Jennifer Childress
770-776-2239
jchildress@jacada.com
Press Release
Jacada Reports First Quarter 2010 Results
ATLANTA - May 13, 2010 – Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer experience management and process optimization solutions, today reported financial results for the first quarter ended March 31, 2010.
First Quarter 2010 Highlights
- First quarter revenues were $5.0 million, which represents a 10% increase over first quarter 2009 revenues.
- Signed a material deal with a large, new customer with opportunity for significant additional revenue potential.
- Launched two new customer service center products: Jacada® Advisor, which overlays complex third-party applications, such as CRM, and simplifies the agent experience by driving next best action, optimizing workflow and scripting interactions, and Jacada® Insight, a new multi-channel analytics capability that allows organizations to gain a deeper understanding of how they interact with customers across various channels.
- Launched new versions of Jacada® WorkSpace (5.2) and Jacada® Fusion (5.5).
"We made progress in most areas of our business during the first quarter of 2010," said Tom Clear, chief executive officer for Jacada. "The compelling value proposition of our product suite resulted in a win with a significant new customer in the telecommunications space in the quarter and our improving product delivery led to the completion of several successful implementations. Our investment into product strategy and R&D has resulted in the successful launch of two exciting new products, which expand our market opportunities and allow us to help companies drive revenue through improved customer experience across multiple channels. We continue to push hard to accelerate the pace of our new business wins, and to take advantage of firming market conditions and our ability to execute. We are seeing an increase in demand for our solutions and we’re excited about the opportunity we see to increase our bookings and overall financial performance throughout the balance of 2010."
Financial Results
For the first quarter of 2010, total revenues were $5.0 million compared to $4.5 million in the first quarter of 2009, representing an increase of 10%. Software revenues for the 2010 first quarter were $581K compared to $577K during the 2009 first quarter. Services revenues were $3.9 million in the 2010 first quarter and $3.3 million in the 2009 first quarter. Maintenance revenues were $530K and $647K in the 2010 and 2009 first quarters, respectively.
Gross margins were 37% and 31% of total revenues during the 2010 and 2009 first quarters, respectively. The improvement in our gross margin was driven primarily by increased services revenues during the 2010 first quarter and from efforts aimed at delivering services more efficiently.
Total operating expenses for the 2010 first quarter were $3.7 million compared to $3.4 million during the 2009 first quarter. The 2009 expenses included approximately $0.3 million in reversals of prior year general and administrative accruals. When compared on a normalized basis, without the benefit of the 2009 accrual reversals, 2010 operating expenses have remained relatively flat in relation to the 2009 first quarter.
In the 2010 first quarter, we generated a loss from operations of $(1.9 million) in relation to a loss of $(2.0 million) in the 2009 first quarter. Financial income in 2010 was $21K reflecting reduced interest rates and cash and investment balances in relation to 2009 when we reported $531K in financial income, which included $353K in a one-time gain resulting from the sale of our investment in auction rate securities.
The 2010 first quarter net loss was $(1.8 million) or ($0.11) per share compared to a $(1.4 million) or ($0.09) per share in the first quarter of 2009. The higher net loss was primarily due to financial income, being lower as described above.
At the end of the 2010 first quarter, cash and investments were $20.2 million, compared to $23.8 million at the end of the 2009 fourth quarter. The reduction in cash during the 2010 first quarter of approximately $3.6 million resulted primarily from the net loss of $(1.8 million) and to an increase in trade receivables of $2.0 million. The increase in trade receivables resulted from delayed collections from two significant customers, which we collected subsequent to the end of the quarter, in April 2010.
Conference Call Details
Management will hold a conference call to discuss the first quarter 2010 financial results at 10:30am ET on May 13, 2010. To participate in the teleconference, please call toll-free 888-713-4209 or 617-213-4863 for international callers, and provide passcode 15570405 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=PXUFYQBM3. 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 May 13, 2010. To access the replay, dial toll-free 888-286-8010, or for international callers 617-801-6888, and provide passcode 40114727.
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.
CONTACT:
Bob Aldworth
Chief Financial Officer
Jacada
(770) 776-2267
BAldworth@jacada.com
Or
Peter Seltzberg
Hayden IR
(646) 415-8972
peter@haydenir.com
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