UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Section 13a-16 or 15d-16 of the Securities and Exchange Act of 1934
For the month of February 2011
JACADA LTD.
(Translation of registrant's name into English)
11 Shenkar Street
Herzliya, 46725 Israel
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F ___
Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ____ No X
Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ____ No X
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ____ No X
If "Yes" is marked, indicate below the file number assigned to the Registrant in connection with Rule 12g3-2(b): 82- _N/A_
CONTENTS
This Report on Form 6-K of Jacada consists of the following documents, which are attached hereto and incorporated by reference herein:
Press Release, released publicly on February 10, 2011: Jacada Reports Fourth Quarter 2010 Results
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 6-K to be signed on its behalf by the undersigned, thereunto duly authorized.
JACADA LTD. | ||||
|
| By: |
| /s/ CAROLINE CRONIN |
Name: | Caroline Cronin | |||
Title: | Chief Financial Officer | |||
Dated: | February 10, 2011 |
Jacada Reports Fourth Quarter 2010 Results
ATLANTA--(BUSINESS WIRE)--February 10, 2011--Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer experience management and process optimization solutions, today reported financial results for the fourth quarter and full year period ended December 31, 2010.
Fourth Quarter and Year-end 2010 Results
- Fourth quarter revenues were $3.4 million. Annual revenues were $17.9 million, representing a 7% increase over 2009 annual revenues.
- Fourth quarter net loss was $1.6 million. The Company posted a net loss of $6.7 million for the year ended December 31, 2010, as compared to a net loss of $7.0 million during 2009.
“Our total revenues are up 7% for the twelve months ending December 31, 2010 as compared to year end 2009,” commented Tom Clear, chief executive officer of Jacada. “The 2010 revenue growth was driven by a strong backlog exiting 2009, significant business from a new customer early in the year, and continued additional services from existing customers. Fourth quarter bookings, however, were disappointing, impacting fourth quarter revenues and causing a $1.6 million decline in revenues from the third quarter of 2010. Despite the decline in revenues, our loss did not appreciably increase, a result of our cost containment programs instituted in the third quarter of 2010.”
“Throughout 2010, Jacada continued to make progress towards our objectives of improving the fundamentals of our business and better aligning our products and services with the solution needs of our customers,” said Giddeon Hollander, founder and current chairman of the board of directors for Jacada. “While business in the near future will be challenging, I see opportunity for an improved second half of 2011.”
Financial Results
For the fourth quarter of 2010, total revenues were $3.4 million compared to $5.7 million in the fourth quarter of 2009. Software revenues for the 2010 fourth quarter were $169K compared to $678K during the 2009 fourth quarter. Services revenues were $2.6 million in the 2010 fourth quarter and $4.5 million in the 2009 fourth quarter. Maintenance revenues were $621K and $532K in the 2010 and 2009 fourth quarters, respectively.
Gross margins were 33% and 46% of total revenues during the 2010 and 2009 fourth quarters, respectively. Fourth quarter 2010 operating expenses of $2.8 million marked a decline as compared to $3.5 million in operating expenses in the fourth quarter of 2009, a reflection of the cost containment measures implemented during the third quarter of 2010.
The 2010 fourth quarter net loss was $1.6 million or ($0.39) per share compared to a net loss of $103K or ($0.02) per share in the fourth quarter of 2009. The fourth quarter 2009 results included income from discontinued operations of $583K.
For the twelve month periods ending on December 31, 2010 and 2009, respectively, total revenues were $17.9 million and $16.7 million and gross profits were $6.7 million or 37% of total revenues and $5.7 million or 34% of total revenues. During the twelve month period ending December 31, 2010, we incurred a net loss of $6.7 million or ($1.60) per share and, in the comparable 2009 period, we posted a net loss of $7.0 million or ($1.69) per share.
At the end of the 2010 fourth quarter, cash and investments were $18.5 million, compared to $19.5 million at the end of the 2010 third quarter and $23.8 million at December 31, 2009.
Conference Call Details
Management will hold a conference call to discuss the fourth quarter 2010 financial results at 10:30am ET on February 10, 2011. To participate in the teleconference, please call toll-free 888-713-4199 or 617-213-4861 for international callers, and provide pass code 66288677 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=PU4UFYY69. 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 1:30 p.m. ET on February 10, 2011. To access the replay, dial toll-free 888-286-8010, or for international callers 617-801-6888, and provide pass code 29986867.
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.
