Jacada Reports Second Quarter 2009 Results

Jacada Ltd. (Nasdaq: JCDA), a leading provider of unified desktop and process optimization solutions for customer service operations, today reported financial results for the second quarter and six month period ended June 30, 2009.

For the second quarter of 2009, total revenues were $2.5 million compared to $6.3 million in the second quarter of 2008. Total gross profit for the 2009 second quarter was $285,000 or 11% of total revenues, compared to $3.2 million and 50%, respectively, in the 2008 second quarter. The second quarter net loss was $3.4 million, or ($0.21) per share. This is compared to a net loss of $1.6 million or ($0.08) per share in the second quarter of 2008.

For the six month periods ending on June 30, 2009 and 2008, respectively, total revenues were $7.0 million and $12.5 million and gross profits were $1.7 million or 24% of total revenues and $6.9 million or 55% of total revenues. During the six month period ending June 30, 2009 the Company incurred a net loss of $4.9 million or ($0.29) per share. In the comparable 2008 period, the Company posted net income of $18.5 million or $0.89 per share. The 2008 net income included $20.2 million, or $0.97 per share, in income, net of taxes, from discontinued operations, which was generated in the form of a capital gain from the sale of the Company’s legacy business during the 2008 first quarter.

The reduction in revenues in the three and six month periods are directly related to a declining backlog in prior quarters.

At the end of the second quarter of 2009, cash and investments were $30.3 million, compared to $32.8 million reported as of March 31, 2009 and $33.1 million at year end 2008.

Jacada continued to expand relationships with existing customers this quarter and signed three material agreements with an existing telecommunications customer. Jacada will deliver three projects across different areas of the company’s customer facing businesses, including consumer, business-to-business call centers and retail stores. This marks a significant expansion of the use of Jacada solutions into new areas of customer contact. It further demonstrates the value Jacada solutions bring and how that value continues to drive revenue growth with Jacada’s installed customer base.

During the quarter, Jacada and O2 were recognized by Global Telecoms Business, and were awarded the prestigious Consumer Service Innovation Award. The award, judged by leading figures from the global telecoms industry, acknowledges the impact O2’s Synergy unified desktop project has had on the quality of interaction with its 18.7 million customers.

“We continue to see exciting new opportunities where Jacada customer service solutions can bring significant value. In today’s economy, companies are interested in projects that can dramatically improve the customer service experience for their customers, while providing an obvious and rapid return on investment. Jacada’s proven ability to deliver these benefits, with a typical 12 month return on investment, is exactly what our customers are seeking as they manage their budgets tightly,” said Tom Clear, chief executive officer for Jacada. “Although our pipeline is growing, we continue to see additional due diligence and approval steps in the buying process prior to commitment to full implementation contracts.”

Conference Call Details

Any investor or interested individual can participate in the teleconference, which will begin at 10:30 a.m. Eastern Time on August 12, 2009. To participate in the teleconference, please call toll-free 888-680-0894 or 617-213-4860 for international callers, and provide passcode 88713352 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=P76HMHA3W. A (live audio) webcast will also be available over the Internet at www.jacada.com (under “About Us” then “Investors”) or www.earnings.com.

About Jacada

Jacada is a leading global provider of unified service desktop and process optimization solutions that simplify and automate customer service processes. By bridging disconnected systems into a single, intelligent desktop, Jacada solutions create greater operational efficiency and increase agent and customer satisfaction. Founded in 1990, Jacada operates globally with offices in Atlanta, Georgia; Herzliya, Israel; London, England and Munich, Germany. Jacada can be reached at www.jacada.com.

