|
Marketable securities
| | |
10,809
| | | |
4,456
| |
|
Severance pay fund
| |
|
186
|
| |
|
286
|
|
| | | |
|
|
Total long-term investments
| |
|
10,995
|
| |
|
4,742
|
|
| | | |
|
|
PROPERTY AND EQUIPMENT, NET
| |
|
856
|
| |
|
994
|
|
| | | |
|
|
GOODWILL
| |
|
3,096
|
| |
|
3,096
|
|
| | | |
|
|
Total assets
| |
$
|
28,485
|
| |
$
|
35,057
|
|
| |
| |
|
| | | |
|
|
LIABILITIES AND SHAREHOLDERS EQUITY
| | | | |
| | | |
|
|
CURRENT LIABILITIES:
| | | | |
|
Trade payables
| |
$
|
1,566
| | |
$
|
1,675
| |
|
Deferred revenues
| | |
1,076
| | | |
685
| |
|
Accrued expenses and other liabilities
| |
|
1,427
|
| |
|
1,917
|
|
| | | |
|
|
Total current liabilities
| |
|
4,069
|
| |
|
4,277
|
|
| | | |
|
|
LONG-TERM LIABILITIES:
| | | | |
|
Accrued severance pay
| | |
366
| | | |
505
| |
|
Other liabilities
| |
|
44
|
| |
|
123
|
|
| | | |
|
|
Total long-term liabilities
| |
|
410
|
| |
|
628
|
|
| | | |
|
|
SHAREHOLDERS' EQUITY:
| | | | |
|
Share capital
| | |
60
| | | |
60
| |
|
Additional paid-in capital
| | |
75,829
| | | |
75,422
| |
|
Treasury shares
| | |
(17,863
|
)
| | |
(17,863
|
)
|
|
Accumulated other comprehensive profit
| | |
392
| | | |
278
| |
|
Accumulated deficit
| |
|
(34,412
|
)
| |
|
(27,745
|
)
|
| | | |
|
|
Total shareholders' equity
| |
|
24,006
|
| |
|
30,152
|
|
| | | |
|
|
Total liabilities
| |
$
|
28,485
|
| |
$
|
35,057
|
|
| | | | | | | |
|
| CONSOLIDATED CASH FLOWS |
| U.S. dollars in thousands |
|
|
|
| Three months ended
December 31, |
| Year ended
December 31, |
| | 2010 |
| 2009 | | 2010 |
| 2009 |
| | Unaudited |
Cash flows from operating activities: | | | | | | | | |
|
Net loss
| |
$
|
(1,639
|
)
| |
$
|
(103
|
)
| |
$
|
(6,667
|
)
| |
$
|
(7,016
|
)
|
Less: net income from discontinued operations, net of
taxes
| |
|
-
|
| |
|
(583
|
)
| |
|
-
|
| |
|
(583
|
)
|
| | | | | | | |
|
|
Net loss from continuing operations
| | |
(1,639
|
)
| | |
(686
|
)
| | |
(6,667
|
)
| | |
(7,599
|
)
|
Adjustments required to reconcile net loss from
continuing
operations to net cash used in operating
activities from
continuing operations:
| | | | | | | | |
|
Depreciation and amortization
| | |
123
| | | |
104
| | | |
497
| | | |
546
| |
Stock-based compensation related to options granted
to
employees, non-employees and directors
| | |
(57
|
)
| | |
(137
|
)
| | |
332
| | | |
431
| |
Accrued interest and amortization of premium on
marketable
securities
| | |
21
| | | |
34
| | | |
149
| | | |
139
| |
|
Gain on sales of marketable securities
| | |
(16
|
)
| | |
-
| | | |
(25
|
)
| | |
(353
|
)
|
|
Decrease in accrued severance pay, net
| | |
(22
|
)
| | |
(73
|
)
| | |
(39
|
)
| | |
(315
|
)
|
|
Decrease (increase) in trade receivables, net
| | |
84
| | | |
(423
|
)
| | |
168
| | | |
(236
|
)
|
|
Decrease (increase) in other current assets
| | |
358
| | | |
(334
|
)
| | |
840
| | | |
176
| |
|
Increase (decrease) in trade payables
| | |
217
| | | |
(31
|
)
| | |
(109
|
)
| | |
(51
|
)
|
|
Increase (decrease) in deferred revenues
| | |
12
| | | |
(134
|
)
| | |
388
| | | |
(307
|
)
|
|
Decrease in accrued expenses and other liabilities
| | |
(643
|
)
| | |
(158
|
)
| | |
(490
|
)
| | |
(908
|
)
|
|
