MCLEAN, Va., Nov. 14, 2013 /PRNewswire/ -- Commtouch® (NASDAQ:
CTCH), a leading provider of Internet security technology and
cloud-based services, today announced its third quarter 2013
financial results for the period ending September 30, 2013.
(Logo:
http://photos.prnewswire.com/prnh/20130731/MM56946LOGO)
Third Quarter 2013 Financial Highlights:
- Revenues in accordance with U.S. Generally Accepted Accounting
Principles (US GAAP) totaled $8.0
million for the third quarter of 2013 compared to
$8.1 million for the sequential
second quarter of 2013 and $5.6
million in the third quarter of 2012.
- Non-GAAP revenues totaled $8.1
million for the third quarter of 2013 compared to
$8.2 million for the sequential
second quarter of 2013 and $5.6
million in the third quarter of 2012. The difference between
non-GAAP and GAAP revenue is derived from the fact that deferred
revenues consolidated from acquired companies are recorded based on
fair value rather than book value for GAAP purposes.
- GAAP net loss for the third quarter was $0.9 million compared to net loss of $0.7 million for the sequential second quarter of
2013 and net income of $0.0 million
in the third quarter of 2012. Third quarter 2013 results include an
acquisition related earn out adjustment of $0.3 million and reorganization expenses of
$0.1 million. Second quarter 2013
results included an acquisition related earn out adjustment of
$0.3 million and a $0.1 million net litigation settlement in favor
of the company related to contractual issues.
- GAAP net loss per diluted share for the third quarter was
$0.03, compared to a net loss of
$0.03 for the sequential second
quarter of 2013 and GAAP earnings per share of $0.00 in the third quarter of 2012. Third quarter
and second quarter 2013 results include the aforementioned
adjustments and expenses.
- Non-GAAP net income for the third quarter 2013 was $0.3 million compared to $0.1 million for the sequential second quarter of
2013 and $0.7 million in the third
quarter of 2012.
- Non-GAAP earnings per diluted share for the third quarter 2013
were $0.01, compared to $0.00 for the sequential second quarter of 2013
and $0.03 in the third quarter of
2012.
- Cash used by operating activities during the quarter was
$1.0 million.
- Cash as of September 30, 2013 was
$4.0 million, compared to
$5.0 million as of June 30, 2013.
- After quarter end, the company signed a new credit facility
with a U.S. based bank for up to $7.5
million dollars. This facility replaces the previous line of
credit that was outstanding as of September
30, 2013.
"We are pleased with our third quarter performance and the
continued demand for our cloud-based detection services globally,"
said Shlomi Yanai, chief executive
officer at Commtouch. "Our cloud-based Web security solution is in
lab trials with key customers and on track for commercial launch in
the fourth quarter. In support of this launch, we made several key
hires and expanded our sales and marketing organization
globally."
"Our recent streamlining efforts have improved the company's
cost structure and yielded measurable results with a significant
sequential increase in both gross and operating margins," said
Brian Briggs, chief financial
officer at Commtouch. "Moreover, we completed the core portions of
the integration of our Q4 2012 acquisitions during the third
quarter."
For information regarding the non-GAAP financial measures
discussed in this release, please see "Use of Non-GAAP Financial
Information" and "Reconciliation of Non-GAAP to GAAP Financial
Information."
Business Highlights:
- During the third quarter, Commtouch announced that it was
selected by Web.com to provide anti-spam and virus protection
services to its base of millions of small business customers.
Web.com will integrate Commtouch's Inbound Anti-Spam, Outbound Spam
Protection and Virus Outbreak Detection services into its email
infrastructure.
- Commtouch plans to launch its new cloud-based Web security
solutions in the fourth quarter. These new solutions, which are
built on Commtouch's market leading security detection services,
will focus on easy to provision and use Web security cloud
services and will be delivered by the company's partners as private
label services.
- Commtouch remains on track with the research and development of
a new APT service in the coming months.
- Joy Nemitz joined Commtouch as
Chief Marketing Officer in the third quarter. Joy brings
significant software and cloud experience including senior
strategic marketing and business development roles at VeriSign and
Synchronoss. Ms. Nemitz received a Master of Science degree from
Southeastern University and a Bachelor
of Arts degree from Gannon University
in Erie, Pennsylvania.