Forward Looking Statement

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 is a trademark of Jacada Ltd. 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)

Three months ended

June 30,

Six months ended

June 30,

2009

2008

2009

2008

Unaudited

        
      
      
        
          Revenues:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Software licenses
        
        
        
        
          $
        
        
          60
        
        
        
        
        
        
          $
        
        
          2,035
        
        
        
        
        
        
          $
        
        
          637
        
        
        
        
        
        
          $
        
        
          4,882
        
        
        
      
      
        
          Services
        
        
        
        
        
        
          1,797
        
        
        
        
        
        
        
        
          3,685
        
        
        
        
        
        
        
        
          5,104
        
        
        
        
        
        
        
        
          6,558
        
        
        
      
      
        
          Maintenance
        
        
        
        
           
        
        
          653
        
        
           
        
        
        
        
           
        
        
          592
        
        
           
        
        
        
        
           
        
        
          1,300
        
        
           
        
        
        
        
           
        
        
          1,090
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total revenues
        
        
        
        
           
        
        
          2,510
        
        
           
        
        
        
        
           
        
        
          6,312
        
        
           
        
        
        
        
           
        
        
          7,041
        
        
           
        
        
        
        
           
        
        
          12,530
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cost of revenues:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Software licenses
        
        
        
        
        
        
          33
        
        
        
        
        
        
        
        
          152
        
        
        
        
        
        
        
        
          147
        
        
        
        
        
        
        
        
          234
        
        
        
      
      
        
          Services
        
        
        
        
        
        
          2,022
        
        
        
        
        
        
        
        
          2,781
        
        
        
        
        
        
        
        
          4,866
        
        
        
        
        
        
        
        
          4,955
        
        
        
      
      
        
          Maintenance
        
        
        
        
           
        
        
          170
        
        
           
        
        
        
        
           
        
        
          219
        
        
           
        
        
        
        
           
        
        
          346
        
        
           
        
        
        
        
           
        
        
          426
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total cost of revenues
        
        
        
        
           
        
        
          2,225
        
        
           
        
        
        
        
           
        
        
          3,152
        
        
           
        
        
        
        
           
        
        
          5,359
        
        
           
        
        
        
        
           
        
        
          5,615
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Gross profit
        
        
        
        
        
        
          285
        
        
        
        
        
        
        
        
          3,160
        
        
        
        
        
        
        
        
          1,682
        
        
        
        
        
        
        
        
          6,915
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating expenses:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Research and development
        
        
        
        
        
        
          890
        
        
        
        
        
        
        
        
          1,279
        
        
        
        
        
        
        
        
          1,834
        
        
        
        
        
        
        
        
          2,433
        
        
        
      
      
        
          Sales and marketing
        
        
        
        
        
        
          1,551
        
        
        
        
        
        
        
        
          2,382
        
        
        
        
        
        
        
        
          3,157
        
        
        
        
        
        
        
        
          4,788
        
        
        
      
      
        
          General and administrative
        
        
        
        
           
        
        
          1,342
        
        
           
        
        
        
        
           
        
        
          1,288
        
        
           
        
        
        
        
           
        
        
          2,154
        
        
           
        
        
        
        
           
        
        
          2,586
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total operating expenses
        
        
        
        
           
        
        
          3,783
        
        
           
        
        
        
        
           
        
        
          4,949
        
        
           
        
        
        
        
           
        
        
          7,145
        
        
           
        
        
        
        
           
        
        
          9,807
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating loss
        
        
        
        
        
        
          (3,498
        
        
          )
        
        
        
        
        
        
          (1,789
        
        
          )
        
        
        
        
        
        
          (5,463
        
        
          )
        
        
        
        
        
        
          (2,892
        
        
          )
        
      
      
        
          Financial income, net
        
        
        
        
           
        
        
          94
        
        
           
        
        
        
        
           
        
        
          378
        
        
           
        
        
        
        
           
        
        
          625
        
        
           
        
        
        
        
           
        
        
          826
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss from continuing operations before taxes
        
        
        
        
        
        
          (3,404
        
        
          )
        
        
        
        
        
        
          (1,411
        
        
          )
        
        
        
        
        
        
          (4,838
        
        
          )
        
        
        
        
        
        
          (2,066
        
        
          )
        
      
      
        
          Tax (expense) benefit
        
        
        
        
           
        
        
          (26
        
        
          )
        
        
        
        
           
        
        
          213
        
        
           
        
        
        
        
           
        
        
          (38
        
        
          )
        
        
        
        
           
        
        
          347
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net loss from continuing operations
        
        
        
        
        
        
          (3,430
        
        
          )
        
        
        
        
        
        
          (1,198
        
        
          )
        
        
        
        
        
        
          (4,876
        
        
          )
        
        
        
        
        
        
          (1,719
        
        
          )
        
      
      
        
          Income (loss) from discontinued operations, net of taxes
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          (399
        
        
          )
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          20,173
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income (loss)
        
        
        
        
          $
        
        
          (3,430
        
        
          )
        
        
        
        
          $
        
        
          (1,597
        
        
          )
        
        
        
        
          $
        
        
          (4,876
        
        
          )
        
        
        
        
          $
        
        
          18,454
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Basic and diluted net earnings (loss) per share:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          From continuing operations
        
        
        
        
          $
        
        
          (0.21
        
        
          )
        
        
        
        
          $
        
        
          (0.06
        
        
          )
        
        
        
        
          $
        
        
          (0.29
        
        
          )
        
        
        
        
          $
        
        
          (0.08
        
        
          )
        
      
      
        
          From discontinued operations
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
          $
        
        
          (0.02
        
        
          )
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
          $
        
        
          0.97
        
        
           
        
      
      
        
          Basic and diluted net earnings (loss) per share
        
        
        
        
          $
        
        
          (0.21
        
        
          )
        
        
        
        
          $
        
        
          (0.08
        
        
          )
        
        
        
        
          $
        
        
          (0.29
        
        
          )
        
        
        
        
          $
        
        
          0.89
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Weighted average number of shares used in computing basic and 
          diluted net earnings (loss) per share
        
        
        
        
           
        
        
          16,565,468
        
        
           
        
        
        
        
           
        
        
          20,635,013
        
        
           
        
        
        
        
           
        
        
          16,559,724
        
        
           
        
        
        
        
           
        
        
          20,627,323
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

June 30,

December 31,

2009

2008

Unaudited

Audited

ASSETS

        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          CURRENT ASSETS:
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents *)
        
        
        
        
          $
        
        
          18,628
        
        
        
        
        
        
          $
        
        
          11,059
        
        
        
      
      
        
          Short term deposits *)
        
        
        
        
        
        
          1,884
        
        
        
        
        
        
        
        
          -
        
        
        
      
      
        
          Marketable securities *)
        
        
        
        
        
        
          4,804
        
        
        
        
        
        
        
        
          8,915
        
        
        
      
      
        
          Trade receivables
        
        
        
        
        
        
          2,403
        
        
        
        
        
        
        
        
          4,713
        
        
        
      
      
        
          Restricted cash held by trustee *)
        
        
        
        
        
        
          2,653
        
        
        
        
        
        
        
        
          2,640
        
        
        
      
      
        
          Restricted cash *)
        
        
        
        
        
        
          559
        
        
        
        
        
        
        
        
          559
        
        
        
      
      
        
          Other current assets
        
        
        
        
        
        
          1,123
        
        
        
        
        
        
        
        
          2,022
        
        
        
      
      
        
          Assets of discontinued operations
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          64
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total current assets
        
        
        
        
           
        
        
          32,054
        
        
           
        
        
        
        
           
        
        
          29,972
        
        
           
        
      
      
        
          LONG-TERM INVESTMENTS:
        
        
        
        
        
        
        
        
        
      
      
        
          Marketable securities *)
        
        
        
        
        
        
          1,818
        
        
        
        
        
        
        
        
          9,896
        
        
        
      
      
        
          Severance pay fund
        
        
        
        
           
        
        
          412
        
        
           
        
        
        
        
           
        
