[April 30, 2015] |
|
Jacada Reports 2014 Financial Results
Jacada (News - Alert) Ltd., 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, 2014.
Financial Highlights
-
5% revenue growth to $16.4 million in 2014 from $15.6 million in 2013
-
Investments in research and development and sales and marketing to
support new technologies cause increase in operating expenses to $11.5
million from $10.4 million in 2013
-
Operating loss of $1.6 million and gain on sale of marketable
securities of $1.9 million combine for income before taxes of $299,000
2014 and Recent Business Highlights
-
Announced the issuance by the United States Patent and Trade Office
(USPTO) of US Patent No.: US 8,995,646 B2 granting Jacada exclusive
rights as the inventor of Visual
IVR technology that includes a system and method for identifying a
caller via a call connection, and matching the caller to a user
session involving the caller. Jacada originally announced its Visual
IVR product to the market in April 2013 and has now patented the
underlying technology.
-
Obtained valuable references, including a Fortune 50 technology
company and a leading cable operator, for post-production benefits of
our Visual IVR product. With the references garnered through these
customers in production, including information regarding their
end-user adoption, call deflection rates and cost savings, we believe
we have the ability to grow the revenue obtained from the Visual IVR
market in the future.
-
Developed cloud versions of specific products, including Jacada Visual
IVR and Jacada Agent Scripting, allowing us to begin offering these
products in a Software-as-a-Service (SaaS (News - Alert)) recurring revenue model.
-
Established partnerships with call center host providers, large system
integrators and technology partners which will enable us to quickly
grow both our agent desktop and business process optimization
solutions as well as our mobile self-service and Visual IVR solutions.
One such partnership is with Avaya (News - Alert), a partnership which has already
yielded two important contracts, including a Fortune 500 office supply
company and a government organization, during 2014 and early 2015. In
addition, during 2014, we announced the release of the Jacada
Multi-channel Desktop Enhancement to the Avaya Aura® Call Center Elite
Multi-channel platform.
-
Continued to deliver our core solutions to improve agent efficiency
and simplify customer interactions for new customers, including a
large communications service provider in South Africa and a prominent
US credit reporting agency, as well as for existing customers,
including a leading digital cable and telecommunications company.
"We have considered 2014 to be a year of investment: in the continued
development of new technologies, including Visual IVR and Jacada Agent
Desktop for Avaya EMC (News - Alert); in expanding our products to the cloud,
supporting new business models; and in sales and marketing efforts
surrounding these new technologies and products," commented Caroline
Cronin, Chief Financial Officer of Jacada. "With revenue growth to $16.4
million and the gain on the sale of marketable securities of $1.9
million, we were able to support these additional investments, incurring
an operating loss of $1.6 million and income before taxes of $299,000."
"Our 2014 investments in technology innovation have already yielded an
intellectual property patent supporting our Visual IVR offering as well
as allowed us to gain several additional Fortune 500 software and retail
customers," said Guy Yair, Co-Chief Executive Officer of Jacada.
"Continued dedication to our core products along with consistent partner
initiatives have strengthened our global footprint while maintaining
long standing accounts across both EMEA and the US."
Financial Results
Total revenues were $16.4 million in 2014 compared to $15.6 million in
2013. Software revenues for 2014 were $2.4 million compared to $2.9
million during 2013. Services revenues were $9.7 million in 2014 and
$8.9 million in 2013. Maintenance revenues were $4.2 million and $3.7
million in 2014 and 2013, respectively.
Gross margins were 60% and 62% of total revenues during 2014 and 2013,
respectively. Operating expenses for 2014 were $11.5 million, compared
to $10.4 million in 2013. Financial income, net, was $1.9 million and
$473,000 in 2014 and 2013, respectively. During 2014, the company had an
income tax expense of $1.0 million, while in 2013, the company had an
income tax benefit of $382,000.
The net loss for 2014 was $668,000, or $(0.16) per share, compared to
net income of $118,000, or $0.03 per share, in 2013.
