Commtouch Software Ltd. (NASDAQ:CTCH)

Products

Antivirus
Commtouch’s Command antivirus solutions are based on the award winning products acquired from Authentium in September 2010. Command has been successfully defending against malware for over 20 years. The Command antivirus solutions can be deployed as part of Commtouch’s complete security suite for messaging or Web.

Messaging Security
Commtouch real-time, fully-automated messaging security solutions are based on Recurrent Pattern Detection (RPD™) and GlobalView™ technologies to block spam, phishing and malware, enabling service providers and security vendors to reduce costs, attract new customers and enhance their competitive offerings.

Commtouch global detection centers analyze more than two billion Internet transactions per day, providing visibility into network traffic in every location around the world.

Web Security
The vast size of the Internet coupled with the unique browsing habits of individual customers created the need to move the traditional URL database “into the cloud,” overcoming local storage limitations and providing customers with information tailored to meet their specific needs. Commtouch global detection centers analyze more than two billion Internet transactions per day, providing visibility into network traffic in every location around the world.

Recent Results

Earlier this month, CTCH announced its fourth quarter and full year results, for the period ending December 31, 2010.

During 2010, the company acquired the antivirus business of Command, signed new customers and expanded its engagements with existing ones for its broadened security suite. The company also surpassed its growth objective with a 20% increase in revenues, and achieved a 32% increase in net income. These strong business indicators at the end of 2010 underlie management’s expectations of
continued long-term performance and growth.

Some Highlights:

Revenues for 2010 increased by 20% to $18,161 thousand, compared to $15,189 thousand in 2009. Revenues for the fourth quarter of 2010 increased by 34% to $5,377 thousand, compared to $4,014 thousand in the fourth quarter of 2009.

Non-GAAP net income for 2010 increased by 32% to $5,405 thousand, compared to $4,101 thousand in 2009. Non-GAAP net income for the fourth quarter of 2010 increased by 29% to $1,430 thousand, compared to $1,111 thousand for the fourth quarter of 2009.

During the fourth quarter, the company completed the execution of its 2010 share buy-back program. As of December 31, 2010, the company had expended a total of $3,820 thousand for the repurchase of 1.03 million ordinary shares at an average price of $3.71 per share.

They have great solutions for any business, and their management is fantastic!

Big revenues !!

Stock is taking a beating but having worked at scrappy companies all my life, I appreciate the scrap in this company. First, I love Israeli companies. Great people! Second, they're plowing money into R&D instead of taking the easy way of showing larger profits to boost share price. Its a great long term strategy because the technology in their market is rapidly changing, demanding R&D to be competitive. Third, I'm a sucker for transparency and I really really dig their company blog.

Its not all upside, though. Since they're in Israel, their currency is not deteriorating like the dollar so they're losing money because their contracts are I believe written in USD. I'm still long, though.

Internet Security, Firewall Protection, DDOS Protection, IP reputation solutions, Virus Outbreak Detection....this is a great small cap company that is a pioneer in internet security.

I like the below $10 price and its potential for a good return.

Future of Internet Security Belongs to Commtouch. Superior Product.

Love this company:

No Debt.

Increasing Revenues.

Consistent signing of new OEMs.

The reverse stock split has played out very poorly, but they had a great earnings release, and the stock seems to have settled. Now that it has a it's legs under it, it will be propelled forward not only by the strong guidence, but the full realization of revenue from the contracts inked in 2007.

Looks to have a promising future in my opinion.

Pure spec

The company keeps signing new licensees left and right and has already projected that 2008 will show continued and signififcant improvements in revenue and margins. The cash in the bank keeps rising and with the upcoming RS, available shares will become a scarcity once word gets out on this gem. I wouldn't be surprised to see the RS undone at some point down the road due to the increased demand for shares. Look for a bidding war among Microsoft, McAfee and Norton for this company at some point within the next couple of years.

CTCH has NO debt and a growing market share.

This is a good hidden stock. Be careful though - 1) it's a penny stock 2) don't be greedy, get out after you make a nice profit. I held on to it, after it went up 30% over the course of 1 mo. thinking it would just head higher, breaking new highs. It ended up breaking its lows. It's back up again, but be careful!

Nice little company that has A-list clients and looks like it will be hanging around for quite awhile in the software/e-mail security market.

Great growth. Just becoming profitable and in a market (spam) that is only growing. Good balance sheet.

company is acquiring new business and has a great product this combination is a win for its customers and investors

Well, let's see about the hype.

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.

Jumped on the bandwagon at $2.38 per share.

I'm going to walk into a raging bull but I don't call. Cash will dwindle and a good entry price in Q1 in 2008.