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 December 2013
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 December 23, 2013: Jacada Reports First Half 2013 Financial 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: |
December 23, 2013 |
Jacada Reports First Half 2013 Financial Results
Increase in revenues, reduction in losses, and the addition of significant new customers mark a turnaround in Jacada’s financial results
ATLANTA--(BUSINESS WIRE)--December 23, 2013--Jacada Ltd., a leading global provider of customer service technology designed to simplify the interaction between businesses and their customers, today reported financial results for the six months ended June 30, 2013.
First Half Highlights
First Half business highlights
“The first six months of 2013 mark a significant new path in our financial results,” commented Caroline Cronin, chief financial officer of Jacada. “We are proud to report that strong software license revenues, the result of several significant new customers, improved services margins and continued operating expense controls, have allowed us to reduce our loss in the first half of 2013 to a mere $0.5 million, a remarkable improvement over the $3.2 million loss in the first half of 2012. An even stronger indication of our financial improvement is that we have more or less maintained the same level of cash and marketable securities throughout the first half of 2013, ending the quarter with $9.6 million in cash and marketable securities.”
“In an always-on, data-hungry society, consumers want the ability to decide what services they need, along with how and where they will consume them. Empowering customers to take control of their experiences in real time, across any touch point requires our customers to remove traditional barriers to service and system convergence and simplifying their customer interactions,” said Guy Yair, co-chief executive officer of Jacada. “Jacada will keep sharing its expertise to help customers to get the most out of every system investment. We make our customer’s objectives our primary goal, focusing on delivering a superior customer experience, driving additional revenue streams, and reducing operational costs.”
Financial Results
For the first half of 2013, total revenues were $7.1 million compared to $5.6 million in the first half of 2012. Software revenues for the 2013 first half were $1.2 million compared to $312,000 during the 2012 first half. Services revenues were $4.2 million in the 2013 first half and $3.9 million in the 2012 first half. Maintenance revenues were $1.7 million and $1.3 million in the first halves of 2013 and 2012, respectively.
Gross margins were 63% and 35% of total revenues during the 2013 and 2012 first halves, respectively. First half 2013 operating expenses were $5.1 million, compared to $5.7 million in the first half of 2012.
The 2013 first half net loss was $0.5 million or ($0.12) per share compared to a net loss of $3.2 million or ($0.77) per share in the first half of 2012.
About Jacada
Jacada solutions improve an organization’s customer experiences and reduce their operational costs. Jacada enables them to deliver advanced customer and agent interactions by implementing cutting‐edge mobile customer service and visual IVR solutions, simplified agent desktops, and process optimization products. Customers can benefit from an improved customer service experience at every touch point with the organization, whether at the call center, on the mobile, or at the retail store. Jacada projects often deploy in less than six months, and customers often realize a complete return on investment within 12 months of deployment. Founded in 1990, Jacada operates globally with offices in Atlanta, USA; London, England; Munich, Germany; and Herzliya, Israel. More information is available at www.Jacada.com.
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 |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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U.S. dollars in thousands, except per share data |
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Six months ended
June 30, |
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2013 | 2012 | |||||||
Unaudited | ||||||||
Revenues: | ||||||||
Software licenses | $ | 1,190 | $ | 312 | ||||
Services | 4,205 | 3,949 | ||||||
Maintenance | 1,749 | 1,349 | ||||||
Total revenues | 7,144 | 5,610 | ||||||
Cost of revenues: | ||||||||
Software licenses | 97 | 16 | ||||||
Services | 2,339 | 3,263 | ||||||
Maintenance | 188 | 353 | ||||||
Total cost of revenues | 2,624 | 3,632 | ||||||
Gross profit | 4,520 | 1,978 | ||||||
Operating expenses: | ||||||||
Research and development | 1,507 | 1,628 | ||||||
Sales and marketing | 2,106 | 2,519 | ||||||
General and administrative | 1,487 | 1,529 | ||||||
Total operating expenses | 5,100 | 5,676 | ||||||
Operating loss | (580 | ) | (3,698 | ) | ||||
Financial income, net | 76 | 498 | ||||||
Pretax loss | (504 | ) | (3,200 | ) | ||||
Tax benefit (expense) | - | - | ||||||
Net loss | $ | (504 | ) | $ | (3,200 | ) | ||
Basic and diluted net loss per share | $ | (0.12 | ) | $ | (0.77 | ) | ||
Weighted average number of shares used in computing basic and diluted net loss per share | 4,159,134 | 4,159,134 | ||||||
JACADA LTD. AND ITS SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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U.S. dollars in thousands |
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June 30, | December 31, | |||||||
2013 | 2012 | |||||||
Unaudited | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 2,457 | $ | 3,687 | ||||
