Commtouch Announces Initiation of $2.5M Stock Repurchase Program

Commtouch®

, 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.