Jacada Ltd. (Nasdaq: JCDA), a leading provider of unified
desktop and process optimization solutions for customer service
operations, today reported financial results for the second quarter
and six month period ended June 30, 2009.
For the second quarter of 2009, total revenues were $2.5 million
compared to $6.3 million in the second quarter of 2008. Total gross
profit for the 2009 second quarter was $285,000 or 11% of total
revenues, compared to $3.2 million and 50%, respectively, in the
2008 second quarter. The second quarter net loss was $3.4 million,
or ($0.21) per share. This is compared to a net loss of $1.6
million or ($0.08) per share in the second quarter of 2008.
For the six month periods ending on June 30, 2009 and 2008,
respectively, total revenues were $7.0 million and $12.5 million
and gross profits were $1.7 million or 24% of total revenues and
$6.9 million or 55% of total revenues. During the six month period
ending June 30, 2009 the Company incurred a net loss of $4.9
million or ($0.29) per share. In the comparable 2008 period, the
Company posted net income of $18.5 million or $0.89 per share. The
2008 net income included $20.2 million, or $0.97 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.
The reduction in revenues in the three and six month periods are
directly related to a declining backlog in prior quarters.
At the end of the second quarter of 2009, cash and investments
were $30.3 million, compared to $32.8 million reported as of March
31, 2009 and $33.1 million at year end 2008.
Jacada continued to expand relationships with existing customers
this quarter and signed three material agreements with an existing
telecommunications customer. Jacada will deliver three projects
across different areas of the company’s customer facing businesses,
including consumer, business-to-business call centers and retail
stores. This marks a significant expansion of the use of Jacada
solutions into new areas of customer contact. It further
demonstrates the value Jacada solutions bring and how that value
continues to drive revenue growth with Jacada’s installed customer
base.
During the quarter, Jacada and O2 were recognized by Global
Telecoms Business, and were awarded the prestigious Consumer
Service Innovation Award. The award, judged by leading figures from
the global telecoms industry, acknowledges the impact O2’s Synergy
unified desktop project has had on the quality of interaction with
its 18.7 million customers.
“We continue to see exciting new opportunities where Jacada
customer service solutions can bring significant value. In today’s
economy, companies are interested in projects that can dramatically
improve the customer service experience for their customers, while
providing an obvious and rapid return on investment. Jacada’s
proven ability to deliver these benefits, with a typical 12 month
return on investment, is exactly what our customers are seeking as
they manage their budgets tightly,” said Tom Clear, chief executive
officer for Jacada. “Although our pipeline is growing, we continue
to see additional due diligence and approval steps in the buying
process prior to commitment to full implementation contracts.”
Conference Call Details
Any investor or interested individual can participate in the
teleconference, which will begin at 10:30 a.m. Eastern Time on
August 12, 2009. To participate in the teleconference, please call
toll-free 888-680-0894 or 617-213-4860 for
international callers, and provide passcode 88713352
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=P76HMHA3W.
A (live audio) webcast will also be available over the Internet at
www.jacada.com (under “About
Us” then “Investors”) or www.earnings.com.
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
June 30,
Six months ended
June 30,
2009 2008
2009 2008
Unaudited Revenues: Software licenses $ 60 $ 2,035 $ 637 $
4,882 Services 1,797 3,685 5,104 6,558 Maintenance 653
592 1,300 1,090
Total revenues 2,510 6,312
7,041 12,530 Cost of revenues:
Software licenses 33 152 147 234 Services 2,022 2,781 4,866 4,955
Maintenance 170 219 346
426 Total cost of revenues 2,225
3,152 5,359 5,615
Gross profit 285 3,160 1,682 6,915 Operating expenses:
Research and development 890 1,279 1,834 2,433 Sales and marketing
1,551 2,382 3,157 4,788 General and administrative 1,342
1,288 2,154 2,586
Total operating expenses 3,783 4,949
7,145 9,807 Operating
loss (3,498 ) (1,789 ) (5,463 ) (2,892 ) Financial income, net
94 378 625 826
Loss from continuing operations before taxes (3,404 )
(1,411 ) (4,838 ) (2,066 ) Tax (expense) benefit (26 )
213 (38 ) 347 Net loss
from continuing operations (3,430 ) (1,198 ) (4,876 ) (1,719 )
Income (loss) from discontinued operations, net of taxes -
(399 ) - 20,173
Net income (loss) $ (3,430 ) $ (1,597 ) $ (4,876 ) $ 18,454
Basic and diluted net earnings (loss) per share: From
