Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer
service productivity optimization solutions, today reported
financial results for the third quarter and nine month period ended
September 30, 2009.
Third Quarter 2009 Highlights
- Signed an agreement with
Permanent General, a leading auto insurance provider based in
Nashville, Tenn.
- Signed an agreement with its
first European utilities customer - E.ON Sweden. E.ON Sweden is
part of the E.ON group, the world's largest investor-owned power
and gas company.
- Began a strategic partnership
with Wipro, a global leader in product engineering and support
services, to deliver the initial design for a major international
electricity and gas provider, which ultimately progressed into a
material agreement that was announced in the fourth quarter.
Financial Results
For the third quarter of 2009, total revenues were $3.9 million
compared to $5.9 million in the third quarter of 2008, a decrease
of 34%, primarily due to the challenging global economy and
continued uncertainty in the business environment.
Total gross profit for the 2009 third quarter was $1.4 million
or 37% of total revenues compared to $2.3 million and 39% in the
2008 third quarter.
The third quarter net loss was $2.0 million or ($0.12) per
share. This is compared to a net loss of $2.6 million or ($0.13)
per share in the third quarter of 2008.
For the nine month period ending on September 30, 2009 total
revenues were $10.9 million compared to $18.4 million in the same
period in 2008. The reduction in revenues in the three and nine
month periods are directly related to global business conditions
and a decline in new business during 2008. However, new business
has begun to improve in recent quarters and backlog at the end of
the third quarter grew to $8.6 million, up from $6.6 million at
December 31, 2008.
Gross profit for nine month period ended September 30, 2009 was
$3.1 million or 28% of total revenues compared to $9.2 million or
50% of total revenues for the 2008 period.
During the nine month period ending September 30, 2009, the
Company incurred a net loss of $6.9 million or ($0.42) per share.
In the comparable 2008 period, the Company posted net income of
$15.9 million or $0.78 per share. The 2008 net income included
$19.9 million or $0.98 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.
At the end of the 2009 third quarter, cash and investments were
$26.1 million compared to $33.1 million at year end 2008.
“We’ve seen increased activity in our pipeline; customer
adoption is accelerating; the backlog continues to grow; revenues
have begun to improve compared to our revenue for the second
quarter of 2009 and losses have begun to decline,” said Tom Clear,
chief executive officer for Jacada. “While the business and
economic climate of 2009 is challenging, Jacada continues 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.”
Conference Call Details
To participate in the teleconference, please call toll-free
888.680.0893, or 617.213.4859 for international callers, and
provide passcode 54170464 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=PGQ6D9UUW.
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 November 11, 2009. To access the
replay, dial toll-free 888-286-8010, or for international callers
617-801-6888, and provide passcode 10445295.
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
September 30,
Nine months ended
September 30,
2009 2008
2009 2008
Unaudited Revenues: Software licenses $ 55 $ 1,490 $ 692 $
6,372 Services 3,327 3,866 8,431 10,424 Maintenance 492
554 1,792 1,644
Total revenues 3,874 5,910
10,915 18,440 Cost of revenues:
Software licenses 27 233 174 467 Services 2,253 3,108 7,119 8,063
Maintenance 174 243 520
669 Total cost of revenues 2,454
3,584 7,813 9,199
Gross profit 1,420 2,326 3,102 9,241 Operating expenses:
Research and development 859 1,275 2,693 3,708 Sales and marketing
1,273 2,391 4,430 7,179 General and administrative 1,388
1,426 3,542 4,012
Total operating expenses 3,520 5,092
10,665 14,899 Operating
loss (2,100 ) (2,766 ) (7,563 ) (5,658 ) Financial income, net
44 197 669 1,023
Loss from continuing operations before taxes (2,056 )
(2,569 ) (6,894 ) (4,635 ) Tax (expense) benefit 19
292 (19 ) 639 Net loss
from continuing operations (2,037 ) (2,277 ) (6,913 ) (3,996 )
Income (loss) from discontinued operations, net of taxes -
(315 ) - 19,858
Net income (loss) $ (2,037 ) $ (2,592 ) $ (6,913 ) $ 15,862
Basic and diluted net earnings (loss) per share: From
continuing operations $ (0.12 ) $ (0.11 ) $ (0.42 ) $ (0.20 ) From
discontinued operations - $ (0.02 ) $ - $ 0.98
