By the year 2010, Gartner predicts that there will be 2.5 billion e-mailboxes. With over 180 billion messages per day, 85% of which are spam, Commtouch develops and provides proprietary anti-spam, Zero-Hour™ virus protection, and Reputation Service solutions.
In his blog, Roger Carter speculates about a new OEM deal that Commtouch may be working on with Checkpoint (CHKP), where Commtouch’s technology could be deployed within Checkpoint’s new UTM product line. Aside from the possible Checkpoint deal, Commtouch is signing bigger and bigger OEM deals, and this has yet to be fully reflected in Commtouch’s sales pipeline, and revenues.
Google’s acquisition proves that Commtouch is heading in the right direction. With Q1 revenues increasing over 63% from same period last year, and generating an operating cash flow of $953 thousand during Q1 2007, I am eagerly awaiting their Q2 numbers as I expect both revenues, and profitability to continue to grow strongly.
Disclosure: The author is long both CTCH and CHKP as July 2, 2007. He has no position in any of the other company’s mentioned.
CTCH 1-yr chart: