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Commtouch Reports Results For The First Quarter Of 2012

 

US Dial-in Number: 1-888-407-2553

Israel Dial-in Number: 03-918-0610

International Dial-in Number:  +972-3-918-0610

at:

10:00 a.m. Eastern Time, 7:00 a.m. Pacific Time,

3:00 p.m. UK Time, 5:00 p.m. Israel Time

The call will be simultaneously webcast live from a link on Commtouch's website at http://www.commtouch.com.

For those unable to listen to the live call, a replay of the call will be available from the day after the call in the investor relations section of Commtouch's website.

About Commtouch

Commtouch® (NASDAQ: CTCH) safeguards the world's leading security companies and service providers with cloud-based Internet security services. Real-time threat intelligence from Commtouch's GlobalView™ Cloud powers its Web filtering, email security and antivirus solutions, protecting thousands of organizations and hundreds of millions of users worldwide. Information about Commtouch can be found at http://www.commtouch.com or by writing to info@commtouch.com.

Recurrent Pattern Detection, RPD, Zero-Hour and GlobalView are trademarks, and Commtouch, Authentium, Command Antivirus and Command Anti-malware are registered trademarks, of Commtouch. U.S. Patent No. 6,330,590 is owned by Commtouch. All other trademarks are the property of their respective owners.

This press release contains forward-looking statements, 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, 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, including the company's expectation of double digit growth for 2012, 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 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; 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 http://www.sec.gov.

                             COMMTOUCH SOFTWARE LTD.
 
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                   (In US$ thousands, except per share amounts)
 
                                                    Three months ended
                                                         March 31
                                                 -------------------------
                                                  2012             2011
                                                 ---------       ---------
                                                Unaudited        Unaudited
 
    Revenues                                       $5,896           $5,515
 
    Cost of revenues                                1,052            1,010
                                                 ---------       ---------
 
    Gross profit                                    4,844            4,505
                                                 ---------       ---------
 
    Operating expenses:
 
    Research and development                        1,270            1,247
 
    Sales and marketing                             1,142            1,391
 
    General and administrative                      1,331              893
                                                 ---------       ---------
 
    Total operating expenses                        3,743            3,531
                                                 ---------       ---------
 
    Operating profit                                1,101              974
 
    Financial expenses , net                          (23)              14
                                                 ---------       ---------
 
    Income before taxes                             1,124              960
 
    Income taxes , net                                (85)             (61)
                                                 ---------       ---------
 
    Net income attributable to ordinary and
    equivalently participating shareholders
                                                   $1,209           $1,021
                                                 =========       =========
 
    Earning per share- basic                        $0.05            $0.04
                                                 =========       =========
 
    Earning per share- diluted                      $0.05            $0.04
                                                 =========       =========
 
    Weighted average number of shares
    outstanding:
    Basic                                          24,163           23,506
                                                 =========       =========
 
    Diluted                                        24,889           24,752
                                                 =========       =========

 
                             COMMTOUCH SOFTWARE LTD.
 
          RECONCILIATION OF SELECTED GAAP MEASURES TO NON GAAP MEASURES
 
                   (In US$ thousands, except per share amounts)
 
                                                    Three months ended
                                                         March 31
                                                 -------------------------
                                                  2012             2011
                                                 ---------       ---------
                                                Unaudited        Unaudited
 
    GAAP operating profit                          $1,101             $974
    Stock-based compensation (1)                      364              297
    Amortization and impairment of intangible
    assets (2)                                        101              129
    Adjustment to earnout obligation (3)                -                -
                                                 ---------       ---------
 
    Non-GAAP operating profit                      $1,566           $1,400
                                                 =========       ========= 
    GAAP net income                                $1,209           $1,021
    Stock-based compensation (1)                      364              297
    Amortization and impairment of intangible
    assets (2)                                        101              129
    Adjustment to earnout obligation (3)               28                -
    Income taxes (4)                                 (116)             (61)
                                                 ---------       ---------
 
    Non-GAAP net income                            $1,586           $1,386
                                                 =========       =========
 
    GAAP earnings per share                         $0.05            $0.04
    Stock-based compensation (1)                     0.01             0.01
    Amortization and impairment of intangible
    assets (2)                                      0.004            0.005
    Adjustment to earnout obligation (3)            0.001                -
    Income taxes (4)                               (0.005)          (0.002)
                                                 ---------       ---------
 
    Non-GAAP earnings per share                     $0.06            $0.06
                                                 =========       =========
 
    Numbers of shares used in computing
    Non-GAAP earnings per share (diluted)          24,889           24,752
 
