ATLANTA, GA and HERZLIYA, ISRAEL--(Marketwired - March 16, 2016) - Jacada Ltd., (
Financial Highlights
- 6% revenue growth to $17.3 million in 2015 from $16.4 million in 2014
- Growth of 83% in Software Revenue to $4.5 million in 2015 from $2.4 million in 2014
- Reduced operating loss to $1.1 million in 2015 from $1.6 million in 2014
- Cash and marketable securities over $7.0 million as of December 31, 2015
2015 and Recent Business Highlights
- Increased the total value of Visual IVR contracts obtained in 2015 by five times the amount obtained in 2014. New contracts were entered into with customers such as a leading credit card company, a US state welfare system, an international postal company, and a leading US health insurance provider, as well as the extension of a contract with a Fortune 50 software manufacturer, among others.
- Continued to onboard customers to our cloud version of Jacada Visual IVR to empower the omnichannel experience for consumers across the globe. These, combined with other on-premise subscription-based customers, allowed us to secure contracts with over $1 million in annual subscription revenue. Investments in the continued advancement of these products has resulted in the development of a first-of-its-kind customer engagement hub (web based Interaction Designer).
- Four-fold growth in contracted revenues through partnerships with call center host providers, large system integrators and technology partners. Such partnerships included one of the largest BPO's in India, to which we sold Jacada's Workspace, Automation and Integration, and Agent Scripting products. As part of the digital transformation initiative, we partnered with Cisco as a go-to-market partner for mobile customer service engagement and Visual IVR.
"We have seen our 2014 investments in new technologies, new partnerships, and new business models produce results in 2015. We have contracted with numerous customers around the globe for Visual IVR, evidencing the demand for our new technologies and cloud-based products. Contracted subscription revenue increased four-fold over 2014, and our partnerships contributed significantly to 2015 with four-fold growth in contracted revenue," commented Caroline Cronin, Chief Financial Officer of Jacada. "These investments contributed to total revenue growth to $17.3 million and improved operating results to a loss of $1.1 million compared to a loss of $1.6 million in 2014."
"Our 2015 year was marked by requests for deeper Jacada engagement by several of the largest and most recognized software, telecom, and insurance entities," said Guy Yair, Co-Chief Executive Officer of Jacada. "Jacada's technological advances and innovations have allowed us to obtain a solid footing as a leader in Visual IVR solutions, while our core technologies have seen new opportunities for growth over the past year with both new and existing clients."
Financial Results
Total revenues were $17.3 million in 2015 compared to $16.4 million in 2014. Software revenues grew to $4.5 million for 2015 from $2.4 million for 2014. Services revenues were $8.4 million in 2015 and $9.7 million in 2014. Maintenance revenues were $4.4 million and $4.2 million in 2015 and 2014, respectively.
Gross margins were 60% in both 2015 and 2014. Operating expenses were also consistent at $11.5 million for both 2015 and 2014. Financial expense, net, was $38,000 in 2015, while financial income, net, was $1.9 million in 2014, the result of the sale of a portion of the company's marketable securities. During 2015, the company had an income tax expense of $84,000, while in 2014, the company had income tax expense of $1.0 million.
The net loss for 2015 was $1.2 million, or $(0.30) per share, compared to a net loss of $668,000, or ($0.16) per share, in 2014.
About Jacada
Jacada provides solutions that simplify and improve the effectiveness of customer interactions. Jacada's mobile, customer, agent desktop, and process optimization solutions help companies reduce the cost of their operations, drive customer satisfaction, and provide a complete return on investment within the first year after 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 | |||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| U.S. dollars in thousands, except per share data | |||||||||
|
Year ended December 31, |
|||||||||
| 2015 | 2014 | ||||||||
| Revenues: | |||||||||
| Software licenses | $ | 4,459 | $ | 2,437 | |||||
| Services | 8,443 | 9,687 | |||||||
| Maintenance | 4,421 | 4,249 | |||||||
| Total revenues | 17,323 | 16,373 | |||||||
| Cost of revenues: | |||||||||
| Software licenses | 97 | 175 | |||||||
| Services | 6,408 | 5,813 | |||||||
| Maintenance | 479 | 496 | |||||||
| Total cost of revenues | 6,984 | 6,484 | |||||||
| Gross profit | 10,339 | 9,889 | |||||||
| Operating expenses: | |||||||||
| Research and development | 3,177 | 3,481 | |||||||
| Sales and marketing | 5,223 | 5,052 | |||||||
| General and administrative | 3,058 | 2,998 | |||||||
| Total operating expenses | 11,458 | 11,531 | |||||||
| Operating loss | (1,119 | ) | (1,642 | ) | |||||
| Financial income (expense), net | (38 | ) | 1,941 | ||||||
| Income (loss) before taxes | (1,157 | ) | 299 | ||||||
| Income tax expense | (84 | ) | (967 | ) | |||||
| Net loss | $ | (1,241 | ) | $ | (668 | ) | |||
| Basic net loss per share | $ | (0.30 | ) | $ | (0.16 | ) | |||
| Diluted net earnings loss per share | $ | (0.30 | ) | $ | (0.16 | ) | |||
| Weighted average number of shares used in computing basic net loss per share | 4,185,285 | 4,159,576 | |||||||
| Weighted average number of shares used in computing diluted net loss per share | 4,185,285 | 4,159,576 | |||||||
| JACADA LTD. AND ITS SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| U.S. dollars in thousands | ||||||||||
| December 31, | December 31, | |||||||||
| 2015 | 2014 | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ | 3,438 | $ | 3,048 | ||||||
| Marketable securities | 1,898 | 3,349 | ||||||||
| Trade receivables | 2,207 | 3,076 | ||||||||
| Restricted cash | 585 | 787 | ||||||||
| Other current assets | 773 | 665 | ||||||||
| Total current assets | 8,901 | 10,925 | ||||||||
| LONG-TERM INVESTMENTS: | ||||||||||
| Marketable securities | 1,161 | 1,185 | ||||||||
| Severance pay fund | 148 | 136 | ||||||||
| Deferred taxes | 72 | 442 | ||||||||
| Other assets | 120 | 38 | ||||||||
| Total long-term investments | 1,501 | 1,801 | ||||||||
| PROPERTY AND EQUIPMENT, NET | 388 | 397 | ||||||||
| Total assets | $ | 10,790 | $ | 13,123 | ||||||
| LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||||
| CURRENT LIABILITIES: | ||||||||||
| Trade payables | $ | 1,074 | $ | 1,190 | ||||||
| Accrued expenses and other liabilities | 1,836 | 2,152 | ||||||||
| Deferred revenues | 1,485 | 2,156 | ||||||||
| Total current liabilities | 4,395 | 5,498 | ||||||||
| LONG-TERM LIABILITIES: | ||||||||||
| Deferred revenues | 202 | 369 | ||||||||
| Accrued severance pay | 418 | 376 | ||||||||
| Other liabilities | 47 | 87 | ||||||||
| Total long-term liabilities | 667 | 832 | ||||||||
| SHAREHOLDERS' EQUITY: | ||||||||||
| Share capital | 61 | 60 | ||||||||
| Additional paid-in capital | 76,202 | 76,022 | ||||||||
| Treasury shares | (17,863 | ) | (17,863 | ) | ||||||
| Accumulated other comprehensive income | 715 | 720 | ||||||||
| Accumulated deficit | (53,387 | ) | (52,146 | ) | ||||||
| Total shareholders' equity | 5,728 | 6,793 | ||||||||
| Total liabilities and shareholders' equity | $ | 10,790 | $ | 13,123 | ||||||
| JACADA LTD. AND ITS SUBSIDIARIES | |||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| U.S. dollars in thousands | |||||||||
|
Year ended December 31, |
|||||||||
| 2015 | 2014 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net loss | $ | (1,241 | ) | $ | (668 | ) | |||
| Adjustments required to reconcile net loss to net cash used in operating activities: | |||||||||
| Depreciation and amortization | 151 | 190 | |||||||
| Stock-based compensation | 144 | 66 | |||||||
| Gain on sale of marketable securities | (1 | ) | (1,862 | ) | |||||
| Increase in accrued severance pay, net | 30 | 23 | |||||||
| Decrease in deferred taxes, net | 376 | 230 | |||||||
| Decrease (increase) in trade receivables, net | 805 | (443 | ) | ||||||
| Decrease (increase) in other current assets | (183 | ) | 158 | ||||||
| Decrease in trade payables | (110 | ) | (9 | ) | |||||
| Increase (decrease) in accrued expenses and other liabilities | (173 | ) | 352 | ||||||
| Increase (decrease) in deferred revenues | (853 | ) | 34 | ||||||
| Decrease in other long-term liabilities | (40 | ) | (41 | ) | |||||
| Other | - | 2 | |||||||
| Net cash used in operating activities | (1,095 | ) | (1,968 | ) | |||||
| Cash flows from investing activities: | |||||||||
| Proceeds from sale of available-for-sale marketable securities | 3,350 | 7,879 | |||||||
| Investment in marketable securities | (1,899 | ) | (6,048 | ) | |||||
| Decrease (increase) in restricted cash | 202 | (190 | ) | ||||||
| Purchase of property and equipment | (142 | ) | (150 | ) | |||||
| Net cash provided by investing activities | 1,511 | 1,491 | |||||||
| Cash flows from financing activities: | |||||||||
| Proceeds from exercise of stock options | 37 | - | |||||||
| Net cash provided by financing activities | 37 | - | |||||||
| Effect of exchange rate changes on cash | (63 | ) | (107 | ) | |||||
| Increase (decrease) in cash and cash equivalents | 390 | (584 | ) | ||||||
| Cash and cash equivalents at the beginning of the period | 3,048 | 3,632 | |||||||
| Cash and cash equivalents at the end of the period | $ | 3,438 | $ | 3,048 | |||||
Embedded Video Available: https://www.youtube.com/watch?v=RrMn1CSrFas
Contact Information:
Contacts:
A. Lee Judge
Senior Digital Marketing Manager
Jacada, Inc.
770-776-2326
ljudge@jacada.com
Caroline Cronin
Chief Financial Officer
Jacada
(770) 776-2204
ccronin@jacada.com