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Technology Stocks : Jacada Ltd (JCDA) -- Ignore unavailable to you. Want to Upgrade?

To: Amots who wrote (310)	2/23/2000 1:57:00 PM
From: BRA	Read Replies (1) \| Respond to of 401

Thanks for the info on the float. My patience is growing thin on this one but I am going to give it a couple more quarters. Every tech guy that I show this company to loves it. Just to state the obvious, I think it needs to start showing up on a few more radar screens to truly take off. Does anyone know anything about the IR/PR firm that they recently hired? Brett

To: Amots who wrote (310)	3/12/2000 11:24:00 PM
From: BRA	Read Replies (1) \| Respond to of 401

LEHMAN BROTHERS INC. Headline: Jacada Ltd.: Reiterate Buy on Recent Price Weakness Author Rating: 1 Company: JCDA Country: COM CUS Industry: DATAPR Ticker : JCDA Rank(Old): 1-Buy Rank(New): 1-Buy Price : $24 1/2 52wk Range: $37-8.00 Price Target (Old): $40 Today's Date : 03/01/00 Price Target (New): $40 Fiscal Year : DEC ------------------------------------------------------------------------------ EPS 1999 2000 2001 - - QTR. Actual Old New Old New Old New 1st: -0.04A -0.03E -0.03E - -E - -E - - 2nd: 0.00A -0.02E -0.02E - -E - -E - - 3rd: 0.00A -0.02E -0.02E - -E - -E - - 4th: 0.02A 0.00E 0.00E - -E - -E - - ------------------------------------------------------------------------------ Year:$ -0.02A $ -0.07E $ -0.07E $ 0.01E $ 0.01E $ - $ - Street Est.: $ -0.08E $ -0.08E $ 0.11E $ 0.11E $ - - $ - - ------------------------------------------------------------------------------ Price (As of 3/01): $24 1/2 Revenue (00): 23.2M Return On Equity (00): N/A Proj. 5yr EPS Grth: 35% Shares Outstanding: 18.9 Mil. Dividend Yield: N/A Mkt Capitalization: 450.01 Mil. P/E 2000; 2001 : N/M; N/M X Current Book Value: N/A Convertible: None Debt-to-Capital: N/M Disclosure(s): C, A ------------------------------------------------------------------------------ Before bouncing off lows yesterday, Jacada down nearly 30% since reporting earlier in month, despite solid earnings report and accelerating business prospects. Strongly reiterate our 1-Buy and $40 price target. Believe current valuation is appropriate time for establishing or adding to positions. Believe decline in price has little relevance to fundamentals. Lack of liquidity and sexier B2B, I-infrastructure companies appear to be lowering attention spans. We remind investors that Jacada fills important infrastructure niche in providing Web interfaces to mainframe applications. Jacada's backlog and visibility are at record levels. As a result, we expect a significant uptick in the growth rate of higher margin license revenue from our forecast of 60.8%. We also expect upside of several million to our FY00 estimate of $23.2M. Current quarter is in excellent shape. At 18 times FY00 revenue, believe Jacada is under-appreciated and undervalued, particularly compared to companies related to the application integration space, which are trading in the 60-100 times range. We believe Jacada could trade to 30 times on improving fundamentals, business execution and new product releases. We see little possibility of a revenue and earnings disappointment over the coming quarters. ------------------------------------------------------------------------------ Summary: Investment Thesis: We continue to view Jacada as a unique B2B play occupying an important and growing niche in the area of mainframe integration. Jacada's Jacada for Java conversion engine gives new life to mainframe applications by converting a green-screen user interface into a versatile Web page that can be accessed through a browser. The implication is significant for large companies and governments who can now extend their fully functional legacy applications to suppliers, partners, customers and employees via the Web. Demand for Jacada's e-business products are at record levels, growing in excess of 80% and product license revenue is showing strong acceleration. We expect license revenue growth to considerably exceed our 60.8% forecast for FY00. Unlike most early stage companies, Jacada operates near profitability and losses (currently -$0.07 FY00) could decrease as a result of this greater concentration of license revenue. Market Opportunity: IDC has sized the Web to host market (mainframe) at $1.2B by 2003. Corporations and governments have just completed a $100B+ Y2K upgrade of their primarily mainframe systems. Most of these mission critical applications will continue to be used for years to come. The challenge for many IT managers is how best to utilize these applications in a Web environment without having to do expensive and time consuming code rewrite. Jacada provides the products and services that address this challenge. Demand should continue to be strong as corporations move their legacy applications to the Web. Recent Events: Jacada recently reported 4Q99 results, with revenue and EPS of $4.4M and $0.02, exceeding our $4.1M and ($0.01) estimates. The stock has since traded down 30%, despite record backlog and visibility. We cite two factors for the decline: 1) short attention spans with some investors who have become enamored with 10-20% daily price moves in the B2B and I- infrastructure areas and 2) liquidity. The stock over the past week has been under pressure on little volume. We also believe that coming out of the quarter that some investors expected greater than 7% upside in the quarter. We remind investors that Jacada is a very conservative company focused on building a business with strong earnings visibility. We also believe that business is improving to the point where we may see a significant increase in the product license revenue growth rate (currently 60.8%). This reflects a maturation of the primary Jacada for Java product, which is beginning to move from trial deployments to full-scale deployments. The product is also requiring less consulting support and we may see slight services revenue as a result. Catalysts: Near-term catalysts include the release of Jacada Innovator over the next few weeks. This product is two quarters ahead of schedule and the beta has already resulted in firm orders. Jacada Innovator's addressable market is the six million developers who continue to develop applications in their native programming languages (i.e. COBOL). Innovator allows developers to continue to write new applications and extend them to the Web. The distinction here is new vs. legacy apps. Jacada Innovator has been co- developed with IBM, one of Jacada's largest partners. Little contribution is baked into our FY00 model, though we expect this product to potentially represent a significant source of upside over time. We also will be looking for announcements in the rapidly growing wireless and XML areas over the next couple of months in addition to new customer wins in the very near term. Valuation: At 18 times FY00, we view Jacada as undervalued, particularly when compared to high flying application integration companies which are trading in excess of 60-100 times. While not directly in the same space, Jacada provides products and services that facilitate and bridge the gap of moving applications to the Internet. We believe Jacada could trade in excess 30 times revenue, nearly twice current valuation, yet a still a significant discount to other high flyers in this space. Strongly reiterate our 1-Buy and $40 price target.