Basic and diluted net earnings (loss) per share $ (0.12 ) $
(0.13 ) $ (0.42 ) $ 0.78 Weighted average number of
shares used in computing basic and diluted net earnings (loss) per
share 16,569,721 19,687,459
16,562,959 20,313,411
CONSOLIDATED BALANCE
SHEETS
(U.S. dollars in
thousands)
September 30, December 31,
2009 2008 Unaudited
Audited ASSETS CURRENT ASSETS: Cash and cash
equivalents *) $ 18,265 $ 11,059 Short term deposits *) 1,889 -
Marketable securities *) 4,060 8,915 Trade receivables 4,526 4,713
Restricted cash held by trustee *) - 2,640 Restricted cash *) 557
559 Other current assets 1,609 2,022 Assets of discontinued
operations - 64 Total current
assets 30,906 29,972 LONG-TERM
INVESTMENTS: Marketable securities *) 1,300 9,896 Severance pay
fund 387 586 Total long-term
investments 1,687 10,482
PROPERTY AND EQUIPMENT, NET 1,066 1,266
GOODWILL 3,096 3,096
Total assets $ 36,755 $ 44,816 *) Total Cash
and Investments including restricted cash $ 26,071 $ 33,069
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT
LIABILITIES: Trade payables $ 1,225 $ 1,245 Deferred revenues 833
1,006 Accrued expenses and other liabilities 2,317 3,096
Liabilities of discontinued operations 1,051
1,363 Total current liabilities 5,426
6,710 LONG-TERM LIABILITIES: Accrued severance
pay 679 1,120 Other long-term liabilities 143
185 Total long-term liabilities 822
1,305 SHAREHOLDERS' EQUITY: Share capital 60
60 Additional paid-in capital 75,556 75,173 Treasury shares at cost
(17,863 ) (17,863 ) Accumulated other comprehensive profit 396 160
Accumulated deficit (27,642 ) (20,729 ) Total
shareholders' equity 30,507 36,801
Total liabilities and shareholders' equity $ 36,755 $
44,816
CONSOLIDATED STATEMENTS OF CASH
FLOWS
U.S. dollars in
thousands
Three months ended
September 30,
Nine months ended
September 30,
2009 2008
2009 2008
Unaudited Cash flows from operating
activities: Net Income (loss) $ (2,037 ) $ (2,592 ) $
(6,913 ) $ 15,862 Less: Net (income) loss from discontinued
operations, net of taxes - 315 -
(19,858 ) Net loss from continuing operations
(2,037 ) (2,277 ) (6,913 ) (3,996 )
Adjustments required to reconcile net loss from continuing
operations to net cash used in operating activities from continuing
operations: Depreciation and amortization 130 148 442 459
Stock-based compensation related to options granted to employees
and directors 219 280 558 771 Stock-based compensation related to
options granted to non-employees 1 2 10 7 Accrued interest and
amortization of premium on marketable securities (16 ) 254 105 131
Loss (gain) from sales of marketable securities - 6 (353 ) (91 )
Increase (decrease) in accrued severance pay, net (20 ) (57 ) (242
) 14 Decrease (increase) in trade receivables, net (2,123 ) (627 )
187 (189 ) Decrease (increase) in other current assets (397 ) (101
) 705 (275 ) Increase (decrease) in trade payables 410 (151 ) (20 )
50 Increase (decrease) in deferred revenues (228 ) 7 (173 ) (506 )
Decrease in accrued expenses and other liabilities (149 ) (111 )
(1,195 ) (119 ) Increase (decrease) in other long-term liabilities
(20 ) 203 (42 ) 203 Other - 3 -
3 Net cash used in operating activities
from continuing operations (4,230 ) (2,421 ) (6,931 ) (3,538 ) Net
cash used in operating activities from discontinued operations
(18 ) (312 ) (248 ) (242 ) Net
cash used in operating activities (4,248 ) (2,733 )
(7,179 ) (3,780 )
Cash flows from
investing activities: Investment in
available-for-sale marketable securities - - (5,913 ) (25,416 )
Proceeds from sale and redemption of available-for-sale marketable
securities 1,262 11,526 19,541 30,189 Short term deposits, net (5 )
- (1,889 ) - Decrease in restricted cash held by trustee 2,655 -
2,642 - Purchase of property and equipment (50 ) (380
) (244 ) (871 ) Net cash provided by investing
activities from continuing operations 3,862 11,146 14,137 3,902
Proceeds from sale of discontinued operations, net -
- - 22,105 Net
cash provided by investing activities 3,862
11,146 14,137 26,007
Cash flows from financing activities: Purchase
of treasury shares - (16,416 ) - (17,862 ) Proceeds from exercise
of stock options 6 133 65
722 Net cash provided by (used in) financing
activities from continuing operations 6
(16,283 ) 65 (17,140 ) Effect of
exchange rate changes on cash 17 - 183 - Increase (decrease)
in cash and cash equivalents (363 ) (7,870 ) 7,206 5,087 Cash and
cash equivalents at the beginning of the period 18,628
18,917 11,059 5,960
Cash and cash equivalents at the end of the period $
18,265 $ 11,047 $ 18,265 $ 11,047
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