- Commtouch continued to consolidate its corporate functions to
its East Coast headquarters and as part of these efforts brought
Sue Lee on board as General Counsel
and Corporate Secretary. Sue brings a wealth of public
company experience, including as counsel for Genzyme Corporation
and vice president, business and legal affairs for MTV Networks.
Ms. Lee received a J.D. degree from Harvard
Law School and a Bachelor of Arts degree in East Asian
Studies from Harvard University.
Business Outlook
Based on current expectations, Commtouch is reaffirming its
financial outlook for the full year 2013. The company continues to
anticipate full year 2013 revenue between $32.0 million and $33.0 million, an increase of
approximately 34% to 38% compared with full year 2012. Full year
2013 GAAP net loss is expected to be less than $2.0 million and non-GAAP net income is expected
to be greater than $1.5 million.
The above outlook is as of the date of this release, and the
company undertakes no obligation to update its estimates in the
future.
Use of Non-GAAP Measures
Non-GAAP financial measures consist of GAAP financial measures
adjusted to exclude: stock based compensation expenses,
amortization and impairment of acquired intangible assets,
executive termination costs, deferred taxes, acquisition related
costs, restructuring charges associated with consolidating general
and administrative functions and adjustments to earn-out
obligations. The purpose of such adjustments is to give an
indication of the company's performance exclusive of non-cash
charges and other items that are considered by management to be
outside of the company's core operating results. The company's
non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for comparable GAAP measures, and
should be read only in conjunction with the company's consolidated
financial statements prepared in accordance with GAAP. Company
management regularly uses supplemental non-GAAP financial measures
internally to understand, manage and evaluate our business and make
operating decisions.
These non-GAAP measures are among the primary factors management
uses in planning for and forecasting future periods. The company
believes this adjustment is useful to investors as a measure of the
ongoing performance of our business. The company believes these
non-GAAP financial measures provide consistent and comparable
measures to help investors understand the company's current and
future operating cash flow performance. These non-GAAP financial
measures may differ materially from the non-GAAP financial measures
used by other companies. Reconciliation between results on a GAAP
and non-GAAP basis is provided in a table immediately following the
Consolidated Statements of Income. The presentation of this
non-GAAP financial information is not intended to be considered in
isolation or as a substitute for the financial information prepared
and presented in accordance with GAAP. Management uses both GAAP
and non-GAAP measures when evaluating the business internally and
therefore felt it important to make these non-GAAP adjustments
available to investors.
Financial Results Conference Call
The company has scheduled a conference call later today,
November 14, 2013, at 10:00 a.m. ET to review the third quarter 2013
highlights, as well as walk through a strategic overview and
evolution of the company's growth strategy.
To participate, please call one of the following
teleconferencing numbers by dialing in at least 10 minutes before
the conference call commences. If you are unable to connect using
the toll-free numbers, please try the international dial-in
number.
US Dial-in Number: 1-877-407-8289
Israel Dial-in Number: 1-80-940-6247
International Dial-in Number: 1-201-689-8341
at:
10:00 a.m. Eastern
Time, 5:00 p.m. Israel
Time
The call will be simultaneously webcast live from a link on
Commtouch's website at www.commtouch.com.
For those unable to listen to the live call, a webcast replay of
the call will be available from the day after the call in the
investor relations section of Commtouch's corporate website.
About Commtouch
Commtouch® (NASDAQ: CTCH) is a leading provider of Internet
security technology and cloud-based services for vendors and
service providers, increasing the value and profitability of
customers' solutions by protecting billions of Internet
transactions on a daily basis. With 12 global data centers and
renowned technology, Commtouch's email, Web, and antivirus
capabilities easily integrate into customers' products and
solutions, keeping more than 550 million end users safe. To learn
more, visit http://www.commtouch.com.
- Blog: http://blog.commtouch.com/cafe
- Facebook: http://www.facebook.com/commtouch
- LinkedIn: http://www.linkedin.com/company/commtouch
- Twitter: @Commtouch
Recurrent Pattern Detection, RPD, Zero-Hour and GlobalView
are trademarks, and Commtouch is a registered trademark of
Commtouch. U.S. Patent No. 6,330,590 is owned by Commtouch. All
other trademarks are the property of their respective
owners.
