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 November, 2011
JACADA LTD.
(Translation
of registrant's name into English)
11 Shenkar Street
Herzliya, 46725 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 Regulation 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 November 21, 2011: Jacada Reports Third Quarter 2011 Results
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. |
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By: |
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/s/ CAROLINE CRONIN |
Name: |
Caroline Cronin |
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Title: |
Chief Financial Officer |
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Dated: |
November 21, 2011 |
2
Jacada Reports Third Quarter 2011 Results
ATLANTA--(BUSINESS WIRE)--November 21, 2011--Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer experience management and process optimization solutions, today reported financial results for the third quarter ended September 30, 2011.
Third Quarter Highlights
“We were pleased to extend our relationship with Kabel Deutschland as we continue to provide ongoing professional services for the development of future releases of the company’s unified desktop,” commented Gideon Hollander, co-chief executive officer of Jacada. “This quarter, we also began the development of key integration components for Blue Cross Blue Shield of Massachusetts’ integrated provider management system. This system will allow their agents to more efficiently service healthcare providers by providing access to more organized information.”
“While these agreements extended our services engagements, there were limited software deliveries during the third quarter, reducing our software revenue to $42,000 from $813,000 in the previous quarter,” commented Caroline Cronin, Chief Financial Officer. “While total expenses remained consistent between the second and third quarters of 2011, this reduction in software revenue, which typically carries a higher margin, impacted our net income, increasing our net loss to $1.7 million in the third quarter from $1.1 million in the second quarter.”
Financial Results
For the third quarter of 2011, total revenues were $3.0 million compared to $5.0 million in the third quarter of 2010. Software revenues for the 2011 third quarter were $42,000 compared to $455,000 during the 2010 third quarter. Services revenues were $2.2 million and $3.9 million in the third quarter of 2011 and 2010, respectively. Maintenance revenues improved to $735,000 in the third quarter of 2011 from $651,000 in the 2010 third quarter.
Gross margins were 30% and 39% of total revenues during the 2011 and 2010 third quarters, respectively. Margins were impacted both by the reduction in software revenue, which typically carries a higher margin, and by a reduction in services margins as fixed expenses were absorbed by lower services revenue. Third quarter 2011 operating expenses of $2.6 million, reflecting savings from cost containment measures implemented during the third quarter of 2010, were significantly less than third quarter 2010 operating expenses of $3.5 million.
The 2011 third quarter net loss was $1.7 million or ($0.41) per share compared to a net loss of $1.5 million or ($0.36) per share in the third quarter of 2010.
Conference Call Details
Management will hold a conference call to discuss the third quarter 2011 financial results at 10:30am ET on November 21, 2011. To participate in the teleconference, please call toll-free 888-680-0860 or 617-213-4852 for international callers, and provide pass code 73346396 approximately 10 minutes prior to the start time. Interested parties may pre-register for the teleconference via this URL: https://www.theconferencingservice.com/prereg/key.process?key=PALYQ4CPM. A (live audio) webcast will also be available over the Internet at www.jacada.com (under "About Us" then "Investors") or www.earnings.com.
A replay of the teleconference will be available for three days beginning at 1:30 p.m. ET on November 21, 2011. To access the replay, dial toll-free 888-286-8010, or for international callers 617-801-6888, and provide pass code 27258901.
About Jacada
Jacada provides solutions that optimize and improve the effectiveness of customer interactions. Jacada unified desktop and process optimization solutions help companies reduce the cost of their operations, drive customer satisfaction and provide a complete return on investment in as little as 12 months after deployment.
Founded in 1990, Jacada operates globally with offices in Atlanta, USA; Herzliya, Israel; London, England; Munich, Germany; and Stockholm, Sweden. More information is available at www.jacada.com, www.jacada.com/blog, www.jacada.com/facebook and www.jacada.com/twitter.
