On Sunday Commtouch (CTCH), a leading provider of email defense systems, announced that nine new companies licensed its email defense technology during the third quarter. The company had set a goal of 30 new deals for all of ‘07, and they are almost all the way there with another 3 months to go in the year.
According to Gideon Mantel, Commtouch’s CEO:
The third quarter was another strong quarter in terms of new partners signed, continuing our earlier momentum. One of our objectives for 2007 was to sign 30 OEM deals, and we have nearly achieved this target already at the end of Q3. These new agreements, together with our existing partner base, are laying the foundation for our future growth in 2008.
This speaks volumes about Commtouch’s potential. With over 58% of end-user organizations seeking new anti-spam vendors, the opportunity for Commtouch to grab an increased market share is very real. The continued momentum Commtouch is enjoying is proof that it really has a superior product.
Trading at about $2.00 a share, Commtouch looks like a nice play well into 2008.
Disclosure: The author’s fund is long CTCH as of October 8, 2007.