To: Amots who wrote (310)	4/10/2000 5:52:00 PM
From: BRA	Read Replies (1) \| Respond to of 401

PASSCALL AND JACADA PARTNER TO DELIVER ENTERPRISE WAP SOLUTIONS --------------------------------------------------------------- Jacada and PassCall Advanced Technologies Ltd., recently announced a strategic alliance to market and deliver solutions that will provide immediate and complete connectivity to any Internet and mainframe application from any wireless device. Under the agreement, PassCall and Jacada will work together to deliver WAP-based solutions to AS/400 and mainframe customers worldwide. Read the press release at jacada.com CBSI AND JACADA PARTNER TO DELIVER WIRELESS AND E-BUSINESS SOLUTIONS -------------------------------------------------------------------- Jacada and Complete Business Solutions, Inc., (CBSI) have formed a strategic partnership to market and deliver wireless and e-business solutions. Under the agreement, CBSI will market and deliver Jacada Wireless and other Jacada e-business solutions to its customers worldwide. Read the press release at jacada.com JACADA JOINS WAP FORUM ---------------------- As a key part of its initiative into the wireless market, Jacada has joined the Wireless Application Protocol (WAP) Forum. The WAP Forum, is an international industry association dedicated to ensuring product interoperability and growth of the wireless market. Jacada has already announced Jacada for Palm, the first offering in what will be a full suite of products under the Jacada Wireless name. Read the WAP Forum press release at jacada.com Read about Jacada for Palm at jacada.com FREE REPORT ON JACADA DISTRIBUTED BY META GROUP ----------------------------------------------- Receive this in-depth analysis of Jacada conducted by ComputerWire and distributed by META Group. Find out why independent technology analysts consider Jacada to be the leading provider of solutions for extending legacy systems into e-business and wireless solutions. This report is absolutely FREE, but will only be available for a limited time. Simply access jacada.com to obtain your free copy.