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
U.S. dollars in thousands, except per share data | ||||||||||||||||
Three months ended | Year ended | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Unaudited | ||||||||||||||||
Revenues: | ||||||||||||||||
Software licenses | $ | 169 | $ | 678 | $ | 1,754 | $ | 1,370 | ||||||||
Services | 2,614 | 4,536 | 13,624 | 12,967 | ||||||||||||
Maintenance | 621 | 532 | 2,477 | 2,324 | ||||||||||||
Total revenues | 3,404 | 5,746 | 17,855 | 16,661 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Software licenses | 152 | 64 | 349 | 238 | ||||||||||||
Services | 1,930 | 2,928 | 10,064 | 10,047 | ||||||||||||
Maintenance | 196 | 128 | 778 | 648 | ||||||||||||
Total cost of revenues | 2,278 | 3,120 | 11,191 | 10,933 | ||||||||||||
Gross profit | 1,126 | 2,626 | 6,664 | 5,728 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 732 | 797 | 3,478 | 3,490 | ||||||||||||
Sales and marketing | 852 | 1,775 | 4,993 | 6,205 | ||||||||||||
General and administrative | 1,210 | 891 | 4,789 | 4,433 | ||||||||||||
Restructuring | - | - | 196 | - | ||||||||||||
Total operating expenses | 2,794 | 3,463 | 13,456 | 14,128 | ||||||||||||
Operating loss | (1,668 | ) | (837 | ) | (6,792 | ) | (8,400 | ) | ||||||||
Financial income, net | 67 | 39 | 174 | 708 | ||||||||||||
Pretax loss from continuing operations | (1,601 | ) | (798 | ) | (6,618 | ) | (7,692 | ) | ||||||||
Tax benefit (expense) | (38 | ) | 112 | (49 | ) | 93 | ||||||||||
Net loss from continuing operations | (1,639 | ) | (686 | ) | (6,667 | ) | (7,599 | ) | ||||||||
Income from discontinued operations, net of | - | 583 | - | 583 | ||||||||||||
Net loss | $ | (1,639 | ) | $ | (103 | ) | $ | (6,667 | ) | $ | (7,016 | ) | ||||
Basic and diluted net income (loss) per share: | ||||||||||||||||
Continuing operations | $ | (0.39 | ) | $ | (0.17 | ) | $ | (1.60 | ) | $ | (1.83 | ) | ||||
Discontinued operations | $ | - | $ | 0.14 | - | $ | 0.14 | |||||||||
Total | $ | (0.39 | ) | $ | (0.02 | ) | $ | (1.60 | ) | $ | (1.69 | ) | ||||
Weighted average number of shares used in | 4,159,133 | 4,143,249 | 4,158,227 | 4,141,331 | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
U.S. dollars in thousands | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
Unaudited | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 6,022 | $ | 12,624 | ||||
Marketable securities | 1,240 | 6,210 | ||||||
Trade receivables | 4,781 | 4,949 | ||||||
Restricted cash | 416 | 557 | ||||||
Other current assets | 1,079 | 1,885 | ||||||
Total current assets | 13,538 | 26,225 | ||||||
LONG-TERM INVESTMENTS: | ||||||||
Marketable securities | 10,809 | 4,456 | ||||||
Severance pay fund | 186 | 286 | ||||||
Total long-term investments | 10,995 | 4,742 | ||||||
PROPERTY AND EQUIPMENT, NET | 856 | 994 | ||||||
GOODWILL | 3,096 | 3,096 | ||||||
Total assets | $ | 28,485 | $ | 35,057 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Trade payables | $ | 1,566 | $ | 1,675 | ||||
Deferred revenues | 1,076 | 685 | ||||||
Accrued expenses and other liabilities | 1,427 | 1,917 | ||||||
Total current liabilities | 4,069 | 4,277 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Accrued severance pay | 366 | 505 | ||||||
Other liabilities | 44 | �� | 123 | |||||
Total long-term liabilities | 410 | 628 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital | 60 | 60 | ||||||
Additional paid-in capital | 75,829 | 75,422 | ||||||
Treasury shares | (17,863 | ) | (17,863 | ) | ||||
Accumulated other comprehensive profit | 392 | 278 | ||||||
Accumulated deficit | (34,412 | ) | (27,745 | ) | ||||
Total shareholders' equity | 24,006 | 30,152 | ||||||
Total liabilities | $ | 28,485 | $ | 35,057 | ||||
CONSOLIDATED CASH FLOWS | ||||||||||||||||
U.S. dollars in thousands | ||||||||||||||||
