Cindy Curtin Knezevich
770-352-1300
cindyk@jacada.com
Peter L. Seltzberg
Hayden Communications
646-415-8972
peter@haydenir.com
Press Release
Jacada Reports Financial Results for Second-Quarter 2003
ATLANTA, July 28, 2003 – Jacada Ltd. (NASDAQ: JCDA), the leading provider of legacy integration and Web-to-host solutions, today reported second-quarter 2003 results, which are in line with First Call consensus estimates.
Total revenue for the 2003 second quarter was $5.1 million, unchanged from the 2003 first quarter. Software license revenue was $2.1 million in the 2003 second quarter, compared to $2.2 million in the 2003 first quarter. Service and maintenance revenues were $3.0 million in the 2003 second quarter, up slightly from $2.9 million in the 2003 first quarter. In the second quarter of 2002, Jacada reported software license revenue of $2.2 million, service and maintenance revenues of $3.1 million, and total revenue of $5.3 million.
Gross profit for the 2003 second quarter was $4.2 million, or 82% of total revenue, compared to $4.1 million, or 81% of total revenue, in the 2003 first quarter. Net loss for the quarter was $361,000, or $0.02 per share, compared to net loss of $631,000, or $0.03 per share, in the 2003 first quarter. In the second quarter of 2002, Jacada reported gross profit of $4.1 million, or 77% of total revenue, and a net loss of $1.2 million, or $0.07 per share.
At the end of the second quarter, Jacada's cash and investments totaled $42.5 million, essentially unchanged from the first quarter of 2003.
"We are pleased with our financial performance considering the challenging IT spending environment we continue to experience," said Gideon Hollander, CEO of Jacada. "Integration remains a top priority for CIOs, many of whom are already familiar with and keenly interested in Jacada's growing suite of business solutions aimed at helping organizations reuse and extend the life of their valuable legacy computing systems. That said — and given the successes our existing customers are having with our products and the leadership position we hold in the market — we expect our results will continue to improve in the coming quarters."
Second-Quarter Highlights
During the quarter, Jacada closed new and follow-on business with customers such as AAA Mid-Atlantic, Airline Tariff Publishing Company, Compass Bank, Global Beverage Group, HTE Inc., Raytheon Missile Systems, South Carolina Farm Bureau, Wausau Benefits, and GISS, the Spanish Social Security Agency.
Partnerships continue to provide Jacada with expanded channel
opportunities. In the second quarter, Jacada's suite of legacy
integration, emulation, and Web-to-host solutions was certified
In addition, Jacada's partnership with PeopleSoft has begun to show traction with the signing of our first joint customer agreement. Jacada Integrator enables PeopleSoft customers to achieve real-time access to their legacy applications from PeopleSoft 8 applications.
During the second quarter, Jacada released new versions of both the Jacada Interface Server and Jacada Integrator products. "The continued development and enhancement of our product lines brings us closer to reaching our goal of becoming the one-stop-shop for all things legacy," said Hollander. "We are beginning to see this vision generate significant interest within our prospect and customer base; therefore, we expect sequential software license revenue growth of 10-12% in the coming quarters."
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future financial results and plans for future business development activities, and are prospective. These statements include all statements that are not statements of historical fact and consists of those regarding intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; and (iii) the Company's growth strategy and operating strategy (including the development of its products and services). 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. The Company cannot assess the impact of or the extent to which any single factor or risk, or combination of them, may cause. For a more complete discussion of risk factors, please see the Company's Form 20-F and other Statements filed with the Securities and Exchange Commission.
Jacada is a trademark of Jacada Ltd. All other brands or product names are trademarks of their respective owners.
