Perion Network Ltd. (Nasdaq:PERI: TASE:PERI) today reaffirmed its full-year guidance after reporting record revenue for the first quarter of 2014 thanks to the acquisition of the ClientConnect business from Conduit Ltd. last year.
First quarter revenue of $117.1 million was 47% higher than ClientConnect's revenue of $79.7 million for the corresponding quarter of 2013, and 9% higher than the combined revenue of $107.3 million. Net profit was $27.6 million for the first quarter, 41% more than ClientConnect's net profit of $19.5 million for the corresponding quarter, and 9% more than the combined profit of $25.3 million.
Perion reaffirmed its full-year guidance of a net profit of $103-108 million on $460-470 million revenue.
Cash flow from operations totaled $13.9 million for the first quarter, and the company had $51.2 million in cash and cash equivalents at the end of March. This includes the cash flow from operations, Perion's $23.4 million cash balance prior the acquisition and a $14.8 million short-term loan from Conduit to support working capital afterwards.
"We are very pleased with our first quarter performance as a combined company," said Perion CEO Josef Mandelbaum “The integration proceeded more smoothly and more rapidly than we anticipated, and the combined operations are delivering record results with strong top and bottom-line growth."
He added, "While there still remain some headwinds in the overall industry, we are increasingly confident in our ability to adapt, gain market share and diversify and are therefore very excited about the future of the new Perion. As an industry leader in the app developer ecosystem on the desktop, we are now positioning ourselves to be the same on the mobile platform."
Published by Globes [online], Israel business news - www.globes-online.com - on May 15, 2014
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