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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the period March 16 to May 4, 2000
----------------------------
JACADA LTD.
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(Translation of registrant's name into English)
11 GALGALEI HAPLADA STREET,
HERZLIYA, 46722 ISRAEL
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(Address of principal executive office)
[Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.]
Form 20-F |X| Form 40-F |_|
[Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.] Yes |_| No |X|
54497.0003
<PAGE>
EXPLANATORY NOTE
Attached is:
1. Press Release, released publicly on May 3, 2000, including unaudited interim
consolidated financial statements for the three months ended March 31, 2000.
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: May 4, 2000
JACADA LTD.
By: /s/ Ran Oz
------------------------------------------------
Name: Ran Oz
Title: Chief Financial Officer & General Manager
3
<PAGE>
Contact:
Investor Relations:
Mandy Haagenson
Fleishman Hillard
(404) 659-4446 ext. 148
[email protected]
JACADA REPORTS RECORD REVENUE FOR THE FIRST QUARTER 2000
SOFTWARE LICENSE REVENUE GROWS 100 PERCENT
ATLANTA, May 3, 2000 - Jacada Ltd. (NASDAQ: JCDA), a leading provider
of Internet infrastructure software, today reported record first quarter results
for the period ended March 31, 2000.
Revenue for the first quarter was up a record 66 percent to $4.8
million, as compared to $2.9 million in the same period last year. Software
license revenue for the first quarter increased 100 percent compared with the
same period last year. Gross profit for the quarter increased by 64 percent to
$3.6 million, as compared to $2.2 million in first quarter 1999. Net income for
the quarter was $245 thousand or $0.01 per share, compared to a net loss of $435
thousand, or a loss of $0.12 per share, in the first quarter of 1999. This was
the fourth consecutive quarter in which the company reported positive earnings.
"This quarter we significantly grew our software license revenues and
built our sales pipeline, and at the same time reported positive bottom line
results," said Mike Potts, president of Jacada. "We have achieved triple-digit
software sales growth while maintaining our expense ratios in accordance with
our business plan. This is Jacada's ninth consecutive quarter of revenue growth
and fourth consecutive quarter of positive earnings."
HIGHLIGHTS FOR THE FIRST QUARTER:
Products - During the first quarter the company entered the wireless
market with the launch of Jacada(R) Wireless and announced the general
availability of Jacada(R) for Palm. Jacada for Palm is designed to meet the
requirements of wireless Palm devices such as the Palm VII(TM). It is targeted
at corporations and business users, enabling remote users to easily access
mainframe-based corporate data. The company also completed certification testing
and benchmarking of the Jacada(R) Server on Sun Solaris servers in the
engineering labs of Sun Microsystems. The benchmark results exceeded
expectations of both companies and make Solaris the most scalable server for
implementing Jacada e-business solutions in large mainframe environments.
Customers - The direct sales channel continued strong growth. Some of
the most significant new business won during the quarter includes agreements
with Prudential Insurance Company of America, Archer Daniels Midland, Cardinal
Health, Saks Inc., and Unigroup. Jacada continued to expand its indirect channel
with new strategic independent software vendor agreements, including the
recently announced agreement with CommercialWare.
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<PAGE>
"Our success in the rapid expansion of our direct sales channel and
customer base is a testament to the investments that we continue to make in our
infrastructure and successful ramp-up of new sales and marketing personnel,"
Potts said. "We will continue to invest in the growth of our three industry
verticals which include automotive, federal government and insurance while
continuing to target additional industry verticals where our solution makes
sense and the market opportunity is the most significant."
NEW PRODUCT ANNOUNCEMENT - JACADA INNOVATOR
In a separate release today, Jacada also announced early availability
and first customer shipment of Jacada(R) Innovator. Jacada Innovator is the
first product available that enables COBOL and RPG developers to rapidly and
easily develop e-business applications with minimal additional training.
Jacada Innovator addresses a critical problem within the legacy
development community. Jacada Innovator now gives three million COBOL and RPG
developers the ability to rapidly develop Internet and wireless applications,
without having to learn significant new skills.
"The delivery of Jacada Innovator is a milestone for our company and
the industry," said Mike Potts, president of Jacada. "We anticipate financial
contributions to begin this year with the early release of the product."
ABOUT JACADA
Founded in 1990, Jacada Ltd. provides a complete software
infrastructure to rapidly transform legacy systems into e-business and wireless
solutions and to empower enterprise developers to build Internet applications.
The Company operates globally with headquarters in Atlanta, Georgia; Herzliya,
Israel; and London, England. Jacada can be reached at WWW.JACADA.COM or at
1-800-773-9574.
Jacada Ltd. will host a Web cast on Wednesday, May 3, 2000, beginning
at 10:00 a.m. (EDT) to present first quarter 2000 results. The Web cast can be
accessed at www.streetevents.com/data/j/jcda OR www.jacada.com.
