AMENDMENT NO.1
TO
FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16 OF
THE SECURITES EXCHANGE ACT OF 1934
For the month of August 2000
(containing quarterly information for the quarter ended June 30, 2000)
Commtouch Software Ltd.
(Translation of registrant's name into English)
6 Hazoran Street
Poleg Industrial Park, P.O. Box 8511
Netanya 42504, Israel
011-972-9-863-6888
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F ______
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Indicate by check mark whether the registrant by furnishing
the information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes ________ No X
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<PAGE>
COMMTOUCH SOFTWARE LTD.
FORM 6-K
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets at
December 31, 1999 (Audited) and June 30, 2000 (Unaudited)
Condensed Consolidated Statements of Operations for the Three
and Six months ended June 30, 2000 and 1999 (Unaudited)
Condensed Consolidated Statements of Cash Flows for the Six
months ended June 30, 2000 and 1999 (Unaudited)
Note to Condensed Consolidated Financial Statements
(Unaudited)
PART II. OTHER INFORMATION
Item 3. Information Incorporated by Reference
Signatures
1
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
COMMTOUCH SOFTWARE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2000 1999
--------- ---------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 49,078 $ 65,996
Marketable securities 7,805 18,050
Trade receivables 7,402 2,378
Prepaid marketing expenses 626 4,508
Prepaid expenses and other accounts receivable 3,398 1,648
--------- ---------
Total current assets 68,309 92,580
Other assets 1,890 1,608
Long-term Investment 3,000 --
Property and Equipment, net 14,167 6,148
--------- ---------
$ 87,366 $ 100,336
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Current portion of bank loans and capital leases 62 120
Accounts payable 2,766 1,510
Employees and payroll accruals 1,757 1,032
Other liabilities and accrued expenses 2,585 1,865
--------- ---------
Total current liabilities 7,170 4,527
--------- ---------
Long-term Portion Capital Leases 37 44
Accrued Severance Pay 704 453
--------- ---------
741 497
--------- ---------
Shareholders' Equity
Ordinary shares 219 213
Additional paid-in capital 137,029 133,403
Deferred compensation (4,254) (5,779)
Notes receivable from shareholders (3,631) (1,060)
Unrealized holding gains (losses) (25) 63
Accumulated deficit (49,883) (31,528)
--------- ---------
Total shareholders' equity 79,455 95,312
--------- ---------
$ 87,366 $ 100,336
========= =========
The accompanying note is an integral part of these condensed
consolidated financial statements.
2
<PAGE>
COMMTOUCH SOFTWARE LTD.
<TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
(unaudited) (unaudited)
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues ................................. $ 5,911 $ 553 $ 10,183 $ 898
Cost of revenue .......................... 2,784 606 4,905 1,040
-------- -------- -------- --------
Gross profit(loss) ....................... 3,127 (53) 5,278 (142)
-------- -------- -------- --------
Operating expenses:
Research and development, net .......... 2,270 510 4,263 850
Sales and marketing .................... 6,404 1,363 11,150 1,971
General and administrative ............. 2,576 683 4,682 1,327
Amortization of the prepaid marketing
expense .............................. 1,941 -- 3,882 --
Amortization of deferred compensation(1) 762 1,013 1,525 1,372
-------- -------- -------- --------
Total operating expenses ....... 13,953 3,569 25,502 5,520
-------- -------- -------- --------
Operating loss ........................... (10,826) (3,622) (20,224) (5,662)
Interest and other income (expense), net . 931 6 1,869 (265)
-------- -------- -------- --------
Net loss ................................. $ (9,895) $ (3,616) $(18,355) $ (5,927)
======== ======== ======== ========
Basic and diluted net loss per share ..... $ (0.65) $ (1.66) $ (1.21) $ (3.17)
======== ======== ======== ========
Weighted average number of shares used in
computing basic and diluted net loss per
share .................................. 15,261 2,178 15,205 1,869
======== ======== ======== ========
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2000 1999 2000 1999
-------- -------- -------- --------
(1) Stock-based Employee Compensation
Relates to the following:
Cost of revenues $ 25 $ 33 $ 50 $ 45
Research and development, net 71 94 142 126
Sales and marketing 199 264 398 358
General and administrative 467 621 935 841
-------- -------- -------- --------
Total $ 762 $ 1,013 $ 1,525 $ 1,372
======== ======== ======== ========
<FN>
The accompanying note is an integral part of these condensed
consolidated financial statements.