        
          586
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total long-term investments
        
        
        
        
           
        
        
          2,230
        
        
           
        
        
        
        
           
        
        
          10,482
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          PROPERTY AND EQUIPMENT, NET
        
        
        
        
           
        
        
          1,147
        
        
           
        
        
        
        
           
        
        
          1,266
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          GOODWILL
        
        
        
        
           
        
        
          3,096
        
        
           
        
        
        
        
           
        
        
          3,096
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total assets
        
        
        
        
          $
        
        
          38,527
        
        
           
        
        
        
        
          $
        
        
          44,816
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          *) Total Cash and Investments including restricted cash
        
        
        
        
          $
        
        
          30,346
        
        
           
        
        
        
        
          $
        
        
          33,069
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          LIABILITIES AND SHAREHOLDERS' EQUITY
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          CURRENT LIABILITIES:
        
        
        
        
        
        
        
        
        
      
      
        
          Trade payables
        
        
        
        
          $
        
        
          815
        
        
        
        
        
        
          $
        
        
          1,245
        
        
        
      
      
        
          Deferred revenues
        
        
        
        
        
        
          1,103
        
        
        
        
        
        
        
        
          1,006
        
        
        
      
      
        
          Accrued expenses and other liabilities
        
        
        
        
        
        
          2,466
        
        
        
        
        
        
        
        
          3,096
        
        
        
      
      
        
          Liabilities of discontinued operations
        
        
        
        
           
        
        
          1,069
        
        
           
        
        
        
        
           
        
        
          1,363
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total current liabilities
        
        
        
        
           
        
        
          5,453
        
        
           
        
        
        
        
           
        
        
          6,710
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          LONG-TERM LIABILITIES:
        
        
        
        
        
        
        
        
        
      
      
        
          Accrued severance pay
        
        
        
        
        
        
          724
        
        
        
        
        
        
        
        
          1,120
        
        
        
      
      
        
          Other long-term liabilities
        
        
        
        
           
        
        
          163
        
        
           
        
        
        
        
           
        
        
          185
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total long-term liabilities
        
        
        
        
           
        
        
          887
        
        
           
        
        
        
        
           
        
        
          1,305
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          SHAREHOLDERS' EQUITY:
        
        
        
        
        
        
        
        
        
      
      
        
          Share capital
        
        
        
        
        
        
          60
        
        
        
        
        
        
        
        
          60
        
        
        
      
      
        
          Additional paid-in capital
        
        
        
        
        
        
          75,330
        
        
        
        
        
        
        
        
          75,173
        
        
        
      
      
        
          Treasury shares at cost
        
        
        
        
        
        
          (17,863
        
        
          )
        
        
        
        
        
        
          (17,863
        
        
          )
        
      
      
        
          Accumulated other comprehensive profit
        
        
        
        
        
        
          265
        
        
        
        
        
        
        
        
          160
        
        
        
      
      
        
          Accumulated deficit
        
        
        
        
           
        
        
          (25,605
        
        
          )
        
        
        
        
           
        
        
          (20,729
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total shareholders' equity
        
        
        
        
           
        
        
          32,187
        
        
           
        
        
        
        
           
        
        
          36,801
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

Total liabilities and shareholders' equity

        
        
        
        
          $
        
        
          38,527
        
        
           
        
        
        
        
          $
        
        
          44,816
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
    
    

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

Three months ended

June 30,

Six months ended

June 30,

2009

2008

2009

2008

Unaudited

Cash flows from operating activities:

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income (loss)
        
        
        
        
          $
        
        
          (3,430
        
        
          )
        
        
        
        
          $
        
        
          (1,597
        
        
          )
        
        
        
        
          $
        
        
          (4,876
        
        
          )
        
        
        
        
          $
        
        
          18,454
        
        
        
      
      
        
          Less: Net (income) loss from discontinued operations, net of taxes
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          399
        
        
           
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          (20,173
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net loss from continuing operations
        