Statements in this press release or otherwise attributable to the
Company regarding the Company's business which are not historical fact,
including those regarding growth in its business, are forward-looking statements
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," and similar expressions are intended to
identify such forward-looking statements. These forward-looking statements
involve risks and uncertainties, including risks detailed in the Company's
Offering Prospectus of October 14, 1999 and filings with the SEC, that could
cause the Company's actual results to differ materially from those expressed or
implied by these forward-looking statements.
###
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<PAGE>
JACADA LTD.
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31, 2000
IN U.S. DOLLARS
UNAUDITED
INDEX
PAGE
REVIEW REPORT OF INTERIM FINANCIAL STATEMENTS 4
CONSOLIDATED BALANCE SHEETS 5 - 6
CONSOLIDATED STATEMENTS OF OPERATIONS 7
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY 8
CONSOLIDATED STATEMENTS OF CASH FLOWS 9 - 10
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 11
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<PAGE>
[OBJECT OMITTED]ERNST & YOUNG
|X| KOST FORER & GABBAY
2 Kremenetski St.
Tel-Aviv 67899, Israel
|X| Phone: 972-3-6232525
Fax: 972-3-5622555
Jacada Ltd.
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Re: Review report of unaudited interim consolidated financial
statements as of and for the three months ended March 31,
2000
---------------------------------------------------------
We have reviewed the accompanying consolidated balance sheet of
Jacada Ltd. (the "Company") and its subsidiaries as of March 31, 2000 and the
related consolidated statements of operations and cash flows for the three-month
period ended March 31, 1999 and 2000, and the statement of changes in
shareholders' equity for the three months ended March 31, 2000 in accordance
with Statements on Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountants. All information included in
these financial statements is the representation of the Company's management.
A review consists principally of inquiries of Company personnel and
analytical procedures applied to financial data. It is substantially less in
scope than an audit in accordance with generally accepted auditing standards,
the objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications
that should be made to the accompanying financial statements in order for them
to be in conformity with generally accepted accounting principles in the United
States.
The financial statements for the year ended December 31, 1999 were
audited by us and we expressed an unqualified opinion on them in our report
dated February 15, 2000, but we have not performed any auditing procedures since
that date.
Tel-Aviv, Israel KOST FORER & GABBAY
May 1, 2000 A Member of Ernst & Young International
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<PAGE>
JACADA LTD.
CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------
U.S. DOLLARS IN THOUSANDS
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
------------------- -----------------------
UNAUDITED
-------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 6,143 $ 5,141
Short-term deposit 3,486 56
Marketable securities 30,193 50,519
Trade receivables (net of allowance for doubtful accounts of $ 30 as of
March 31, 1999 and of $ 40 as of December 31, 1999 and
March 31, 2000) 4,114 3,760
Other accounts receivable 473 261
------------------- -----------------------
Total current assets 44,409 59,737
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LONG-TERM RECEIVABLES 115 128
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LONG-TERM INVESTMENTS
Marketable securities 14,943 -
Severance pay fund 458 430
------------------- -----------------------
15,401 430
------------------- -----------------------
PROPERTY AND EQUIPMENT, NET 2,294 2,140
------------------- -----------------------
$ 62,219 $ 62,435
=================== =======================
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
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<PAGE>
JACADA LTD.
CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------
U.S. DOLLARS IN THOUSANDS, EXCEPT SHARE DATA
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
--------------------- -----------------------
UNAUDITED
---------------------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 185 $ 194
Trade payables 1,194 1,443
Deferred revenues 2,636 3,024
Accrued expenses and other liabilities 1,711 1,761
--------------------- -----------------------
Total current liabilities 5,726 6,422
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LONG-TERM LIABILITIES:
Accrued severance pay 841 677
Long-term debt, net of current portion 144 186
Offering expenses payable 144 296
--------------------- -----------------------
1,129 1,159
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SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value:
Authorized: 30,000,000 as of December 31, 1999 and March 31,
2000 ; Issued and outstanding: 17,610,893 as of December 31,
1999 and 17,860,004 as of March 31, 2000. 53 52
Additional paid-in capital 67,140 66,941
Deferred compensation (207) (272)
Accumulated deficit (11,622) (11,867)
--------------------- -----------------------
Total Shareholders' equity 55,364 54,854
--------------------- -----------------------
$ 62,219 $ 62,435
===================== =======================
The accompanying notes are an integral part of the consolidated financial
statements.
