Commtouch Reports Financial Results for the First Quarter of 2007.63% Growth in Revenues Year-Over-Year SUNNYVALE, Calif. -- Commtouch[R] (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CTCH CTCH Common Traffic Channel ), the leading OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and provider of real time email defense technology, today announced its first quarter results for the period ending March 31, 2007. First Quarter 2007 Highlights: * Revenues for the first quarter of 2007 increased by 63% to $2,405 thousand compared to $1,473 thousand in the first quarter of 2006. * Net income in accordance with US Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) for the first quarter of 2007 was $267 thousand compared to a loss of $378 thousand in the first quarter of last year. * Non-GAAP net income for the first quarter of 2007, excluding $243 thousand of stock-based compensation expenses in connection with the company's adoption of Financial Accounting Standards No. 123R, was $510 thousand compared to a loss of $214 thousand in the first quarter of 2006. * Deferred Revenues (long term and short term) as of March 31, 2007 amounted to $2,808 thousand, an increase of 9% over deferred revenues as of December 31, 2006. * Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. in the first quarter of 2007 was $953 thousand, compared to $348 thousand in the first quarter of 2006. * Cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has as of March 31, 2007 amounted to $11,518 thousand compared to $10,004 thousand as of December 31, 2006. The increase is due to the above-mentioned positive operating cash flow and receipt of proceeds from the exercise of warrants and options in the amount of $830 thousand. * The Company signed 11 new OEM licensing agreements during the quarter, bringing the Company's global OEM partner count to 66 at the end of the quarter. "This has been a strong quarter for us," commented Gideon Mantel, Commtouch's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and chairman of the board. "Again, we achieved good financial results with increasing revenues and profitability. To cap it off, we generated almost one million dollars in positive operating cash flow and signed a record eleven new licensing deals during the quarter. "The majority of our revenues is derived from our anti-spam product," Mr. Mantel continued. "We are now just starting to see the demand and revenue growth in our Zero-Hour virus outbreak protection product line, which we launched in 2005. Most recently, we rolled out our new Reputation Service at the end of last year, and we expect to see the benefits from this product starting in several quarters. It has been quite an accomplishment to continue developing leading edge security solutions while at the same time increasing our profitability." Use of Non-GAAP Measures This press release includes financial measures for net income (loss), basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of that exclude stock-based compensation expense and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance that enhances management's and investors' ability to evaluate the company's net income or loss and earnings or loss per share and to compare it with historical net income or loss and earnings or loss per share. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and therefore felt it important to make these non-GAAP adjustments available to investors. Financial Results Conference Call The company has scheduled a conference call later today, Thursday, May 3rd, 2007 at 11 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . To participate in the call, please dial one of the following numbers ten minutes prior to the start time of the call:
U.S.: 1-888-668-9141;
UK: 0-800-917-9141;
ISRAEL: 03-918-0609;
INTERNATIONAL: +972-3-918-0609
For those unable to listen to the live call, a replay of the call will be available the day after the call in the investor relations Investor relations The process by which the corporation communicates with its investors. section of Commtouch's website, at: http://www.commtouch.com/ir. About Commtouch Commtouch Software Ltd. (NASDAQ:CTCH) is dedicated to protecting and preserving the integrity of the world's most important communications tool -- e-mail. Commtouch has over 16 years of experience developing messaging software and is a global developer and provider of proprietary anti-spam, Zero-Hour[TM] virus protection and Reputation Service solutions. Using core technologies including RPD RPD Rapid RPD Radiation Protection Dosimetry RPD Rapid Product Development RPD Rochester Police Department RPD Recurrent Pattern Detection (Commtouch anti-spam engine) RPD Relative Percent Difference RPD Removable Partial Denture (Recurrent Pattern Detection[TM]), the Commtouch Detection Center analyzes billions of email messages per month to identify new spam E-mail that is not requested. Also known as "unsolicited commercial e-mail" (UCE), "unsolicited bulk e-mail" (UBE), "gray mail" and just plain "junk mail," the term is both a noun (the e-mail message) and a verb (to send it). and malware (MALicious softWARE) Software designed to destroy, aggravate and otherwise make life unhappy. See crimeware, virus, worm, logic bomb, macro virus and Trojan. outbreaks within minutes of their introduction into the Internet. Integrated by more scores of OEM partners, Commtouch technology protects thousands of organizations, with over 50 million users in over 100 countries. Commtouch is headquartered in Netanya, Israel, and has a subsidiary in Sunnyvale, Calif. For more information, see: www.commtouch.com. The site includes the Commtouch online lab detailing spam statistics and charts. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including projections about our business, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, statements in the future tense future tense n. A verb tense expressing future time. Noun 1. future tense - a verb tense that expresses actions or states in the future future , and statements including words such as "expect," "plan," "estimate," "anticipate," or "believe" are forward-looking statements. These statements are based on information available to us at the time of the release; we assume no obligation to update any of them. The statements in this release are not guarantees of future performance and actual results could differ materially from our current expectations as a result of numerous factors, including business conditions and growth or deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the Internet market, commerce and the general economy, both domestic as well as international; fewer than expected new-partner relationships; competitive factors, including pricing pressures; technological developments, and products offered by competitors; the ability of our OEM partners to successfully penetrate markets with products integrated with Commtouch technology; a slower than expected acceptance rate for our newer product offerings; availability of qualified staff for expansion; and technological difficulties and resource constraints encountered in developing new products, as well as those risks described in the text of this press release and the company's Annual Reports on Form 20-F and reports on Form 6-K, which are available through www.sec.gov. Recurrent Pattern Detection, RPD and Zero-Hour are trademarks, and Commtouch is a registered trademark, of Commtouch Software Ltd. U.S. Patent No. 6,330,590 is owned by Commtouch. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion