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Commtouch (CTCH) Posts Q3 Financial Results and Highlights, Reaffirms Full-year Guidance

|Includes: CYREN Ltd. (CYRN)

Commtouch, a leading cloud-based Internet security provider, today announced its 2011 third-quarter results and business highlights for the three months ended September 30, 2011.

The company reported third-quarter revenue at $5.9 million, a 27 percent increase compared to $4.6 million in the third quarter of 2010.

Net income for the third quarter of 2011 decreased 16 percent to $887,000, or $0.04 per diluted share, compared to $1.1 million, or $0.05 per diluted share, reported for the third quarter of 2010.

Commtouch’s deferred revenues (long-term and short-term) as of September 30, 2011, totaled $4.1 million compared to $3.5 million in deferred revenues as of June 30, 2011.

Operating cash flow for the third quarter of 2011 was $1.5 million compared to $1.6 million in the third quarter of 2010.

As of September 30, 2011, the company had cash at $17.6 million compared to $16.1 million as of June 30, 2011.

“I am happy to report another strong quarter with consistent revenue growth and improvement of our operating and net margins that led to higher profitability,” Ron Ela, Commtouch CFO stated in the press release. “This steady financial growth remains a solid basis from which to implement our future plans.”

The company noted growing demand for its products in the third quarter of 2011; a new agreement with a communications leader for which Commtouch will provide its antivirus solution; expanding contracts with existing contracts; and the launch of version eight of its e-mail and Web security solution platform.

Commtouch reaffirms its full-year 2011 guidance, expecting revenue and net income to be midrange in previous guidance of full-year revenues between $22.5 million and $23.5 million, and net income between $6.2 million and $6.7 million.

For more information visit www.commtouch.com

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