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.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
U.S. dollars in thousands, except per share data
|
|
|
|
|
Twelve months ended December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
Audited
|
Revenues:
|
|
|
|
|
|
|
|
Software licenses
|
|
|
|
$
|
2,437
|
|
|
|
$
|
2,930
|
|
Services
|
|
|
|
|
9,687
|
|
|
|
|
8,948
|
|
Maintenance
|
|
|
|
|
4,249
|
|
|
|
|
3,748
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
|
|
16,373
|
|
|
|
|
15,626
|
|
|
|
|
|
|
|
|
|
Cost of revenues:
|
|
|
|
|
|
|
|
Software licenses
|
|
|
|
|
175
|
|
|
|
|
170
|
|
Services
|
|
|
|
|
5,813
|
|
|
|
|
5,417
|
|
Maintenance
|
|
|
|
|
496
|
|
|
|
|
353
|
|
|
|
|
|
|
|
|
|
Total cost of revenues
|
|
|
|
|
6,484
|
|
|
|
|
5,940
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
9,889
|
|
|
|
|
9,686
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
|
3,481
|
|
|
|
|
2,918
|
|
Sales and marketing
|
|
|
|
|
5,052
|
|
|
|
|
4,398
|
|
General and administrative
|
|
|
|
|
2,998
|
|
|
|
|
3,107
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
|
11,531
|
|
|
|
|
10,423
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
|
|
(1,642
|
)
|
|
|
|
(737
|
)
|
Financial income, net
|
|
|
|
|
1,941
|
|
|
|
|
473
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes
|
|
|
|
|
299
|
|
|
|
|
(264
|
)
|
Income tax benefit (expense)
|
|
|
|
|
(967
|
)
|
|
|
|
382
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
(668
|
)
|
|
|
$
|
118
|
|
|
|
|
|
|
|
|
|
Basic net earnings (loss) per share
|
|
|
|
$
|
(0.16
|
)
|
|
|
$
|
0.03
|
|
Diluted net earnings (loss) per share
|
|
|
|
$
|
(0.16
|
)
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computing basic net
earnings (loss) per share
|
|
|
|
|
4,159,576
|
|
|
|
|
4,159,134
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computing diluted net
earnings (loss) per share
|
|
|
|
|
4,159,576
|
|
|
|
|
4,166,033
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
Audited
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
3,048
|
|
|
|
$
|
3,632
|
|
Marketable securities
|
|
|
|
|
3,349
|
|
|
|
|
3,000
|
|
Trade receivables
|
|
|
|
|
3,076
|
|
|
|
|
2,700
|
|
Restricted cash
|
|
|
|
|
787
|
|
|
|
|
597
|
|
Prepaid expenses
|
|
|
|
|
240
|
|
|
|
|
267
|
|
Deferred taxes
|
|
|
|
|
443
|
|
|
|
|
184
|
|
Other current assets
|
|
|
|
|
425
|
|
|
|
|
552
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
11,368
|
|
|
|
|
10,932
|
|
|
|
|
|
|
|
|
|
LONG-TERM INVESTMENTS:
|
|
|
|
|
|
|
|
Marketable securities
|
|
|
|
|
1,185
|
|
|
|
|
3,147
|
|
Severance pay fund
|
|
|
|
|
136
|
|
|
|
|
137
|
|
Other assets
|
|
|
|
|
38
|
|
|
|
|
45
|
|
|
|
|
|
|
|
|
|
Total long-term investments
|
|
|
|
|
1,359
|
|
|
|
|
3,329
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET (News - Alert)
|
|
|
|
|
397
|
|
|
|
|
439
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
13,124
|
|
|
|
$
|
14,700
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
Trade payables
|
|
|
|
$
|
1,190
|
|
|
|
$
|
1,208
|
|
Accrued expenses and other liabilities
|
|
|
|
|
2,152
|
|
|
|
|
1,639
|
|
Deferred revenues
|
|
|
|
|
2,156
|
|
|
|
|
1,989
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
5,498
|
|
|
|
|
4,836
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
Deferred revenues
|
|
|
|
|
369
|
|
|
|
|
526
|
|
Deferred taxes
|
|
|
|
|
1
|
|
|
|
|
113
|
|
Accrued severance pay
|
|
|
|
|
376
|
|
|
|
|
354
|
|
Other long-term liabilities
|
|
|
|
|
87
|
|
|
|
|
128
|
|
|
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
|
|
833
|
|
|
|
|
1,121
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
Share capital
|
|
|
|
|
60
|
|
|
|
|
60
|
|
Additional paid-in capital
|
|
|
|
|
76,022
|
|
|
|
|
75,955
|
|
Treasury shares
|
|
|
|
|
(17,863
|
)
|
|
|
|
(17,863
|
)
|
Accumulated other comprehensive income, net
|
|
|
|
|
720
|
|
|
|
|
2,069
|
|
Accumulated deficit
|
|
|