    (1) Stock-based compensation
    Cost of revenues                                   $9               $6
    Research and development                           67               75
    Sales and marketing                                88               95
    General and administrative                        200              121
                                                 ---------       ---------
 
                                                     $364             $297
                                                 =========       =========
    (2) Amortization and impairment of
    intangible assets
    Cost of revenues                                  $48              $49
    Sales and marketing                                53               80
                                                 ---------       ---------
 
                                                     $101             $129
                                                 =========       =========
    (3) Adjustment to earnout obligation
    Financial expenses (income), net                  $28                -
    General and administrative                          -                -
                                                 ---------       ---------
 
                                                      $28                -
                                                 =========       =========
    (4) Income taxes
    Deferred tax asset - tax benefit                 (116)             (61)
                                                 ---------       ---------
 
                                                    ($116)            ($61)
                                                 =========       =========
 
                             COMMTOUCH SOFTWARE LTD.
 
                      CONDENSED CONSOLIDATED BALANCE SHEETS
 
                                              March 31             December 31
                                              ---------             ---------
                                                2012                  2011
                                              ---------             ---------
                                             Unaudited               Audited
                                                     In US$ thousands
 
    Assets:
    Current Assets:
    Cash and cash equivalents                   $22,038                $20,868
    Trade receivables                             3,373                  2,838
    Deferred income taxes                         2,041                  1,996
    Prepaid expenses and other accounts
    receivable                                      306                    463
                                               ---------             ---------
              Total current assets               27,758                 26,165
                                               ---------             ---------
    Long-term lease deposits                         40                     40
    Severance pay fund                            1,055                  1,031
    Property and equipment, net                     882                    885
    Deferred income taxes                         2,960                  2,889
    Intangible assets, net                        3,404                  3,505
    Goodwill                                      3,792                  3,792
    Investment in affiliate                       1,227                  1,227
                                               ---------             ---------
                  Total assets                   41,118                 39,534
                                               =========             =========
 
    Liabilities and Shareholders' Equity
    Current Liabilities:
    Accounts payable                                383                    551
    Employees and payroll accruals                1,246                  1,215
    Accrued expenses and other liabilities          609                    628
    Other short term liabilities                  3,400                  3,372
    Deferred revenues                             2,921                  3,058
                                               ---------             ---------
           Total current liabilities              8,559                  8,824
                                               ---------             ---------
 
    Deferred revenues                               851                    694
    Accrued severance pay                         1,212                  1,192
                                               ---------             ---------
               Total liabilities                  2,063                  1,886
                                               ---------             ---------
 
    Shareholders' equity                         30,496                 28,824
                                               ---------             ---------
      Total liabilities and shareholders'
                     equity                     $41,118                $39,534
                                               =========             =========
 
                                    COMMTOUCH SOFTWARE LTD.
 
                             CONDENSED CONSOLIDATED CASH FLOW DATA
 
                                      (In US$ thousands)
 
                                                                 Three months ended
                                                                      March 31
                                                              ------------------------
                                                               2012             2011
                                                              -------          -------
    Cash flow from operating activities                      Unaudited        Unaudited
 
    Net income                                                  $1,209           $1,021
 
    Adjustments:
    Depreciation                                                   151              136
    Compensation related to options issued to employees            364              280
    Amortization amd impairment of intangible assets               101              129
    Capital gain from sale of fixed assets                           -                -
 
    Changes in assets and liabilities:
    (Increase) decrease in trade receivables                      (535)               9
    Increase in deferred taxes                                    (116)             (61)
    Decrease in prepaid expenses and other receivables             157               46
    (Decrease) in accounts payable                                (183)            (213)
    Increase in employees and payroll accruals, accrued
    expenses and other liabilities                                  40               52
    Increase (decrease) in deferred revenues                        20             (310)
    (Decrease) increase in accrued severance pay, net               (4)              13
                                                              ---------         --------
    Net cash provided by operating activities                    1,204            1,102
 
    Cash from investing activities
 
    Change in long - term lease deposits                             -               11
    Purchase of property and equipment                            (133)            (119)
    Net cash used in investing activities                         (133)            (108)
                                                              ---------         --------
 
    Cash flows from financing activities
 
    Proceeds from options and warrants exercised                    99                -
                                                              ---------         --------
    Net cash provided by financing activities                       99                -
 
    Increase in cash and cash equivalents                        1,170              994
    Cash and cash equivalents at the beginning of the period    20,868           13,432
                                                              ---------         --------
    Cash and cash equivalents at the end of the period         $22,038          $14,426
                                                              =========         ========

 

Stock quotes in this article: CTCH 

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