This press release contains forward-looking statements,
including projections about our business, within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. For example, statements in the
future tense, and statements including words such as "expect,"
"plan," "estimate," "anticipate," or "believe" are forward-looking
statements. These statements are based on information available to
us at the time of the release; we assume no obligation to update
any of them. The statements in this release, including i) the
company's 2013 revenue and profit forecasts, and ii) the expected
commercial launch of Commtouch's cloud-based Web security solution,
are not guarantees of future performance and actual results could
differ materially from our current expectations as a result of
numerous factors, including business conditions and growth or
deterioration in the Internet security market, commerce and the
general economy, both domestic as well as international; fewer than
expected new-partner relationships; competitive factors, including
pricing pressures; technological developments, and products offered
by competitors; the ability of our OEM partners to successfully
penetrate markets with products integrated with Commtouch
technology; a slower than expected acceptance rate for our
newer product offerings; availability of qualified staff; and
technological difficulties and resource constraints encountered in
developing new products, as well as those risks described in the
text of this press release and the company's Annual Reports on Form
20-F and reports on Form 6-K, which are available through
www.sec.gov.
Company
Contact:
|
Israel Investor
Relations Contact:
|
Brian Briggs, Chief
Financial Officer
|
Iris
Lubitch
|
Commtouch
|
EffectiveIR
|
+1.703.760.3444
|
+972.54.252.8007
|
brian.briggs@commtouch.com
|
Iris@EffectiveIR.co.il
|
|
|
U.S. Investor
Contact:
|
Commtouch Media
Contact:
|
Monica
Gould
|
Matthew
Zintel
|
The Blueshirt
Group
|
Zintel Public
Relations
|
+1.212.871.3927
|
+1.281.444.1590
|
monica@blueshirtgroup.com
|
matthew.zintel@zintelpr.com
|
|
|
COMMTOUCH SOFTWARE
LTD.
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
(in thousands of
US dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
September
30
|
|
September
30
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
Revenues
|
$
8,019
|
|
$
5,558
|
|
$ 23,999
|
|
$ 17,125
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
1,722
|
|
917
|
|
5,256
|
|
2,983
|
|
|
|
|
|
|
|
|
Gross
profit
|
6,297
|
|
4,641
|
|
18,743
|
|
14,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
2,079
|
|
1,462
|
|
6,525
|
|
4,096
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
2,559
|
|
1,564
|
|
7,861
|
|
3,994
|
|
|
|
|
|
|
|
|
General and
administrative
|
2,112
|
|
1,550
|
|
6,590
|
|
4,265
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
6,750
|
|
4,576
|
|
20,976
|
|
12,355
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
(453)
|
|
65
|
|
(2,233)
|
|
1,787
|
|
|
|
|
|
|
|
|
Financial (expenses)
income, net
|
(323)
|
|
63
|
|
(866)
|
|
150
|
|
|
|
|
|
|
|
|
Net (loss) income
before taxes
|
(776)
|
|
128
|
|
(3,099)
|
|
1,937
|
|
|
|
|
|
|
|
|
Tax (expense)
benefit
|
(138)
|
|
(109)
|
|
181
|
|
95
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to ordinary and equivalently participating
shareholders
|
|
|
|
|
|
|
|
$
(914)
|
|
$
19
|
|
$
(2,918)
|
|
$
2,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning (loss) per
share - basic
|
$
(0.03)
|
|
$
0.00
|
|
$
(0.11)
|
|
$
0.08
|
|
|
|
|
|
|
|
|
Earning (loss) per
share - diluted
|
$
(0.03)
|
|
$
0.00
|
|
$
(0.11)
|
|
$
0.08
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
26,384
|
|
24,355
|
|
26,150
|
|
24,358
|
|
|
|
|
|
|
|
|
Diluted
|
26,384
|
|
24,845
|
|
26,150
|
|
24,984
|
|
|
COMMTOUCH SOFTWARE
LTD.
