Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer
service experience and process optimization solutions, today
reported financial results for the first quarter ending March 31,
2011 and the adjustment of its 2010 unaudited financial
results.
First Quarter 2011 Financial Results
For the first quarter of 2011, total revenues were $3.0 million
compared to $5.0 million in the first quarter of 2010. First
quarter revenues were impacted by weak bookings during the fourth
quarter of 2010.
Software revenues for the 2011 first quarter were $247 thousand
compared to $581 thousand during the 2010 first quarter. Services
revenues were $2.1 million in the 2011 first quarter and $3.9
million in the 2010 first quarter. Maintenance revenues were $657
thousand and $530 thousand in the 2011 and 2010 first quarters,
respectively.
Gross margin during the first quarter of 2011 was 22%, compared
to gross margins of 37% in the first quarter of 2010.
Total operating expenses for the 2011 and 2010 first quarters
were $2.5 million and $3.7 million, respectively, reflecting the
savings of the cost reduction plans implemented during late
2010.
The 2011 first quarter net loss was $1.8 million or $0.44 per
share compared to a net loss of $1.8 million or $0.44 per share in
the first quarter of 2010.
At the end of the 2011 first quarter, cash and investments were
$17.8 million, compared to $18.5 million at December 31, 2010.
“While our first quarter 2011 results were disappointing, we
have seen positive initiatives throughout the company, including
the continued development of the next generation versions of Jacada
WorkSpace and Jacada WinFuse and a growing interest in our Jacada
JumpStart program,” commented Tom Clear, chief executive officer of
Jacada.
Adjustment of 2010 Unaudited Financial Results
Events subsequent to February 10, 2011, the date of our press
release announcing our 2010 annual financial results, have led to a
change in estimates associated with the percentage of completion
used to calculate revenue on a certain project, the company’s
goodwill valuation and the classification of the loss on one of the
company’s marketable securities to other-than-temporary. These
subsequent events provided additional evidence about conditions
that existed as of the balance sheet date of December 31, 2010 and
are thus “recognized” subsequent events, requiring adjustments to
the December 31, 2010 unaudited financial results as previously
reported in the Company's February 10, 2011 press release.
The difficult delivery of a single large project required us to
invest additional resources during the first quarter of 2011. As a
result of these additional hours invested subsequent to the balance
sheet date, the estimate of the percentage of completion we had
used to calculate revenue for this project as of December 31, 2010
had to be adjusted. In addition, a change in the estimate of our
fair value required us to apply a second phase goodwill impairment
test, the results of which indicated that our goodwill was fully
impaired as of December 31, 2010. The entire goodwill balance of
$3.1 million was therefore written off as of December 31, 2010.
As a result of these adjustments, our 2010 financial results
reflect a decrease in revenue of $0.7 million and an increase in
net loss of $3.8 million. Thus, our revenues and net loss for
calendar year 2010 will be revised to $17.1 million and $10.6
million, or $2.55 per share, respectively. The revenues and net
loss for calendar year 2010 reported in the unaudited financial
results announced on February 10, 2011 were $17.9 million and $6.7
million, or $1.60 per share, respectively.
Conference Call Details
Management will hold a conference call to discuss the first
quarter 2011 financial results at 10:30am ET on June 14, 2011. To
participate in the teleconference, please call toll-free
888-679-8034 or 617-213-4847 for international
callers, and provide passcode 57583756 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=P373LJTYD.
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 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.
Jacada is a trademark of Jacada Ltd. All other brands or product
names are trademarks of their respective owners.
