They introduced IM service with their email
Tuesday , August 14, 2007 07:00ET
TEL AVIV, Israel, Aug 14, 2007 (BUSINESS WIRE) -- IncrediMail Ltd. (NASDAQ:MAIL), an Internet company offering graphic rich content for Internet consumers, today reported continued growth in both revenue and net income for the second quarter and first six months of 2007.
Revenue in the second quarter of 2007 was $4.3 million, increasing 111%, compared with $2.0 million in the prior year's second quarter. Six month revenue was $8.7 million, increasing 106%, compared with $4.2 million reported during last year's six-month period. The increasing growth in advertising revenues was the main cause for the quarter-over-quarter continued revenue growth, smoothing out the seasonality the company had historically encountered.
Net income increased 59% to $0.6 million, or $0.06 per diluted share, in the second quarter of 2007, compared with $0.4 million, or $0.04 per diluted share, for the second quarter last year, and increased 55% to $1.5 million, or, $0.15 per diluted share, in the first six months of 2007, compared with $0.9 million, or $0.10 per diluted share reported last year.
Mr. Yaron Adler, Chief Executive Officer of IncrediMail said, "Revenue in the second quarter of 2007 practically attained the same record level achieved in the first quarter of this year, defying the Company's historical seasonality pattern. During the second quarter, we continued to deliver on our strategy for 2007, introducing new and exciting products and monetizing our existing products. Only a few months after releasing the Japanese-language version of our program, we released the Chinese-language version, right on schedule. In addition, the beta version of our new instant messaging add-on product was just released and we are very excited about the demographic differentiation we believe these new products will attain. We will continue to focus our efforts on increasing future revenues, by continuing to moderately increase our investment in R&D, while accelerating our investment in marketing. Although we have already begun to realize the benefits of those investments, we anticipate a more significant impact on registered downloads and top-line growth towards the end of 2007 and into 2008."
Mr. Yacov Kaufman, Chief Financial Officer of IncrediMail said, "We are very pleased to report on the success of the company's strategy for evolving from a revenue model reliant on product sales, to a more diversified model led by advertising based revenues, accelerating our growth. Simultaneous with our strong top-line growth, EBITDA also nearly doubled in the second quarter of 2007, reaching $0.8 million, compared with $0.4 million in the second quarter of 2006. EBITDA in the first six months of 2007 was $1.8 million, compared with $1.0 million in the first six months of 2006. Our strong revenue and profitability enable us to continue investing in new marketing initiatives and products."
Mr. Adler added, "Our plan for growth includes diversifying and leveraging our premium user base, while making important investments in our future. The increase in advertising revenues increases our effective monetization per user, enabling us to invest in new and increasingly effective marketing initiatives aimed at further increasing our user base and total revenue growth. Magentic, already registering 3.6 million downloads, generated over 5% of our revenues this quarter. We expect the release of our instant messaging product will bring new demographics and additional organic growth, and by the end of this year we plan to release our new Web 2.0 community website.
Highlights of the Second Quarter and First Half of 2007
- Revenues double again:
Sales in the second quarter of 2007 offset the seasonality effect
and maintained the robust levels set during the first quarter,
providing for a record six months on a year-over-year basis.
Advertising revenues continued to provide the most aggressive
growth and reached $1.9 million (45% of revenue) during the second
quarter of this year, compared with $0.2 million (10% of revenue)
during the second quarter of 2006. This growth was due to revenues
generated by searches that IncrediMail referred to Google.
Subscription revenues in the first six months of 2007 also grew
substantially, reaching $3 million, increasing by more than 60%
versus the same period in 2006. This increase was a result of the
Company's continued emphasis on receiving revenue from the more
lucrative subscriptions and securing their renewals, particularly
from its anti-spam product, JunkFilter Plus. The Company achieved
this without decreasing its one-time fee revenues.
- Magentic reached 3.6 million registered downloads and monetization
realized:
In the 12 months since its launch, Magentic has recorded more than
3.6 million registered downloads and has begun driving revenues.
Revenues brought by this venue accounted for more than 5% of the
Company's top line during the second quarter.
- Chinese version of IncrediMail released:
Only a few months after releasing the Japanese-language version of
IncrediMail, the Company released the Chinese-language version of
this product as well. With the completion of the translation, the
Company is now addressing the localization of the content to these
local markets and expects to do this together with a local
partner. Management is very excited about introducing its products
to a new and believed to be rapidly growing demographic, with the
ultimate goal of incorporating them in its user base.
Mr. Adler concluded, "We continue to diversify our revenue streams and seek new areas and demographics to enhance our growth. The recent announcement of our instant messaging enhancement product is a perfect example of how we intend to diversify our demographics as we anticipate this product will attract a significantly younger audience than our other products. Creating these new growth engines is being done while we continue to set record sales numbers and significantly increase profits. Based on our proven success, this will remain our strategy for the coming year."
Conference call instructions
IncrediMail will host a conference call to discuss its results for the second quarter and first six months of 2007 today, August 14th at 10:30 AM ET. We invite all those interested in hearing management's discussion to join the call by dialing 1-(866)-585-6398. International participants may access the call by dialing 1-(416)-849-9626. A replay will be available for one week following the call by dialing 1-(866)-245-6755 for domestic participants or 1-(416)-915-1035 for international participants and entering conference passcode 166648 when prompted. Participants may also access a live webcast of the conference call through the investor relations section of IncrediMail's website at www.incredimail-corp.com. The webcast will be archived on the company's website for 7 days.
About IncrediMail Ltd.
IncrediMail designs and markets an integrated suite of customized and entertaining Internet software products for the consumer market. Our products include: IncrediMail Xe, which allows users to personalize email messages with creative features and is offered free of charge; IncrediMail Premium, an enhanced version of IncrediMail Xe; IncrediMail Letter Creator, which enables further personalization of backgrounds; The Gold Gallery, a content database of additional backgrounds, animation and notifiers, JunkFilter Plus, an anti-spam solution, and Magentic, a desktop enhancing solution. IncrediMail generates revenue by the sale of these products and services; licensing and co-branding the Incredi brand to operators of third party websites; generation of searches and selling paid advertising and sponsored links on its website and email client. For more information about IncrediMail, visit www.incredimail-corp.com.
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