Jacada Reports Fourth Quarter 2010 Results

Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer experience management and process optimization solutions, today reported financial results for the fourth quarter and full year period ended December 31, 2010.

Fourth Quarter and Year-end 2010 Results

• Fourth quarter revenues were $3.4 million. Annual revenues were $17.9 million, representing a 7% increase over 2009 annual revenues.
• Fourth quarter net loss was $1.6 million. The Company posted a net loss of $6.7 million for the year ended December 31, 2010, as compared to a net loss of $7.0 million during 2009.

"Our total revenues are up 7% for the twelve months ending December 31, 2010 as compared to year end 2009,” commented Tom Clear, chief executive officer of Jacada. "The 2010 revenue growth was driven by a strong backlog exiting 2009, significant business from a new customer early in the year, and continued additional services from existing customers. Fourth quarter bookings, however, were disappointing, impacting fourth quarter revenues and causing a $1.6 million decline in revenues from the third quarter of 2010. Despite the decline in revenues, our loss did not appreciably increase, a result of our cost containment programs instituted in the third quarter of 2010.”

"Throughout 2010, Jacada continued to make progress towards our objectives of improving the fundamentals of our business and better aligning our products and services with the solution needs of our customers,” said Giddeon Hollander, founder and current chairman of the board of directors for Jacada. "While business in the near future will be challenging, I see opportunity for an improved second half of 2011.”

Financial Results

For the fourth quarter of 2010, total revenues were $3.4 million compared to $5.7 million in the fourth quarter of 2009. Software revenues for the 2010 fourth quarter were $169K compared to $678K during the 2009 fourth quarter. Services revenues were $2.6 million in the 2010 fourth quarter and $4.5 million in the 2009 fourth quarter. Maintenance revenues were $621K and $532K in the 2010 and 2009 fourth quarters, respectively.

Gross margins were 33% and 46% of total revenues during the 2010 and 2009 fourth quarters, respectively. Fourth quarter 2010 operating expenses of $2.8 million marked a decline as compared to $3.5 million in operating expenses in the fourth quarter of 2009, a reflection of the cost containment measures implemented during the third quarter of 2010.

The 2010 fourth quarter net loss was $1.6 million or ($0.39) per share compared to a net loss of $103K or ($0.02) per share in the fourth quarter of 2009. The fourth quarter 2009 results included income from discontinued operations of $583K.

For the twelve month periods ending on December 31, 2010 and 2009, respectively, total revenues were $17.9 million and $16.7 million and gross profits were $6.7 million or 37% of total revenues and $5.7 million or 34% of total revenues. During the twelve month period ending December 31, 2010, we incurred a net loss of $6.7 million or ($1.60) per share and, in the comparable 2009 period, we posted a net loss of $7.0 million or ($1.69) per share.

At the end of the 2010 fourth quarter, cash and investments were $18.5 million, compared to $19.5 million at the end of the 2010 third quarter and $23.8 million at December 31, 2009.

Conference Call Details

Management will hold a conference call to discuss the fourth quarter 2010 financial results at 10:30am ET on February 10, 2011. To participate in the teleconference, please call toll-free 888-713-4199 or 617-213-4861 for international callers, and provide pass code 66288677 approximately 10 minutes prior to the start time. Interested parties may pre-register for the teleconference via this URL: https://www.theconferencingservice.com/prereg/key.process?key=PU4UFYY69. A (live audio) webcast will also be available over the Internet at www.jacada.com (under "About Us" then "Investors") or www.earnings.com.

A replay of the teleconference will be available for three days beginning at 1:30 p.m. ET on February 10, 2011. To access the replay, dial toll-free 888-286-8010, or for international callers 617-801-6888, and provide pass code 29986867.

About Jacada

Jacada provides solutions that optimize and improve the effectiveness of customer interactions. Jacada unified desktop and process optimization solutions help companies reduce the cost of their operations, drive customer satisfaction and provide a complete return on investment in as little as 12 months after deployment.

Founded in 1990, Jacada operates globally with offices in Atlanta, USA; Herzliya, Israel; London, England; Munich, Germany; and Stockholm, Sweden. More information is available at www.jacada.com, www.jacada.com/blog, www.jacada.com/facebook and www.jacada.com/twitter.

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.