        
        
        
           
        
        
          (3,430
        
        
          )
        
        
        
        
           
        
        
          (1,198
        
        
          )
        
        
        
        
           
        
        
          (4,876
        
        
          )
        
        
        
        
           
        
        
          (1,719
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Adjustments required to reconcile net loss from continuing 
          operations to net cash used in operating activities from continuing 
          operations:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Depreciation and amortization
        
        
        
        
        
        
          138
        
        
        
        
        
        
        
        
          164
        
        
        
        
        
        
        
        
          312
        
        
        
        
        
        
        
        
          311
        
        
        
      
      
        
          Stock-based compensation related to options granted to employees and 
          directors
        
        
        
        
        
        
          205
        
        
        
        
        
        
        
        
          240
        
        
        
        
        
        
        
        
          339
        
        
        
        
        
        
        
        
          491
        
        
        
      
      
        
          Stock-based compensation related to options granted to non-employees
        
        
        
        
        
        
          (1
        
        
          )
        
        
        
        
        
        
          2
        
        
        
        
        
        
        
        
          9
        
        
        
        
        
        
        
        
          5
        
        
        
      
      
        
          Accrued interest and amortization of premium on marketable securities
        
        
        
        
        
        
          (17
        
        
          )
        
        
        
        
        
        
          (204
        
        
          )
        
        
        
        
        
        
          121
        
        
        
        
        
        
        
        
          (123
        
        
          )
        
      
      
        
          Loss (gain) from sales of marketable securities
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          8
        
        
        
        
        
        
        
        
          (353
        
        
          )
        
        
        
        
        
        
          (97
        
        
          )
        
      
      
        
          Increase (decrease) in accrued severance pay, net
        
        
        
        
        
        
          (120
        
        
          )
        
        
        
        
        
        
          14
        
        
        
        
        
        
        
        
          (222
        
        
          )
        
        
        
        
        
        
          71
        
        
        
      
      
        
          Decrease in trade receivables, net
        
        
        
        
        
        
          1022
        
        
        
        
        
        
        
        
          1,876
        
        
        
        
        
        
        
        
          2,310
        
        
        
        
        
        
        
        
          438
        
        
        
      
      
        
          Decrease (increase) in other current assets
        
        
        
        
        
        
          391
        
        
        
        
        
        
        
        
          409
        
        
        
        
        
        
        
        
          1,102
        
        
        
        
        
        
        
        
          (174
        
        
          )
        
      
      
        
          Increase (decrease) in trade payables
        
        
        
        
        
        
          (191
        
        
          )
        
        
        
        
        
        
          168
        
        
        
        
        
        
        
        
          (430
        
        
          )
        
        
        
        
        
        
          201
        
        
        
      
      
        
          Increase (decrease) in deferred revenues
        
        
        
        
        
        
          (174
        
        
          )
        
        
        
        
        
        
          (1,325
        
        
          )
        
        
        
        
        
        
          55
        
        
        
        
        
        
        
        
          (513
        
        
          )
        
      
      
        
          Decrease in accrued expenses and other liabilities
        
        
        
        
        
        
          (315
        
        
          )
        
        
        
        
        
        
          (103
        
        
          )
        
        
        
        
        
        
          (1,046
        
        
          )
        
        
        
        
        
        
          (8
        
        
          )
        
      
      
        
          Decrease in other long-term liabilities
        
        
        
        
           
        
        
          (19
        
        
          )
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          (22
        
        
          )
        
        
        
        
           
        
        
          -
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net cash provided by (used in) operating activities from continuing 
          operations
        
        
        
        
           
        
        
          (2,511
        
        
          )
        
        
        
        
           
        
        
          51
        
        
           
        
        
        
        
           
        
        
          (2,701
        
        
          )
        
        
        
        
           
        
        
          (1,117
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net cash provided by (used in) operating activities from 
          discontinued operations
        
        
        
        
        