Decrease in other long-term liabilities
| | |
(20
|
)
| | |
(20
|
)
| | |
(79
|
)
| | |
(62
|
)
|
|
Other
| |
|
-
|
| |
|
-
|
| |
|
54
|
| |
|
-
|
|
| | | | | | | |
|
Net cash used in operating activities from continuing
operations
| | |
(1,582
|
)
| | |
(1,858
|
)
| | |
(4,981
|
)
| | |
(8,539
|
)
|
Net cash used in operating activities from discontinued
operations
| |
|
-
|
| |
|
(227
|
)
| |
|
-
|
| |
|
(475
|
)
|
| | | | | | | |
|
|
Net cash used in operating activities
| |
|
(1,582
|
)
| |
|
(2,085
|
)
| |
|
(4,981
|
)
| |
|
(9,014
|
)
|
| | | | | | | |
|
Cash flows from investing activities: | | | | | | | | |
|
Investment in available-for-sale marketable securities
| | |
-
| | | |
(6,888
|
)
| | |
(10,992
|
)
| | |
(12,801
|
)
|
Proceeds from sale and redemption of available-for-sale
marketable
securities
| | |
-
| | | |
1,498
| | | |
9,711
| | | |
21,039
| |
|
Short term deposits, net
| | |
-
| | | |
1,889
| | | |
-
| | | |
-
| |
|
Proceeds from sale of property and equipment
| | |
-
| | | |
-
| | | |
10
| | | |
-
| |
|
Purchase of property and equipment
| | |
(68
|
)
| | |
(31
|
)
| | |
(424
|
)
| | |
(275
|
)
|
|
Increase (decrease) in restricted cash
| |
|
-
|
| |
|
-
|
| |
|
141
|
| |
|
2
|
|
| | | | | | | |
|
Net cash provided by (used in) investing activities from
continuing
operations
| | |
(68
|
)
| | |
(3,532
|
)
| | |
(1,554
|
)
| | |
7,965
| |
|
Net cash provided by discontinued operation, net
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
2,640
|
|
|
Net cash provided by (used in) investing activities
| |
|
(68
|
)
| |
|
(3,532
|
)
| |
|
(1,554
|
)
| |
|
10,605
|
|
| | | | | | | |
|
Cash from financing activities: | | | | | | | | |
|
Repurchase of options
| | |
-
| | | |
-
| | | |
-
| | | |
(250
|
)
|
|
Proceeds from exercise of stock options
| |
|
-
|
| |
|
3
|
| |
|
75
|
| |
|
68
|
|
| | | | | | | |
|
Net cash provided by (used in) financing activities from
continuing
operations
| |
|
-
|
| |
|
3
|
| |
|
75
|
| |
|
(182
|
)
|
| | | | | | | |
|
|
Effect of exchange rate changes on cash
| |
|
(84
|
)
| |
|
(27
|
)
| |
|
(142
|
)
| |
|
156
|
|
| | | | | | | |
|
Increase (decrease) in cash and cash equivalents
| | |
(1,734
|
)
| | |
(5,641
|
)
| | |
(6,602
|
)
| | |
1,565
| |
Cash and cash equivalents at the beginning of the
quarter/year
| |
|
7,756
|
| |
|
18,265
|
| |
|
12,624
|
| |
|
11,059
|
|
| | | | | | | |
|
|
Cash and cash equivalents at the end of the period
| |
|
6,022
|
| |
|
12,624
|
| |
|
6,022
|
| |
|
12,624
|
|
| | | | | | | | | | | | | | | |
|
| Supplemental Information: Cash and Investments |
|
|
|
|
|
| |
| |
| | | | | | December 31, |
| | | | | | 2010 | | 2009 |
|
Cash and cash equivalents
| | | | | | |
6,022
| | |
12,624
|
|
Marketable securities
| | | | | | |
12,049
| | |
10,666
|
|
Restricted cash
| | | | | |
|
416
| |
|
557
|
| | | | | | | |
|
|
Total cash and investments including restricted cash
| | | | | |
$
|
18,487
| |
$
|
23,847
|
Contacts:
Jacada Ltd.
Caroline Cronin, 770-776-2204
Chief Financial
Officer
ccronin@jacada.com
or
Jennifer
Childress, 770-776-2239
Marketing Director
jchildress@jacada.com
Source: Jacada Ltd.
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