SOURCE: Jacada Ltd.

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March 16, 2016 07:00 ET

Jacada Reports 2015 Financial Results

Revenue Increases to $17.3 Million; 83% Growth in Software Revenue to $4.5 Million

ATLANTA, GA and HERZLIYA, ISRAEL--(Marketwired - March 16, 2016) -  Jacada Ltd., (OTCQB: JCDAF) a leading global provider of customer service technology designed to simplify the interaction between businesses and their customers, today reported financial results for the year ended December 31, 2015.

Financial Highlights

  • 6% revenue growth to $17.3 million in 2015 from $16.4 million in 2014
  • Growth of 83% in Software Revenue to $4.5 million in 2015 from $2.4 million in 2014
  • Reduced operating loss to $1.1 million in 2015 from $1.6 million in 2014
  • Cash and marketable securities over $7.0 million as of December 31, 2015

2015 and Recent Business Highlights

  • Increased the total value of Visual IVR contracts obtained in 2015 by five times the amount obtained in 2014. New contracts were entered into with customers such as a leading credit card company, a US state welfare system, an international postal company, and a leading US health insurance provider, as well as the extension of a contract with a Fortune 50 software manufacturer, among others.
  • Continued to onboard customers to our cloud version of Jacada Visual IVR to empower the omnichannel experience for consumers across the globe. These, combined with other on-premise subscription-based customers, allowed us to secure contracts with over $1 million in annual subscription revenue. Investments in the continued advancement of these products has resulted in the development of a first-of-its-kind customer engagement hub (web based Interaction Designer).
  • Four-fold growth in contracted revenues through partnerships with call center host providers, large system integrators and technology partners. Such partnerships included one of the largest BPO's in India, to which we sold Jacada's Workspace, Automation and Integration, and Agent Scripting products. As part of the digital transformation initiative, we partnered with Cisco as a go-to-market partner for mobile customer service engagement and Visual IVR.

"We have seen our 2014 investments in new technologies, new partnerships, and new business models produce results in 2015. We have contracted with numerous customers around the globe for Visual IVR, evidencing the demand for our new technologies and cloud-based products. Contracted subscription revenue increased four-fold over 2014, and our partnerships contributed significantly to 2015 with four-fold growth in contracted revenue," commented Caroline Cronin, Chief Financial Officer of Jacada. "These investments contributed to total revenue growth to $17.3 million and improved operating results to a loss of $1.1 million compared to a loss of $1.6 million in 2014."

"Our 2015 year was marked by requests for deeper Jacada engagement by several of the largest and most recognized software, telecom, and insurance entities," said Guy Yair, Co-Chief Executive Officer of Jacada. "Jacada's technological advances and innovations have allowed us to obtain a solid footing as a leader in Visual IVR solutions, while our core technologies have seen new opportunities for growth over the past year with both new and existing clients."

Financial Results

Total revenues were $17.3 million in 2015 compared to $16.4 million in 2014. Software revenues grew to $4.5 million for 2015 from $2.4 million for 2014. Services revenues were $8.4 million in 2015 and $9.7 million in 2014. Maintenance revenues were $4.4 million and $4.2 million in 2015 and 2014, respectively.

Gross margins were 60% in both 2015 and 2014. Operating expenses were also consistent at $11.5 million for both 2015 and 2014. Financial expense, net, was $38,000 in 2015, while financial income, net, was $1.9 million in 2014, the result of the sale of a portion of the company's marketable securities. During 2015, the company had an income tax expense of $84,000, while in 2014, the company had income tax expense of $1.0 million.

The net loss for 2015 was $1.2 million, or $(0.30) per share, compared to a net loss of $668,000, or ($0.16) per share, in 2014.

About Jacada

Jacada provides solutions that simplify and improve the effectiveness of customer interactions. Jacada's mobile, customer, agent desktop, and process optimization solutions help companies reduce the cost of their operations, drive customer satisfaction, and provide a complete return on investment within the first year after deployment. Founded in 1990, Jacada operates globally with offices in Atlanta, USA; London, England; Munich, Germany; and Herzliya, Israel. 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  
   
    Year ended
December 31,
 
    2015     2014  
Revenues:                
  Software licenses   $ 4,459     $ 2,437  
  Services     8,443       9,687  
  Maintenance     4,421       4,249  
                   
Total revenues     17,323       16,373  
                   
Cost of revenues:                
  Software licenses     97       175  
  Services     6,408       5,813  
  Maintenance     479       496  
                   
Total cost of revenues     6,984       6,484  
                   
Gross profit     10,339       9,889  
                   
Operating expenses:                
  Research and development     3,177       3,481  
  Sales and marketing     5,223       5,052  
  General and administrative     3,058       2,998  
                 