|
|
(52,146
|
)
|
|
|
|
(51,478
|
)
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
|
6,793
|
|
|
|
|
8,743
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
|
$
|
13,124
|
|
|
|
$
|
14,700
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
Audited
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
(668
|
)
|
|
|
$
|
118
|
|
|
|
|
|
|
|
|
|
Adjustments required to reconcile net income ( loss) to net cash
used in operating activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
190
|
|
|
|
|
241
|
|
Stock-based compensation
|
|
|
|
|
66
|
|
|
|
|
95
|
|
Gain on sale of marketable securities
|
|
|
|
|
(1,862
|
)
|
|
|
|
(326
|
)
|
Accrued severance pay, net
|
|
|
|
|
23
|
|
|
|
|
7
|
|
Deferred taxes, net
|
|
|
|
|
230
|
|
|
|
|
(345
|
)
|
Increase in trade receivables
|
|
|
|
|
(443
|
)
|
|
|
|
(984
|
)
|
Decrease (increase) in other current assets and prepaid expenses
|
|
|
|
|
158
|
|
|
|
|
(138
|
)
|
Increase (decrease) in trade payables
|
|
|
|
|
(9
|
)
|
|
|
|
193
|
|
Increase in accrued expenses and other liabilities
|
|
|
|
|
352
|
|
|
|
|
32
|
|
Increase in deferred revenue
|
|
|
|
|
34
|
|
|
|
|
160
|
|
Decrease in other long-term liabilities
|
|
|
|
|
(41
|
)
|
|
|
|
(40
|
)
|
Other
|
|
|
|
|
2
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
|
|
(1,968
|
)
|
|
|
|
(981
|
)
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Proceeds from sale of marketable securities
|
|
|
|
|
7,879
|
|
|
|
|
1,111
|
|
Investment in marketable securities
|
|
|
|
|
(6,048
|
)
|
|
|
|
-
|
|
Purchase of property and equipment
|
|
|
|
|
(150
|
)
|
|
|
|
(127
|
)
|
Decrease (increase) in restricted cash
|
|
|
|
|
(190
|
)
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
Net cash provided by investing activities
|
|
|
|
|
1,491
|
|
|
|
|
990
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
|
(107
|
)
|
|
|
|
36
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
|
(584
|
)
|
|
|
|
45
|
|
Cash and cash equivalents at the beginning of the year
|
|
|
|
|
3,632
|
|
|
|
|
3,587
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the year
|
|
|
|
$
|
3,048
|
|
|
|
$
|
3,632
|
|
|
|
|
|
|
|
|
|
Non-cash investing information:
|
|
|
|
|
|
|
|
Investment in leasehold improvements and Computers and peripheral
equipment upon accrued expenses and other liabilities
|
|
|
|
$
|
10
|
|
|
|
$
|
-
|
|
Investment in leasehold improvements upon other long-term liabilities
|
|
|
|
$
|
-
|
|
|
|
$
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
U.S. dollars in thousands
|
|
Comprehensive Income
Comprehensive income consists of two components, net income and other
comprehensive income. Other comprehensive income refers to revenue,
expenses, 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, during the twelve-month periods ended December 31, 2014 and
December 31, 2013 (in thousands):
|
|
|
|
|
|
|
|
|
Twelve months ended December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
(668
|
)
|
|
|
$
|
118
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
Change in foreign currency translation
|
|
|
|
|
(125
|
)
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
Change in unrealized gains (losses) on cash flow hedges:
|
|
|
|
|
|
|
|
Unrealized gain on cash flow hedges arising during the period
|
|
|
|
|
(226
|
)
|
|
|
|
132
|
|
Reclassification to earnings of realized gains (losses) on cash flow
hedges
|
|
|
|
|
45
|
|
|
|
|
(171
|
)
|
|
|
|
|
|
|
|
|
Change in unrealized gains (losses) on marketable securities:
|
|
|
|
|
|
|
|
Change in Unrealized gains on marketable securities, net of tax
expense (benefit)
|
|
|
|
|
581
|
|
|
|
|
1,144
|
|
Gains of marketable securities reclassified into earning, net of tax
expenses)
|
|
|
|
|
(1,624
|
)
|
|
|
|
(326
|
)
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss)
|
|
|
|
$
|
(2,017
|
)
|
|
|
$
|
905
|
|
|
|
|
|
|
|
|
|
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