Welcome!

Artificial Intelligence Authors: Liz McMillan, XebiaLabs Blog, Yeshim Deniz, Elizabeth White, Jim Hansen

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.

@ThingsExpo Stories
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...