Commtouch Software Ltd. (NASDAQ:CTCH)
CAPS Rating:
The Company is a provider of email defense products to enterprise customers and OEM distribution partners, including real-time anti-spam, virus outbreak detection and IP reputation solutions.
RSS Headlines
Fool UK
Recs
Commtouch filters spam mail using technollogy that is different than most of its competitors. Most spam-blockers filter spam through content (i.e. words that are common to spam e-mails such as "sex"). Commtouch, on the other hand, filters spam through distribution, blocking those that have massive distribution lists.
Spam blockers are often judged based on two metrics: percentage of spam successfuly blocked vs. real emails that were blocked accidentally by overzealous filters. Commtouch blocks the highest percentage of spam while blocking the lowest percentage of legit emails. This success is shown its almost near-perfect license retention rate amongst its clients.
It's difficult to evaluate the company with standard metrics since it just turned profitable. Over the next few years, I expect the stock to grow out its license base, revenues, earnings, and cash flow. And I expect market beating returns.