JCDA Jacada Ltd. - Ordinary Shares (MM)

Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer experience management and process optimization solutions, today reported financial results for the fourth quarter and year ended December 31, 2011.

Fourth Quarter Highlights

• Released a new version of our leading product, Jacada Workspace version 6.0, which includes an innovative, new User Interface, Dynamic Views.
• Executed an agreement with a new customer in the healthcare industry for the purchase of Jacada’s Workspace suite of products.
• Fourth quarter revenues were $2.7 million with a net loss of $2.0 million
• Annual revenues were $12.4 million with a net loss of $6.6 million
• Cash and Cash Equivalents at the end of 2011 were $14.1 million compared to $18.5 million at the end of 2010. As result of better expense control and selective, targeted investment in areas such as sales and marketing and research and development, the company has decreased its use of cash in operating activities.

“Today’s call centers need to reflect new marketing promotions, product discounts, and support information on the agent desktop in near real-time,” said Gideon Hollander, co-chief executive officer of Jacada. “Jacada WorkSpace 6.0, with Dynamic Views represents a significant advancement for our customer experience optimization solution. Now call center leaders can use this highly innovative user interface (UI) delivery model own and control UI delivery, define call flow processes, and handle UI changes with ease, delivering the optimal agent desktop experience.”

“Total revenues remained consistent between the fourth quarter of 2011 and 2010 at $2.7 million,” commented Caroline Cronin, Chief Financial Officer. “However, with the reduction of operating expenses year over year, we decreased our net loss to $2.0 million in the fourth quarter of 2011 from $2.5 million in the fourth quarter of 2010, excluding the $3.1 million goodwill impairment charge. In addition, while revenues were down for the full year 2011 as compared to 2010, again, as a result of continued cost savings, we were able to reduce our net loss to $6.6 million in 2011 from $7.3 million in 2010, excluding the $3.1 million goodwill impairment charge and $200,000 restructuring charge.”

Financial Results

For the fourth quarter of 2011, total revenues were $2.7 million compared to $2.7 million in the fourth quarter of 2010. Software revenues for the 2011 fourth quarter were $21,000 compared to $50,000 during the 2010 fourth quarter. Services revenues were $2.0 million in both the fourth quarter of 2011 and 2010. Maintenance revenues improved to $745,000 in the fourth quarter of 2011 from $621,000 in the 2010 fourth quarter.

Gross margins were 34% and 14% of total revenues during the 2011 and 2010 fourth quarters, respectively. Services margins in the fourth quarter of 2010 were impacted by a single account which required significant additional resources to complete the implementation. Fourth quarter 2011 operating expenses were $2.8 million compared to $5.9 million in the fourth quarter of 2010, which included a $3.1 million goodwill impairment charge.

The 2011 fourth quarter net loss was $2.0 million or ($0.47) per share compared to a net loss of $5.6 million or ($1.34) per share in the fourth quarter of 2010.

For the twelve month periods ending on December 31, 2011 and 2010, respectively, total revenues were $12.4 million and $17.2 million and gross profits were $4.0 million or 32% of total revenues and $5.9 million or 34% of total revenues. During the twelve month period ending December 31, 2011, we incurred a net loss of $6.6 million or ($1.59) per share and, in the comparable 2010 period, we posted a net loss of $10.6 million or ($2.55) per share.

At the end of the 2011 fourth quarter, cash and investments were $14.1 million, compared to $14.7 million at the end of the 2011 third quarter and $18.5 million at December 31, 2010.

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.

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 LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands, except per share data    