| JACADA LTD. CONSOLIDATED BALANCE SHEETS U.S. Dollars in thousands |
| June 30, | December 31, | |||
| 2003 | 2002 | |||
| ASSETS | Unaudited | Audited | ||
| CURRENT ASSETS: | ||||
| Cash and cash equivalents |
$ | 11,820 |
$ | 15,319 |
| Marketable securities | 11,033 | 22,326 | ||
| Trade receivables (net of allowance for doubtful accounts of $ 460 and $ 398 at June 30, 2003 and December 31, 2002, respectively) | 3,289 | 2,661 | ||
| Other current assets | 610 | 645 | ||
| Total current assets | 26,752 | 40,951 | ||
| LONG-TERM INVESTMENTS: | ||||
| Marketable securities | 19,629 | 3,737 | ||
| Severance pay fund | 705 | 576 | ||
| Long-term other assets | 60 | 79 | ||
| Total long-term investments | 20,394 | 4,392 | ||
| PROPERTY AND EQUIPMENT, NET | 2,285 | 2,804 | ||
OTHER ASSETS, NET: Technology (net of accumulated amortization of $ 537 and $ 381 at June 30, 2003 and December 31, 2002, respectively) | 1,021 | 1,177 | ||
| Other
intangibles, net (net of accumulated amortization of $ 50 and $ 23 at June 30, 2003 and December 31, 2002, respectively) | 113 | 140 | ||
| Goodwill | 4,554 |
| 4,554 | |
| Total other assets | 5,688 |
| 5,871 | |
|
$ | 55,119 |
$ | 54,018 |
| JACADA LTD. CONSOLIDATED BALANCE SHEETS U.S. Dollars in thousands, except share data |
| June 30, | December 31, | |||
| 2003 | 2002 | |||
| Unaudited | Audited | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES: | ||||
| Trade payables | $ | 661 | $ | 760 |
| Deferred revenues | 4,059 | 2,144 | ||
| Accrued expenses and other liabilities | 3,495 | 3,599 | ||
| Total current liabilities | 8,215 | 6,503 | ||
| LONG TERM LIABILITIES: | ||||
| Accrued severance pay | 1,110 | 927 | ||
| Accrued expenses | 89 | 124 | ||
| Total long-term liabilities | 1,199 | 1,051 | ||
| SHAREHOLDERS' EQUITY: | ||||
| Share capital: | ||||
| Ordinary shares of NIS 0.01 par value: | ||||
| Authorized: 30,000,000 shares
at June 30, 2003 and December 31, 2002; Issued and outstanding: 19,009,903 and 18,935,903 shares at June 30, 2003 and December 31, 2002, respectively | 55 | 55 | ||
| Additional paid-in capital | 69,225 | 69,143 | ||
| Deferred stock compensation | (22) | (25) | ||
| Accumulated other comprehensive gain | 229 | 81 | ||
| Accumulated deficit | (23,782) | (22,790) | ||
| Total shareholders' equity | 45,705 | 46,464 | ||
| $ | 55,119 | $ | 54,018 | |
|
JACADA LTD. CONSOLIDATED STATEMENTS OF OPERATIONS U.S. Dollars in thousands, except share and per share data |
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|
Six months ended June 30, |
Three months ended June 30, |
Year ended December 31, |
|||||||||||||
| 2003 | 2002 | 2003 | 2002 | 2002 | |||||||||||
| Unaudited | Audited | ||||||||||||||
| Revenues: | |||||||||||||||
| Software license | $ | 4,300 | $ | 5,165 | $ | 2,091 | $ | 2,244 | $ | 9,783 | |||||
| Services | 2,202 | 2,696 | 1,237 | 1,235 | 4,518 | ||||||||||
| Maintenance | 3,693 | 3,505 | 1,808 | 1,858 | 7,235 | ||||||||||
| Total revenues | 10,195 | 11,366 | 5,136 | 5,337 | 21,536 | ||||||||||
| Cost of revenues: | |||||||||||||||
| Software licenses | 182 | 121 | 72 | 4 | 248 | ||||||||||
| Services | 1,151 | 1,905 | 594 | 887 | 3,115 | ||||||||||
| Maintenance | 557 | 663 | 281 | 331 | 1,247 | ||||||||||
| Total cost of revenues | 1,890 | 2,689 | 947 | 1,222 | 4,610 | ||||||||||
| Gross profit | 8,305 | 8,677 | 4,189 | 4,115 | 16,926 | ||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 2,716 | 3,053 | 1,407 | 1,550 | 6,191 | ||||||||||
| Sales and marketing | 4,790 | 5,454 | 2,348 | 2,761 | 9,450 | ||||||||||
| General and administrative | 2,433 | 2,588 | 1,206 | 1,256 | 4,602 | ||||||||||
| Restructuring charges | - | - | - | - | 501 | ||||||||||
| Total operating expenses | 9,939 | 11,095 | 4,961 | 5,567 | 20,744 | ||||||||||
| Operating loss | (1,634) | (2,418) | (772) | (1,452) | (3,818) | ||||||||||
| Financial income, net | 642 | 389 | 411 | 209 | 909 | ||||||||||
| Net loss | $ | (992) | $ | (2,029) | $ | (361) | $ | (1,243) | $ | (2,909) | |||||
| Basic and diluted net loss per share |
$ | (0.05) | $ | (0.11) | $ | (0.02) | $ | (0.07) | $ | (0.16) | |||||
| Weighted average number of shares used in computing basic and diluted net loss per share |
18,995,895 | 18,550,035 | 19,003,310 | 18,559,810 | 18,710,105 | ||||||||||