Total operating expenses     11,458       11,531  
                 
Operating loss     (1,119 )     (1,642 )
Financial income (expense), net     (38 )     1,941  
                 
Income (loss) before taxes     (1,157 )     299  
Income tax expense     (84 )     (967 )
                 
Net loss   $ (1,241 )   $ (668 )
                 
Basic net loss per share   $ (0.30 )   $ (0.16 )
                 
Diluted net earnings loss per share   $ (0.30 )   $ (0.16 )
Weighted average number of shares used in computing basic net loss per share     4,185,285       4,159,576  
Weighted average number of shares used in computing diluted net loss per share     4,185,285       4,159,576  
                 
                 
   
JACADA LTD. AND ITS SUBSIDIARIES  
   
CONSOLIDATED BALANCE SHEETS  
U.S. dollars in thousands  
   
    December 31,     December 31,  
    2015     2014  
    ASSETS                
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 3,438     $ 3,048  
  Marketable securities     1,898       3,349  
  Trade receivables     2,207       3,076  
  Restricted cash     585       787  
  Other current assets     773       665  
Total current assets     8,901       10,925  
                 
LONG-TERM INVESTMENTS:                
  Marketable securities     1,161       1,185  
  Severance pay fund     148       136  
  Deferred taxes     72       442  
  Other assets     120       38  
Total long-term investments     1,501       1,801  
                 
PROPERTY AND EQUIPMENT, NET     388       397  
                 
Total assets   $ 10,790     $ 13,123  
                 
    LIABILITIES AND SHAREHOLDERS EQUITY                
                 
CURRENT LIABILITIES:                
  Trade payables   $ 1,074     $ 1,190  
  Accrued expenses and other liabilities     1,836       2,152  
  Deferred revenues     1,485       2,156  
Total current liabilities     4,395       5,498  
                 
LONG-TERM LIABILITIES:                
  Deferred revenues     202       369  
  Accrued severance pay     418       376  
  Other liabilities     47       87  
Total long-term liabilities     667       832  
                 
SHAREHOLDERS' EQUITY:                
  Share capital     61       60  
  Additional paid-in capital     76,202       76,022  
  Treasury shares     (17,863 )     (17,863 )
  Accumulated other comprehensive income     715       720  
  Accumulated deficit     (53,387 )     (52,146 )
Total shareholders' equity     5,728       6,793  
                 
Total liabilities and shareholders' equity   $ 10,790     $ 13,123  
                 
                 
   
JACADA LTD. AND ITS SUBSIDIARIES  
   
CONSOLIDATED STATEMENTS OF CASH FLOWS  
U.S. dollars in thousands  
   
    Year ended
December 31,
 
    2015     2014  
Cash flows from operating activities:                
                 
Net loss   $ (1,241 )   $ (668 )
                 
Adjustments required to reconcile net loss to net cash used in operating activities:                
  Depreciation and amortization     151       190  
  Stock-based compensation     144       66  
  Gain on sale of marketable securities     (1 )     (1,862 )
  Increase in accrued severance pay, net     30       23  
  Decrease in deferred taxes, net     376       230  
  Decrease (increase) in trade receivables, net     805       (443 )
  Decrease (increase) in other current assets     (183 )     158  
  Decrease in trade payables     (110 )     (9 )
  Increase (decrease) in accrued expenses and other liabilities     (173 )     352  
  Increase (decrease) in deferred revenues     (853 )     34  
  Decrease in other long-term liabilities     (40 )     (41 )
  Other     -       2  
Net cash used in operating activities     (1,095 )     (1,968 )
                 
Cash flows from investing activities:                
                 
  Proceeds from sale of available-for-sale marketable securities     3,350       7,879  
  Investment in marketable securities     (1,899 )     (6,048 )
  Decrease (increase) in restricted cash     202       (190 )
  Purchase of property and equipment     (142 )     (150 )
Net cash provided by investing activities     1,511       1,491  
                 
Cash flows from financing activities:                
                 
Proceeds from exercise of stock options     37       -  
Net cash provided by financing activities     37       -  
                 
Effect of exchange rate changes on cash     (63 )     (107 )
                 
Increase (decrease) in cash and cash equivalents     390       (584 )
Cash and cash equivalents at the beginning of the period     3,048       3,632  
                 
Cash and cash equivalents at the end of the period   $ 3,438     $ 3,048  
                 
                 

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Contact Information

  • Contacts:

    A. Lee Judge
    Senior Digital Marketing Manager
    Jacada, Inc.
     770-776-2326
    ljudge@jacada.com

    Caroline Cronin
    Chief Financial Officer
    Jacada
    (770) 776-2204
    ccronin@jacada.com