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 the 2005 Second Quarter
Software Revenue Increases 50% Year-Over-Year; Net Loss Narrows to $0.01 per Share
ATLANTA, July 28, 2005 – Jacada Ltd. (Nasdaq: JCDA), a leader in software solutions that accelerate business process improvement, today reported financial results for the 2005 second quarter.
Total revenues for the 2005 second quarter were $5.5 million, up from $4.0 million in the 2005 first quarter and $4.9 million in the second quarter of 2004. Software and products revenues were $2.0 million in the 2005 second quarter, up from $0.8 million in the 2005 first quarter and $1.3 million in the second quarter of 2004. Service and maintenance revenues were $3.5 million in the 2005 second quarter, compared to $3.2 million in the 2005 first quarter and $3.5 million in the second quarter of 2004.
Gross profit for the 2005 second quarter was $4.5 million, or 82% of total revenues, compared to $2.6 million, or 66% of total revenues, in the 2005 first quarter. Operating loss for the 2005 second quarter was $410,000, compared to $4.3 million in the 2005 first quarter. Net loss for the 2005 second quarter was $233,000, or $0.01 per share, compared to a net loss of $4.2 million, or $0.22 per share, in the 2005 first quarter. In the second quarter of 2004, Jacada reported gross profit of $3.6 million, or 74% of total revenues, an operating loss of $2.1 million, and a net loss of $1.9 million, or $0.10 per share.
At the end of the 2005 second quarter, Jacada's cash and investments totaled $39.3 million, compared to $36.7 million at the end of the 2005 first quarter and $41.1 million at the end of the 2004 second quarter.
"I am very pleased to report that Jacada experienced improved results based on the sale of Jacada Fusion," said Gideon Hollander, CEO of Jacada. "After a relatively challenging period launching our new solution, we are now gaining positive momentum. Our long-time investments are starting to deliver results and we anticipate that this quarter marks the beginning of a growth path for Jacada Fusion."
"In the second quarter, Jacada achieved significant revenue growth, based on the sale of Jacada Fusion, and reduced losses, due to improvements we implemented in our sales, marketing and operations model," said Hollander. "Jacada was also able to achieve several milestones in the 2005 second quarter, including total revenues being higher than anytime over the past two and a half years, and software and product revenues being the highest since third quarter of 2003.
"We continue to be excited about the traction Jacada Fusion is gaining in the contact center market," said Hollander. "New account activity is encouraging. During the second quarter, Jacada secured a significant enterprise license agreement for Jacada Fusion with a large contact center outsourcer."
"The interest we are experiencing from call center outsourcers is very encouraging," said Hollander. "Call center outsourcers are experts in operating efficient and effective call centers. They service some of the largest companies in the world and represent one of the largest call center segments as measured by the number of agents. When outsourcers make significant investments in Jacada Fusion, it is clear that the value it delivers is applicable to the majority of call centers worldwide."
"Due to the continued growth in our sales pipeline worldwide and the visibility created by existing agreements, we anticipate that third quarter results will be consistent with second quarter results," said Hollander. "It is important to note that revenue from Jacada Fusion deals is recognized over the term of the contract. This methodology significantly improves visibility and promotes sustained growth, but decreases short-term revenue."
Jacada will hold a teleconference at 10:30 a.m. Eastern time today. To participate in the teleconference, please call toll-free 1-800-553-5260 or 612-332-0636 for international callers, approximately 10 minutes prior to the start time. The teleconference will also be available via Webcast at www.jacada.com (under "Investors") or www.fulldisclosure.com
A telephonic playback of the teleconference will be available for one week beginning at 2 p.m. ET on July 28. To access the replay, dial toll-free 800-475-6701, or for international callers dial 320-365-3844, and provide Access Code 787498.
About Jacada
Jacada solutions help customers rapidly simplify and improve high-value business processes while eliminating the traditional long and expensive systems replacement projects.
Jacada Fusion is an award-winning Agent Productivity Solution containing patented technology that enables organizations to reduce customer churn as well as increase revenues by providing more time for up-sell and cross-sell activities. Jacada Fusion delivers a simplified interaction to dramatically improve the efficiency of the agent and the experience of the customer. By significantly reducing call handle times and training costs, Jacada Fusion delivers hard ROI, with payback achieved in months. Jacada solutions are deployed in over 100 contact centers to over 100,000 customer service representatives (agents) worldwide, and to millions of users through self-service applications designed to off-load contact center activity.
Jacada has over 1200 customers worldwide including many Fortune 1000 corporations and government organizations. Founded in 1990, Jacada operates globally with offices in Atlanta, Georgia; Herzliya, Israel; and London, England. Jacada can be reached at www.jacada.com or at 1-800-773-9574.