</FN>
</TABLE>
3
<PAGE>
COMMTOUCH SOFTWARE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months
ended
June 30,
---------------------
(unaudited)
2000 1999
-------- --------
Cash flows from operating activities:
Net loss ............................................. $(18,355) $ (5,927)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization ..................... 2,420 498
Amortization of deferred compensation and warrants
issued for service received and bank line of
credit .......................................... 1,525 1,752
Amortization of the prepaid marketing expenses .... 3,882 --
Increase in trade receivables ..................... (5,024) (332)
Increase in other accounts receivable and prepaid
expenses ........................................ (1,750) (1,294)
Increase in accounts payable ...................... 56 351
Increase in other liabilities ..................... 1,410 368
Increase (Decrease) in deferred revenue ........... 35 10
Increase in accrued severance pay, net ............ 59 49
-------- --------
Net cash used in operating activities ........... (15,742) (4,525)
-------- --------
Cash flows from investing activities:
Proceeds from sale of available for sale marketable
securities ...................................... 10,157 --
Purchase of Long-term investments .................... (3,000) --
Long-term Deposits ................................... (90) --
Purchase of property and equipment ................... (9,239) (1,721)
-------- --------
Net cash used in investing activities ........... (2,172) (1,721)
-------- --------
Cash flows from financing activities:
Short-term bank line of credit, net .................. -- (1,328)
Payment of capital lease ............................. (65) (53)
Proceeds from issuance of shares ..................... 1,061 18,456
-------- --------
Net cash provided by financing activities ....... 996 17,075
-------- --------
Increase (Decrease) in cash and cash equivalents ....... (16,918) 10,829
Cash and cash equivalents at the beginning of the
period ................................................. 65,996 834
-------- --------
Cash and cash equivalents at the end of the period ..... $ 49,078 $ 11,663
======== ========
Supplemental disclosure of cash flows activity:
Cash paid during the year:
Interest ............................................... $ 8 $ 42
======== ========
Ordinary shares issued for notes receivable from
shareholders ........................................... $ 2,571 $ 887
======== ========
The accompanying note is an integral part of these condensed
consolidated financial statements.
<PAGE>
COMMTOUCH SOFTWARE LTD.
NOTE TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation:
The condensed consolidated financial statements have been prepared by
Commtouch Software Ltd., without audit, and include the accounts of
Commtouch Software Ltd. and its wholly-owned subsidiaries (collectively
the "the Company"). Certain information and footnote disclosures,
normally included in financial statements prepared in accordance with
generally accepted accounting principles, have been condensed or
omitted pursuant to such rules and regulations. In the opinion of the
Company, the financial statements reflect all adjustments, consisting
only of normal recurring adjustments, necessary for a fair presentation
of the financial position at June 30, 2000 and the operating results
and cash flows for the reported periods. These financial statements and
notes should be read in conjunction with the Company's audited
financial statements and notes thereto for the year ended December 31,
1999, which were filed with the Securities and Exchange Commission on
Form 20-F.
The results of operations for the three and six months ended June 30,
2000 are not necessarily indicative of the results that may be expected
for future quarters or the year ending December 31, 2000.
<PAGE>
PART II. OTHER INFORMATION
Item 3. Information Incorporated by Reference
The information in this Amendment to Report on Form 6-K is incorporated by
reference into all Registration Statements which we have filed or which we will
file in the future under the Securities Act of 1933, as amended, which permit
such reports to be so incorporated.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Amendment to report to be signed on its behalf
by the undersigned, thereunto duly authorized.
COMMTOUCH SOFTWARE, LTD.
-------------------------------
(Registrant)
Date: November 2, 2000 By /s/ James E. Collins
-----------------------
James E. Collins
Chief Financial Officer
