Earnings early! Revenues up 102% Q over Q
(from clearstation.com)
Wednesday October 27, 07:04 AM Eastern time
Company Press Release
CommTouch Revenues Increase 102 Percent Over Last Quarter
SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 27, 1999--CommTouch Software Ltd. (Nasdaq:CTCH), a leading provider of web-based email, today reported results for the third quarter and nine months ended September 30, 1999.
Revenues for the third quarter of 1999 were 1.1 million, a 102 increase over second quarter revenues of 0.5 million. Revenues for the nine months ended September 30, 1999 increased 812 to 2.0 million from 0.2 million for the nine months ended September 30, 1998. As of September 30, 1999, the Company had a backlog from email service fee contracts amounting to approximately 6.5 million which will be recognized as revenue over future quarters.
"The growth we experienced this quarter once again demonstrates our leading position in the outsourced email market worldwide," explained Gideon Mantel, CEO of CommTouch. "We are at the center of the most important e-trends seen today: the explosive growth of email as a primary communication channel, the rapid adoption of outsourcing as a competitive necessity and the globalization of business strategies," Mantel added.
Net loss for the quarter ended September 30, 1999, excluding amortization of the prepaid marketing asset resulting from a warrant issued to Go2Net and stock-based employee deferred compensation, was 3.92 million, or 0.31 per share compared with a net loss, excluding charges, of 1.03 million, or 0.71 per share, in the comparable quarter a year ago.
Net loss for the quarter ended September 30, 1999 was 6.5 million compared to 1.1 million for the third quarter of 1998. Net loss for the nine months ended September 30, 1999 was 12.4 million compared to 3.0 million for the nine months ended September 30, 1998. Net loss per share for the quarter ended September 30, 1999 decreased 29 to 0.51 compared to net loss per share of 0.72 in the comparable quarter a year ago.
About CommTouch
Serving 6.6 million active emailboxes around the world, CommTouch is a leading provider of outsourced email and messaging services for corporations and consumers worldwide. CommTouch email is designed for superior performance and rapid scalability, offering end user interfaces in sixteen of the world's major languages.
With more than eight years of delivering intuitive, award-winning email software, CommTouch provides its customers 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 Ericsson, Excite International (Nasdaq:ATHM), First USA (NYSE:ONE), Go2Net (Nasdaq:GNET), McGraw Hill's BusinessWeek Magazine (NYSE:MHP), Discovery Channel Online, Nippon Telephone & Telegraph (NYSE:NTT), ZDNet (NYSE:ZDZ), Talk City (Nasdaq:TCTY), Netopia (NASDAQ:NTPA), Snowball.com, 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, California, New York City, London, and Tel Aviv, 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) September 30, December 31,
1999 1998
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 67,708 $ 834
Available for sale securities 4,930
Trade receivables 1,501 133
Prepaid marketing expenses
relating to Go2Net warrant 4,386
Prepaid expenses and
other accounts receivable 1,056 244
Total current assets 79,581 1,211
Severance Pay Fund 318 223
Property and Equipment, net 4,049 932
$ 83,948 $ 2,366
========= =========LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
Current Liabilities:
Shortterm bank line of credit $ $ 1,328
Trade payables 919 446
Employees and payroll accruals 941 313
Deferred revenue 435 74
Other liabilities 960 490
Total current liabilities 3,255 2,651
Longterm Portion of Bank
Loans and Capital Leases 47 164
Accrued Severance Pay 418 366
465 530
Commitments and Contingent
Liabilities: Shareholders' Equity (Deficit)
Convertible preferred shares 74
Ordinary shares 204 27
Additional paidin capital 111,844 11,256
Stockbased employee deferred
compensation (6,551) (418)
Notes receivable from shareholders (1,225) (77)
Unrealized holding gains 39
Accumulated deficit (24,083) (11,677)
Total shareholders' equity
(deficit) 80,228 (815)
$ 83,948 $ 2,366
========= ========= COMMTOUCH SOFTWARE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts) Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Email Services
revenue $ 1,117 $ 130 $ 2,015 $ 221
Cost of Email
services revenue 1,325 166 2,371 310
Gross profit (loss) (208) (36) (356) (89)
Operating expenses:
Research and
development, net 797 308 1,511 879
Sales and marketing 2,006 509 3,562 1,474
General and
administrative 1,485 151 3,330 426
Amortization of the
prepaid marketing
expenses relating
to Go2Net warrant 1,464 1,464
Amortization of
stockbased
employee deferred
compensation 1,096 18 2,495 28 Total operating
expenses 6,848 986 12,362 2,807Operating loss (7,056) (1,022) (12,718) (2,896)
Interest income
(expense) and
other, net 577 (28) 312 (114)Net loss $ (6,479) $ (1,050) $(12,406) $ (3,010)Basic and diluted
net loss per share $ (0.51) $ (0.72) $ (2.25) $ (2.07)Weighted average
number of shares
used in computing
basic and diluted
net loss per share 12,719 1,450 5,510 1,450Net Loss
as adjusted(1) $ (3,919) $ (1,032) $ (8,447) $ (2,982)
Basic and diluted
net loss per share
as adjusted(1) $ (0.31) $ (0.71) $ (1.53) $ (2.06)(1) Excludes charges for amortization of stockbased employee
compensation and Go2Net Warrant.
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