Three months ended | Year ended | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Unaudited | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | $ | (1,639 | ) | $ | (103 | ) | $ | (6,667 | ) | $ | (7,016 | ) | ||||
Less: net income from discontinued operations, net of | - | (583 | ) | - | (583 | ) | ||||||||||
Net loss from continuing operations | (1,639 | ) | (686 | ) | (6,667 | ) | (7,599 | ) | ||||||||
Adjustments required to reconcile net loss from | ||||||||||||||||
Depreciation and amortization | 123 | 104 | 497 | 546 | ||||||||||||
Stock-based compensation related to options granted | (57 | ) | (137 | ) | 332 | 431 | ||||||||||
Accrued interest and amortization of premium on | 21 | 34 | 149 | 139 | ||||||||||||
Gain on sales of marketable securities | (16 | ) | - | (25 | ) | (353 | ) | |||||||||
Decrease in accrued severance pay, net | (22 | ) | (73 | ) | (39 | ) | (315 | ) | ||||||||
Decrease (increase) in trade receivables, net | 84 | (423 | ) | 168 | (236 | ) | ||||||||||
Decrease (increase) in other current assets | 358 | (334 | ) | 840 | 176 | |||||||||||
Increase (decrease) in trade payables | 217 | (31 | ) | (109 | ) | (51 | ) | |||||||||
Increase (decrease) in deferred revenues | 12 | (134 | ) | 388 | (307 | ) | ||||||||||
Decrease in accrued expenses and other liabilities | (643 | ) | (158 | ) | (490 | ) | (908 | ) | ||||||||
Decrease in other long-term liabilities | (20 | ) | (20 | ) | (79 | ) | (62 | ) | ||||||||
Other | - | - | 54 | - | ||||||||||||
Net cash used in operating activities from continuing | (1,582 | ) | (1,858 | ) | (4,981 | ) | (8,539 | ) | ||||||||
Net cash used in operating activities from discontinued | - | (227 | ) | - | (475 | ) | ||||||||||
Net cash used in operating activities | (1,582 | ) | (2,085 | ) | (4,981 | ) | (9,014 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||||||
Investment in available-for-sale marketable securities | - | (6,888 | ) | (10,992 | ) | (12,801 | ) | |||||||||
Proceeds from sale and redemption of available-for-sale | - | 1,498 | 9,711 | 21,039 | ||||||||||||
Short term deposits, net | - | 1,889 | - | - | ||||||||||||
Proceeds from sale of property and equipment | - | - | 10 | - | ||||||||||||
Purchase of property and equipment | (68 | ) | (31 | ) | (424 | ) | (275 | ) | ||||||||
Increase (decrease) in restricted cash | - | - | 141 | 2 | ||||||||||||
Net cash provided by (used in) investing activities from | (68 | ) | (3,532 | ) | (1,554 | ) | 7,965 | |||||||||
Net cash provided by discontinued operation, net | - | - | - | 2,640 | ||||||||||||
Net cash provided by (used in) investing activities | (68 | ) | (3,532 | ) | (1,554 | ) | 10,605 | |||||||||
Cash from financing activities: | ||||||||||||||||
Repurchase of options | - | - | - | (250 | ) | |||||||||||
Proceeds from exercise of stock options | - | 3 | 75 | 68 | ||||||||||||
Net cash provided by (used in) financing activities from | - | 3 | 75 | (182 | ) | |||||||||||
Effect of exchange rate changes on cash | (84 | ) | (27 | ) | (142 | ) | 156 | |||||||||
Increase (decrease) in cash and cash equivalents | (1,734 | ) | (5,641 | ) | (6,602 | ) | 1,565 | |||||||||
Cash and cash equivalents at the beginning of the | 7,756 | 18,265 | 12,624 | 11,059 | ||||||||||||
Cash and cash equivalents at the end of the period | 6,022 | 12,624 | 6,022 | 12,624 | ||||||||||||
Supplemental Information: Cash and Investments | ||||||||||
December 31, | ||||||||||
2010 | 2009 | |||||||||
Cash and cash equivalents | 6,022 | 12,624 | ||||||||
Marketable securities | 12,049 | 10,666 | ||||||||
Restricted cash | 416 | 557 | ||||||||
Total cash and investments including restricted cash | $ | 18,487 | $ | 23,847 |
CONTACT:
Jacada Ltd.
Caroline Cronin, 770-776-2204
Chief Financial Officer
ccronin@jacada.com
or
Jennifer Childress, 770-776-2239
Marketing Director
jchildress@jacada.com