-----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, CdO+FNisAPu1RXo9UueSDBILQgvG6X9LYifNOevaN3QT8Cqk0X1DwzPEzyOjhruy Kz61H9S8p1B/1FI+pxBnIg== 0001157523-07-001375.txt : 20070212 0001157523-07-001375.hdr.sgml : 20070212 20070212061829 ACCESSION NUMBER: 0001157523-07-001375 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20070212 FILED AS OF DATE: 20070212 DATE AS OF CHANGE: 20070212 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: 07600273 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 a5331810.txt JACADA LTD. 6-K - -------------------------------------------------------------------------------- UNITED STATES 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 February 2007 - -------------------------------------------------------------------------------- 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 if the Registrant is submitting this Form 6-K in paper as permitted by Regulations S-T Rule 101(b)(1): Yes No X ---- Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes No X ---- 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 ---- If "Yes" is marked, indicate below the file number assigned to the Registrant in connection with Rule 12g3-2(b): 82- _N/A__ - -------------------------------------------------------------------------------- CONTENTS This Report on Form 6-K of Jacada consists of the following documents, which are attached hereto and incorporated by reference herein: Press Release, released publicly on February 12, 2007: Jacada Reports Financial Results for the 2006 Fourth Quarter and Year-end - -------------------------------------------------------------------------------- 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: February 12, 2007 - -------------------------------------------------------------------------------- Jacada Reports Financial Results for the 2006 Fourth Quarter and Year-end Agreement with Avaya and Increase in Backlog Position Company for Growth in 2007 ATLANTA--(BUSINESS WIRE)--Feb. 12, 2007--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 fourth quarter and year-end. Total revenues for the 2006 fourth quarter increased to $5.5 million, compared to $4.9 million in the fourth quarter of 2005. Total revenues for the full-year ended December 31, 2006 increased to $20.7 million, compared to $19.9 million for the full-year ended December 31, 2005. Non-GAAP net loss for the 2006 fourth quarter was $242,000, or $0.01 per diluted share, compared to a non-GAAP net loss of $352,000, or $0.02 per diluted share, in the 2005 fourth quarter. On a GAAP basis, net loss for the 2006 fourth quarter was $634,000, or $0.03 per diluted share, compared to a net loss of $406,000, or $0.02 per diluted share, in the 2005 fourth quarter. Non-GAAP net loss for the full-year ended December 31, 2006 was $1.5 million, or $0.07 per diluted share, compared to a non-GAAP net loss of $4.6 million, or $0.23 per diluted share, in the full-year ended December 31, 2005. On a GAAP basis, net loss for the full-year ended December 31, 2006 was $2.6 million, or $0.13 per diluted share, compared to a net loss of $5.0 million, or $0.25 per diluted share, in the full-year ended December 31, 2005. At the end of the 2006 fourth quarter, Jacada's cash and investments totaled $35.9 million, compared to $35.6 million at the end of the 2006 third quarter and $35.7 million at the end of the 2005 fourth quarter. "We believe these results indicate that Jacada's business model is delivering positive results and our business is trending in the right direction," said Gideon Hollander, CEO of Jacada. "In recent quarters, there has been a migration in Jacada's revenue mix, which shows a greater contribution coming from our new flagship call center solutions compared to our traditional legacy products. We are pleased to see the market for unified customer service desktops continuing to show increased demand." Increase in Backlog "To quantify the positive impact of our call center solutions business model, we are providing visibility into Jacada's backlog, which represents revenue from signed contracts (not including maintenance renewals) that has not yet been recognized," said Hollander. "At the beginning of fiscal year 2007, we are carrying a backlog of Jacada Fusion and Jacada WorkSpace revenue of approximately $8.1 million, compared to a backlog of $5.4 million at the beginning of fiscal year 2006," stated Hollander. Fourth Quarter Highlights In the fourth quarter, Avaya, a leading global provider of business communications applications, systems