Incredimail quadruples profit

CEO Ofer Adler predicts record fourth quarter revenue.

E-mail avatar developer IncrediMail Ltd. (Nasdaq:MAIL: TASE:MAIL) today published its financial report for the second quarter of 2009. The company quadrupled its net profit and it predicts record revenue for the fourth quarter.

Incredimail posted $6.7 million revenue for the second quarter, 29% more than the $5.2 million for the corresponding quarter of 2008.

GAAP-based net profit rose to $2.4 million ($0.26 per share) for the second quarter from $628,000 for the corresponding quarter.

Part of the increase in profit can be attributed to the 24% drop in operating expenses to $3.2 million for the second quarter from $4.2 million for the corresponding quarter. R&D expenses were cut 29% to $1.3 million from $1.9 million, due in part to the company's shift in focus to search-related revenue sources.

IncrediMail CEO Ofer Adler predicts a bright future. "Although the third quarter is expected to be affected by seasonality, we expect this to be more than offset in the fourth quarter. We believe that the introduction of IncrediMail 2 during the third quarter of 2009, together with other initiatives we have taken, should provide us with the momentum to attain record results again in the fourth quarter", he said.

Incredimail's share closed at $6.75 on Nasdaq yesterday, giving a market cap of $67 million. The share rose 8.1% by early afternoon on the TASE to NIS 29.20.

Published by Globes [online], Israel business news - www.globes-online.com - on August 6, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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