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 March, 2014
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 March 25, 2014: Jacada Reports 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: |
March 25, 2014 |
Jacada Reports 2013 Financial Results
Jacada completes a turnaround with net income of $118,000, a 45% increase in revenues and an increase in cash and marketable securities
ATLANTA & HERZLIYA, Israel--(BUSINESS WIRE)--March 25, 2014--Jacada Ltd., (NASDAQ: JCDAF) a leading global provider of customer engagement technology designed to simplify customer interactions and drive efficiency across all customer touch points, today reported financial results for the year ended December 31, 2013.
Financial Highlights
Recent Business Highlights
“We are proud to report such a remarkable improvement in our financial results,” commented Caroline Cronin, chief financial officer of Jacada. “We achieved a turnaround in all of the leading indicators, including strong revenue growth and an increase in cash and marketable securities. Revenue growth coupled with improved margins, reduced operating expenses, gains on the sale of certain marketable securities and an income tax benefit allowed us to report net income for the first time since the ‘Great Recession’.”
“Today, consumers demand a ‘smart’ experience when engaging with their service providers that is as easy and intuitive as using the apps on their Smart Phones. This is driving a fundamental change in how companies interact and design the experience for their consumers that is visually engaging and personalized," said Guy Yair, co-chief executive officer of Jacada. “Jacada is leading the industry towards visual customer engagement with our novel Visual IVR solution that quickly enables companies to engage their customers when and where they demand, all while answering the questions and selling more efficiently than ever before.”
Financial Results
Total revenues were $15.6 million compared to $10.8 million in 2012. Software revenues for 2013 were $2.9 million compared to $1.1 million during 2012. Services revenues were $8.9 million in 2013 and $6.9 million in 2012. Maintenance revenues were $3.7 million and $2.8 million in 2013 and 2012, respectively.
Gross margins were 62% and 38% of total revenues during 2013 and 2012, respectively. Operating expenses for 2013 were $10.4 million, compared to $11.3 million in 2012. Financial income, net, was $473,000 and $856,000 in 2013 and 2012, respectively. During 2013, the company had an income tax benefit of $382,000, while in 2012, the company had income tax expense of $55,000.
Net income for 2013 was $118,000 or $0.03 per share compared to a net loss of $6.4 million or ($1.55) per share in 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. For more information, please visit www.Jacada.com. To view a product demonstration video, click here.
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 | ||||||||
Year ended
December 31, |
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|
2013 | 2012 | ||||||
Revenues: | ||||||||
Software licenses | $ | 2,930 | $ | 1,111 | ||||
Services | 8,948 | 6,867 | ||||||
Maintenance | 3,748 | 2,789 | ||||||
Total revenues | 15,626 | 10,767 | ||||||
Cost of revenues: | ||||||||
Software licenses | 170 | 62 | ||||||
Services | 5,417 | 6,018 | ||||||
Maintenance | 353 | 629 | ||||||
Total cost of revenues | 5,940 | 6,709 | ||||||
Gross profit | 9,686 | 4,058 | ||||||
Operating expenses: | ||||||||
Research and development | 2,918 | 3,541 | ||||||
Sales and marketing | 4,398 | 4,787 | ||||||
General and administrative | 3,107 | 2,975 | ||||||
Total operating expenses | 10,423 | 11,303 | ||||||
Operating loss | (737 | ) | (7,245 | ) | ||||
Financial income, net | 473 | 856 | ||||||
Loss before taxes | (264 | ) | (6,389 | ) | ||||
Income tax benefit (expense) | 382 | (55 | ) | |||||
Net income (loss) | $ | 118 | $ | (6,444 | ) | |||
Basic net earnings (loss) per share |
$ |
0.03 |
$ |
(1.55 |
) |
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Diluted net earnings (loss) per share |
$ |
0.03 |
$ |
(1.55 |
) |
|||
Weighted average number of shares used in computing basic net income (loss) per share | 4,159,134 | 4,159,134 | ||||||
Weighted average number of shares used in computing diluted net income (loss) per share | 4,166,033 | 4,159,134 | ||||||
JACADA LTD. AND ITS SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
U.S. dollars in thousands | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
ASSETS | ||||||||
|
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CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 3,732 | $ | 3,687 | ||||
Marketable securities | 3,000 | - | ||||||
Trade receivables | 2,700 | 1,710 | ||||||
Restricted cash | 497 | 503 | ||||||
Deferred taxes | 184 | - | ||||||
Other current assets | 864 | 714 | ||||||
