-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GQZKHq2oiJt9JzsdVyA5sIjB+tRmbdnTpBqqMrls9j/GPkROFDPEKSQbmulVt8ip 7LPdFXte+BFd5i2+kNMfmA== 0001157523-06-011174.txt : 20061113 0001157523-06-011174.hdr.sgml : 20061110 20061113062021 ACCESSION NUMBER: 0001157523-06-011174 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20061113 FILED AS OF DATE: 20061113 DATE AS OF CHANGE: 20061113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JACADA LTD CENTRAL INDEX KEY: 0001095747 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-30342 FILM NUMBER: 061204718 BUSINESS ADDRESS: STREET 1: 11 GALGALEI HAPLADA ST STREET 2: PO BOX 12175 CITY: HERZLIYA 46722 ISRAE STATE: L3 BUSINESS PHONE: 9729525900 MAIL ADDRESS: STREET 1: JACADA INC 400 PERIMETER CENTER TERRACE STREET 2: SUITE 195 CITY: ATLANTA STATE: GA ZIP: 30346 6-K 1 a5272542.txt JACADA LTD. 6-K - -------------------------------------------------------------------------------- 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 November 2006 - -------------------------------------------------------------------------------- JACADA LTD. (Translation of registrant's name into English) - -------------------------------------------------------------------------------- 11 Galgalei Haplada Street Herzliya, 46722 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 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] - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Explanatory Note ---------------- Attached is: Exhibit 1. Press Release, released publicly on November 13, 2006. - -------------------------------------------------------------------------------- EXHIBIT 1 Jacada Reports Financial Results for the 2006 Third Quarter ATLANTA--(BUSINESS WIRE)--Nov. 13, 2006--Jacada Ltd. (Nasdaq: JCDA), a leading provider of unified desktop and process optimization solutions for customer service operations, today reported financial results for the 2006 third quarter. Total revenues for the 2006 third quarter were $5.2 million, compared to $5.5 million in the third quarter of 2005. Software and products revenues were $1.6 million in the 2006 third quarter, compared to $2.0 million in the third quarter of 2005. Non-GAAP net income for the 2006 third quarter was $89,000, or $0.00 per diluted share, compared to a non-GAAP net loss of $31,000, or $0.00 per diluted share, in the 2005 third quarter. On a GAAP basis, net loss for the 2006 third quarter was $181,000, or $0.01 per diluted share, compared to a net loss of $143,000, or $0.01 per diluted share, in the 2005 third quarter. Total revenues for the nine months ended September 2006 were $15.2 million, compared to $15.0 million for the nine months ended September 2005. Software and products revenues were $5.8 million for the nine months ended September 2006, compared to $4.8 million for the nine months ended September 2005. Non-GAAP net loss for the nine months ended September 2006 was $1.2 million, or $0.06 per diluted share, compared to a non-GAAP net loss of $4.2 million, or $0.22 per diluted share, in the nine months ended September 2005. On a GAAP basis, net loss for the nine months ended September 2006 was $1.9 million, or $0.10 per diluted share, compared to a net loss of $4.6 million, or $0.23 per diluted share, in the nine months ended September 2005. At the end of the 2006 third quarter, Jacada's cash and investments totaled $35.6 million, compared to $35.0 million at the end of the 2006 second quarter and $37.0 million at the end of the 2005 third quarter. "We believe that Jacada's near breakeven third-quarter results and our stable cash position demonstrate that our business is trending in the right direction," said Gideon Hollander, CEO of Jacada. "Our business model is working and we are witnessing increased demand for unified contact center desktops and customer service process optimization." During the third quarter, Jacada gained significant traction by adding notable customers including Quelle.Contact Vertrieb GmbH, a subsidiary of KarstadtQuelle's Mail Order Division, Europe's leading mail order retailer; Metavante, a major provider of banking and payments technologies to financial services firms and businesses worldwide; and MiCasa, a leading financial services company in Venezuela. Jacada also signed new business with Embratel, one of the largest telecom companies in Latin America. "We are excited to see companies investing