and services, signed an agreement with Jacada that will extend Jacada's reach into the global call center marketplace. Under the terms of the agreement, Avaya Consulting and Systems Integration and Jacada will jointly market and deliver Jacada customer service solutions globally. "Avaya's selection of Jacada is tremendous validation as to the traction and success of the Jacada contact center solutions, and the sizable market opportunity that exists," said Paul O'Callaghan, president of Jacada. "Avaya is a trusted advisor to many of the companies in our target markets. Together we can offer a solution that delivers a major competitive advantage for our customers by significantly reducing operational costs and greatly enhancing the customer experience." In the fourth quarter, Jacada also closed new business in important vertical markets. Capita, the UK's leading provider of integrated professional support services selected Jacada WorkSpace to improve the customer experience by creating a central interaction point for the customer service representative to increase efficiencies and streamline customer service operations. Lillian Vernon, the national catalog and online retailer that markets gift, household, children's and fashion accessory products, has selected Jacada WorkSpace as its standardized unified agent desktop for its customer service operations. "As a leader in the outsourced call center industry, Capita's selection of Jacada demonstrate the growing acknowledgement that simplifying desktop complexity removes a key customer service obstacle and provides an immediate way to both competitively differentiate and realize significant cost reductions," said O'Callaghan. "And being selected by KarstadtQuelle and Lillian Vernon in 2006, is a strong indication that the online retailer and catalog market also suffers from an overly complex customer service environment." Financial Outlook "In 2007, we expect new partner activity and business growth, which will require additional operational investments," said Hollander. "We anticipate revenue to grow between 20% and 24% on an annual basis over 2006, with the growth occurring in the second half of the year." 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 February 12. To participate in the teleconference, please call toll-free 1-866-510-0710 or 617-597-5378 for international callers and provide passcode 20493328, 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 three days beginning at 12:30 p.m. ET on February 12. To access the replay, dial toll-free 1-888-286-8010, or for international callers dial 617-801-6888, and provide Access Code 76771775. 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 operating loss, 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 Year ended Three months ended December 31, December 31, ----------------------- ----------------------- 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Revenues: Software licenses*) $6,568 $6,674 $1,412 $1,852 Services*) 4,810 3,701 1,758 618 Maintenance 9,303 9,567 2,339 2,441 ----------- ----------- ----------- ----------- Total revenues 20,681 19,942 5,509 4,911 - ---------------------- ----------- ----------- ----------- ----------- Cost of revenues: Software licenses*) 527 648 170 110 Services*) 3,671 3,365 1,080 814 Maintenance 864 865 210 202 ----------- ----------- ----------- ----------- Total cost of revenues 5,062 4,878 1,460 1,126 - ---------------------- ----------- ----------- ----------- ----------- Gross profit 15,619 15,064 4,049 3,785 ----------- ----------- ----------- ----------- Operating expenses: Research and development 4,067 4,094 1,109 940 Sales and marketing 10,144 11,035 2,414 2,150 General and administrative 5,098 5,681 1,391 1,336 ----------- ----------- ----------- ----------- Total operating expenses 19,309 20,810 4,914 4,426 - ---------------------- ----------- ----------- ----------- ----------- Operating loss (3,690) (5,746) (865) (641) Financial income, net 1,372 830 373 241 ----------- ----------- ----------- ----------- Net loss before taxes on income (2,318) (4,916) (492) (400) Taxes on income 254 42 142 6 ----------- ----------- ----------- ----------- Net loss $(2,572) $(4,958) $(634) $(406) =========== =========== =========== =========== Basic net loss per share $(0.13) $(0.25) $(0.03) $(0.02) =========== =========== =========== =========== Weighted average number of shares used in computing basic net loss per share 19,827,852 19,497,726 20,126,244 19,600,587 =========== =========== =========== =========== Diluted net loss per share $ (0.13) $ (0.25) $ (0.03) $ (0.02) =========== =========== =========== =========== Weighted average number of shares used in computing diluted net loss per share 19,827,852 19,497,726 20,126,244 19,600,587 =========== =========== =========== =========== *) Certain amounts from prior year reclassified to confirm with this year presentation NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS - ---------------------------------------------------------------------- U.S. dollars in thousands, except per share data Year ended Three months ended December 31, December 31, ----------------------- ----------------------- 2006 2005 2006 2005 ----------------------------------------------- Revenues: Software licenses*) $6,568 $6,674 $1,412 $1,852 Services*) 4,810 3,701 1,758 618 Maintenance 9,303 9,567 2,339 2,441 ----------- ----------- ----------- ----------- Total revenues 20,681 19,942 5,509 4,911 - ---------------------- ----------- ----------- ----------- ----------- Cost of revenues: Software licenses*) 111 240 65 56 Services*) 3614 3,365 1,061 814 Maintenance 854 865 208 202 ----------- ----------- ----------- ----------- Total cost of revenues 4,579 4,470 1,334 1,072 - ---------------------- ----------- ----------- ----------- ----------- Gross profit 16,102 15,472 4,175 3,839 ----------- ----------- ----------- ----------- Operating expenses: Research and development 3,988 4,094 1,093 940 Sales and marketing 10,021 11,035 2,371 2,150 General and administrative 4,696 5,681 1,184 1,336 ----------- ----------- ----------- ----------- Total operating expenses 18,705 20,810 4,648 4,426 - ---------------------- ----------- ----------- ----------- ----------- Operating loss (2,603) (5,338) (473) (587) Financial income, net 1,372 830 373 241 ----------- ----------- ----------- ----------- Net loss before taxes on income (1,231) (4,508) (100) (346) Taxes on income 254 42 142 6 ----------- ----------- ----------- ----------- Net loss $(1,485) $(4,550) $(242) $(352) =========== =========== =========== =========== Basic net loss per share $(0.07) $(0.23) $(0.01) $(0.02) =========== =========== =========== =========== Weighted average number of shares used in computing basic net loss per share 19,827,852 19,497,726 20,126,244 19,600,587 =========== =========== =========== =========== Diluted net loss per share $ (0.07) $ (0.23) $ (0.01) $ (0.02) =========== =========== =========== =========== Weighted average number of shares used in computing diluted net loss per share 19,827,852 19,497,726 20,126,244 19,600,587 =========== =========== =========== =========== *) Certain amounts from prior year reclassified to confirm with this year presentation RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS - ---------------------------------------------------------------------- U.S. dollars in thousands, except per share data Year ended December 31, 2006 ------------------------------------------------- GAAP Adjustments Non-GAAP ----------- ------------------------- ----------- Amortization of acquired Stock-based intangible compensation assets expenses ------------ ------------ Revenues: Software licenses $6,568 $6,568 Services 4,810 4,810 Maintenance 9,303 9,303 ----------- ------------ ------------ ----------- Total revenues 20,681 20,681 - -------------------- ----------- ------------ ------------ ----------- Cost of revenues: Software licenses 527 (416) 111 Services 3,671 (57) 3614 Maintenance 864 (10) 854 ----------- ------------ ------------ ----------- Total cost of revenues 5,062 (416) (67) 4,579 - -------------------- ----------- ------------ ------------ ----------- Gross profit 15,619 416 67 16,102 ----------- ------------ ------------ ----------- Operating expenses: Research and development 4,067 (79) 3,988 Sales and marketing 10,144 (123) 10,021 General and administrative 5,098 (402) 4,696 ----------- ------------ ------------ ----------- Total operating expenses 19,309 (604) 18,705 - -------------------- ----------- ------------ ------------ ----------- Operating loss (3,690) 416 671 (2,603) Financial income, net 1,372 1,372 ----------- ------------ ------------ ----------- Net loss before taxes on income (2,318) (1,231) Taxes on income 254 254 ----------- ------------ ------------ ----------- Net (loss) income $(2,572) $416 $671 $(1,485) =========== ============ ============ =========== Basic net (loss) income per share $(0.13) $(0.07) =========== =========== Weighted average number of shares used in computing basic