ATLANTA -- (Business Wire)

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

Third Quarter Highlights

• Executed a material multi-year service and solution support agreement with Kabel Deutschland, Germany’s largest cable operator
• Executed an agreement for the development of key integration components that allow Blue Cross Blue Shield of Massachusetts to leverage their existing investments in future strategic initiatives for an integrated provider management system
• Introduced the latest version of Jacada Interface Server (JIS) with updated browser support and extensions to the Jacada knowledge base
• Third quarter revenues were $3.0 million with a net loss of $1.7 million

“We were pleased to extend our relationship with Kabel Deutschland as we continue to provide ongoing professional services for the development of future releases of the company’s unified desktop,” commented Gideon Hollander, co-chief executive officer of Jacada. “This quarter, we also began the development of key integration components for Blue Cross Blue Shield of Massachusetts’ integrated provider management system. This system will allow their agents to more efficiently service healthcare providers by providing access to more organized information.”

“While these agreements extended our services engagements, there were limited software deliveries during the third quarter, reducing our software revenue to $42,000 from $813,000 in the previous quarter,” commented Caroline Cronin, Chief Financial Officer. “While total expenses remained consistent between the second and third quarters of 2011, this reduction in software revenue, which typically carries a higher margin, impacted our net income, increasing our net loss to $1.7 million in the third quarter from $1.1 million in the second quarter.”

Financial Results

For the third quarter of 2011, total revenues were $3.0 million compared to $5.0 million in the third quarter of 2010. Software revenues for the 2011 third quarter were $42,000 compared to $455,000 during the 2010 third quarter. Services revenues were $2.2 million and $3.9 million in the third quarter of 2011 and 2010, respectively. Maintenance revenues improved to $735,000 in the third quarter of 2011 from $651,000 in the 2010 third quarter.

Gross margins were 30% and 39% of total revenues during the 2011 and 2010 third quarters, respectively. Margins were impacted both by the reduction in software revenue, which typically carries a higher margin, and by a reduction in services margins as fixed expenses were absorbed by lower services revenue. Third quarter 2011 operating expenses of $2.6 million, reflecting savings from cost containment measures implemented during the third quarter of 2010, were significantly less than third quarter 2010 operating expenses of $3.5 million.

The 2011 third quarter net loss was $1.7 million or ($0.41) per share compared to a net loss of $1.5 million or ($0.36) per share in the third quarter of 2010.

Conference Call Details

Management will hold a conference call to discuss the third quarter 2011 financial results at 10:30am ET on November 21, 2011. To participate in the teleconference, please call toll-free 888-680-0860 or 617-213-4852 for international callers, and provide pass code 73346396 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=PALYQ4CPM. 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 November 21, 2011. To access the replay, dial toll-free 888-286-8010, or for international callers 617-801-6888, and provide pass code 27258901.

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.

Contacts:

Jacada
Caroline Cronin, 770-776-2204
Chief Financial Officer
ccronin@jacada.com

Source: Jacada Ltd.