UK, May 11, 2006 - Jacada Ltd. (Nasdaq: JCDA), a leading provider of contact centre productivity solutions, today reported financial results for the 2006 first quarter.
Total revenues for the 2006 first quarter were $5.2 million, compared to $4.0 million in the first quarter of 2005. Software and products revenues were $2.6 million in the 2006 first quarter, compared to $840,000 in the first quarter of 2005.
With the adoption of Statement of Financial Accounting Standards No. 123R (FAS 123R) as of January 1, 2006, Jacada commenced expensing stock-based compensation, according to generally accepted accounting principles (GAAP), in the first quarter of 2006.
In order to enhance overall understanding of the company’s current financial performance Jacada will present non-GAAP information reflecting adjustments from results based on GAAP to exclude non-cash stock-based compensation expenses in accordance with SFAS 123R and amortisation of acquired intangible assets related to acquisitions effected by Jacada in previous years. Please see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations” below for an explanation of Jacada’s use of non-GAAP measures.
Non-GAAP net loss for the 2006 first quarter was $471,000 or $0.02 per share, compared to a non-GAAP net loss of $4.1 million, or $0.21 per share, in the 2005 first quarter. On a GAAP basis, net loss for the 2006 first quarter was $674,000 or $0.03 per share, compared to a net loss of $4.2 million, or $0.22 per share, in the 2005 first quarter.
At the end of the 2006 first quarter, Jacada’s cash and investments totaled $35.9 million, compared to $35.7 million at the end of the 2005 fourth quarter and $36.7 million at the end of the 2005 first quarter.
“Jacada continues to make headway within the contact centre market space,” said Gideon Hollander, CEO of Jacada. “Our goal is to educate and cultivate the market, and in 2006, we’ve already seen success from our efforts.” said Hollander.
“Industry experts and analyst firms have recognised Jacada for innovative solutions and for addressing the ever-present need for a unified desktop to enhance the customer and agent experience,” said Hollander. “A leading industry publication, Call Center Magazine, named Jacada WorkSpace as 2006 Product of the Year, featuring the solution in its March 2006 issue. Further market validation came from analyst firm Gartner, which positioned Jacada in the CRM Customer Service Contact Centre 2006 Magic Quadrant. However, the market is still in its early stages and our number one goal is to accelerate awareness in this market.”
“Our business model continues to evolve, and we remain focused on fewer deals where the average deal size is larger or where the deal represents significant future upside,” said Hollander. “In the first quarter, we added another telecommunications provider to our customer roster by securing a contract in which Jacada WorkSpace and the underlying Jacada Fusion technology will be deployed to improve customer service productivity. Cox Communications accepted and deployed Jacada WorkSpace as part of an enterprise initiative designed to maximise the customer service representative’s work experience with a simplified desktop. Jacada also won a major contract with the Social Security of the Spanish Ministry of Labor (GISS) through partner Selesta S.p.A.”
In the first quarter, Jacada announced the general availability of Jacada WorkSpace 3.0 and Jacada Fusion 3.0, which include functionality and innovations that further enhance the company’s offerings.
“We are also pleased that Paul O’Callaghan has joined our senior management team as President of Jacada Ltd. to lead our North American, Latin American and European operations,” said Hollander. “His experience in helping organisations grow through sales execution and operations excellence will help Jacada capitalise on the tremendous opportunity we see in the contact centre market.”
Use of Non-GAAP Financial Information - In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Jacada uses non-GAAP measures of net loss and loss per share, which are adjustments from results based on GAAP to exclude non-cash stock-based compensation expenses in accordance with SFAS 123R and amortisation of acquired intangible assets related to acquisitions effected by Jacada in previous years. Jacada’s management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Jacada’s on-going core operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such deemed it important to provide all this information to investors.
A telephonic playback of Jacada’s teleconference discussing these results will be available for 5 days beginning at 12:30 p.m. Eastern time on May 10. To access the replay, dial 617-801-6888 (for international callers) or dial toll-free 1-888-286-8010 from within the US, and provide Access Code 83910122.
For the full Consolidated Statements of Operations and Consolidated Balance Sheet, please click here
About Jacada - Jacada is recognised as a leading provider of contact centre productivity solutions. The company’s solutions help customers rapidly simplify and improve high-value business processes without the need for long and expensive systems replacement projects.
By significantly reducing call handle times, training costs and error rates, Jacada solutions deliver a rapid, easily measured return on investment, with payback typically achieved in weeks or months. Jacada solutions are deployed in hundreds of contact centres worldwide, and to millions of users through self-service applications designed to off-load contact centre activity.
Jacada has over 1,200 customers worldwide including many Fortune 1000 corporations and government organisations. Founded in 1990, Jacada operates globally with offices in Atlanta, Georgia; Herzliya, Israel; London, England and Munich, Germany. Jacada can be reached at www.jacada.com or at 1-800-773-9574.
IBA, PR for Jacada
Tel: 01780 721 433
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; and (iii) the Company’s growth strategy and operating strategy (including the development of its products and services). 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 and Exchange Commission.
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