May 1, 2000 /s/ Yossi Hollander /s/ Ran Oz
- ----------------------- ------------------------------ -----------------------
Date of approval of the Yossi Hollander Ran Oz
financial statements Chairman of Board of Directors General Manager and
Chief Financial Officer
</TABLE>
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<PAGE>
JACADA LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
IN U.S. DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31, YEAR ENDED
------------------------------------------- DECEMBER 31,
2000 1999 1999
------------------- -------------------- ------------------------
UNAUDITED
-------------------------------------------
<S> <C> <C> <C>
Revenues:
Software license $ 3,102 $ 1,550 $ 8,831
Services and maintenance 1,724 1,356 5,768
------------------- -------------------- ------------------------
Total revenues 4,826 2,906 14,599
------------------- -------------------- ------------------------
Cost of revenues:
Software license 232 124 639
Services and maintenance 1,003 594 2,740
------------------- -------------------- ------------------------
Total cost of revenues 1,235 718 3,379
------------------- -------------------- ------------------------
Gross profit 3,591 2,188 11,220
------------------- -------------------- ------------------------
Operating expenses:
Research and development 1,072 833 3,267
Sales and marketing 2,323 1,324 6,529
General and administrative 684 445 1,960
------------------- -------------------- ------------------------
Total operating expenses 4,079 2,602 11,756
------------------- -------------------- ------------------------
Operating loss (488) (414) (536)
Financial income (expenses) net 733 (15) 564
Other expenses, net - (6) (34)
------------------- -------------------- ------------------------
Net income (loss) $ 245 $ (435) $ (6)
=================== ==================== ========================
Basic net income (loss) per share $ 0.01 $ (0.12) $ -
=================== ==================== ========================
Weighted average number of shares used in
computing basic net income (loss) per share 17,806,888 3,621,893 6,572,476
=================== ==================== ========================
Diluted net income (loss) per share $ 0.01 $ (0.12) $ -
=================== ==================== ========================
Weighted average number of shares used in computing
diluted net income (loss) per share 19,639,122 3,621,893 6,572,476
=================== ==================== ========================
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
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<PAGE>
JACADA LTD.
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
- --------------------------------------------------------------------------------
IN U.S. DOLLARS IN THOUSANDS, EXCEPT SHARE DATA
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31, 2000
-------------------------------------------------------------------------------
CONVERTIBLE
PREFERRED SHARES ORDINARY SHARES
----------------------------------- ------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------- --------------- ------------------ ----------------
<S> <C> <C> <C> <C>
Balance as of January 1, 2000 - $ - 17,610,893 $ 52
Issuance of Ordinary shares, net - - 249,111 1
Deferred compensation - - - -
Amortization of deferred compensation
- - - -
Net income - - - -
--------------- --------------- ------------------ ---------------
Balance as of March 31, 2000 (unaudited)
- $ - 17,860,004 $ 53
=============== =============== ================== ===============
FOR THE YEAR ENDED DECEMBER 31, 1999
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CONVERTIBLE
PREFERRED SHARES ORDINARY SHARES
----------------------------------- ------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------- --------------- --------------- ---------------
Balance as of
January 1, 1999 8,407,635 $ 26 3,621,893 $ 12
Issuance of Preferred "C" shares, net
389,490 2 - -
Conversion of Ordinary shares to Preferred
shares
31,155 *) - (31,155) *) -
Conversion of Preferred shares to Ordinary
shares
(8,828,280) (28) 8,828,280 28
Issuance of Ordinary shares, net - - 5,175,000 12
Exercise of stock options, net - - 16,875 *) -
Deferred compensation - - - -
Amortization of deferred
compensation - - - -
Net loss - - - -
--------------- --------------- ------------------ ---------------
Balance as of
December 31, 1999 - $ - 17,610,893 $ 52
=============== =============== ================== ===============
*) Represents an amount lower than $ 1.
The accompanying notes are an integral part of the consolidated financial
statements.
Table continued...
<PAGE>
FOR THE THREE MONTHS ENDED MARCH 31, 2000
-------------------------------------------------------------------------------------
ADDITIONAL TOTAL
PAID-IN DEFERRED ACCUMULATED SHAREHOLDERS'
CAPITAL COMPENSATION DEFICIT EQUITY
----------------- ------------------ ----------------- -----------------
<S> <C> <C> <C> <C>
Balance as of January 1, 2000 $ 66,941 $ (272) $ (11,867) $ 54,854
Issuance of Ordinary shares, net 250 - - 251
Deferred compensation (51) 51 - -
Amortization of deferred compensation
- 14 - 14
Net income - - 245 245
------------------ ------------------ ----------------- -----------------
Balance as of March 31, 2000 (unaudited)
$ 67,140 $ (207) $ (11,622) $ 55,364
================== ================== ================= =================
FOR THE YEAR ENDED DECEMBER 31, 1999
------------------------------------------------------------------------------------
ADDITIONAL TOTAL
PAID-IN DEFERRED ACCUMULATED SHAREHOLDERS'
CAPITAL COMPENSATION DEFICIT EQUITY
------------------ ----------------- ------------------ ----------------
Balance as of
January 1, 1999 $ 14,887 $ (125) $ (11,861) $ 2,939
Issuance of Preferred "C" shares, net
1,237 - - 1,239
Conversion of Ordinary shares to Preferred
shares
- - - -
Conversion of Preferred shares to Ordinary
shares
- - - -
Issuance of Ordinary shares, net 50,556 - - 50,568
Exercise of stock options, net 19 - - 19
Deferred compensation 242 (242) - -
Amortization of deferred
compensation - 95 - 95
Net loss - - (6) (6)
------------------ ------------------ ----------------- -----------------
Balance as of
December 31, 1999 $ 66,941 $ (272) $ (11,867) $ 54,854
================== ================== ================= =================
*) Represents an amount lower than $ 1.
