Welcome!

Cloud Expo Authors: Elizabeth White, Pat Romanski, Trevor Parsons, Lori MacVittie, Cynthia Dunlop

News Feed Item

Commtouch Acquires eleven GmbH to Accelerate Launch of Security-as-a-Service Solutions

Conference Call Set for 10:00 a.m. ET on Monday, November 19, 2012

MCLEAN, Virginia, November 19, 2012 /PRNewswire/ --

Commtouch® (NASDAQ: CTCH), a leading provider of Internet security technology and cloud-based services, today announced it acquired Berlin, Germany-based eleven GmbH. The acquisition was completed on Friday, November 16, 2012.  

     (Logo: http://photos.prnewswire.com/prnh/20120501/529254 )

eleven is well-known throughout Germany as the leading provider of mail-based Security-as-a-Service (SecaaS) solutions, capturing more than 36 percent of the German market for managed email security. In addition to managed email security and archiving solutions, eleven also provides advanced on-premise email solutions and services to selected customers, and its customer base includes some of the largest organizations in Germany, including BMW, SAP, Siemens and Deutsche Telekom / T-Online. The acquisition of eleven enables Commtouch to accelerate delivery of private label cloud-based security solutions specifically designed for OEM and service provider markets. In addition, Commtouch's global reach should accelerate sales and adoption of this leading security technology developed by eleven.  

Commtouch will continue expanding eleven's brand and presence in Germany, Austria and Switzerland while also supporting the needs of all of eleven's valued customers, channel partners and distributors through the combined resources of both companies. Outside of Germany, Commtouch continues to focus on its primary OEM business and private labeling of cloud based Security-as-a-Service solutions.

Commtouch will retain the eleven brand in the DACH region. Eleven's 60 employees will remain with the company. Robert Rothe, eleven CEO and founder, also joins Commtouch's executive team as Chief Technology Officer and head of Commtouch's operations in Germany.

"eleven's proven cloud-based technology delivers tremendous capabilities that will accelerate Commtouch's strategy to become a cloud-based Security-as-a-Service solution provider for the OEM and service provider markets," said Shlomi Yanai, CEO of Commtouch. "Both the people and the products at eleven will serve a significant role in our continued effort to grow Commtouch by offering the most advanced and innovative security technology. We also look forward to serving all of eleven's current customers and partners and we are committed to maintaining its leading stance in Germany. I welcome all of eleven's employees to the Commtouch family and look forward to the valuable contributions of Robert Rothe in his new role as CTO at Commtouch."

"I am pleased to join Commtouch as CTO, and I am excited to combine the resources and great talent in both companies," said Rothe. "Through Commtouch's acquisition of eleven, there is a tremendous opportunity for global growth as Commtouch brings eleven's award-winning technology to larger markets through its extensive base of OEM and service provider partners. We look forward to continuing great service for our existing customers while also seeing significant benefit in expanding our opportunities as part of Commtouch."  

For the trailing 12-month period ended October 31, 2012, eleven generated revenues of approximately $8.0 million (€6.3 million) and was profitable. Similar to Commtouch, eleven generates the vast majority of its revenues from the delivery of services to its clients on a recurring subscription-based revenue model. The acquisition of eleven is comprised of three elements: cash, shares, and an earn-out component based on the success of eleven within the combined entity.  The closing purchase price included net cash of $9.2 million (€7.2 million) and approximately $2.1 million worth of Commtouch restricted shares.  The earn-out component will be paid out through 2015 based on the successful achievement of certain performance-based revenue goals.

Financial Guidance

With regard to Commtouch's forward looking financial guidance, based on the acquisition of eleven  announced today, the company's year-to-date results, as well as the company's current expectations for the remainder of 2012, Commtouch is updating its outlook.  Commtouch is increasing its revenue guidance and now anticipates full year 2012 revenue will be in the range of $23.7 million to $23.9 million. The acquisition will be accretive, with a modest positive contribution for the current fourth quarter of 2012; accordingly the company is reiterating its expectation that full year 2012 non-GAAP net income is expected to be greater than $4.0 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.

Conference Call Information

The company has scheduled a conference call for Monday, November 19, 2012 at 10:00 a.m. ET to review Commtouch's acquisition of eleven GmbH. To participate in the call, please dial one of the following access numbers 10 minutes prior to the start time of the call:

US Dial-in Number: 1-877-407-9210
International Dial-in Number:  +1-201-689-8049
Israel Dial-in Number: 00-800-4626-6666
   at:    
10:00 a.m. Eastern Time, 7:00 a.m. Pacific Time,
3:00 p.m. UK Time, 5:00 p.m. Israel Time

The call will be simultaneously webcast live from a link on Commtouch's Web site at http://www.commtouch.com.

About eleven

A leading email security provider based in Germany, eleven's unique eXpurgate technology offers a spam filter and email categorization service that reliably protects users against spam and phishing, detects potentially dangerous email, and can distinguish between individual messages and mass emails. eXpurgate also offers numerous virus protection options and a powerful email firewall. More than 45,000 organizations of all sizes use eXpurgate to check and categorize more than a billion email messages every day. Customers include Internet service providers and telecommunication carriers such as T-Online, O2, 1&1 and freenet as well as many well-known companies and public institutions, including Air Berlin, BMW, the Federal Association of German Banks, DATEV, the Free University of Berlin, Landesbank Berlin, RTL, SAP, ThyssenKrupp and Tobit Software AG. Visit http://www.eleven.de.

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 our customers' solutions by protecting billions of Internet transactions on a daily basis. With six global data centers and award-winning, patented technology, Commtouch's email, Web, and  antivirus capabilities easily integrate into our customers' products and solutions, keeping more than 350 million end users safe. To learn more, visit http://www.commtouch.com.