in Jacada solutions to strategically differentiate their customer service operations by eliminating inefficiencies and streamlining workflows, as well as delivering more robust multi-channel customer service solutions," said Paul O'Callaghan, president of Jacada. "In the third quarter, Jacada continued building substantial industry relationships with global resellers and systems integrators," said O'Callaghan. "Leveraging these partnerships, Jacada is expanding its presence around the globe, building industry momentum and closing new business." During the quarter, Jacada and Datapoint Customer Solutions Ltd, the leading UK expert in call center operations, signed a distributor agreement that will augment Jacada's presence in the UK region. A significant partnership with a large systems integrator in Germany yielded the contract with Quelle.Contact. Additionally, Jacada forged a marketing and referral agreement with one of the world's largest contact center outsourcers, where Jacada's contact center solutions will be presented as a value-added offering to the partner's clients. "At this time, we have good visibility into the full year 2006 results," said Hollander. "Therefore, we expect 2006 total annual revenue to increase over 2004 and 2005 and to exceed $20.0 million. In addition, our backlog of unrecognized revenue for our contact center solutions continues to grow. Based on our sales pipeline, we believe that this backlog will continue to generally grow." Conference Call Details - Any investor or interested individual can listen to the teleconference, which is scheduled to begin at 10:30 a.m. Eastern Time on November 13. To participate in the teleconference, please call toll-free 1-866-831-6291 or 617-213-8860 for international callers and provide passcode 85417947, 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. ET on November 13. To access the replay, dial toll-free 1-888-286-8010, or for international callers dial 617-801-6888, and provide Access Code 59886289. 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 amortization 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. 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 center agent to successfully complete customer interactions. Jacada Fusion is a process optimization solution that leverages patented technology to enable customer service centers 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 organizations. 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. CONSOLIDATED STATEMENTS OF OPERATIONS - ---------------------------------------------------------------------- U.S. dollars in thousands, except per share data Nine months ended Three months ended September 30, September 30, ----------------------- ----------------------- 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Unaudited ----------------------------------------------- Revenues: Software and products $5,782 $4,846 $1,637 $1,998 Services 2,426 3,059 1,313 1,113 Maintenance 6,964 7,126 2,248 2,413 ----------- ----------- ----------- ----------- Total revenues 15,172 15,031 5,198 5,524 - ---------------------- ----------- ----------- ----------- ----------- Cost of revenues: Software and products 934 719 116 347 Services 2,014 2,186 981 674 Maintenance 654 663 209 197 ----------- ----------- ----------- ----------- Total cost of revenues 3,602 3,568 1,306 1,218 - ---------------------- ----------- ----------- ----------- ----------- Gross profit 11,570 11,463 3,892 4,306 ----------- ----------- ----------- ----------- Operating expenses: Research and development 2,958 3,338 1,028 1,068 Sales and marketing 7,730 8,885 2,332 2,360 General and administrative 3,819 4,381 1,077 1,273 ----------- ----------- ----------- ----------- Total operating expenses 14,507 16,604 4,437 4,701 - ---------------------- ----------- ----------- ----------- ----------- Operating loss (2,937) (5,141) (545) (395) Financial income, net 999 589 364 252 ----------- ----------- ----------- ----------- Net loss $(1,938) $(4,552) $(181) $(143) =========== =========== =========== =========== Basic net loss per share $(0.10) $(0.23) $(0.01) $(0.01) =========== =========== =========== =========== Weighted average number of shares used in computing basic net loss per share 19,729,599 19,463,062 19,913,246 19,523,695 =========== =========== =========== =========== Diluted net loss per share $(0.10) $(0.23) $(0.01) $(0.01) =========== =========== =========== =========== Weighted average number of shares used in computing diluted net loss per share 19,729,599 19,463,062 19,913,246 19,523,695 =========== =========== =========== =========== NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS - ---------------------------------------------------------------------- U.S. dollars in thousands, except per share data Nine months ended Three months ended September 30, September 30, ----------------------- ----------------------- 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Unaudited ----------------------------------------------- Revenues: Software and products $5,782 $4,846 $1,637 $1,998 Services 2,426 3,059 1,313 1,113 Maintenance 6,964 7,126 2,248 2,413 ----------- ----------- ----------- ----------- Total revenues 15,172 15,031 5,198 5,524 - ---------------------- ----------- ----------- ----------- ----------- Cost of revenues: Software and products 623 365 11 235 Services 1,976 2,186 969 674 Maintenance 646 663 207 197 ----------- ----------- ----------- ----------- Total cost of revenues 3,245 3,214 1,187 1,106 - ---------------------- ----------- ----------- ----------- ----------- Gross profit 11,927 11,817 4,011 4,418 ----------- ----------- ----------- ----------- Operating expenses: Research and development 2,895 3,338 1,011 1,068 Sales and marketing 7,650 8,885 2,304 2,360 General and administrative 3,624 4,381 971 1,273 ----------- ----------- ----------- ----------- Total operating expenses 14,169 16,604 4,286 4,701 - ---------------------- ----------- ----------- ----------- ----------- Operating loss (2,242) (4,787) (275) (283) Financial income, net 999 589 364 252 ----------- ----------- ----------- ----------- Net (loss) income $(1,243) $(4,198) $89 $(31) =========== =========== =========== =========== Basic net (loss) income per share $(0.06) $(0.22) $0.00 $(0.00) =========== =========== =========== =========== Weighted average number of shares used in computing basic net (loss) income per share 19,729,599 19,463,062 19,913,246 19,523,695 =========== =========== =========== =========== Diluted net (loss) income per share $(0.06) $(0.22) $0.00 $(0.00) =========== =========== =========== =========== Weighted average number of shares used in computing diluted net (loss) income per share 19,729,599 19,463,062 20,301,429 19,523,695 =========== =========== =========== =========== RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS - ---------------------------------------------------------------------- U.S. dollars in thousands, except per share data Nine months ended September 30, 2006 (unaudited) ------------------------------------------------- GAAP Adjustments Non-GAAP ----------- ------------------------- ----------- Amortization of acquired Stock-based intangible compensation assets expenses ------------ ------------ Revenues: Software and products $5,782 $5,782 Services 2,426 2,426 Maintenance 6,964 6,964 ----------- ------------ ------------ ----------- Total revenues 15,172 15,172 - -------------------- ----------- ------------ ------------ ----------- Cost of revenues: Software and products 934 (311) 623 Services 2,014 (38) 1,976 Maintenance 654 (8) 646 ----------- ------------ ------------ ----------- Total cost of revenues 3,602 (311) (46) 3,245 - -------------------- ----------- ------------ ------------ ----------- Gross profit 11,570 311 46 11,927 ----------- ------------ ------------ ----------- Operating expenses: Research and development 2,958 (63) 2,895 Sales and marketing 7,730 (80) 7,650 General and administrative 3,819 (195) 3,624 ----------- ------------ ------------ ----------- Total operating expenses 14,507 (338) 14,169 - -------------------- ----------- ------------ ------------ ----------- Operating (loss) income (2,937) 311 384 (2,242) Financial income, net 999 999 ----------- ------------ ------------ ----------- Net (loss) income $(1,938) $311 $384 $(1,243) =========== ============ ============ =========== Basic net loss per share $(0.10) $(0.06) =========== =========== Weighted average number of shares used in computing basic net loss per share 19,729,599 19,729,599 =========== =========== Diluted net loss per share $(0.10) $(0.06) =========== =========== Weighted average number of shares used in computing diluted net loss per share 19,729,599 19,729,599 =========== =========== RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS - ---------------------------------------------------------------------- U.S. dollars in thousands, except per share data Three months ended September 30, 2006 (unaudited) ------------------------------------------------- GAAP Adjustments Non-GAAP ----------- ------------------------- ----------- Amortization of acquired Stock-based intangible compensation assets expenses ------------ ------------ Revenues: Software and products $1,637 $1,637 Services 1,313 1,313 Maintenance 2,248 2,248 ----------- ------------ ------------ ----------- Total revenues 5,198 5,198 - -------------------- ----------- ------------ ------------ ----------- Cost of revenues: Software and products 116 (105) 11 Services 981 (12) 969 Maintenance 209 (2) 207 ----------- ------------ ------------ ----------- Total cost of revenues 1,306 (105) (14) 1,187 - -------------------- ----------- ------------ ------------ ----------- Gross profit 3,892 105 14 4,011 ----------- ------------ ------------ ----------- Operating expenses: Research and development 1,028 (17) 1,011 Sales and marketing 2,332 (28) 2,304 General and administrative 1,077 (106) 971 ----------- ------------ ------------ ----------- Total operating expenses 4,437 (151) 4,286 - -------------------- ----------- ------------ ------------ ----------- Operating (loss) income (545) 105 165 (275) Financial income, net 364 364 ----------- ------------ ------------ ----------- Net (loss) income $(181) $105 $165 $89 =========== ============ ============ =========== Basic net (loss) income per share $(0.01) $0.00 =========== =========== Weighted average number of shares used in computing basic net (loss) income per share 19,913,246 19,913,246 =========== =========== Diluted net (loss) income per share $(0.01) $0.00 =========== =========== Weighted average number of shares used in computing diluted net (loss) income per share 19,913,246 20,301,429 =========== =========== CONSOLIDATED BALANCE SHEETS - ---------------------------------------------------------------------- U.S. dollars in thousands September 30, December 31, 2006 2005 ------------- ------------- Unaudited ------------- ASSETS CURRENT ASSETS: Cash and cash equivalents (a) $3,773 $3,461 Marketable securities (a) 10,062 14,655 Trade receivables 1,530 1,614 Other current assets 944 905 ------------- ------------- Total current assets 16,309 20,635 - ------------------------------------------ ------------- ------------- LONG-TERM INVESTMENTS: Marketable securities (a) 21,776 17,535 Severance pay fund 968 825 ------------- ------------- Total long-term investments 22,744 18,360 - ------------------------------------------ ------------- ------------- PROPERTY AND EQUIPMENT, NET 1,031 997 ------------- ------------- OTHER ASSETS, NET: Other intangibles, net 679 990 Goodwill 4,630 4,630 ------------- ------------- Total other assets 5,309 5,620 - ------------------------------------------ ------------- ------------- Total assets $45,393 $45,612 - ------------------------------------------ ============= ============= (a) Total cash and investments $35,611 $35,651 ============= ============= LIABILITIES AND SHAREHOLDERS EQUITY CURRENT LIABILITIES: Trade payables $1,103 $981 Deferred revenues 5,638 5,533 Accrued expenses and other liabilities 3,097 3,373 ------------- ------------- Total current liabilities 9,838 9,887 - ------------------------------------------ ------------- ------------- LONG-TERM LIABILITIES: Deferred revenues 397 - Accrued severance pay 1,471 1,250 ------------- ------------- Total long-term liabilities 1,868 1,250 - ------------------------------------------ ------------- ------------- SHAREHOLDERS' EQUITY: Share capital 58 57 Additional paid-in capital 71,242 70,297 Accumulated other comprehensive loss (165) (369) Accumulated deficit (37,448) (35,510) ------------- ------------- Total shareholders' equity 33,687 34,475 - ------------------------------------------ ------------- ------------- Total liabilities $45,393 $45,612 - ------------------------------------------ ============= ============= CONTACT: Jacada Ltd. Ann Conrad, 770-352-1310, ext. 382 aconrad@jacada.com www.jacada.com 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/ Tzvia Broida ----------------------------- Name: Tzvia Broida Title: Chief Financial Officer Dated: November 13, 2006 -----END PRIVACY-ENHANCED MESSAGE-----