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON GAAP MEASURES
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
September
30
|
|
September
30
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
GAAP operating (loss)
profit
|
$
(453)
|
|
$
65
|
|
$
(2,233)
|
|
$
1,787
|
Stock-based
compensation (1)
|
329
|
|
386
|
|
1,003
|
|
1,098
|
Other acquisition
related costs (2)
|
-
|
|
220
|
|
142
|
|
377
|
Amortization of
intangible assets (3)
|
542
|
|
101
|
|
1,307
|
|
303
|
Adjustment to earn
out liabilities (4)
|
-
|
|
-
|
|
(3)
|
|
-
|
Executive
terminations (6)
|
-
|
|
-
|
|
165
|
|
-
|
Adjustment to
deferred revenues (7)
|
74
|
|
-
|
|
412
|
|
-
|
Settlement agreements
(8)
|
16
|
|
-
|
|
91
|
|
-
|
Re organization
expenses (9)
|
96
|
|
-
|
|
96
|
|
-
|
|
|
|
|
|
|
|
|
Non-GAAP operating
profit
|
$
604
|
|
$
772
|
|
$
980
|
|
$
3,565
|
|
|
|
|
|
|
|
|
GAAP net (loss)
income
|
$
(914)
|
|
$
19
|
|
$
(2,918)
|
|
$
2,032
|
Stock-based
compensation (1)
|
329
|
|
386
|
|
1,003
|
|
1,098
|
Other acquisition
related costs (2)
|
-
|
|
220
|
|
142
|
|
377
|
Amortization of
intangible assets (3)
|
542
|
|
101
|
|
1,307
|
|
303
|
Adjustment to earn
out liabilities (4)
|
271
|
|
-
|
|
703
|
|
28
|
Income taxes
(5)
|
(92)
|
|
18
|
|
(464)
|
|
(199)
|
Executive
terminations (6)
|
-
|
|
-
|
|
165
|
|
-
|
Adjustment to
deferred revenues (7)
|
74
|
|
-
|
|
412
|
|
-
|
Settlement agreements
(8)
|
16
|
|
-
|
|
91
|
|
-
|
Re organization
expenses (9)
|
96
|
|
-
|
|
96
|
|
-
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
$
322
|
|
$
744
|
|
$
537
|
|
$
3,639
|
|
|
|
|
|
|
|
|
GAAP (loss) earnings
per share (dilluted)
|
$
(0.03)
|
|
$
0.00
|
|
$
(0.11)
|
|
$
0.08
|
Stock-based
compensation (1)
|
0.01
|
|
0.02
|
|
0.04
|
|
0.04
|
Other acquisition
related costs (2)
|
-
|
|
0.009
|
|
0.01
|
|
0.02
|
Amortization of
intangible assets (3)
|
0.02
|
|
0.004
|
|
0.05
|
|
0.01
|
Adjustment to earn
out liabilities (4)
|
0.01
|
|
-
|
|
0.03
|
|
0.00
|
Income taxes
(5)
|
(0.00)
|
|
0.001
|
|
(0.02)
|
|
(0.01)
|
Executive
terminations (6)
|
-
|
|
-
|
|
0.01
|
|
-
|
Adjustment to
deferred revenues (7)
|
0.00
|
|
-
|
|
0.02
|
|
-
|
Settlement agreements
(8)
|
0.00
|
|
-
|
|
0.00
|
|
-
|
Re organization
expenses (9)
|
0.00
|
|
-
|
|
0.00
|
|
-
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per
share (dilluted)
|
$
0.01
|
|
$
0.03
|
|
$
0.02
|
|
$
0.15
|
|
|
|
|
|
|
|
|
Numbers of shares
used in computing non-GAAP earnings per share (diluted)
|
26,445
|
|
24,845
|
|
26,277
|
|
24,984
|
|
|
COMMTOUCH SOFTWARE
LTD.