        
          (168
        
        
          )
        
        
        
        
        
        
          (302
        
        
          )
        
        
        
        
        
        
          (230
        
        
          )
        
        
        
        
        
        
          70
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net cash used in operating activities
        
        
        
        
        
        
          (2,679
        
        
          )
        
        
        
        
        
        
          (251
        
        
          )
        
        
        
        
        
        
          (2,931
        
        
          )
        
        
        
        
        
        
          (1,047
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

Cash flows from investing activities:

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Investment in available-for-sale marketable securities
        
        
        
        
        
        
          (1,017
        
        
          )
        
        
        
        
        
        
          (6,390
        
        
          )
        
        
        
        
        
        
          (5,913
        
        
          )
        
        
        
        
        
        
          (25,416
        
        
          )
        
      
      
        
          Proceeds from sale and redemption of available-for-sale marketable 
          securities
        
        
        
        
        
        
          6,902
        
        
        
        
        
        
        
        
          2,864
        
        
        
        
        
        
        
        
          18,279
        
        
        
        
        
        
        
        
          18,663
        
        
        
      
      
        
          Short term deposits, net
        
        
        
        
        
        
          (1,884
        
        
          )
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          (1,884
        
        
          )
        
        
        
        
        
        
          -
        
        
        
      
      
        
          Increase in restricted cash held by trustee
        
        
        
        
        
        
          (2
        
        
          )
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          (13
        
        
          )
        
        
        
        
        
        
          -
        
        
        
      
      
        
          Purchase of property and equipment
        
        
        
        
           
        
        
          (37
        
        
          )
        
        
        
        
           
        
        
          (234
        
        
          )
        
        
        
        
           
        
        
          (194
        
        
          )
        
        
        
        
           
        
        
          (491
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net cash provided by (used in) investing activities from continuing 
          operations
        
        
        
        
           
        
        
          3,962
        
        
           
        
        
        
        
           
        
        
          (3,760
        
        
          )
        
        
        
        
           
        
        
          10,275
        
        
           
        
        
        
        
           
        
        
          (7,244
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Proceeds from sale of discontinued operations, net
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
           
        
        
          22,105
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net cash provided by (used in) investing activities
        
        
        
        
           
        
        
          3,962
        
        
           
        
        
        
        
           
        
        
          (3,760
        
        
          )
        
        
        
        
           
        
        
          10,275
        
        
           
        
        
        
        
           
        
        
          14,861
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

Three months ended

June 30,

Six months ended

June 30,

2009

2008

2009

2008

Unaudited

Cash flows from financing activities:

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Purchase of treasury shares
        
        
        
        
          -
        
        
        
        
          (1,446
        
        
          )
        
        
        
        
          -
        
        
        
        
          (1,446
        
        
          )
        
      
      
        
          Proceeds from exercise of stock options
        
        
        
        
          5
        
        
        
        
          482
        
        
           
        
        
        
        
          59
        
        
        
        
          589
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net cash provided by (used in) financing activities from continuing 
          operations
        
        
        
        
          5
        
        
        
        
          (964
        
        
          )
        
        
        
        
          59
        
        
        
        
          (857
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Effect of exchange rate changes on cash
        
        
        
        
          254
        
        
        
        
          -
        
        
        
        
        
        
          166
        
        
        
        
          -
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Increase (decrease) in cash and cash equivalents
        
        
        
        
          1,542
        
        
        
        
          (4,975
        
        
          )
        
        
        
        
          7,569
        
        
        
        
          12,957
        
        
        
      
      
        
          Cash and cash equivalents at the beginning of the period
        
        
        
        
          17,086
        
        
        
        
          23,892
        
        
           
        
        
        
        
          11,059
        
        
        
        
          5,960
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cash and cash equivalents at the end of the period
        
        
        
        
          18,628
        
        
        
        
          18,917
        
        
           
        
        
        
        
          18,628
        
        
        
        
          18,917