continuing operations $ (0.21 ) $ (0.06 ) $ (0.29 ) $ (0.08 ) From
discontinued operations - $ (0.02 ) - $
0.97 Basic and diluted net earnings (loss) per share $ (0.21
) $ (0.08 ) $ (0.29 ) $ 0.89 Weighted average number
of shares used in computing basic and diluted net earnings (loss)
per share 16,565,468 20,635,013
16,559,724 20,627,323
CONSOLIDATED BALANCE
SHEETS
(U.S. dollars in
thousands)
June 30, December 31,
2009 2008 Unaudited
Audited
ASSETS
CURRENT ASSETS: Cash and cash equivalents *) $ 18,628 $
11,059 Short term deposits *) 1,884 - Marketable securities *)
4,804 8,915 Trade receivables 2,403 4,713 Restricted cash held by
trustee *) 2,653 2,640 Restricted cash *) 559 559 Other current
assets 1,123 2,022 Assets of discontinued operations -
64 Total current assets 32,054
29,972 LONG-TERM INVESTMENTS: Marketable
securities *) 1,818 9,896 Severance pay fund 412
586 Total long-term investments 2,230
10,482 PROPERTY AND EQUIPMENT, NET
1,147 1,266 GOODWILL
3,096 3,096 Total assets $ 38,527
$ 44,816 *) Total Cash and Investments
including restricted cash $ 30,346 $ 33,069
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES:
Trade payables $ 815 $ 1,245 Deferred revenues 1,103 1,006 Accrued
expenses and other liabilities 2,466 3,096 Liabilities of
discontinued operations 1,069 1,363
Total current liabilities 5,453 6,710
LONG-TERM LIABILITIES: Accrued severance pay 724
1,120 Other long-term liabilities 163 185
Total long-term liabilities 887
1,305 SHAREHOLDERS' EQUITY: Share capital 60 60
Additional paid-in capital 75,330 75,173 Treasury shares at cost
(17,863 ) (17,863 ) Accumulated other comprehensive profit 265 160
Accumulated deficit (25,605 ) (20,729 ) Total
shareholders' equity 32,187 36,801
Total liabilities and shareholders'
equity
$ 38,527 $ 44,816
CONSOLIDATED STATEMENTS OF CASH
FLOWS
U.S. dollars in
thousands
Three months ended
June 30,
Six months ended
June 30,
2009 2008
2009 2008
Unaudited
Cash flows from operating activities:
Net Income (loss) $ (3,430 ) $ (1,597 ) $ (4,876 ) $ 18,454
Less: Net (income) loss from discontinued operations, net of taxes
- 399 - (20,173 )
Net loss from continuing operations (3,430 )
(1,198 ) (4,876 ) (1,719 ) Adjustments
required to reconcile net loss from continuing operations to net
cash used in operating activities from continuing operations:
Depreciation and amortization 138 164 312 311 Stock-based
compensation related to options granted to employees and directors
205 240 339 491 Stock-based compensation related to options granted
to non-employees (1 ) 2 9 5 Accrued interest and amortization of
premium on marketable securities (17 ) (204 ) 121 (123 ) Loss
(gain) from sales of marketable securities - 8 (353 ) (97 )
Increase (decrease) in accrued severance pay, net (120 ) 14 (222 )
71 Decrease in trade receivables, net 1022 1,876 2,310 438 Decrease
(increase) in other current assets 391 409 1,102 (174 ) Increase
(decrease) in trade payables (191 ) 168 (430 ) 201 Increase
(decrease) in deferred revenues (174 ) (1,325 ) 55 (513 ) Decrease
in accrued expenses and other liabilities (315 ) (103 ) (1,046 ) (8
) Decrease in other long-term liabilities (19 ) -
(22 ) - Net cash provided by
(used in) operating activities from continuing operations
(2,511 ) 51 (2,701 ) (1,117 )
Net cash provided by (used in) operating activities from
discontinued operations (168 ) (302 ) (230 ) 70 Net cash
used in operating activities (2,679 ) (251 ) (2,931 ) (1,047 )
Cash flows from investing activities:
Investment in available-for-sale marketable securities
(1,017 ) (6,390 ) (5,913 ) (25,416 ) Proceeds from sale and
redemption of available-for-sale marketable securities 6,902 2,864
18,279 18,663 Short term deposits, net (1,884 ) - (1,884 ) -
Increase in restricted cash held by trustee (2 ) - (13 ) - Purchase
of property and equipment (37 ) (234 ) (194 )
(491 ) Net cash provided by (used in) investing
activities from continuing operations 3,962
(3,760 ) 10,275 (7,244 ) Proceeds from
sale of discontinued operations, net - -
- 22,105 Net cash
provided by (used in) investing activities 3,962
(3,760 ) 10,275 14,861
CONSOLIDATED STATEMENTS OF CASH
FLOWS
U.S. dollars in
thousands
Three months ended
June 30,
Six months ended
June 30,
2009 2008 2009
2008 Unaudited
Cash flows from financing activities:
Purchase of treasury shares - (1,446 ) - (1,446 ) Proceeds
from exercise of stock options 5 482 59 589
Net cash provided by (used in) financing activities from continuing
operations 5 (964 ) 59 (857 ) Effect of exchange rate
changes on cash 254 - 166 - Increase (decrease) in cash and
cash equivalents 1,542 (4,975 ) 7,569 12,957 Cash and cash
equivalents at the beginning of the period 17,086 23,892
11,059 5,960 Cash and cash equivalents at the end of
the period 18,628 18,917 18,628 18,917
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