CTCH: Commtouch Software Continues to Transform the Business Model.

Zacks Small Cap Research

By Ken Nagy, CFA

On September 11, 2013, Commtouch Software Ltd. (CTCH), the Netanya, Israel based provider of internet security and cloud based services, supplying white label internet cloud-based (SaaS) ‘Security as a Service’ protection solutions to security OEM’s and service providers worldwide, announced that  Web.com selected Commtouch for integration into its email infrastructure.

Web.com is a leading provider of Internet services and online marketing solutions for small businesses.

In the partnership, Commtouch will provide its Inbound Anti-Spam, Outbound Spam Protection and Virus Outbreak Detection services for Web.com’s email infrastructure, which serves millions of customers.

The company has made tremendous progress on its recent transformation into a provider of comprehensive SecaaS offerings, which was accelerated by its strategic acquisitions and the formal launch of its new cloud-based email Security-as-a-Service offering in early 2013, highlighting the company’s execution on its strategic roadmap and its foundation for future growth.

The recently launched solutions have generated pronounced customer interest with Commtouch winning key customers and hosting clients for its new private label Email Security-as-a-Service product. These initial contracts have the potential to grow substantially as customers begin to roll out services.

Demand for these new products from both new and existing customers remains robust and validate management’s strategy to transform Commtouch from a best-in-class embedded malware detection service provider to a supplier of the complete Cloud-based security-as-a-service solution.

Furthermore, the company has been gearing up to launch its second major Cloud-based product offering with the release of Commtouch’s new Cloud-based web security solution during the fourth quarter 2013. This offering will focus on web security in the Cloud services, which are easy to provision and use. Those services will be built on the market-leading security detection platforms and will be delivered by the company’s partners as private label services. 

Management is encouraged by the demand being seen for the company’s new products in the marketplace. This combined with Commtouch’s upcoming product launches give management confidence in its strategy to transform the company and position Commtouch for a long-term growth and improved profitability.

A copy of the latest research report can be downloaded here >> 
 Commtouch Software Report

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