Jacada Reports Record Revenue for the Fourth Quarter and Year-End Results
ATLANTA, Feb. 16 /PRNewswire/ -- Jacada Ltd. (Nasdaq: JCDA) today reported record fourth quarter and year-end results for the period ended December 31, 1999. Jacada provides a complete software infrastructure to rapidly transform legacy systems into e-business solutions and to empower enterprise developers to build Internet applications.
Revenue for the fourth quarter was up 53 percent at $4.4 million, as compared to $2.9 million in the same period last year. Gross profit for the quarter was up 62 percent to $3.4 million, as compared to $2.1 million in 1998. Net income for the quarter was $382 thousand or $0.02 per share, compared to a net loss of $220 thousand, or a loss of $0.02 per share (proforma), in the fourth quarter of 1998.
For the year ended December 31, 1999, revenue was $14.6 million, up 54 percent from $9.5 million in 1998. Gross profit for the year increased 70 percent to $11.2 million compared to $6.6 million in 1998. The net loss for 1999 was $6 thousand or $0.00 per share as compared to a loss of $2.9 million, or a loss of $0.25 per share (proforma), in 1998. Jacada indicated that the e-business portion of its revenue for the year was up 93 percent compared with the prior year and represented 80 percent of revenue for the year.
"We are extremely pleased with our strong revenue results. This quarter marks the eighth consecutive quarter of revenue growth for the Company," said Mike Potts, president of Jacada. "During the fourth quarter, we were able to continue our revenue growth while improving bottom line results. Gross margins for the quarter reached a record high of 78 percent. Our revenue growth is a reflection of our increased brand recognition, the continued success of our software and services in the marketplace, the leverage we enjoy in our partnerships with leading systems integrators and independent software vendors, as well as our penetration into new vertical markets."
During the year, the Company successfully penetrated the automotive and insurance industries as well as the federal government. Jacada signed new contracts with Porsche and BMW and extended the North American software license agreement with Saab to include their international dealer network. In the fourth quarter, the Company signed new agreements in Europe with Daimler-Chrysler and Volvo.
In the insurance industry, the Company signed a number of new contracts in 1999 including AIG, Ascensus, and State Auto Insurance. In the fourth quarter, Jacada won a significant contract with Zurich Insurance, and ALICO (a division of AIG) expanded its license agreement with the Company for distribution to users worldwide. At Zurich, Jacada(R) for Java will be used to deliver an e-business application that will improve employee productivity and increase the accuracy of policy information.
In the federal government market, the Company signed a significant deal in the fourth quarter to deliver an intranet application for 25,000 users for the Department of the Interior (DOI). The DOI became the fourth federal agency to license software from Jacada.
"Moving forward, we plan to continue growing the Company quickly while controlling costs," stated Gideon Hollander, founder and CEO of Jacada. "We will continue to seek out and leverage strategic partnerships to grow our customer base as well as increase our own direct sales force. With the end of Y2K budget constraints, companies are now focusing on delivering e-business solutions that leverage their critical legacy applications. Our adaptive software and multiple sales channels ensure that Jacada is well positioned to capitalize on this huge market opportunity."
Founded in 1990, Jacada Ltd. provides a complete software infrastructure to rapidly transform legacy systems into e-business solutions and to empower enterprise developers to build Internet applications. The Company operates globally with headquarter offices in Atlanta, Georgia; Herzliya, Israel; and London, UK. Jacada can be reached at www.jacada.com or at 1-800-773-9574. The Company's ordinary shares are traded on Nasdaq under the symbol JCDA.
Jacada Ltd. will host a Web cast on Wednesday, February 16, 2000, beginning at 10:00 a.m. (EST) to present fourth quarter 1999 and full year 1999 earnings. The Web cast can be accessed at www.streetevents.com/data/j/jcda or www.jacada.com.
Statements in this press release or otherwise attributable to the Company regarding the Company's business which are not historical fact, including those regarding growth in its business, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks detailed in the Company's Offering Prospectus of October 14, 1999 and filings with the SEC, that could cause the Company's actual results to differ materially from those expressed or implied by these forward-looking statements.
