CTCH 4th Qtr and Fiscal YE and GNET Warrants...News dated tonight about 5:45 PM EST....And yes, levy and ALL who think we need to really work on BRANDING, I totally AGREE! And SOONER than later would be the idea!
KLP
Commtouch Announces Record Fourth Quarter Earnings and Fiscal Year End Results
Fourth Quarter 1999 Revenues Increase 1,230% Over Fourth Quarter 1998 Revenues
SANTA CLARA, Calif., Feb. 1 /PRNewswire/ -- Commtouch Software (Nasdaq: CTCH), the global leader in integrated email outsourcing services today announced results for the fourth quarter and twelve months ended December 31, 1999. Revenues for the fourth quarter of 1999 were $2.2 million, a 1,230% increase over fourth quarter 1998 revenues of $168,000. Revenues for the fourth quarter of 1999 increased 100% over third quarter 1999 revenues of $1.1 million. Revenues for the twelve months ended December 31, 1999 increased 993% to $4.3 million from $389,000 for the twelve months ended December 31, 1998. As of December 31, 1999, the Company had a backlog from contracts amounting to approximately $13.1 million that will be recognized as revenue over future quarters.
"Q4 1999 was fantastic for Commtouch," said Gideon Mantel, CEO of Commtouch. "We increased our customer base by over 100 customers worldwide, more than doubling our backlog from the third to fourth quarters." Mantel added, "Our positive growth margin in Q4 reached 30.2% and this will only increase in the future, giving Commtouch a huge strategic advantage in 2000. Commtouch is expanding its international operations in Asia, Latin America and Europe. Indeed, we are well on our way towards building a global communications company and to being the first choice provider of outsourced integrated email services."
Net loss for the quarter ended December 31, 1999, excluding amortization of the prepaid marketing asset resulting from warrants issued to Go2Net and Microsoft and stock-based employee deferred compensation, was $0.32 per share compared with a net loss, excluding charges, of $0.88 per share, in the comparable quarter a year ago.
Net loss for the year ended December 31, 1999 was $19.9 million compared to $4.4 million for the year ended December 31, 1998. Net loss per share for the year ended December 31, 1999 was $1.69 per share compared to net loss per share of $2.94 for the year ended December 31, 1998.
About Commtouch
Serving 9.4 million active emailboxes and more than 250 key clients around the world, Commtouch is the worldwide leader in integrated email outsourcing services. Designed for superior performance and rapid scalability, Commtouch email offers end user interfaces in eighteen 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.
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 January 5, 2000, 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)
December 31, December 31,
1999 1998
ASSETS
Current Assets:
Cash and short term investments $84,046 $834
Trade receivables 2,378 133
Prepaid marketing expenses relating
to Go2Net and Microsoft warrants 4,508 --
Prepaid expenses and other accounts
receivable 1,648 244
Total current assets 92,580 1,211
Severance Pay Fund 354 223
Security Deposit 1,254 --
Property and Equipment, net 6,148 932
$100,336 $2,366
LIABILITIES AND SHAREHOLDERS' EQUITY
(DEFICIT)
Current Liabilities:
Short-term bank line of credit $-- $1,328
Accounts payable 1,510 446
Employees and payroll accruals 1,032 313
Deferred revenue 561 74
Other liabilities 1,424 490
Total current liabilities 4,527 2,651
Long-term Portion of Bank Loans
and Capital Leases 44 164
Accrued Severance Pay 453 366
497 530
Shareholders' Equity (Deficit) 95,312 (815)
$100,336 $2,366
COMMTOUCH SOFTWARE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
Email Services -- revenue $2,236 $168 $4,251 $389
Cost of Email services
-- revenue 1,560 259 3,643 569
Gross profit/(loss) 676 (91) 608 (180)
Operating expenses:
Research and
development, net 1,235 270 2,942 1,149
Sales and marketing 3,383 527 7,722 2,001
General and
administrative 1,683 178 4,328 604
Amortization of the
prepaid marketing
expenses relating
to Go2Net and Microsoft
warrants 1,799 -- 3,263 --
Amortization of
stock-based employee
deferred compensation 941 63 3,436 91
Total operating
expenses 9,041 1,038 21,691 3,845
Operating loss (8,365) (1,129) (21,083) (4,025)
Interest income (expense)
and other, net 920 (212) 1,232 (326)
Net loss $(7,445) $(1,341) $(19,851) $(4,351)
Basic and diluted net
loss per share $(0.51) $(0.92) $(2.54) $(3.00)
Weighted average number
of shares used
in computing basic and
diluted net loss per
share 14,501 1,450 7,787 1,450
Net Loss
-- as adjusted (a) $(4,705) $(1,278) $(13,152) $(4,260)
Basic and diluted
net loss per share
-- as adjusted (a) $(0.32) $(0.88) $(1.69) $(2.94)
(a)Excludes charges for amortization of stock-based employee compensation
and Go2Net & Microsoft Warrants.
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SOURCE: Commtouch Software
CONTACT: Jean Marie Layton, Investor Relations Manager of Commtouch Software, 408-653-4358, or jmlayton@commtouch.com
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