SUNNYVALE, California,
May 11, 2012 /PRNewswire/ --
Commtouch® (NASDAQ: CTCH), a leading cloud-based Internet
security provider, today announced that the company's Board of
Directors has authorized the initiation of a stock repurchase
program of the company's ordinary shares in the open market, in an
amount in cash of up to $2.5 million.
(Logo:
http://photos.prnewswire.com/prnh/20120501/529254 )
Shlomi Yanai, Chief Executive
Officer of Commtouch, stated, "The authorization of our share
repurchase program reflects the confidence that the Commtouch Board
of Directors and senior management team have in the long-term
growth prospects of the company. Based upon the value we see
in the company, we believe the return of value to our shareholders
through a repurchase of shares is appropriate at this time. The
strength of our balance sheet and positive operating cash flows
provide Commtouch the financial flexibility to deliver on the
repurchase program while continuing to fund our strategic growth
plans."
The share repurchases will be funded from available working
capital. Commtouch reported a net cash position of $22.0 million as of March
31, 2012 with no outstanding debt. The plan will commence
immediately, and while it is expected to run through the end of the
year, the term of the plan will be reviewed on a quarterly basis by
the Board of Directors.
Under the repurchase program, share purchases may be made from
time to time depending on market conditions, share price, trading
volume and other factors. Such purchases will be made in accordance
with the requirements of the Securities and Exchange Commission,
Israeli corporate law provisions requiring undistributed profits as
a condition to a buyback, and other applicable legal
requirements.
The repurchase program does not require Commtouch to acquire a
specific number of shares and may be suspended from time to time or
discontinued. As of March 31, 2012,
Commtouch has a total of approximately 24.2 million basic ordinary
shares outstanding.
About Commtouch
Commtouch® (NASDAQ: CTCH) safeguards the world's leading
security companies and service providers with cloud-based Internet
security services. Real-time threat intelligence from Commtouch's
GlobalView™ Cloud powers its Web filtering, email security and
antivirus solutions, protecting thousands of organizations and
hundreds of millions of users worldwide. Information about
Commtouch can be found at http://www.commtouch.com or by writing to
info@commtouch.com.
Recurrent Pattern Detection, RPD, Zero-Hour and GlobalView are
trademarks, and Commtouch, Authentium, Command Antivirus and
Command Anti-malware are registered trademarks, of Commtouch. U.S.
Patent No. 6,330,590 is owned by Commtouch. All other trademarks
are the property of their respective owners.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 and other Federal
Securities laws. For example, when we say that we are confident in
the direction of the company, we intend to repurchase ordinary
shares, that our cash resources, after giving effect to the
repurchase, will be adequate to allow us to continue pursuing our
objectives, or that we believe that the purchase of our own shares
will enhance shareholder value and will not inhibit us from
continuing to explore potential transactions aimed at accelerating
our business growth, we are using a forward looking statement.
Because such statements deal with future events, they are subject
to various risks and uncertainties and actual results could differ
materially from Commtouch's current expectations. Factors that
could cause or contribute to such differences include, but are not
limited to: share price increases; other funding requirements;
other investment opportunities; fluctuations in our results of
operations; the impact on revenues of economic and political
uncertainties and weaknesses in various regions of the world,
including the commencement or escalation of hostilities or acts of
terrorism; any unforeseen developmental or technological
difficulties with regard to Commtouch's products; changes in the
competitive landscape, including new competitors or the impact of
competitive pricing and products; timely availability and customer
acceptance of Commtouch's new and existing products; and other
factors and risks on which Commtouch may have little or no control.
This list is intended to identify only certain of the principal
factors that could cause actual results to differ. For a more
detailed description of the risks and uncertainties affecting
Commtouch, reference is made to Commtouch 's Annual Report on Form
20-F for the year ended December 31,
2011, which is on file with the Securities and Exchange
Commission. Except as otherwise required by law, Commtouch
undertakes no obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events.
Company Contact
Ron Ela
Chief Financial Officer
Tel: (US) +1-650-864-2291
(Int'l) +972-9-8636813
ron.ela@commtouch.com
US Investor Relations Contact
Christopher Chu
Grayling
Tel: (US) +1-646-284-9400
commtouch@grayling.com
Israel Investor Relations Contact
Iris Lubitch
EffectiveIR
Tel: +972-3-5664007
Iris@EffectiveIR.co.il
SOURCE Commtouch