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, 2005 |
December 31, 2004 |
|
| Unaudited | ||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 4,386 | $ | 3,552 | ||
| Marketable securities | 15,559 | 19,573 | ||||
| Trade receivables (net of allowance for doubtful accounts of $322 and $163 at June 30, 2005 and December 31, 2004, respectively) | 1,487 | 2,472 | ||||
| Other current assets | 1,212 | 791 | ||||
| Total current assets | 22,644 | 26,388 | ||||
| LONG-TERM INVESTMENTS: | ||||||
| Marketable securities | 19,335 | 14,488 | ||||
| Severance pay fund | 796 | 969 | ||||
| Total long-term investments | 20,131 | 15,457 | ||||
| PROPERTY AND EQUIPMENT, NET | 1,139 | 1,326 | ||||
OTHER ASSETS, NET: Other intangibles | 1.190 | 1,429 | ||||
| Goodwill | 4,630 | 4,630 | ||||
| Total other assets, net | 5,820 | 6,059 | ||||
| Total assets | $ | 49,734 | $ | 49,230 |
| JACADA LTD. CONSOLIDATED BALANCE SHEETS U.S. Dollars in thousands, except share and per share data |
||
| June 30, 2005 |
December 31, 2004 |
|
| Unaudited | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES: | ||||
| Trade payables | $ | 948 | $ | 1,024 |
| Deferred revenues | 9,018 | 3,822 | ||
| Accrued expenses and other liabilities | 3,769 | 3,816 | ||
| Total current liabilities | 13,735 | 8,662 | ||
| ACCRUED SEVERANCE PAY | 1,239 | 1,479 | ||
| SHAREHOLDERS' EQUITY: | ||||
| Share capital: | ||||
| Ordinary shares of NIS 0.01 par value: | ||||
| Authorized: 30,000,000 shares as of June 30, 2005 and December 31, 2004; Issued and outstanding: 19,499,384 and 19,326,010 shares as of June 30, 2005 and December 31, 2004, respectively | 56 | 56 | ||
| Additional paid-in capital | 70,020 | 69,785 | ||
| Accumulated other comprehensive loss | (355) | (200) | ||
| Accumulated deficit | (34,961) | (30,552) | ||
| Total shareholders' equity | 34,760 | 39,089 | ||
| $ | 49,734 | $ | 49,230 |
| JACADA LTD. CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands, except share and per share data |
|
Six months ended June 30, |
Three months ended June 30, |
Year ended December 31, |
||||||||||||
| 2005 | 2004 | 2005 | 2004 | 2004 | ||||||||||
| Unaudited | ||||||||||||||
| Revenues: | ||||||||||||||
| Software and products | $ | 2,848 | $ | 2,634 | $ | 2,008 | $ | 1,335 | 5,749 | |||||
| Services | 1,946 | 2,982 | 990 | 1,448 | 5,481 | |||||||||
| Maintenance | 4,713 | 4,239 | 2,501 | 2,087 | 8,554 | |||||||||
Total revenues |
9,507 | 9,855 | 5,499 | 4,870 | 19,784 | |||||||||
Cost of revenues: |
||||||||||||||
| Software and products | 372 | 199 | 142 | 115 | 631 | |||||||||
| Services | 1,512 | 1,797 | 689 | 879 | 3,341 | |||||||||
| Maintenance | 466 | 554 | 146 | 284 | 1,143 | |||||||||
Total cost of revenues |
2,350 | 2,550 | 977 | 1,278 | 5,115 | |||||||||
Gross profit |
7,157 | 7,305 | 4,522 | 3,592 | 14,669 | |||||||||
| Operating expenses: | ||||||||||||||
| Research and development | 2,270 | 2,752 | 956 | 1,362 | 5,278 | |||||||||
| Sales and marketing | 6,525 | 5,247 | 2,580 | 2,693 | 10,507 | |||||||||
| General and administrative | 3,108 | 2,554 | 1,396 | 1,351 | 4,758 | |||||||||
| Restructuring and other | - | 525 | - | 295 | 525 | |||||||||
| Total operating expenses | 11,903 | 11,078 | 4,932 | 5,701 | 21,068 | |||||||||
| Operating loss | (4,746) | (3,773) | (410) | (2,109) | (6,399) | |||||||||
| Financial income, net | 337 | 376 | 177 | 200 | 786 | |||||||||
| Net loss | (4,409) | (3,397) | (233) | (1,909) | (5,613) | |||||||||
Basic and diluted net loss per share |
$ | (0.23) | $ | (0.18) | $ | (0.01) | $ | (0.10) | (0.29) | |||||
Weighted average number of shares used in computing basic and diluted net loss per share |
19,432,243 | 19,249,985 | 19,484,239 | 19,293,910 | 19,282,800 | |||||||||