Jacada Reports 2015 Financial Results
Revenue Increases to $17.3 Million; 83% Growth in Software Revenue to $4.5 Million
/EINPresswire.com/ -- ATLANTA, GA and HERZLIYA, ISRAEL--(Marketwired - March 16, 2016) - Jacada Ltd., (OTCQB: JCDAF) a leading global provider of customer service technology designed to simplify the interaction between businesses and their customers, today reported financial results for the year ended December 31, 2015.
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
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
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
