Commtouch (Nasdaq:CTCH) is on the verge of collapse, reports Ma'ariv.

Over the weekend, the company fired its all-but last 30 employees, the daily reports, thus effectively ending the company's activity.

The few remaining employees are there apparently to support customers.

On August 13, Commtouch said it had $1.7 million cash left.

It also reported second-quarter 2002 revenues of $1 million, down from $1.3 million in the prior quarter and $3.8 million in the comparable quarter last year.

The company said it lost $700,000 compared with losing $900,000 in the previous quarter and $ 8.5 million in the comparable quarter last year.

For the half year, Commtouch said revenues were $2.3 million compared to $7.5 million in the comparable period last year.

Total loss for the six months ended June 30, 2002 was $1.6 million compared to $25.7 million in the comparable period last year, the company said.