Total current assets | 10,977 | 6,614 | ||||||
LONG-TERM INVESTMENTS: | ||||||||
Marketable securities | 3,147 | 5,839 | ||||||
Severance pay fund | 137 | 149 | ||||||
Total long-term investments | 3,284 | 5,988 | ||||||
PROPERTY AND EQUIPMENT, NET | 439 | 560 | ||||||
Total assets | $ | 14,700 | $ | 13,213 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Trade payables | $ | 1,208 | $ | 1,008 | ||||
Deferred revenues | 1,989 | 2,332 | ||||||
Accrued expenses and other liabilities | 1,639 | 1,603 | ||||||
Total current liabilities | 4,836 | 4,943 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Deferred revenues | 526 | - | ||||||
Deferred taxes | 113 | - | ||||||
Accrued severance pay | 354 | 359 | ||||||
Other liabilities | 128 | 168 | ||||||
Total long-term liabilities | 1,121 | 527 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital | 60 | 60 | ||||||
Additional paid-in capital | 75,955 | 75,860 | ||||||
Treasury shares | (17,863 | ) | (17,863 | ) | ||||
Accumulated other comprehensive income | 2,069 | 1,282 | ||||||
Accumulated deficit | (51,478 | ) | (51,596 | ) | ||||
Total shareholders' equity | 8,743 | 7,743 | ||||||
Total liabilities and shareholders’ equity | $ | 14,700 | $ | 13,213 | ||||
JACADA LTD. AND ITS SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
U.S. dollars in thousands | ||||||||
Year ended December 31, |
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2013 | 2012 | |||||||
Cash flows from operating activities: |
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Net income (loss) | $ | 118 | $ | (6,444 | ) | |||
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Adjustments required to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Depreciation and amortization | 241 | 351 | ||||||
Stock-based compensation | 95 | (2 | ) | |||||
Gain on sale of marketable securities | (326 | ) | (689 | ) | ||||
Accrued severance pay, net | 7 | 6 | ||||||
Increase in deferred taxes, net | (345 | ) | - | |||||
Decrease (increase) in trade receivables, net | (984 | ) | 698 | |||||
Decrease (increase) in other current assets | (138 | ) | 142 | |||||
Increase (decrease) in trade payables | 193 | (600 | ) | |||||
Increase in deferred revenues | 160 | 1,591 | ||||||
Increase in accrued expenses and other liabilities | 32 | 173 | ||||||
Decrease in other long-term liabilities | (40 | ) | - | |||||
Other | 6 | 10 | ||||||
Net cash used in operating activities | (981 | ) | (4,764 | ) | ||||
Cash flows from investing activities: |
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Proceeds from sale of available-for-sale marketable securities | 1,111 | 5,590 | ||||||
Decrease (increase) in restricted cash | 6 | (16 | ) | |||||
Proceeds from sale of property and equipment | - | 1 | ||||||
Purchase of property and equipment | (127 | ) | (81 | ) | ||||
Net cash provided by investing activities | 990 | 5,494 | ||||||
Effect of exchange rate changes on cash | 36 | 13 | ||||||
Increase in cash and cash equivalents | 45 | 743 | ||||||
Cash and cash equivalents at the beginning of the period | 3,687 | 2,944 | ||||||
Cash and cash equivalents at the end of the period | $ | 3,732 | $ | 3,687 | ||||
JACADA LTD. AND ITS SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
U.S. dollars in thousands |
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Comprehensive Income |
Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to 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, net of taxes, for 2013 and 2012 (in thousands): |
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Year ended December 31, | |||||||
2013 | 2012 | |||||||
Net Income (loss) | $ | 118 | $ | (6,444 | ) | |||
Other comprehensive income: | ||||||||
Change in unrecognized gains/losses on derivative instruments | (39 | ) | 166 | |||||
Change in foreign currency translation | 8 | 111 | ||||||
Change in unrealized gains/losses on marketable securities | 1,418 | 7 | ||||||
Gain on sale of marketable securities | (326 | ) | (689 | ) | ||||
Income Tax related to other comprehensive income | (274 | ) | - | |||||
Total comprehensive income (loss) | $ | 905 | $ | (6,103 | ) | |||
The following table shows the components of Accumulated Other Comprehensive Income, net of taxes, as of December 31, 2013 and December 31 2012 (in thousands): |
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Year ended
December 31, |
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2013 | 2012 | ||||||
Net unrealized gains/losses on marketable securities | $ | 2,127 | $ | 1,035 | |||
Net unrecognized gains/losses on derivative instruments | 49 | 88 | |||||
Cumulative foreign currency translation | 167 | 159 | |||||
Income Tax related to other comprehensive income | (274 | ) | - | ||||
Total comprehensive income | $ | 2,069 | $ | 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