Use of Non-GAAP Measures

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: share based compensation expenses, amortization and impairment of acquired intangible assets, deferred taxes, acquisition related costs and adjustments to earn-out obligations related to acquisitions. 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. 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.

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 those relating to how eleven's proven cloud-based system provides tremendous capabilities that will accelerate Commtouch's launch of a Security-as-a-Service solution for the OEM market, 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 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  http://www.sec.gov.


Company Contact:                    
Ron Ela, Chief Financial Officer                
Commtouch                        
(US) +1-650-864-2291 (Int'l) +972-9-8636813        
ron.ela @commtouch.com                

Israel Investor Relations Contact:
Iris Lubitch
EffectiveIR
+972-54-252-8007
[email protected]

U.S. Investor Contact:                    
Christopher Chu                    
Grayling                        
+1-646-284-9400                        
[email protected]                

Commtouch Media Contact:
Matthew Zintel
Zintel Public Relations
+1-281-444-1590
[email protected]

SOURCE Commtouch

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
Compute virtualization has been transformational, yet security policy implementation and enforcement has lagged behind in agility and automation. There are a number of key considerations when implementing policy in private and hybrid clouds. In his session at 15th Cloud Expo, Holland Barry, VP of Technology at Catbird, will discuss the impact of this new paradigm and what organizations can do today to safely move to software-defined network and compute architectures, including: How normal ope...
Can we look to the paradigm of cloud computing from a completely different perspective? In his General Session at 15th Cloud Expo, Gundars Kulups, Sales Director at DEAC, will discuss what we can learn from our dining habits when choosing a cloud solution. Gundars Kulups is Sales Director at DEAC, full service data center operator. An IT expert, he specializes in European countries and has worked in the IT industry since 1992. He graduated from Riga Technical University (RTU) in Latvia and com...
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to meet its business strategy quickly and effectively. SOA Software’s technology helps businesses to accel...
As cloud gives an opportunity to businesses to buy services externally - how is cloud impacting your customers? In his General Session at 15th Cloud Expo, Fabio Gori, Director of Worldwide Cloud Marketing at Cisco, will provide answers to big questions: Do you see hybrid cloud as where the world is going? What benefits does it bring? And how does Cisco connect all of these clouds? He will also tell us everything about Intercloud and Cisco investment on it.
SYS-CON Events announced today that TMCnet has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Technology Marketing Corporation (TMC) is the world's leading business to business and integrated marketing media company, servicing niche markets within the communications and technology industries.
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue bu...
SYS-CON Events announced today that Parasoft will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. For 27 years, Parasoft has researched and developed software solutions that help organizations deliver defect-free software efficiently. By integrating Development Testing, API/cloud/SOA/composite app testing, and service virtualization, we reduce the time, effort, and cost of delivering secur...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at Internet of @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., will show what is needed to leverage the IoT to transform...
SYS-CON Events announced today that Utimaco will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Utimaco is a leading manufacturer of hardware based security solutions that provide the root of trust to keep cryptographic keys safe, secure critical digital infrastructures and protect high value data assets. Only Utimaco delivers a general-purpose hardware security module (HSM) as a customiz...
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, will describe an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-devic...
Until recently, many organizations required specialized departments to perform mapping and geospatial analysis, and they used Esri on-premise solutions for that work. In his session at 15th Cloud Expo, Dave Peters, author of the Esri Press book Building a GIS, System Architecture Design Strategies for Managers, will discuss how Esri has successfully included the cloud as a fully integrated SaaS expansion of the ArcGIS mapping platform. Organizations that have incorporated Esri cloud-based appl...
Once the decision has been made to move part or all of a workload to the cloud, a methodology for selecting that workload needs to be established. How do you move to the cloud? What does the discovery, assessment and planning look like? What workloads make sense? Which cloud model makes sense for each workload? What are the considerations for how to select the right cloud model? And how does that fit in with the overall IT tranformation? In his session at 15th Cloud Expo, John Hatem, head of V...
Dyn solutions are at the core of Internet Performance. Through traffic management, message management and performance assurance, Dyn is connecting people through the Internet and ensuring information gets where it needs to go, faster and more reliably than ever before. Founded in 2001 at WPI, Dyn’s global presence services more than four million enterprise, small business and personal customers.
IBM and Tencent Cloud signed a business cooperation memorandum to collaborate on providing public cloud with Software-as-a-Service solutions for industries. Both parties agreed to focus on emerging small and medium enterprises in the smarter cities and smarter healthcare industries as well as other fields. This will enable these industries to utilize mobile, cloud computing and big data tools to transform internal processes and operations, thus achieving cloud transformation in the era of mobili...
SimpleECM is the only platform to offer a powerful combination of enterprise content management (ECM) services, capture solutions, and third-party business services providing simplified integrations and workflow development for solution providers. SimpleECM is opening the market to businesses of all sizes by reinventing the delivery of ECM services. Our APIs make the development of ECM services simple with the use of familiar technologies for a frictionless integration directly into web applicat...
European data center operator DEAC is the largest in the Baltics. The activities are orientated to provide data center services and IT outsourcing on Eurasia and America scale in order to create the primary or backup or additional data center for customer in the EU, to protect its business and, most importantly, reduce costs up to 40% within 3-5 years. DEAC is an IT outsourcing services and solutions company whose highly experienced and qualified employees offer various groups of services and...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at Internet of @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, will discuss how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money! Speaker Bio: ...
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: S...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo, moderated by Ashar Baig, Research ...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, will address the big issues involving these technologies and, more important, the results they will achieve. How important are public, private, and hybrid cloud to the enterprise? How does one define Big Data? And how is the IoT tying all this together?