CommTouch Revenues Increase 837 Percent
SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 10, 1999--CommTouch Software Ltd. (Nasdaq:CTCH), a leading provider of web-based email, today reported results for the second quarter and six months ended June 30, 1999. Revenues for the quarter ended June 30, 1999 increased 837% to $553,000 from $59,000 in the comparable quarter a year ago. Revenues for the six months ended June 30, 1999 increased 887% to $899,000 from $91,000 for the six months ended June 30, 1998. Revenues
for the 1999 second quarter rose 59% over first quarter revenues of $346,000. As of June 30, 1999, the company had a backlog from email service fee contracts amounting to approximately $4,000,000 which will be recognized as revenue on a ratable basis through
the second quarter of 2001.
"The increase in our revenues are a testament to the rapidly growing number of business partners who recognize CommTouch's unique ability to provide them with state of
the art email services," explained Gideon Mantel, CEO of CommTouch. "During the past quarter, CommTouch has attracted nearly two million new subscribers to its services, and we see this trend continuing as we provide more email solutions," Mantel added.
Net loss for the quarter ended June 30, 1999 was $3.6 million compared to $1.04 million for the second quarter of 1998. Net loss for the six month period ended June 30, 1999 were $5.93 million compared to $1.96 million for the second quarter of 1998.4 active
mailboxes around the world, CommTouch is a leading provider of private-label email services, offered exclusively through the web sites of major Internet portals, communit. Net loss per share for the quarter ended June 30, 1999 was $1.66 compared to net loss per
share of $0.72 in the comparable quarter a year ago.
About CommTouch
Serving now 6y sites and web-based businesses. CommTouch email is designed for superior performance and rapid scalability, offering end user interfaces in fifteen of the world's major languages.
With more than eight years of delivering intuitive, award-winning email software, CommTouch provides its partners a truly comprehensive turn-key email service, together with options for premium communications services and direct marketing opportunities.
The company partners with internationally recognized consumer-driven organizations, including Excite (Nasdaq:ATHM), Go2Net (Nasdaq:GNET), McGraw Hill's BusinessWeek Magazine (NYSE:MHP), Discovery Channel Online, Nippon Telephone & Telegraph (NYSE:NTT), ZDNet (NYSE:ZDZ), Talk City, LookSmart, Netopia (Nasdaq:NTPA), Hachette Multimedia, the McClatchy Group's Nando.net (NYSE:MNI), The Headbone Zone, News Corp's (NYSE:NWS) People's Daily joint venture ChinaByte and the Hollinger Group's Jerusalem Post.
Founded in 1991, CommTouch has offices in Silicon Valley, Calif., New York City and Ein Vered, Israel. Additional information may be obtained by visiting: www.commtouch.com.
Note to Editors: 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, except share and per share data)
June 30, December 31,
1999 1998
-------- ---------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 11,663 $ 834
Trade receivables 465 133
Prepaid expenses 1,263 96
Government authorities 31 45
Other accounts receivable 244 103
-------- ---------
Total current assets 13,666 1,211
Severance Pay Fund 273 223
Property and Equipment, net 2,155 932
-------- ---------
$ 16,094 $ 2,366
======== =========
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
Current Liabilities:
Short-term bank line of credit $ -- $ 1,328
Current portion of bank
loans and capital leases 124 112
Trade payables 797 446
Employees and payroll accruals 476 313
Government authorities 275 246
Deferred revenue 84 74
Other liabilities 308 132
-------- ---------
Total current liabilities 2,064 2,651
-------- ---------
Long-term Portion of Bank
Loans and Capital Leases 99 164
Accrued Severance Pay 465 366
-------- ---------
564 530
-------- ---------
Commitments and Contingent
Liabilities: -- --
Shareholder's Equity (Deficit)
Convertible Preferred Shares 107 74
Ordinary Shares 36 27
Additional Paid-in Capital 39,421 11,256
Stock-Based Employee
Deferred Compensation (7,528) (418)
Notes Receivable from
Shareholders (964) (77)
Accumulated Deficit (17,606) (11,677)
-------- ---------
Total Shareholders' Equity
(Deficit) 13,466 (815)
-------- ---------
$ 16,094 $ 2,366
======== =========
COMMTOUCH SOFTWARE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Email Services -- revenue $ 553 $ 59 $ 899 $ 91
Cost of Email
services -- revenue 747 85 1,202 144
------- ------- ------- -------
Gross loss (194) (26) (303) (53)
------- ------- ------- -------
Operating expenses:
Research and development, net 407 305 714 571
Sales and marketing 1,180 506 1,661 965
General and administrative 828 137 1,587 275
Amortization of stock-based
employee deferred compensation 1,013 8 1,399 10
------- ------- ------- -------
Total operating
expenses 3,428 956 5,361 1,821
------- ------- ------- -------
Operating loss (3,622) (982) (5,664) (1,874)
Interest income (expense)
and other, net 6 (59) (265) (86)
------- ------- ------- -------
Net loss $(3,616) $(1,041) $(5,929) $(1,960)
======= ======= ======= =======
Basic and diluted net
loss per share $ (1.66) $ (0.72) $ (3.17) $ (1.35)
======= ======= ======= =======
Weighted average number of
shares used in computing
basic and diluted net
loss per share 2,178 1,450 1,869 1,450
======= ======= ======= =======
CONTACT: CommTouch Software, Santa Clara
Jean Marie Layton, 408/653-4358 (IR Manager)
jmlayton@commtouch.com
www.commtouch.com
06:02 EDT AUGUST 10, 1999
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