Three months endedDecember 31,

Year endedDecember 31,

  2011       2010     2011       2010   Unaudited Revenues: Software licenses $ 21 $ 50 $ 1,123 $ 1,635 Services 1,963 2,033 8,448 13,043 Maintenance   745     621     2,815     2,477     Total revenues   2,729     2,704     12,386     17,155     Cost of revenues: Software licenses 9 152 93 349 Services 1,619 1,981 7,525 10,115 Maintenance   183     196     758     778     Total cost of revenues   1,811     2,329     8,376     11,242     Gross profit   918     375     4,010     5,913     Operating expenses: Research and development 787 732 2,910 3,478 Sales and marketing 1,096 852 3,556 4,993 General and administrative 943 1,210 4,068 4,789 Goodwill Impairment - 3,096 - 3,096 Restructuring   -     -     -     196     Total operating expenses   2,826     5,890     10,534     16,552     Operating loss (1,908 ) (5,515 ) (6,524 ) (10,639 ) Financial income (loss), net   (19 )   (28 )   (12 )   79     Loss before taxes (1,927 ) (5,543 ) (6,536 ) (10,560 ) Taxes   (43 )   (38 )   (62 )   (49 )   Net loss $ (1,970 ) $ (5,581 ) $ (6,598 ) $ (10,609 )   Basic and diluted net loss per share $ (0.47 ) $ (1.34 ) $ (1.59 ) $ (2.55 )   Weighted average number of shares used in computing basic and diluted net loss per share   4,159,133     4,159,133     4,159,133     4,158,227       CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands   December 31,   2011       2010   Unaudited ASSETS   CURRENT ASSETS: Cash and cash equivalents $ 2,944 $ 5,945 Marketable securities 4,592 1,240 Trade receivables 2,299 4,081 Restricted cash 487 493 Other current assets   810     1,079     Total current assets   11,132     12,838     LONG-TERM INVESTMENTS: Marketable securities 6,084 10,809 Severance pay fund   196     186     Total long-term investments   6,280     10,995     PROPERTY AND EQUIPMENT, NET   633     856     Total assets $ 18,045   $ 24,689     LIABILITIES AND SHAREHOLDERS EQUITY   CURRENT LIABILITIES: Trade payables $ 1,607 $ 1,566 Deferred revenues 738 1,076 Accrued expenses and other liabilities   1,252     1,478     Total current liabilities   3,597     4,120     LONG-TERM LIABILITIES: Accrued severance pay 400 366 Other liabilities   -     44     Total long-term liabilities   400     410     SHAREHOLDERS' EQUITY: Share capital 60 60 Additional paid-in capital 75,862 75,829 Treasury shares (17,863 ) (17,863 ) Accumulated other comprehensive income 941 487 Accumulated deficit   (44,952 )   (38,354 )   Total shareholders' equity   14,048     20,159     Total liabilities $ 18,045   $ 24,689       CONSOLIDATED CASH FLOWS U.S. dollars in thousands    

Three months ended December 31,

Year endedDecember 31,

  2011       2010     2011       2010   Unaudited

Cash flows from operating activities:

  Net loss $ (1,970 ) $ (5,581 ) $ (6,598 ) $ (10,609 ) Adjustments required to reconcile net loss to net cash used in operating activities: Depreciation and amortization 91 123 394 497 Goodwill impairment - 3,096 - 3,096 Stock-based compensation related to options granted to employees, non-employees and directors (111 ) (57 ) 33 332 Accrued interest and amortization of premium on marketable securities (2 ) 21 4 149 Loss on marketable securities, net 131 79 335 70 Decrease (increase) in accrued severance pay, net 16 (22 ) 24 (39 ) Decrease in trade receivables, net 167 784 1,799 868 Decrease in other current assets 126 358 227 840 Increase (decrease) in trade payables 98 217 82 (109 ) Increase (decrease) in deferred revenues (237 ) 12 (290 ) 388 Increase (decrease) in accrued expenses and other liabilities 23 (592 ) (385 ) (439 ) Decrease in other long-term liabilities (2 ) (20 ) (44 ) (79 ) Other   (1 )   -     13     54     Net cash used in operating activities   (1,671 )   (1,582 )   (4,406 )   (4,981 )  

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 391 - 1,601 9,711 Proceeds from sale of property and equipment - - - 10 Purchase of property and equipment (51 ) (68 ) (170 ) (424 ) Decrease (increase) in restricted cash   2     (77 )   6     64     Net cash provided by (used in) investing activities   342     (145 )   1,437     (1,631 )  

Cash from financing activities:

  Proceeds from exercise of stock options   -     -     -     75     Net cash provided by financing activities   -     -     -     75     Effect of exchange rate changes on cash   (47 )   (84 )   (32 )   (142 )   Decrease in cash and cash equivalents (1,376 ) (1,811 ) (3,001 ) (6,679 ) Cash and cash equivalents at the beginning of the quarter/year   4,320     7,756     5,945     12,624     Cash and cash equivalents at the end of the period $ 2,944   $ 5,945   $ 2,944   $ 5,945       Supplemental Information: Cash and Investments U.S. dollars in thousands    

Year endedDecember 31,

  2011     2010 Unaudited     Cash and cash equivalents $ 2,944 $ 5,945 Marketable securities 10,676 12,049 Restricted cash   487   493   Total cash and investments including restricted cash $ 14,107 $ 18,487