IncrediMail Ltd. (Nasdaq:MAIL: TASE:MAIL) continues to justify investors' warmness toward the company since the beginning of the year. The e-mail avatar developer, which is now basing its growth on search-based advertising in collaboration with Google Inc. (Nasdaq: GOOG), today published its financial report for the third quarter of 2009.
IncrediMail posted $6.6 million revenue for the third quarter, up 13% from the $5.9 million for the corresponding quarter of 2008, but down 2% from the second quarter, due to season factors.
IncrediMail CEO Ofer Adler said, “Traditionally consumers spend less time in front of their computers in the summer months. Despite this we yet again succeeded in achieving revenues higher than the prior winter months. This is primarily attributable to our continued success in growing search generated revenues, with our users currently driving searches through four different product offerings; IncrediMail, HiYo, Magentic, and IncrediGames.”
GAAP-based net profit jumped to $2.1 million ($0.21 per share) for the third quarter from $96,000 for the corresponding quarter. Non-GAAP net profit rose to $2.3 million ($0.23 per share) for the third quarter from $356,000 for the corresponding quarter. The company is not yet covered by enough analysts to develop a consensus estimate of its results.
IncrediMail had $30 million in cash and cash equivalents at the end of September, a comfortable cushion for acquisitions or additional investment in R&D.
IncrediMail has tied its fortunes to Google. Following the introduction of Google's Adsense, IncrediMail has been generating revenue from its search-based advertising products.
IncrediMail's share closed at $8.08 on Nasdaq yesterday, giving a market cap of $75 million, up 269% year-to-date. The share rose 2.8% on the TASE today to NIS 30.70. Two months ago, the share reached an all-time high or $10.56.
Published by Globes [online], Israel business news - www.globes-online.com - on November 12, 2009
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