Commtouch Software Ltd. (CTCH) reported Wednesday a plunge in second-quarter net income to $0.8 million or $0.03 per share from last year's $1.4 million to $0.06 per share.
The cloud-based Internet security provider's adjusted net income, which excluded items, declined to $1.3 million or $0.05 per share from $1.6 million or $0.06 per share a year ago.
Revenue of $5.7 million remained in line with corresponding prior year period
"Our second quarter 2012 performance was highlighted by significant progress toward our strategic plan and Commtouch's ongoing evolution from a key security technology provider into a cloud-driven 'security as a service' solutions provider," the company said in its statement.
For fiscal 2012, the company updated its forecast citing its first half revenues, current outlook for the second half of 2012, and the anticipated ramp of recent contract wins. The company now expects full-year revenue to increase between 2 percent and 6 percent from last year. Adjusted net income is still expected to be at, or above, $5.0 million.
In a separate statement, Commtouch said it has signed a definitive agreement to acquire Iceland-based FRISK Software International's antivirus business. The deal is subject to customary closing conditions and is expected to close by the end of the third quarter of 2012.
FRISK, with its well-established brand, F-PROT, provides antivirus solutions for the OEM, corporate, and consumer markets.
With the deal, Commtouch expects to utilize FRISK's staff and IP to dramatically accelerate its launch of white label antivirus solutions for the OEM market.
For comments and feedback: editorial@rttnews.com