Trade receivables | 2,621 | 1,710 | ||||||
Restricted cash | 551 | 503 | ||||||
Prepaid expenses | 282 | 191 | ||||||
Other current assets | 512 | 523 | ||||||
Total current assets | 6,423 | 6,614 | ||||||
LONG-TERM ASSETS: | ||||||||
Marketable securities | 6,617 | 5,839 | ||||||
Severance pay fund | 121 | 149 | ||||||
Other assets | 77 | 51 | ||||||
Property and equipment, net | 448 | 560 | ||||||
Total long-term assets | 7,263 | 6,548 | ||||||
Total assets | $ | 13,686 | $ | 13,213 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Trade payables | $ | 1,040 | $ | 1,008 | ||||
Deferred revenues | 2,938 | 2,332 | ||||||
Accrued expenses and other liabilities | 1,199 | 1,603 | ||||||
5,177 | 4,943 | |||||||
LONG-TERM LIABILITIES: | ||||||||
Accrued severance pay | 319 | 430 | ||||||
Other liabilities | 148 | 188 | ||||||
Total long-term liabilities | 467 | 618 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital | 60 | 60 | ||||||
Additional paid-in capital | 75,921 | 75,860 | ||||||
Treasury shares | (17,863 | ) | (17,863 | ) | ||||
Accumulated other comprehensive income | 2,024 | 1,282 | ||||||
Accumulated deficit | (52,100 | ) | (51,596 | ) | ||||
8,042 | 7,743 | |||||||
Total liabilities | $ | 13,686 | $ | 13,213 | ||||
JACADA LTD. AND ITS SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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U.S. dollars in thousands |
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Six months ended
June 30, |
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2013 | 2012 | |||||||
Unaudited | ||||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (504 | ) | $ | (3,200 | ) | ||
Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 136 | 185 | ||||||
Stock-based compensation related to options granted to employees, non-employees and directors | 61 | 25 | ||||||
Gain from sales of marketable securities | - | (386 | ) | |||||
Accrued severance pay, net | (12 | ) | 21 | |||||
Increase in trade receivables, net | (940 | ) | (140 | ) | ||||
Increase in other current assets | (128 | ) | (187 | ) | ||||
Increase (decrease) in trade payables | 33 | (569 | ) | |||||
Increase in deferred revenues | 634 | 490 | ||||||
Decrease in accrued expenses and other liabilities | (392 | ) | (14 | ) | ||||
Decrease in other long-term liabilities | (20 | ) | - | |||||
Other |
- |
2 | ||||||
Net cash used in operating activities | (1,132 | ) | (3,773 | ) | ||||
Cash flows from investing activities: | ||||||||
Proceeds from sale and redemption of available-for-sale marketable securities | - | 3,493 | ||||||
Decrease (increase) in restricted cash | (48 | ) | 3 | |||||
Purchase of property and equipment | (26 | ) | (43 | ) | ||||
Net cash (used in) provided by investing activities | (74 | ) | 3,453 | |||||
Effect of exchange rate changes on cash | (24 | ) | (23 | ) | ||||
Decrease in cash and cash equivalents | (1,230 | ) | (343 | ) | ||||
Cash and cash equivalents at the beginning of the period | 3,687 | 2,944 | ||||||
Cash and cash equivalents at the end of the period | $ | 2,457 | $ | 2,601 | ||||
Non-cash investing information: | ||||||||
Investment in leasehold improvements upon accrued expenses and other liabilities |
- |
$ | 40 | |||||
Investment in leasehold improvements upon other long-term liabilities |
- |
$ | 188 | |||||
JACADA LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
U.S. dollars in thousands
Comprehensive Income
Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. The Company’s other comprehensive income consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, unrealized gains and losses on marketable securities classified as available-for-sale, and net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges.
The following table presents the components of comprehensive income, during the six-month periods ended June 30, 2013 and June 30, 2012 (in thousands):
Six months ended
June 30, |
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2013 | 2012 | |||||||
Net loss | $ | (504 | ) | $ | (3,200 | ) | ||
Other comprehensive income: | ||||||||
Change in unrecognized gains/losses on derivative instruments | (22 | ) | (8 | ) | ||||
Change in foreign currency translation | (14 | ) | 22 | |||||
Change in unrealized gains/losses on marketable securities | 778 | 176 | ||||||
Total comprehensive income | $ | 238 | $ | (3,010 | ) | |||
The following table summarizes activity in other comprehensive income related to derivatives, held by the Company during the six-month periods ended June 30, 2013 and June 30, 2012 (in thousands):
Six months ended
June 30, |
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2013 | 2012 | |||||||
Change in fair value of derivatives | $ | (91 | ) | $ | 49 | |||
Adjustment for net gains/losses realized and included in net income | 69 | (57 | ) | |||||
Change in unrecognized gains/losses on derivative instruments | $ | (22 | ) | $ | (8 | ) | ||
The following table shows the components of accumulated other comprehensive income, as of June 30, 2013 and December 31, 2012 (in thousands):
June 30, |
December 31, |
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Net unrealized gains/losses on marketable securities | 1,813 | 1,035 | ||
Net unrecognized gains/losses on derivative instruments | 66 | 88 | ||
Cumulative foreign currency translation | 145 | 159 | ||
Total accumulated other comprehensive income | 2,024 | 1,282 |
CONTACT:
Jacada
A. Lee Judge, 770-776-2326
Marketing Programs
Manager
ljudge@jacada.com
or
Caroline Cronin,
770-776-2204
Chief Financial Officer
ccronin@jacada.com