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Commtouch Software Raises 2010 Guidance As Q3 Profit Rises 31%

|Includes: CYREN Ltd. (CYRN)

Commtouch Software (NASDAQ:CTCH), a provider of Internet security technology headquartered in Israel, announced today that GAAP profits came in at roughly $1.1 million, or 4 cents per diluted share, for the third quarter. 


Last year, the company earned $0.85 million, or 3 cents per diluted share.  Excluding special gains and expenses, third quarter profit increased roughly 31% year-over-year to $1.6 million, or about 6 cents per diluted share, meeting analyst estimates.  


Third quarter revenue was $4.6 million, up from $3.9 million for the same period of 2009. 


Excluding special gains and expenses, third quarter profit increased roughly 31% year-over-year to $1.6 million, or about 6 cents per diluted share, meeting analyst estimates.  


During the third quarter, Commtouch completed the buyout of Command,  the former antivirus division of Authentium.  The Common antivirus division, which provides technology to protect against spyware, contributed about $0.3 million to third quarter revenue and is expected to add $3.5 to $4 million of revenues in the first year. 


At quarter end, the company had current assets of roughly $17 million, with about $12 million in cash.  Liabilities due within a year from quarter end totalled $5.4 million. 


 Last week, the company announced that Gideon Mantel, Commtouch's current CEO and chairman, will be retiring at the end of the year.  Ido Hadari will replace him as CEO while Lior Samuelson will become the company’s chairman.


The company also revised its earnings guidance upwards.  Now, the company expects adjusted earnings for the year to be in the range of $5.4 to $5.5 million, up from the previous guidance of $5 million.  Revenue for the year is expected to be at the top end of the $17 to $18 million range. 


As of 9:03 am ET, the company’s shares have rallied 4.5% to trade at $3.98 in pre-market.



Disclosure: no position