Jacada Ltd. (Nasdaq: JCDA), a leading provider of unified
desktop and process optimization solutions for customer service
operations, today reported financial results for the first quarter
ended March 31, 2009.
For the first quarter of 2009, total revenues were $4.5 million
compared to $6.2 million in the first quarter of 2008. Total gross
profit for the 2009 first quarter was $1.4 million or 31% of total
revenues, compared to $3.8 million and 60%, respectively, in the
2008 first quarter. The first quarter net loss from continuing
operations was ($1.4 million), or ($0.09) per share. This is
compared to a net loss from continuing operations of ($521,000) or
($0.03) per share in the first quarter of 2008. During the 2008
first quarter, the Company recognized $20.6 million, or $1.00 per
share, in income (net of taxes) from discontinued operations, which
was generated in the form of a capital gain from the sale of the
Company�s legacy business during the 2008 first quarter.
On April 16, 2009, Jacada announced the appointment of Thomas H.
Clear as Chief Executive Officer. Mr. Clear brings significant
executive experience in telecommunications, a key vertical for
Jacada. During his career he has served as the CIO for Southwestern
Bell Mobile Systems (now AT&T), and held key executive
management positions at both Amdocs and Convergys. Most recently,
Mr. Clear was the chief commercial officer for the UK-based
start-up Spinvox, successfully launching the first commercial voice
to text service for voicemail and closing contracts with over a
dozen tier 1 telecommunications providers in less than 2 years.
�We are thrilled that Tom has joined Jacada as our new CEO,�
said Gideon Hollander, chairman of the board of directors for
Jacada. �Tom brings to Jacada vast experience, talent and skills in
business leadership that will allow Jacada to continue to innovate
and bring to market additional value through our solutions, as we
execute our strategy.�
�I have experienced first-hand the enormous need for a unified
desktop solution like the one offered by Jacada, and truly
understand the value it brings to our customers in terms of reduced
operating costs and improved customer service and retention,� said
Tom Clear, chief executive officer for Jacada. �We will focus our
efforts on managing through these difficult times, so that we may
be in a stronger position to benefit from an economic recovery. I
look forward to helping Jacada realize the tremendous potential we
all believe exists in our market and from our solutions.�
�Our professional services revenue is up 15% in relation to the
same quarter last year,� continued Mr. Clear. �The increase was
driven by our backlog of booked services contracts and new services
engagements with existing customers, including a material contract
extension with a German telecommunications provider that we
announced in March. Many of our existing customers are expanding
their relationship with Jacada based on the significant savings and
improved customer service that they are realizing from their
initial projects. But, as is the case with many of our peers, the
current economic climate has impacted our sales cycles and has
resulted in a slower pace of bookings, and consequently lower
revenues. The cost reductions for 2009, which were recently
announced and implemented, are designed to better align costs with
our revenue expectations and will help minimize the use of our
cash.�
At the end of the first quarter of 2009 cash and investments
were $32.8 million, compared to $33.1 million reported as of
December 31, 2008.
Conference Call Details
Any investor or interested individual can participate in the
teleconference, which will begin at 10:30 a.m. Eastern Time on May
21, 2009. To participate in the teleconference, please call
toll-free 888.679.8033, or 617.213.4846 for international callers,
and provide passcode 23413335 approximately 10 minutes prior to the
start time. 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
12:30 p.m. ET on May 21, 2009. To access the replay, dial toll-free
888-286-8010, or for international callers dial 617-801-6888, and
provide passcode 77832429.
About Jacada
Jacada is a leading global provider of unified service desktop
and process optimization solutions that simplify and automate
customer service processes. By bridging disconnected systems into a
single, intelligent desktop, Jacada solutions create greater
operational efficiency and increase agent and customer
satisfaction. Founded in 1990, Jacada operates globally with
offices in Atlanta, Georgia; Herzliya, Israel; London, England and
Munich, Germany. Jacada can be reached at www.jacada.com.
Forward Looking Statement
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 is a trademark of Jacada Ltd. 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
March 31,
�
2009 � � �
2008 �
Unaudited Revenues:
Software licenses $ 577 $ 2,847 Services 3,307 2,873 Maintenance �
647 � � 498 � � Total revenues � 4,531 � � 6,218 � � Cost of
revenues: Software licenses 114 82 Services 2,844 2,174 Maintenance
� 176 � � 207 � � Total cost of revenues � 3,134 � � 2,463 � �
Gross profit � 1,397 � � 3,755 � � Operating expenses: Research and
development 944 1,154 Sales and marketing 1,606 2,406 General and
administrative � 812 � � 1,298 � � Total operating expenses � 3,362
� � 4,858 � � Operating loss (1,965 ) (1,103 ) Financial income,
net � 531 � � 448 � � Loss from continuing operations before taxes
(1,434 ) (655 ) Tax (expense) benefit � (12 ) � 134 � � Net loss
from continuing operations (1,446 ) (521 ) Income from discontinued
operations, net of taxes � - � � 20,572 � � Net Income (loss) $
(1,446 ) $ 20,051 � � Basic and diluted net earnings (loss) per
share: From continuing operations $ (0.09 ) $ (0.03 ) From
discontinued operations $ - � $ 1.00 � Basic and diluted net
earnings (loss) per share $ (0.09 ) $ 0.97 � � Weighted average
number of shares used in computing basic and diluted net earnings
(loss) per share � 16,554,286 � � 20,620,432 �
CONSOLIDATED BALANCE
SHEETS
(U.S. dollars in
thousands)
� �
March 31, December 31, �
2009 � �
2008 �
Unaudited �
Audited ASSETS � CURRENT
ASSETS: Cash and cash equivalents *) $ 17,086 $ 11,059 Marketable
securities *) 10,680 8,915 Trade receivables 3,425 4,713 Restricted
cash held by trustee *) 2,651 2,640 Restricted cash *) 559 559
Other current assets 1,309 2,022 Assets of discontinued operations
� 14 � � 64 � Total current assets � 35,724 � � 29,972 � �
LONG-TERM INVESTMENTS: Marketable securities *) 1,816 9,896
Severance pay fund � 508 � � 586 � �
Total long-term investments
� 2,324 � � 10,482 � � PROPERTY AND EQUIPMENT, NET � 1,243 � �
1,266 � � GOODWILL � 3,096 � � 3,096 � � Total assets $ 42,387 � $
44,816 � � *) Total Cash and Investments including restricted cash
$ 32,792 � $ 33,069 � � LIABILITIES AND SHAREHOLDERS' EQUITY �
CURRENT LIABILITIES: Trade payables $ 1,006 $ 1,245 Deferred
revenues 1,188 1,006 Accrued expenses and other liabilities 2,781
3,096 Liabilities of discontinued operations � 1,251 � � 1,363 � �
Total current liabilities � 6,226 � � 6,710 � � LONG-TERM
LIABILITIES: Accrued severance pay 940 1,120 Other long-term
liabilities � 182 � � 185 � �
Total long-term liabilities
� 1,122 � � 1,305 � � SHAREHOLDERS' EQUITY: Share capital 60 60
Additional paid-in capital 75,121 75,173 Treasury shares at cost
(17,863 ) (17,863 ) Accumulated other comprehensive profit (loss)
(104 ) 160 Accumulated deficit � (22,175 ) � (20,729 ) � Total
shareholders' equity � 35,039 � � 36,801 � � Total liabilities and
shareholders' equity $ 42,387 � $ 44,816 �
CONSOLIDATED STATEMENTS OF CASH
FLOWS
U.S. dollars in
thousands
�
Three months ended
March 31,
2009 � �
2008 �
Unaudited Cash flows
from operating activities: � Net Income (loss) (1,446 )
20,051 Less: Net income from discontinued operations, net of taxes
- � (20,572 ) � Net loss from continuing operations (1,446 ) (521 )
� Adjustments required to reconcile net loss from continuing
operations to net cash used in operating activities from continuing
operations: Depreciation and amortization 173 147 Stock-based
compensation related to options granted to employees and directors
134 251 Stock-based compensation expenses related to options
granted to non-employees 10 3 Accrued interest and amortization of
premium on marketable securities 139 81 Gain from sales of
marketable securities (353 ) (105 ) Increase (decrease) in accrued
severance pay, net (102 ) 57 (Increase) decrease in trade
receivables, net 1,288 (1,438 ) (Increase) decrease in other
current assets 711 (583 ) Increase (decrease) in trade payables
(239 ) 33 Increase in deferred revenues 229 812 Increase (decrease)
in accrued expenses and other liabilities (731 ) 95 Decrease in
other long-term liabilities (3 ) - � � Net cash used in operating
activities from continuing operations (190 ) (1,168 ) � Net cash
provided by (used in) operating activities from discontinued
operations (62 ) 324 � � Net cash used in operating activities (252
) (844 ) �
Cash flows from investing activities: �
Investment in available-for-sale marketable securities (4,896 )
(19,026 ) Proceeds from sale and redemption of available-for-sale
marketable securities 11,377 15,799 Increase in restricted cash
held by trustee (11 ) - Purchase of property and equipment (157 )
(257 ) � Net cash provided by (used in) investing activities from
continuing operations 6,313 (3,484 ) � Proceeds from sale of
discontinued operations, net - � 22,153 � � Net cash provided by
investing activities 6,313 � 18,669 �
CONSOLIDATED STATEMENTS OF CASH
FLOWS, con�t.
U.S. dollars in
thousands
�
Three months ended
March 31,
2009 � �
2008 Unaudited �
Cash flows
from financing activities: � Proceeds from exercise of stock
options 54 � 107 � Net cash provided by financing activities from
continuing operations 54 � 107 � Effect of exchange rate changes on
cash (88 ) - � Increase in cash and cash equivalents 6,027 17,932
Cash and cash equivalents at the beginning of the period 11,059 �
5,960 � Cash and cash equivalents at the end of the period 17,086 �
23,892
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