JACADA LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
In U.S. Dollars in thousands, except share and per share data
Audited
Year ended December 31,
1998 1999
Revenues:
Software license $ 6,469 $ 8,831
Service and maintenance 3,019 5,768
Total revenues 9,488 14,599
Cost of revenues:
Software license 342 639
Service and maintenance 2,558 2,740
Total cost of revenues 2,900 3,379
Gross profit 6,588 11,220
Operating expenses:
Research and development, net 2,440 3,267
Selling and marketing, net 5,411 6,529
General and administrative 1,637 1,960
Total operating expenses 9,488 11,756
Operating loss (2,900) (536)
Interest income 197 770
Interest expenses (216) (206)
Other expenses, net (1) (34)
Net loss (2,920) $ (6)
Basic and diluted net loss
per share $ (0.81) $ --
Weighted average number
of shares used in
computing basic and
diluted net loss
per share 3,615,143 6,572,476
JACADA LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
In U.S. Dollars in thousands, except share and per share data
Unaudited
Three months ended
December 31,
1998 1999
Revenues:
Software license $ 1,848 $ 2,987
Service and maintenance 1,039 1,419
Total revenues 2,887 4,406
Cost of revenues:
Software license 87 203
Service and maintenance 684 781
Total cost of revenues 771 984
Gross profit 2,116 3,422
Operating expenses:
Research and development, net 569 852
Selling and marketing, net 1,379 2,201
General and administrative 353 547
Total operating expenses 2,301 3,600
Operating loss (185) (178)
Interest income 54 584
Interest expenses (88) (25)
Other income (expenses), net (1) 1
Net income (loss) $ (220) $ 382
Basic earnings (loss)
per share $ (0.06) $ 0.02
Weighted average number
of shares used in
computing basic earning
(loss) per share 3,621,893 15,437,634
Diluted earnings (loss)
per share $ (0.06) $ 0.02
Weighted average number
of shares used in
computing diluted
earning (loss) per
share 3,621,893 18,859,529
Pro forma basic earnings
(loss) per share $ (0.02) $ 0.02
Pro forma weighted
average number
of shares used in
computing basic
earning (loss) per
share 12,029,528 16,712,830
Pro forma diluted earnings
(loss) per share $ (0.02) $ 0.02
Pro forma weighted
average number of
shares used in computing
diluted earning (loss)
per share 12,029,528 18,859,529
JACADA LTD.
CONSOLIDATED BALANCE SHEETS
In U.S. Dollars in thousands, except share data
Audited
December 31,
1998 1999
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents $ 5,613 $ 5,141
Short-term deposit -- 56
Trade receivables (net of
allowance for doubtful
accounts of $ 30 and $ 40
as of December 31, 1998
and 1999, respectively) 2,966 3,760
Other accounts receivable 171 261
Marketable securities -- 50,519
8,750 59,737
LONG-TERM RECEIVABLES 152 128
SEVERANCE PAY FUND 338 430
PROPERTY AND EQUIPMENT, NET 1,891 2,140
$ 11,131 $ 62,435
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt $ 2,022 $ --
Current portion of
long-term debt 129 194
Trade payables 437 1,443
Deferred revenues 4,152 3,024
Accrued expenses and
other liabilities 862 1,761
7,602 6,422
LONG TERM LIABILITIES:
Accrued severance pay 500 677
Long-term debt, net of
current portion 90 186
Offering expenses
payable -- 296
590 1,159
COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY:
Preferred shares of NIS 0.01
par value:
Authorized: 9,750,000 as of
December 31, 1998 and 0 as of
December 31, 1999; Issued and
outstanding: 8,407,635 as of
December 31, 1998 and 0 as of
December 31, 1999; 26 --
Ordinary shares of NIS 0.01
par value:
Authorized: 20,250,000 as of
December 31, 1998 and 30,000,000
as of December 31, 1999; Issued
and outstanding: 3,621,893 as of
December 31, 1998 and
17,610,893 as of
December 31, 1999 12 52
Additional paid-in capital 14,887 66,941
Deferred compensation (125) (272)
Accumulated deficit (11,861) (11,867)
Total shareholders' equity 2,939 54,854
$ 11,131 $ 62,435
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SOURCE: Jacada Ltd.
CONTACT: Mandy Haagenson or Lisa Gagnon, both of Fleishman Hillard, 404-659-4446 |
