Jennifer Childress
770-776-2239
jchildress@jacada.com
Press Release
Jacada Reports Financial Results for the 2004 First Quarter
First Customer Implements New Product that Delivers Web Services from Windows Client/Server Applications
ATLANTA, April 29, 2004 – Jacada Ltd. (Nasdaq: JCDA), a leading provider of business process improvement software, today reported financial results for the 2004 first quarter.
Total revenue for the 2004 first quarter was $5.0 million, compared to $5.1 million in the 2003 fourth quarter and $5.1 million in the first quarter of 2003. Software and products revenue was $1.3 million in the 2004 first quarter, compared to $1.8 million in the 2003 fourth quarter and $2.2 million reported in the first quarter of 2003. Service and maintenance revenues were $3.7 million in the 2004 first quarter, up from $3.3 million in the 2003 fourth quarter and $2.9 million in the first quarter of 2003.
Gross profit for the 2004 first quarter was $3.8 million, or 76% of total revenue, compared to $4.0 million, or 79% of total revenue, in the 2003 fourth quarter. Operating loss for the quarter was $1.7 million, which includes $0.3 million associated with the previously announced consolidation of the research and development labs. During the 2003 fourth quarter, Jacada reported an operating loss of $0.8 million. Net loss for the first quarter, after financial income, was $1.5 million, or $0.08 per share, compared to a net loss of $0.6 million, or $0.03 per share, in the 2003 fourth quarter. In the first quarter of 2003, Jacada reported gross profit of $4.1 million, or 81% of total revenue, an operating loss of $0.9 million, and a net loss of $0.6 million, or $0.03 per share.
At the end of the 2004 first quarter, Jacada's cash and investments totaled $44.0 million, up from $41.8 million at the end of the 2003 fourth quarter. The $2.2 million increase in cash and investments is attributable to strong collections and to an increase in deferred revenues associated with annual renewals of maintenance agreements.
"Our efforts in 2004 are focused on increasing Jacada's product footprint by expanding our product offering to appeal to a larger market," said Gideon Hollander, CEO of Jacada. "Our goal is to maintain stable total revenues while we work to create future growth opportunities from our new products, which are completing beta testing."
"We continue to benefit from an active and expanding customer base, which is reflected in the growth of service and maintenance revenues," said Hollander. "Jacada continues to experience pricing pressures, which have resulted in fewer large orders and a reduction in average transaction size. In the future, we expect an increase in the average transaction size as our new product line is expected to face less competition."
During the first quarter, Jacada closed new and follow-on business with customers such as Compass Bank, First Allmerica Financial, Glatfelter Insurance Group, Metals USA, Raytheon, Sabre, and State of Tennessee, among others.
New Product Offering
"I am very pleased to announce that during the quarter, Jacada completed the first implementation of our new product that delivers Web services from Windows client/server applications," said Hollander. "This key implementation validates the solution and supports Jacada's go-to-market strategy."
"Combined with our existing best-of-breed products, the new product addition uniquely positions Jacada to deliver Web services from the full spectrum of application platforms – Windows, Web and host. Market validation from customers and technology analysts has been encouraging."
"In addition to the new product, we have identified a significant business need that touches virtually every company," said Hollander. "In conjunction with our new product launch, we will be introducing a total solution offering to help solve this business need."
"We are optimistic that the new product and the new solution offering will become the growth engine to drive the company," said Hollander.
Jacada plans to host a special conference call during the quarter to explain the new offering, once announced.