JACADA LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS
OF OPERATIONS U.S. dollars in thousands, except per share
data Three months ended
March 31,
2011 2010 Unaudited Revenues: Software
licenses $ 247 $ 581 Services 2,092 3,858 Maintenance 657
530 Total revenues 2,996
4,969 Cost of revenues: Software licenses 63
66 Services 2,098 2,860 Maintenance 189 184
Total cost of revenues 2,350
3,110 Gross profit (loss) 646
1,859 Operating expenses: Research and development
676 896 Sales and marketing 797 1,532 General and administrative
1,033 1,284 Total operating
expenses 2,506 3,712 Operating
loss (1,860 ) (1,853 ) Financial income (loss), net 17
21 Pretax loss (1,843 ) (1,832 ) Tax
benefit (expense) (1 ) - Net loss $
(1,844 ) $ (1,832 ) Basic and diluted net loss per share $
(0.44 ) $ (0.44 )
Weighted average number of shares used in
computing basic and diluted net loss per share
4,159,134 4,156,131
JACADA
LTD. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands March
31, December 31, 2011 2010
Unaudited ASSETS CURRENT ASSETS: Cash and cash
equivalents $ 4,721 $ 5,945 Marketable securities 1,242 1,240 Trade
receivables 3,478 4,081 Restricted cash 493 493 Other current
assets 995 1,079 Total current
assets 10,929 12,838 LONG-TERM
INVESTMENTS: Marketable securities 11,336 10,809 Severance pay fund
198 186 Total long-term
investments 11,534 10,995
PROPERTY AND EQUIPMENT, NET 808 856
Total assets $ 23,271 $ 24,689
LIABILITIES AND SHAREHOLDERS EQUITY CURRENT LIABILITIES:
Trade payables $ 1,275 $ 1,566 Deferred revenues 976 1,076 Accrued
expenses and other liabilities 1,568 1,478
Total current liabilities 3,819
4,120 LONG-TERM LIABILITIES: Accrued severance pay
389 366 Other liabilities 24 44
Total long-term liabilities 413 410
SHAREHOLDERS' EQUITY: Share capital 60 60 Additional paid-in
capital 75,883 75,829 Treasury shares (17,863 ) (17,863 )
Accumulated other comprehensive profit 1,157 487 Accumulated
deficit (40,198 ) (38,354 ) Total
shareholders' equity 19,039 20,159
Total liabilities $ 23,271 $ 24,689
JACADA LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS
OF CASH FLOWS U.S. dollars in thousands
Three months ended
March 31,
2011 2010 Unaudited
Cash flows from
operating activities:
Net loss $ (1,844 ) $ (1,832 ) Adjustments required
to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 111 124 Stock-based compensation
related to options granted to employees, non-employees and
directors 54 172 Accrued interest and amortization of premium on
marketable securities (14 ) 107 Loss (gain) from sales of
marketable securities 46 (9 ) Accrued severance pay, net 11 17
Decrease (increase) in trade receivables, net 721 (2,026 ) Decrease
(increase) in other current assets 73 (35 ) Increase (decrease) in
trade payables (303 ) 252 Increase (decrease) in deferred revenues
(109 ) 298 Increase (decrease) in accrued expenses and other
liabilities 75 (161 ) Decrease in other long-term liabilities (20 )
(20 ) Other 15 47 Net cash used
in operating activities (1,184 ) (3,066 )
Cash flows from
investing activities:
Investment in available-for-sale marketable securities -
(10,992 ) Proceeds from sale and redemption of available-for-sale
marketable securities - 9,727 Increase in restricted cash - (16 )
Purchase of property and equipment (64 ) (195 )
Net cash provided by (used in) investing activities
(64 ) (1,476 )
Cash flows from
financing activities:
Proceeds from exercise of stock options -
75 Net cash provided by financing activities
- 75 Effect of exchange rate
changes on cash 24 (263 ) Decrease in
cash and cash equivalents (1,224 ) (4,730 ) Cash and cash
equivalents at the beginning of the period 5,945
12,624 Cash and cash equivalents at the end of
the period $ 4,721 $ 7,894
Supplemental
Information: Cash and Investments
March 31,2011
December 31,2010
Cash and cash equivalents 4,721 5,945 Marketable securities 12,578
12,049 Restricted cash 493 493 Total cash and
investments including restricted cash $ 17,792 $ 18,487
Jacada (NASDAQ:JCDA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Jacada (NASDAQ:JCDA)
Historical Stock Chart
From Jul 2023 to Jul 2024