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) | ||||||||||||||||
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Unaudited | ||||||||||||||||
Revenues: | ||||||||||||||||
Software licenses | $ | 42 | $ | 455 | $ | 1,102 | $ | 1,585 | ||||||||
Services | 2,203 | 3,878 | 6,485 | 11,010 | ||||||||||||
Maintenance | 735 | 651 | 2,070 | 1,856 | ||||||||||||
Total revenues | 2,980 | 4,984 | 9,657 | 14,451 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Software licenses | 9 | 65 | 84 | 197 | ||||||||||||
Services | 1,868 | 2,793 | 5,906 | 8,134 | ||||||||||||
Maintenance | 212 | 199 | 575 | 582 | ||||||||||||
Total cost of revenues | 2,089 | 3,057 | 6,565 | 8,913 | ||||||||||||
Gross profit | 891 | 1,927 | 3,092 | 5,538 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 787 | 926 | 2,123 | 2,746 | ||||||||||||
Sales and marketing | 792 | 1,236 | 2,460 | 4,141 | ||||||||||||
General and administrative | 1,058 | 1,126 | 3,125 | 3,579 | ||||||||||||
Restructuring | - | 196 | - | 196 | ||||||||||||
Total operating expenses | 2,637 | 3,484 | 7,708 | 10,662 | ||||||||||||
Operating loss | (1,746 | ) | (1,557 | ) | (4,616 | ) | (5,124 | ) | ||||||||
Financial income, net | 63 | 58 | 7 | 107 | ||||||||||||
Loss before taxes | (1,683 | ) | (1,499 | ) | (4,609 | ) | (5,017 | ) | ||||||||
Taxes |
(16 |
) |
(10 | ) | (19 | ) | (11 | ) | ||||||||
Net loss | (1,699 | ) | (1,509 | ) | (4,628 | ) | (5,028 | ) | ||||||||
Basic and diluted net earnings loss per share | $ | (0.41 | ) | $ | (0.36 | ) | $ | (1.11 | ) | $ | (1.21 | ) | ||||
Weighted average number of shares used in | ||||||||||||||||
computing basic and diluted net loss per share | 4,159,134 | 4,159,134 | 4,159,134 | 4,158,023 | ||||||||||||
JACADA LTD. AND ITS SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(U.S. dollars in thousands) | ||||||||
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
Unaudited | Audited | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 4,320 | $ | 5,945 | ||||
Marketable securities | 556 | 1,240 | ||||||
Trade receivables | 2,469 | 4,081 | ||||||
Restricted cash | 489 | 493 | ||||||
Other current assets | 953 | 1,079 | ||||||
Total current assets | 8,787 | 12,838 | ||||||
LONG-TERM INVESTMENTS: | ||||||||
Marketable securities | 9,356 | 10,809 | ||||||
Severance pay fund | 195 | 186 | ||||||
Total long-term investments | 9,551 | 10,995 | ||||||
PROPERTY AND EQUIPMENT, NET | 672 | 856 | ||||||
Total assets | $ | 19,010 | $ | 24,689 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Trade payables | $ | 1,540 | $ | 1,566 | ||||
Deferred revenues | 1,008 | 1,076 | ||||||
Accrued expenses and other liabilities | 1,198 | 1,478 | ||||||
Total current liabilities | 3,746 | 4,120 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Accrued severance pay | 383 | 366 | ||||||
Other long-term liabilities | 2 | 44 | ||||||
Total long-term liabilities | 385 | 410 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital | 60 | 60 | ||||||
Additional paid-in capital | 75,973 | 75,829 | ||||||
Treasury shares at cost | (17,863 | ) | (17,863 | ) | ||||
Accumulated other comprehensive profit (loss) | (309 | ) | 487 | |||||
Accumulated deficit | (42,982 | ) | (38,354 | ) | ||||
Total shareholders' equity | 14,879 | 20,159 | ||||||
Total liabilities and shareholders' equity | $ | 19,010 | $ | 24,689 | ||||
JACADA LTD. AND ITS SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
U.S. dollars in thousands | ||||||||||||||||
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Unaudited | ||||||||||||||||
