Jacada Reports Record Revenue for the First Quarter 2000 -- Software License Revenue Grows 100 Percent
ATLANTA--(BUSINESS WIRE)--May 3, 2000--Jacada Ltd. (NASDAQ: JCDA - news), a leading provider of Internet infrastructure software, today reported record first quarter results for the period ended March 31, 2000.
Revenue for the first quarter was up a record 66 percent to $4.8 million, as compared to $2.9 million in the same period last year. Software license revenue for the first quarter increased 100 percent compared with the same period last year. Gross profit for the quarter increased by 64 percent to $3.6 million, as compared to $2.2 million in first quarter 1999. Net income for the quarter was $245 thousand or $0.01 per share, compared to a net loss of $435 thousand, or a loss of $0.12 per share, in the first quarter of 1999. This was the fourth consecutive quarter in which the company reported positive earnings.
``This quarter we significantly grew our software license revenues and built our sales pipeline, and at the same time reported positive bottom line results,'' said Mike Potts, president of Jacada. ``We have achieved triple-digit software sales growth while maintaining our expense ratios in accordance with our business plan. This is Jacada's ninth consecutive quarter of revenue growth and fourth consecutive quarter of positive earnings.''
Highlights for the First Quarter:
Products - During the first quarter the company entered the wireless market with the launch of Jacada© Wireless and announced the general availability of Jacada© for Palm. Jacada for Palm is designed to meet the requirements of wireless Palm devices such as the Palm VII(TM). It is targeted at corporations and business users, enabling remote users to easily access mainframe-based corporate data. The company also completed certification testing and benchmarking of the Jacada© Server on Sun Solaris servers in the engineering labs of Sun Microsystems. The benchmark results exceeded expectations of both companies and make Solaris the most scalable server for implementing Jacada e-business solutions in large mainframe environments.
Customers - The direct sales channel continued strong growth. Some vof the most significant new business won during the quarter includes agreements with Prudential Insurance Company of America, Archer Daniels Midland, Cardinal Health, Saks Inc., and Unigroup. Jacada continued to expand its indirect channel with new strategic independent software vendor agreements, including the recently announced agreement with CommercialWare.
``Our success in the rapid expansion of our direct sales channel and customer base is a testament to the investments that we continue to make in our infrastructure and successful ramp-up of new sales and marketing personnel,'' Potts said. ``We will continue to invest in the growth of our three industry verticals which include automotive, federal government and insurance while continuing to target additional industry verticals where our solution makes sense and the market opportunity is the most significant.''
New Product Announcement - Jacada Innovator
In a separate release today, Jacada also announced early availability and first customer shipment of Jacada© Innovator. Jacada Innovator is the first product available that enables COBOL and RPG developers to rapidly and easily develop e-business applications with minimal additional training.
Jacada Innovator addresses a critical problem within the legacy development community. Jacada Innovator now gives three million COBOL and RPG developers the ability to rapidly develop Internet and wireless applications, without having to learn significant new skills.
``The delivery of Jacada Innovator is a milestone for our company and the industry,'' said Mike Potts, president of Jacada. ``We anticipate financial contributions to begin this year with the early release of the product.''
About Jacada
Founded in 1990, Jacada Ltd. provides a complete software infrastructure to rapidly transform legacy systems into e-business and wireless solutions and to empower enterprise developers to build Internet applications. The Company operates globally with headquarters in Atlanta, Georgia; Herzliya, Israel; and London, England. Jacada can be reached at www.jacada.com or at 1-800-773-9574.
Jacada Ltd. will host a Web cast on Wednesday, May 3, 2000, beginning at 10:00 a.m. (EDT) to present first quarter 2000 results. The Web cast can be accessed at www.streetevents.com/data/j/jcda or at the Investor-Calendar section of the company's Web site at 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.
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JACADA LTD.
CONSOLIDATED
BALANCE SHEETS
U.S. Dollars in thousands
March 31, December 31,
2000 1999
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 6,143 $ 5,141
Short-term deposit 3,486 56
Marketable securities 30,193 50,519
Trade receivables (net of allowance
for doubtful accounts of $40
Other accounts receivable 473 261
------- -------
Total current assets 44,409 59,737
------- -------
LONG-TERM RECEIVABLES 115 128
------- -------
LONG-TERM INVESTMENTS
Marketable securities 14,943 --
Severance pay fund 458 430
------- -------
15,401 430
------- -------
PROPERTY AND EQUIPMENT, NET 2,294 2,140
------- -------
$62,219 $62,435
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JACADA LTD.
CONSOLIDATED
BALANCE SHEETS
U.S. Dollars in thousands, except share data
March 31, December 31,
2000 1999
Unaudited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 185 $ 194
Trade payables 1,194 1,443
Deferred revenues 2,636 3,024
Accrued expenses and other liabilities 1,711 1,761
-------- --------
Total current liabilities 5,726 6,422
-------- --------
LONG-TERM LIABILITIES:
Accrued severance pay 841 677
Long-term debt, net of current portion 144 186
Offering expenses payable 144 296
-------- --------
1,129 1,159
-------- --------
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value:
Authorized: 30,000,000 as of December
31, 1999 and March
Additional paid-in capital 67,140 66,941
Deferred compensation (207) (272)
Accumulated deficit (11,622) (11,867)
-------- --------
Total Shareholders' equity 55,364 54,854
-------- --------
$ 62,219 $ 62,435
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JACADA LTD.
CONSOLIDATED
STATEMENTS OF OPERATIONS
In U.S. Dollars in thousands, except share and per share data
Three months ended
March 31,
--------------------------------
2000 1999
--------------- --------------
Unaudited
--------------------------------
Revenues:
Software license $ 3,102 $ 1,550
Services and maintenance 1,724 1,356
------------ ------------
Total revenues 4,826 2,906
------------ ------------
Cost of revenues:
Software license 232 124
Services and maintenance 1,003 594
------------ ------------
Total cost of revenues 1,235 718
------------ ------------
Gross profit 3,591 2,188
------------ ------------
Operating expenses:
Research and development 1,072 833
Sales and marketing 2,323 1,324
General and administrative 684 445
------------ ------------
Total operating expenses 4,079 2,602
------------ ------------
Operating loss (488) (414)
Financial income (expenses) net 733 (15)
Other expenses, net -- (6)
------------ ------------
Net income (loss) $ 245 $ (435)
============ ============
Basic net income (loss) per share $ 0.01 $ (0.12)
============ ============
Weighted average number of shares
used in computing basic net
income (loss) per share 17,806,888 3,621,893
============ ============
Diluted net income (loss) per share $ 0.01 $ (0.12)
============ ============
Weighted average number of shares
used in computing diluted net
income (loss) per share 19,639,122 3,621,893
============ ============ |
