Jacada Reports Second Quarter 2011 Results

Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer experience management and process optimization solutions, today reported financial results for the second quarter ended June 30, 2011.

Second Quarter Highlights

• Software license revenues were $813,000, a 48% increase over second quarter 2010 software license revenues of $549,000
• Reduced net loss to $1.1 million compared to a net loss of $1.7 million in the second quarter of 2010
• Executed an agreement with a large banking and financial conglomerate in Canada for the license of Jacada’s Workspace products
• Executed an agreement with a telecommunications company providing phone, internet and video services to over 750,000 customers for the license of Jacada’s agent scripting suite of products

"Our total revenues for the second quarter of 2011 were $3.7 million, representing significant growth over the two previous quarters,” commented Tom Clear, co-chief executive officer of Jacada. "Strong software license revenues, the result of signing two new customers during the quarter, contributed to this increase in total revenue. This improvement in revenue, combined with our continued cost controls, allowed us to improve our net loss to $1.1 million during the second quarter of 2011.”

"Jacada has continued to align our products and services with the solution needs of our customers,” said Gideon Hollander, founder and co-chief executive officer of Jacada. "During the second quarter, we introduced Jacada Agent Scripting version 6.0, our call center scripting tool, and executed an agreement for the license of this product with a US based telecommunications company.”

Financial Results

For the second quarter of 2011, total revenues were $3.7 million compared to $4.5 million in the second quarter of 2010. Software revenues for the 2011 second quarter were $813,000 compared to $549,000 during the 2010 second quarter. Services revenues were $2.2 million in the 2011 second quarter and $3.3 million in the 2010 second quarter. Maintenance revenues were $678,000 and $675,000 in the 2011 and 2010 second quarters, respectively.

Gross margins were 42% and 39% of total revenues during the 2011 and 2010 second quarters, respectively. Second quarter 2011 operating expenses of $2.6 million, reflecting the cost containment measures implemented during the third quarter of 2010, were significantly less than second quarter 2010 operating expenses of $3.5 million.

The 2011 second quarter net loss was $1.1 million or ($0.26) per share compared to a net loss of $1.7 million or ($0.41) per share in the second quarter of 2010.

Conference Call Details

Management will hold a conference call to discuss the second quarter 2011 financial results at 10:30am ET on August 16, 2011. To participate in the teleconference, please call toll-free 888-713-4217 or 617-213-4869 for international callers, and provide pass code 45719168 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=PH64B9B37. 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 August 16, 2011. To access the replay, dial toll-free 888-286-8010, or for international callers 617-801-6888, and provide pass code 18858758.

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.