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON GAAP MEASURES
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
September
30
|
|
September
30
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
(1) Stock-based
compensation
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
12
|
|
$
9
|
|
$
38
|
|
$
27
|
Research and
development
|
64
|
|
84
|
|
185
|
|
222
|
Sales and
marketing
|
51
|
|
103
|
|
186
|
|
269
|
General and
administrative
|
202
|
|
190
|
|
594
|
|
580
|
|
|
|
|
|
|
|
|
|
$
329
|
|
$
386
|
|
$
1,003
|
|
$
1,098
|
(2) Other
acquisition related costs
|
|
|
|
|
|
|
|
General and
administrative
|
$
-
|
|
$
220
|
|
$
142
|
|
$
377
|
|
|
|
|
|
|
|
|
|
$
-
|
|
$
220
|
|
$
142
|
|
$
377
|
(3) Amortization
of intangible assets
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
235
|
|
$
48
|
|
$
564
|
|
$
144
|
Sales and
marketing
|
307
|
|
53
|
|
743
|
|
159
|
|
|
|
|
|
|
|
|
|
$
542
|
|
$
101
|
|
$
1,307
|
|
$
303
|
(4) Adjustment to
earn out liabilities
|
|
|
|
|
|
|
|
General and
administrative
|
$
-
|
|
$
-
|
|
$
(3)
|
|
$
-
|
Financial expenses,
net
|
271
|
|
-
|
|
706
|
|
28
|
|
|
|
|
|
|
|
|
|
$
271
|
|
$
-
|
|
$
703
|
|
$
28
|
(5) Income
taxes
|
|
|
|
|
|
|
|
Deferred tax asset -
tax benefit
|
$
(92)
|
|
$
18
|
|
$
(464)
|
|
$
(199)
|
|
|
|
|
|
|
|
|
|
$
(92)
|
|
$
18
|
|
$
(464)
|
|
$
(199)
|
(6) Executive
terminations
|
|
|
|
|
|
|
|
General and
administrative
|
$
-
|
|
$
-
|
|
$
165
|
|
$
-
|
|
|
|
|
|
|
|
|
|
$
-
|
|
$
-
|
|
$
165
|
|
$
-
|
(7) Adjustment to
deferred revenues
|
|
|
|
|
|
|
|
Revenues
|
$
74
|
|
$
-
|
|
$
412
|
|
$
-
|
|
|
|
|
|
|
|
|
|
$
74
|
|
$
-
|
|
$
412
|
|
$
-
|
(8) Settlement
agreements
|
|
|
|
|
|
|
|
General and
administrative
|
$
16
|
|
$
-
|
|
$
91
|
|
$
-
|
|
|
|
|
|
|
|
|
|
$
16
|
|
$
-
|
|
$
91
|
|
$
-
|
|
|
|
|
|
|
|
|
(9) Re
organization expenses
|
|
|
|
|
|
|
|
General and
administrative
|
$
96
|
|
$
-
|
|
$
96
|
|
$
-
|
|
|
|
|
|
|
|
|
|
$
96
|
|
$
-
|
|
$
96
|
|
$
-
|
|
|
COMMTOUCH SOFTWARE
LTD.
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
September
30
|
|
December
31
|
|
2013
|
|
2012
|
|
Unaudited
|
|
Audited
|
|
|
|
|
Assets
|
|
|
|
Current Assets:
|
|
|
|
Cash and cash
equivalents
|
$
3,972
|
|
$
5,137
|
Trade
receivables
|
5,809
|
|
5,996
|
Deferred income
taxes
|
2,326
|
|
2,239
|
Prepaid expenses and
other accounts receivable
|
2,346
|
|
1,503
|
Total current
assets
|
14,453
|
|
14,875
|
|
|
|
|
Long-term lease
deposits
|
83
|
|
57
|
Severance pay
fund
|
817
|
|
756
|
Property and
equipment, net
|
2,560
|
|
1,608
|
Deferred income
taxes
|
3,478
|
|
3,348
|
Intangible assets,
net
|
36,389
|
|
37,086
|
Investment in
affiliate
|
1,483
|
|
1,403
|
Total
assets
|
$
59,263
|
|
$
59,133
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
Current Liabilities:
|
|
|
|
Current credit
line
|
$
3,113
|
|
$
-
|
Accounts
payable
|
788
|
|
958
|
Employees and payroll
accruals
|
2,793
|
|
2,280
|
Accrued expenses and
other liabilities
|
609
|
|
1,587
|
Short-term earn out
liabilities
|
1,916
|
|
4,048
|
Deferred
revenues
|
4,414
|
|
4,535
|
Total current
liabilities
|
13,633
|
|
13,408
|
|
|
|
|
Long-term deferred
revenues
|
1,911
|
|
492
|
Long-term deferred
tax
|
3,005
|
|
3,187
|
Long-term earn out
liabilities
|
5,342
|
|
6,409
|
Accrued severance
pay
|
917
|
|
915
|
Total long-term
liabilities
|
11,175
|
|
11,003
|
|
|
|
|
Shareholders'
equity
|
34,455
|
|
34,722
|
Total liabilities and
shareholders' equity
|
$
59,263
|
|
$
59,133
|
|
|
COMMTOUCH SOFTWARE
LTD.