net (loss) income per share 19,827,852 19,827,852 =========== =========== Diluted net loss per share $ (0.13) $ (0.07) =========== =========== Weighted average number of shares used in computing diluted net loss per share 19,827,852 19,827,852 =========== =========== RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS - ---------------------------------------------------------------------- U.S. dollars in thousands, except per share data Three months ended December 31, 2006 ------------------------------------------------- GAAP Adjustments Non-GAAP ----------- ------------------------- ----------- Amortization of acquired Stock-based intangible compensation assets expenses ------------ ------------ Revenues: Software licenses $1,412 $1,412 Services 1,758 1,758 Maintenance 2,339 2,339 ----------- ------------ ------------ ----------- Total revenues 5,509 5,509 - -------------------- ----------- ------------ ------------ ----------- Cost of revenues: Software licenses 170 (105) 65 Services 1,080 (19) 1,061 Maintenance 210 (2) 208 ----------- ------------ ------------ ----------- Total cost of revenues 1,460 (105) (21) 1,334 - -------------------- ----------- ------------ ------------ ----------- Gross profit 4,049 105 21 4,175 ----------- ------------ ------------ ----------- Operating expenses: Research and development 1,109 (16) 1,093 Sales and marketing 2,414 (43) 2,371 General and administrative 1,391 (207) 1,184 ----------- ------------ ------------ ----------- Total operating expenses 4,914 (266) 4,648 - -------------------- ----------- ------------ ------------ ----------- Operating loss (865) 105 287 (473) Financial income, net 373 373 ----------- ------------ ------------ ----------- Net loss before taxes on income (492) (100) Taxes on income 142 142 ----------- ------------ ------------ ----------- Net (loss) income $(634) $105 $287 $(242) =========== ============ ============ =========== Basic net (loss) income per share $(0.03) $(0.01) =========== =========== Weighted average number of shares used in computing basic net (loss) income per share 20,126,244 20,126,244 =========== =========== Diluted net (loss) income per share $ (0.03) $ (0.01) =========== =========== Weighted average number of shares used in computing diluted net (loss) income per share 20,126,244 20,126,244 =========== =========== CONSOLIDATED BALANCE SHEETS - ---------------------------------------------------------------------- U.S. dollars in thousands December 31, December 31, 2006 2005 ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents *) $4,735 $3,461 Marketable securities *) 12,338 14,655 Trade receivables 1,681 1,614 Other current assets 933 905 ------------ ------------ Total current assets 19,687 20,635 - -------------------------------------------- ------------ ------------ LONG-TERM INVESTMENTS: Marketable securities *) 18,849 17,535 Severance pay fund 1,040 825 ------------ ------------ Total long-term investments 19,889 18,360 - -------------------------------------------- ------------ ------------ PROPERTY AND EQUIPMENT, NET 930 997 ------------ ------------ OTHER ASSETS, NET: Other intangibles, net 574 990 Goodwill 4,630 4,630 ------------ ------------ Total other assets 5,204 5,620 - -------------------------------------------- ------------ ------------ Total assets $45,710 $45,612 - -------------------------------------------- ============ ============ *) Total cash and investments $35,922 $35,651 ============ ============ LIABILITIES AND SHAREHOLDERS EQUITY CURRENT LIABILITIES: Trade payables $1,202 $981 Deferred revenues 5,514 5,533 Accrued expenses and other liabilities 3,813 3,373 ------------ ------------ Total current liabilities 10,529 9,887 - -------------------------------------------- ------------ ------------ LONG-TERM LIABILITIES: Deferred revenues 219 - Accrued severance pay 1,567 1,250 ------------ ------------ Total long-term liabilities 1,786 1,250 - -------------------------------------------- ------------ ------------ SHAREHOLDERS' EQUITY: Share capital 58 57 Additional paid-in capital 71,547 70,297 Accumulated other comprehensive loss (128) (369) Accumulated deficit (38,082) (35,510) ------------ ------------ Total shareholders' equity 33,395 34,475 - -------------------------------------------- ------------ ------------ Total liabilities $45,710 $45,612 - -------------------------------------------- ============ ============ CONTACT: Jacada Ltd. Ann Conrad, 770-352-1310, ext. 382 aconrad@jacada.com -----END PRIVACY-ENHANCED MESSAGE-----