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 endedDecember
31,
Year endedDecember 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 endedDecember
31,
Year endedDecember 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
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