Did this get lost in the maelstrom?? Or maybe WS can't read...Best to All!
KLP
Commtouch Reports 91% Growth in Revenues for Q1 2000
Record Gross Profit Margin of 50%
SANTA CLARA, Calif., April 18 /PRNewswire/ -- Commtouch (Nasdaq: CTCH), the worldwide leader in integrated email
outsourcing services today announced results for the first quarter 2000. Revenues for the first quarter of 2000 were $4.3
million, a 91% increase over fourth quarter 1999 revenues of $2.2 million. As of March 31, 2000, the Company had a backlog
from contracts amounting to approximately $22 million that will be recognized as revenue over future quarters.
(Photo:http://www.newscom.com/cgi-bin/prnh/20000210/SFTH038 )
"Our strong Q1 2000 results once again illustrate the power of Commtouch," said Gideon Mantel, CEO of Commtouch. "The
Commtouch value proposition -- providing the best integrated messaging outsourcing services to a global market -- is what
separates Commtouch in the Internet space and what will continue to drive our revenue and profitability." Mantel added, "Our
strategic partnerships and the release of Commtouch Wireless Services in Q1 has expanded both our global reach and our
integrated product offerings and access points. Commtouch is strategically positioned today to build a Web-based global
communications company."
Gross profit for the first quarter of 2000 was $2.2 million representing a gross profit margin of 50% compared to a gross profit
margin of 30% for the fourth quarter of 1999.
Net loss for the quarter ended March 31, 2000, excluding amortization of the prepaid marketing asset resulting from warrants
issued to Go2Net and Microsoft and stock-based employee deferred compensation, was $0.38 per share compared with a net
loss, excluding charges, of $0.32 per share, in the fourth quarter of 1999.
Net loss for the quarter ended March 31, 2000 was $8.5 million compared to $7.4 million for the quarter ended December 31,
1999. Net loss per share for the quarter ended March 31, 2000, was $0.56 per share compared to net loss per share of $0.51
for the fourth quarter, 1999.
About Commtouch
Commtouch is a leading global provider of outsourced integrated Web-based email and messaging solutions, currently serving
more than 14 million individual active email boxes worldwide. Commtouch messaging solutions enable more than 300 global
customers, including large and small corporations, service providers, portal and online companies, to outsource email and
messaging operations.
Founded in 1991, Commtouch has offices in Silicon Valley, New York City, London and Tel Aviv. Additional Company
information may be obtained by visiting www.commtouch.com.
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 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 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;
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 Company's registration statement on Form F-1 filed with the SEC on March 6,
2000, as amended, which is available through www.sec.gov.
NOTE: Commtouch is a registered trademark of Commtouch Software Ltd. Terms and product names in this document may
be trademarks of others.
COMMTOUCH SOFTWARE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2000 1999
ASSETS
Current Assets:
Cash and short term investments $73,728 $84,046
Trade receivables 3,779 2,378
Prepaid marketing expenses relating to
Go2Net and Microsoft warrants 2,565 4,508
Prepaid expenses and other
accounts receivable 3,019 1,648
Total current assets 83,091 92,580
Severance Pay Fund 484 354
Security Deposit 1,254 1,254
Investment - at Equity 3,000 --
Property and Equipment, net 8,146 6,148
$95,975 $100,336
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $2,640 $1,510
Employees and payroll accruals 1,293 1,032
Deferred revenue 507 561
Other liabilities 2,282 1,424
Total current liabilities 6,722 4,527
Long-term Portion of Bank Loans and
Capital Leases 40 44
Accrued Severance Pay 656 453
696 497
Shareholders' Equity 88,557 95,312
$95,975 $100,336
COMMTOUCH SOFTWARE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
March 31,
2000 1999
Email Services - revenue $4,272 $346
Cost of Email services - revenue 2,121 435
Gross profit/(loss) 2,151 (89)
Operating expenses:
Research and development, net 1,993 340
Sales and marketing 4,746 608
General and administrative 2,106 617
Amortization of the prepaid marketing
expenses relating to Go2Net and
Microsoft warrants 1,941 --
Amortization of stock-based employee
deferred compensation 763 386
Total operating expenses 11,549 1,951
Operating loss (9,398) (2,040)
Interest income (expense) and other, net 938 ( 271)
Net loss $(8,460) $(2,311)
Basic and diluted net loss per share $( 0.56) $(1.54)
Weighted average number of shares used
in computing basic and diluted
net loss per share 15,119 1,498
Net Loss - as adjusted (A) $(5,756) $(1,925)
Basic and diluted net loss per
share - as adjusted (A) $(0.38) $(1.29)
(A)Excludes charges for amortization of stock-based employee compensation
and Go2Net & Microsoft Warrants.
SOURCE: Commtouch Software, Ltd.
CONTACT: Jean Marie Layton, Investor Relations Manager of Commtouch Software, Ltd., 408-653-4358, or jmlayton@commtouch.com |
