MOUNTAIN VIEW, Calif. – April 7, 2005 - Commtouch ® (NASDAQ: CTCHC), the developer of RPD™ technology for real time anti-spam and zero-hour virus protection, today announced continued customer and revenue growth for the first quarter of 2005. The company will release quarterly financial results by early May.
Highlights during the first quarter included:
Gideon Mantel, CEO of Commtouch, remarked: “This has been our strongest quarter to date, both in terms of anti-spam revenue as well as new anti-spam product sales. We also licensed our first zero-hour anti-virus product. The interest in our unique RPD technology as it relates to zero-hour virus detection bodes well for the future. We expect a number of new relationships to be consummated in the short term.”
Exercise of previously issued warrants resulted in the receipt of approximately $1.2 million against the issuance of approximately 3.2 million shares. These exercises provide additional financial stability for the company, as well as raise the company’s shareholders’ equity to over $2.5 million, thereby enabling it to maintain its listing on The Nasdaq SmallCap Market. The company believes that these exercises of warrants represented the most beneficial and least dilutive option available to the company and its shareholders in seeking to retain its Nasdaq listing.
As an incentive for the immediate cash exercise of warrants, the company provided a discount in the exercise price of approximately 20%; those warrants with exercise prices out of the money were amended to provide for an exercise price of $0.58 per warrant share.
About Commtouch
Commtouch Software Ltd. (Nasdaq:CTCHC - News) is dedicated to protecting and preserving the integrity of the world's most important communications tool -- email. A global developer and provider of proprietary anti-spam solutions, Commtouch has an installed base of over 25 million users. The company's core technologies, including RPD(TM) -- Recurrent Pattern Detection, reflect Commtouch's 14 years of experience developing messaging software. Commtouch solutions are incorporated into OEM applications and are also sold through channels and resellers. Commtouch is headquartered in Netanya, Israel and has a subsidiary in Mountain View, CA. For more information, see: www.commtouch.com.
For coverage of Commtouch technology by industry analysts such as IDC and Osterman Research, see: http://www.commtouch.com/site/ResearchLab/research.asp
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 the failure to satisfy the conditions imposed by the Nasdaq Listing Qualifications Panel for the continued listing of Commtouch shares on The Nasdaq SmallCap Market; business conditions and growth or deterioration 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; the ability of our OEM partners to successfully penetrate markets with products integrated with Commtouch technology; a slower than expected acceptance rate for real time AV solutions in general and the Commtouch virus detection engine in particular; availability of qualified staff for expansion; and technological difficulties and resource constraints encountered in developing new products, such as the Commtouch virus detection engine, as well as those risks described in the text of this press release or the company's Annual Reports on Form 20-F and reports on Form 6-K, which are available through www.sec.gov.
Recurrent Pattern Detection and RPD are trademarks and Commtouch is a registered trademark of Commtouch Software Ltd.
Contact:
Krems Public Relations for Commtouch
Michael Krems,
Tel: 650-759-7133
krems@kremspr.com
