Commtouch Software Ltd. announced the promotion of Ido Hadari to the newly created position of chief operating officer. The company also announced several other management team updates. Commtouch continues to strategically evolve its organizational structure in preparation for its intended growth trajectory. Additional management changes include: the promotion of Asaf Greiner to vice president of products, assuming responsibility for all messaging security products. This is in addition to the Web security product line that he has been overseeing since early 2008. The appointment of Ofer Tal to the position of vice president, international sales and business development, replacing Mr. Hadari in that role. Mr. Tal brings a decade of international sales and business development management experience at various companies, most recently at Gigaspaces as head of regional sales and business development, and prior to that at Interwise.

Commtouch Software Ltd. and Zoznam announced that Zoznam will be enhancing its Freemail service with Commtouch messaging security services based on Recurrent Pattern Detection(TM) (RPD(TM)) and GlobalView(TM) Reputation technology. Zoznam is integrating the following Commtouch offerings into its platform: GlobalView Mail Reputation, which deflects more than 80% of unwanted mail at the network perimeter, providing a significant savings on IT resources such as bandwidth and storage. Commtouch Anti-Spam, which blocks spam in any language, and regardless of its content or attachment type. Zero-Hour(TM) Virus Outbreak Protection, which defends against new types of email-borne malware in the crucial first minutes of an outbreak, during the vulnerable window before traditional anti-virus engines have provided a signature.

Commtouch Software Ltd. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported revenues of $3,899,000 against $3,622,000 a year ago. Operating profit was $700,000 against $536,000 a year ago. Net income attributable to ordinary and equivalently participating shareholders was $849,000 or $0.03 per basic and diluted share against $644,000 or $0.02 per basic and diluted share a year ago. Non-GAAP operating profit was $1,050,000 against $899,000 a year ago. Non-GAAP net income was $1,199,000 or $0.05 per basic and diluted share against $1,007,000 or $0.04 per basic and diluted share a year ago. Net cash provided by operating activities was $1,558,000 against $671,000 a year ago. Purchases of property and equipment were amounted to $173,000 against $125,000 a year ago. For the nine months, the company reported revenues of $11,175,000 against $10,591,000 a year ago. Operating profit was $1,898,000 against $1,334,000 a year ago. Net income attributable to ordinary and equivalently participating shareholders was $1,981,000 or $0.08 per basic and diluted share against $1,626,000 or $0.06 per basic and diluted share a year ago. Non-GAAP operating profit was $2,907,000 against $2,587,000 a year ago. Non-GAAP net income was $2,990,000 or $0.12 per basic and diluted share against $2,879,000 or $0.11 per basic and diluted share a year ago. Net cash provided by operating activities was $3,238,000 against $2,358,000 a year ago. Purchases of property and equipment were amounted to $331,000 against $397,000 a year ago. The company expects to meet its annual guidance with expected 2009 revenues in the range of $15.1 to $15.4 million and non-GAAP net income above $4 million.