Wednesday, anti-spam solutions provider Commtouch Software Ltd. (CTCH) reported an increase in net income for the second quarter, helped mainly by higher revenue, and stated that it met or exceeded all of its operational and financial goals.
For the quarter, net income increased to $696 thousand or $0.03 per share from $582 thousand or $0.02 per share in the prior-year period.
On an adjusted basis, net income was $1.03 million, up from $0.94 million in the same quarter last year. On a per-share basis, adjusted earnings remained flat at $0.04. Adjusted earnings excluded $0.33 million of stock-based compensation expenses.
Quarterly revenues increased 5% to $3.73 million from $3.57 million in the year-ago period.
For the six-month period, net income was $1.13 million, higher than $0.98 million last year. However, on a per-share basis, earnings remained flat at $0.04. Year-to-date, revenues increased to $7.28 million from $6.97 million in the same period a year ago.
Sunnyvale, California-based Commtouch noted that its long-term and short-term deferred revenues as of June 30 amounted to $2.78 million compared with $2.98 million at December 31, 2008.
At June 30, cash, short-term cash deposits and marketable securities amounted to $16.06 million compared with $16.40 million at December 31, 2008.
The company said that it signed agreements with eight new OEM partners during the second quarter, resulting in a total of 125 OEM partners using Commtouch messaging and/or Web security technologies.
Looking ahead, for fiscal 2009, the company expects adjusted net income to be about $4 million and revenues to grow to between $15 million and $16 million. Gideon Mantel, chief executive officer and chairman, said, "..our improving results plus the growing sales of our new Web security product indicate that the next quarter will be even stronger."
CTCH closed Tuesday's regular trading at $2.49 on the Nasdaq.
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