Cash flows from operating activities: |
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Net loss | $ | (1,699 | ) | $ | (1,509 | ) | $ | (4,628 | ) | $ | (5,028 | ) | ||||
Adjustments required to reconcile net loss to net cash used in | ||||||||||||||||
operating activities: | ||||||||||||||||
Depreciation and amortization | 92 | 127 | 303 | 374 | ||||||||||||
Stock-based compensation related to options granted to employees, | ||||||||||||||||
non employees and directors | 43 | 100 | 144 | 389 | ||||||||||||
Decrease in restricted cash | 8 | - | 4 | - | ||||||||||||
Accrued interest and amortization of premium on marketable | ||||||||||||||||
securities | - | (15 | ) | 6 | 112 | |||||||||||
Other than temporary loss on marketable securities | - | - | 205 | - | ||||||||||||
Gain from sales of marketable securities | - | - | - | (9 | ) | |||||||||||
Decrease (increase) in accrued severance pay, net | (8 | ) | (9 | ) | 8 | (17 | ) | |||||||||
Decrease in trade receivables, net | 1,280 | 46 | 1,632 | 84 | ||||||||||||
Decrease (increase) in other current assets | (60 | ) | (290 | ) | 101 | 474 | ||||||||||
Increase (decrease) in trade payables | 23 | (7 | ) | (16 | ) | (326 | ) | |||||||||
Increase (decrease) in deferred revenues | (91 | ) | (115 | ) | (53 | ) | 483 | |||||||||
Increase (decrease) in accrued expenses and other liabilities | (432 | ) | 291 | (408 | ) | 110 | ||||||||||
Decrease in other long-term liabilities | (2 | ) | (20 | ) | (42 | ) | (59 | ) | ||||||||
Other | 15 | 15 | 56 | |||||||||||||
Net cash used in operating activities | (846 | ) | (1,386 | ) | (2,729 | ) | (3,357 | ) | ||||||||
Cash flows from investing activities: |
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Investment in available-for-sale marketable securities | - | - | 1,210 | (10,992 | ) | |||||||||||
Proceeds from sale and redemption of available-for-sale marketable | ||||||||||||||||
securities | - | - | - | 9,727 | ||||||||||||
Decrease in restricted cash held by trustee | - | - | - | 141 | ||||||||||||
Proceeds from sale of property and equipment | - | - | - | 7 | ||||||||||||
Purchase of property and equipment | (33 | ) | (19 | ) | (119 | ) | (357 | ) | ||||||||
Net cash (used in) provided by investing activities | (33 | ) | (19 | ) | 1,091 | (1,474 | ) | |||||||||
Cash flows from financing activities: |
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Proceeds from exercise of stock options | - | - | - | 75 | ||||||||||||
Net cash provided by financing activities | - | - | - | 75 | ||||||||||||
Effect of exchange rate changes on cash | (41 | ) | 229 | 13 | (112 | ) | ||||||||||
Decrease in cash and cash equivalents | (920 | ) | (1,176 | ) | (1,625 | ) | (4,868 | ) | ||||||||
Cash and cash equivalents at the beginning of the period | 5,240 | 8,932 | 5,945 | 12,624 | ||||||||||||
Cash and cash equivalents at the end of the period | $ | 4,320 | $ | 7,756 | $ | 4,320 | $ | 7,756 | ||||||||
JACADA LTD. AND ITS SUBSIDIARIES | ||||||
U.S. dollars in thousands | ||||||
Supplemental Information: Cash and Investments | ||||||
September 30, | December 31, | |||||
2011 | 2010 | |||||
Unaudited | Audited | |||||
Cash and cash equivalents cash: | 4,320 |
5,945 |
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Marketable securities | 9,912 | 12,049 | ||||
Restricted cash | 489 | 493 | ||||
Total cash and investments including restricted cash | $ | 14,721 | $ | 18,487 |
CONTACT:
Jacada
Caroline Cronin, 770-776-2204
Chief Financial
Officer
ccronin@jacada.com