About Jacada
Jacada Ltd. provides software solutions for accelerating business process improvement through a full range of integration, Web-to-host, and legacy access solutions. Jacada conforms to any architecture style including J2EE, .NET, and Web Services and is the preferred and certified legacy connection solution for BEA, Computer Associates, Oracle, PeopleSoft, SeeBeyond, and Siebel Systems. Jacada solutions are in use today at major corporations and government organizations such as AIG, Bank of America, Caterpillar, Delta Air Lines, The Federal Reserve Bank, Porsche Cars North America, Prudential, and the US Department of Interior. 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; (iii) the Company's growth strategy and operating strategy (including the development of its products and services); and (iv) the expected costs and benefits of the Company's R&D consolidation plans. 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 nd 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 |
||
|
March 31 |
December 31, |
|
|
2004 |
2003 |
|
|
Unaudited |
||
| ||||||
ASSETS | ||||||
| ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents |
$ | 6,969 |
$ | 9,845 | ||
Marketable securities | 11,398 | 6,638 | ||||
Trade receivables (net of allowance | 1,989 | 2,759 | ||||
Other current assets | 612 | 561 | ||||
| ||||||
Total current assets | 20,968 | 19,803 | ||||
| ||||||
LONG-TERM INVESTMENTS: | ||||||
Marketable securities | 25,654 | 25,310 | ||||
Severance pay fund | 763 | 758 | ||||
Long-term other assets | 69 | 61 | ||||
| ||||||
Total long-term investments | 26,486 | 26,129 | ||||
| ||||||
PROPERTY AND EQUIPMENT, NET | 1,730 | 1,874 | ||||
|
787 |
865 | ||||
Other intangibles | 72 | 86 | ||||
Total other assets, net | 859 |
| 951 | |||
| GOODWILL | 4,630 |
| 4,630 | |||
| Total assets |
$ | 54,673 |
$ | 53,387 |
| JACADA LTD. CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands, except share data |
||
| March 31, | December 31, | |
| 2004 | 2003 | |
| Unaudited | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| ||||
CURRENT LIABILITIES: | ||||
Trade payables | $ | 846 | $ | 515 |
Deferred revenues | 5,422 | 3,348 | ||
Accrued expenses and other liabilities | 3,696 | 3,776 | ||
| ||||
Total current liabilities | 9,964 | 7,639 | ||
LONG-TERM LIABILITIES: | ||||
Accrued severance pay | 1,224 | 1,189 | ||
Accrued expenses | 37 | 55 | ||
| ||||
Total long-term liabilities | 1,261 | 1,244 | ||
|
SHAREHOLDERS' EQUITY: | ||||
Share capital: | ||||
Ordinary shares of NIS 0.01 par value: | ||||
Authorized: 30,000,000 shares as of | 56 | 55 | ||
Additional paid-in capital | 69,619 | 69,277 | ||
Accumulated other comprehensive income | 200 | 111 | ||
Accumulated deficit | (26,427) | (24,939) | ||
Total shareholders' equity | 43,448 | 44,504 | ||
| $ | 54,673 | $ | 53,387 |
| JACADA LTD. CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands, except share and per share data |
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|
Three months ended March 31, |
Year ended December 31, |
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| 2004 | 2003 | 2003 | |||
| Unaudited | |||||
| Revenues: | ||||||||||||
| Software and products | $ | 1,299 | $ | 2,209 | $ | 8,354 | ||||||
| Services | 1,534 | 965 | 4,704 | |||||||||
| Maintenances | 2,152 | 1,885 | 7,504 | |||||||||
Total revenues |
4,985 | 5,059 | 20,562 | |||||||||
Cost of revenues: |
||||||||||||
| Software and products | 6 | 110 | 534 | |||||||||
| Services | 918 | 557 | 2,384 | |||||||||
| Maintenances | 270 | 276 | 1,110 | |||||||||
Total cost of revenues |
1,194 | 943 | 4,028 | |||||||||
Gross profit |
3,791 | 4,116 | 16,534 | |||||||||
| Operating expenses: | ||||||||||||
| Research and development | 1,411 | 1,309 | 5,620 | |||||||||
| Sales and marketing | 2,554 | 2,442 | 9,386 | |||||||||
| General and administrative | 1,203 | 1,227 | 4,714 | |||||||||
| Restructuring and other | 287 | - | - | |||||||||
| Total operating expenses | 5,455 | 4,978 | 19,720 | |||||||||
| Operating loss | (1,664) | (862) | (3,186) | |||||||||
| Financial income, net | 176 | 231 | 1,038 | |||||||||
| Net loss | (1,488) | (631) | (2,149) | |||||||||
Basic and diluted net loss per share |
$ | (0.08) | $ | (0.03) | $ | (0.11) | ||||||
Weighted average number of shares used in computing basic and diluted net loss per share |
19,211,193 | 18,988,313 | 19,011,435 |