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED CASH FLOW DATA
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30
|
|
September
30
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Cash flow from
operating activities
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(914)
|
|
$
19
|
|
$
(2,918)
|
|
$
2,032
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
361
|
|
155
|
|
858
|
|
432
|
Compensation related
to options issued to employees and consultants
|
329
|
|
386
|
|
1,003
|
|
1,098
|
Amortization of
intangible assets
|
542
|
|
102
|
|
1,307
|
|
304
|
Accrued interest and
exchange rate differences on credit line
|
110
|
|
-
|
|
108
|
|
-
|
Accretion of earn out
liabilities
|
271
|
|
-
|
|
702
|
|
-
|
|
|
|
|
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
(Increase) decrease
in trade receivables
|
(611)
|
|
(794)
|
|
201
|
|
(1,490)
|
(Increase) decrease
in deferred taxes
|
(92)
|
|
18
|
|
(464)
|
|
(199)
|
Decrease (increase)
in prepaid expenses and other receivables
|
67
|
|
(848)
|
|
(935)
|
|
(684)
|
(Decrease) increase
in accounts payable
|
(406)
|
|
(113)
|
|
(318)
|
|
38
|
Increase
(decrease) in employees and payroll accruals, accrued expenses and
other liabilities
|
37
|
|
(132)
|
|
(479)
|
|
162
|
(Decrease) increase
in deferred revenues
|
(624)
|
|
(154)
|
|
1,334
|
|
(462)
|
Decrease in accrued
severance pay, net
|
(50)
|
|
(26)
|
|
(59)
|
|
(23)
|
Net cash (used in)
provided by operating activities
|
(980)
|
|
(1,387)
|
|
340
|
|
1,208
|
|
|
|
|
|
|
|
|
Cash from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in long-term
lease deposits
|
(20)
|
|
6
|
|
(26)
|
|
(5)
|
Proceeds from sale of
fixed assets
|
4
|
|
-
|
|
4
|
|
-
|
Investment in
affiliate
|
-
|
|
-
|
|
(80)
|
|
(3,400)
|
Purchase of property
and equipment
|
(320)
|
|
(309)
|
|
(1,656)
|
|
(629)
|
Net cash used in
investing activities
|
(336)
|
|
(303)
|
|
(1,758)
|
|
(4,034)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
line
|
-
|
|
-
|
|
3,005
|
|
-
|
Buyback of
outstanding shares
|
-
|
|
(828)
|
|
-
|
|
(1,441)
|
Earn out payment of
acquisition
|
-
|
|
-
|
|
(3,994)
|
|
-
|
Proceeds from options
exercised
|
297
|
|
29
|
|
1,216
|
|
733
|
Net cash provided
by (used in) financing activities
|
297
|
|
(799)
|
|
227
|
|
(708)
|
Effect of exchange
rate changes on cash
|
40
|
|
-
|
|
26
|
|
-
|
(Decrease) in cash
and cash equivalents
|
(1,019)
|
|
(2,489)
|
|
(1,191)
|
|
(3,534)
|
Cash and cash
equivalents at the beginning of the period
|
4,951
|
|
19,823
|
|
5,137
|
|
20,868
|
Cash and cash
equivalents at the end of the period
|
$
3,972
|
|
$
17,334
|
|
$
3,972
|
|
$
17,334
|
SOURCE Commtouch