Commtouch Announces Initiation of Stock Repurchase Program
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.
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.
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 firstname.lastname@example.org.
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.
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