Commtouch Reports Strong Momentum in First Quarter 2005; Company Also Receives $1.2 Million from Warrants Exercises.MOUNTAIN VIEW, Calif. -- Commtouch (R) (Nasdaq:CTCHC), the developer of 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 (TM) technology for real time anti-spam and zero-hour virus protection, today announced continued customer and revenue growth for the first quarter of 2005. The company will release quarterly financial results by early May. Highlights during the first quarter included: --Revenue growth for the seventh consecutive quarter. --First shipment of the zero -hour virus protection product. --An exclusive marketing agreement with Rhyolite rhyolite, fine-grained light-colored acidic volcanic rock. Rhyolite is chemically the equivalent of granite, and is thus composed primarily of quartz and orthoclase feldspar with subordinate amounts of plagioclase feldspar, biotite mica, amphiboles, and pyroxenes. Software for the DCC (1) (Direct Cable Connection) A Windows 95/98 feature that allows PCs to be cabled together for data transfer. DCC actually sets up a network connection between the two machines. anti-spam software offering. --The exercise of warrants by certain of the company's investors resulting in additional cash of approximately $1.2 million (discussed below). --Four new 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 alliances signed during the quarter. --141 enterprise customers signed up for Commtouch's RPD powered anti-spam engine. The rate of renewals by enterprise customers remained steady at approximately 95%. Gideon Mantel, 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. of Commtouch, remarked: "This has been our strongest quarter to date, both in terms of anti-spam revenue as well as new anti-spam product sales. We also licensed our first zero-hour anti-virus product. The interest in our unique RPD technology as it relates to zero-hour virus detection bodes well for the future. We expect a number of new relationships to be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. in the short term." Exercise of previously issued warrants resulted in the receipt of approximately $1.2 million against the issuance of approximately 3.2 million shares. These exercises provide additional financial stability for the company, as well as raise the company's shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. to over $2.5 million, thereby enabling it to maintain its listing on The Nasdaq SmallCap Market. The company believes that these exercises of warrants represented the most beneficial and least dilutive option available to the company and its shareholders in seeking to retain its Nasdaq listing. As an incentive for the immediate cash exercise of warrants, the company provided a discount in the exercise price of approximately 20%; those warrants with exercise prices out of the money were amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. to provide for an exercise price of $0.58 per warrant share. About Commtouch Commtouch Software Ltd. (Nasdaq:CTCHC) is dedicated to protecting and preserving the integrity of the world's most important communications tool -- email. A global developer and provider of proprietary anti-spam solutions, Commtouch has an installed base of over 25 million users. The company's core technologies, including RPD(TM) -- Recurrent recurrent /re·cur·rent/ (re-kur´ent) [L. recurrens returning] 1. running back, or toward the source. 2. returning after remissions. re·cur·rent adj. 1. Pattern Detection, reflect Commtouch's 14 years of experience developing messaging software. Commtouch solutions are incorporated into OEM applications and are also sold through channels and resellers. Commtouch is headquartered in Netanya, Israel, and has a subsidiary in Mountain View, CA. For more information, see: www.commtouch.com. For coverage of Commtouch technology by industry analysts such as IDC and Osterman Research, see: http://www.commtouch.com/site/ResearchLab/research.asp. 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 the failure to satisfy the conditions imposed by the Nasdaq Listing Qualifications Panel for the continued listing of Commtouch shares on The Nasdaq SmallCap Market; 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; fewer than expected license agreements resulting from Commtouch's exclusive rights to market DCC; 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 real time AV solutions in general and the Commtouch virus detection engine in particular; availability of qualified staff for expansion; and technological difficulties and resource constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. encountered in developing new products, such as the Commtouch virus detection engine, as well as those risks described in the text of this press release or 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 and RPD are trademarks and Commtouch is a registered trademark of Commtouch Software Ltd. U.S. Patent No. 6,330,590 is owned by Commtouch. |
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