The accompanying notes are an integral part of the consolidated financial
statements.
</TABLE>
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<PAGE>
JACADA LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
- --------------------------------------------------------------------------------
U.S. DOLLARS IN THOUSANDS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31, YEAR ENDED
------------------------------------------ DECEMBER 31,
2000 1999 1999
------------------- -------------------- ------------------------
UNAUDITED
-------------------------------------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 245 $ (435) $ (6)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation 186 161 724
Amortization of deferred compensation 14 17 95
Accrued interest on short-term deposits (17) - -
Accrued interest on marketable securities, net 89 - (222)
Decrease (increase) in trade receivables (354) 227 (794)
Increase in other accounts receivable (212) (71) (90)
Increase (decrease) in trade payables (401) 26 1,006
Increase (decrease) in deferred revenues (388) 403 (1,128)
Increase (decrease) in accrued expenses and other
liabilities (50) 341 899
Increase in accrued severance pay, net 136 81 85
Other 2 5 34
------------------- -------------------- ------------------------
Net cash provided by (used in) operating activities (750) 755 603
------------------- -------------------- ------------------------
Cash flows from investing activities:
Purchase of short-term deposits (3,413) - (56)
Purchase of marketable securities (79,895) - (50,297)
Redemption of marketable securities 85,189 - -
Purchase of property and equipment (340) (280) (1,048)
Proceeds from sale of property and equipment - 16 41
Other - 22 19
------------------- -------------------- ------------------------
Net cash provided by (used in) investing activities 1,541 (242) (51,341)
------------------- -------------------- ------------------------
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
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<PAGE>
JACADA LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
- --------------------------------------------------------------------------------
IN U.S. DOLLARS IN THOUSANDS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31, YEAR ENDED
------------------------------------------- DECEMBER 31,
2000 1999 1999
------------------- -------------------- ------------------------
UNAUDITED
-------------------------------------------
<S> <C> <C> <C>
Cash flows from financing activities:
Proceeds from issuance of shares 251 - 52,122
Principal of long-term debt (51) (52) (202)
Proceeds from long-term debt 11 167 368
Short-term debt, net - (47) (2,022)
------------------- -------------------- ------------------------
Net cash provided by financing activities 211 68 50,266
------------------- -------------------- ------------------------
Increase (decrease) in cash and cash equivalents 1,002 581 (472)
Cash and cash equivalents at the
beginning of the period 5,141 5,613 5,613
------------------- -------------------- ------------------------
Cash and cash equivalents at the end of the period $ 6,143 $ 6,194 $ 5,141
=================== ==================== ========================
Supplemental disclosure of cash flows information:
a. Cash paid during the period for:
Interest $ 7 $ 42 $ 118
=================== ==================== ========================
b. Non-cash activities:
Offering expenses payable $ - $ - $ 296
=================== ==================== ========================
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
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<PAGE>
JACADA LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1:- GENERAL
Jacada Ltd. (formerly: Client/Server Technology Ltd.) was
incorporated under the laws of Israel in December 1990.
Jacada Ltd. and its wholly-owned marketing subsidiaries - Jacada Inc.
(the U.S. subsidiary) and Jacada (Europe) Ltd. (the UK subsidiary)
(collectively: "the Company") - develop and market software that
enables businesses to utilize their existing host-centric software
applications to conduct business over the Internet. The Company
generates revenues principally from licensing its Jacada software
products and, to a lesser extent, from services such as training,
consulting, maintenance and support.
The Company's sales are made in North America and Europe.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied in the annual financial
statements of the Company as of December 31, 1999 are applied
consistently in these financial statements.
NOTE 3:- UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial information. Accordingly, they do
not include all the information and footnotes required by generally
accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of normal
requiring accruals) considered necessary for a fair presentation have
been included. Operating results for the three-month period ended
March 31, 2000 are not necessarily indicative of the results that may
be expected for the year ended December 31, 2000.
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