Jacada Reports Financial Results for the 2006 Second Quarter

London, UK, August 14, 2006 - Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer service productivity solutions, today reported financial results for the 2006 second quarter. Total revenues for the 2006 second quarter were $4.8 million, compared to $5.5 million in the second quarter of 2005. Software and products revenues were $1.6 million in the 2006 second quarter, compared to $2.0 million in the second quarter of 2005.

Non-GAAP net loss for the 2006 second quarter was $861,000, or $0.04 per share, compared to a non-GAAP net loss of $126,000, or $0.01 per share, in the 2005 second quarter. On a GAAP basis, net loss for the 2006 second quarter was $1.1 million, or $0.06 per share, compared to a net loss of $233,000, or $0.01 per share, in the 2005 second quarter.

Total revenues for the first half of 2006 were $10 million, compared to $9.5 million in the first half of 2005. Software and products revenues were $4.1 million in the first half of 2006, compared to $2.8 million in the first half of 2005.

Non-GAAP net loss for the first half of 2006 was $1.3 million, or $0.07 per share, compared to a non-GAAP net loss of $4.2 million, or $0.22 per share, in the first half of 2005. On a GAAP basis, net loss for the first half of 2006 was $1.8 million, or $0.09 per share, compared to a net loss of $4.4 million, or $0.23 per share, in the first half of 2005.

At the end of the 2006 second quarter, Jacada's cash and investments totaled $35.0 million, compared to $35.9 million at the end of the 2006 first quarter and $39.3 million at the end of the 2005 second quarter.

“We are encouraged by the growing demand for Jacada solutions in the contact centre market space,” said Gideon Hollander, CEO of Jacada. “Our goal to educate and cultivate the market is paying off, as we are seeing a very positive and upward trend in proposal requests and identified projects for unified contact centre desktops and customer service process optimisation.”  

“Through improved sales execution and targeted vertical programmes our sales pipeline represents opportunities with a larger average deal size and active, funded projects,” said Hollander. “We closed significant new business in the second quarter including contracts with UBS, one of the world's leading financial firms, and with the hotel and resort company Hyatt Corporation.”

In April of 2006, Jacada named Paul O’Callaghan as President of Jacada Ltd. to run North American, Latin American and European operations.

 “Paul has had an immediate and extremely positive impact on our operations,” said Hollander. “His leadership skills and significant sales experience have already improved our operational and sales effectiveness, and he is putting in place a very capable and experienced executive management team.”

“I am extremely bullish about the opportunity here at Jacada,” said O’Callaghan. “The business case for our contact centre solutions is extremely compelling, and the products and services capability is first class. With new sales leadership and a sharper focus on sales qualification and execution, the market opportunity for Jacada is very real and very exciting.”

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 asset 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.   

Conference Call Details - Jacada will hold a teleconference at 10:30 a.m. Eastern time today. To participate in the teleconference, please call toll-free 1-866-800-8651 or +1 617-614-2704 for international callers and provide passcode 32353692, approximately 10 minutes prior to the start time. The teleconference will also be available via Webcast at www.jacada.com (under “About Us” then “Investors”) or www.fulldisclosure.com.

A telephonic playback of the teleconference will be available for two days beginning at 12:30 p.m. Eastern time on August 14. To access the replay, dial toll-free 1-888-286-8010, or for international callers dial +1 617-801-6888, and provide Access Code 38641626.

Financial Reports are available here

About Jacada
Jacada is a leading provider of customer service 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.  

Jacada provides two award-winning solutions that have been proven to make a significant impact on customer service efficiency and effectiveness. Jacada WorkSpace is a unified desktop that incorporates all critical functions required by the contact centre agent to successfully complete customer interactions. Jacada Fusion is a process optimisation solution that leverages patented technology to enable customer service centres to improve customer satisfaction and increase revenues by providing customer service representatives with more time for customer care and revenue-generating activities.

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.

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.

Jacada is a trademark of Jacada Ltd. All other brands or product names are trademarks of their respective owners.

For more information please visit www.jacada.com or contact:
Louise Sambells
PressOffice - PR for Jacada
Tel: 01780 721433
E-mail: lsambells.pressoffice@targetwire.com

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