By Tess Stynes
Perion Network Ltd.'s (PERI) first-quarter earnings surged on
the company's new Incredimail unified messaging application for
Apple Inc.'s (AAPL) i-Pad.
Shares were up 13% at $14.53 in premarket trading as the results
beat expectations and the company said it expects to meet, and will
likely exceed, its 2013 guidance.
Chief Executive Josef Mandelbaum credited the company's search
diversification strategy and said Perion recently signed two new
nonexclusive search partnership agreements with Microsoft Corp.'s
(MSFT) Bing and IAC/InterActiveCorp.'s (IACI) Ask.com, as well as
signing an additional two-year non-exclusive agreement with Google
Inc. (GOOG).
"In addition, our increased investment in mobile platforms and
our strong pipeline of future accretive acquisitions, form the
nucleus of our growth strategy for the future," Mr. Mandelbaum
said.
Perion reported a profit of $2.9 million, or 22 cents a share,
up from $370,000, or four cents a share, a year earlier. Excluding
stock-based compensation and other items, adjusted earnings climbed
to 45 cents from 22 cents. Revenue soared to $27.6 million, mostly
thanks to the acquisition of apps maker SweetPacks last year.
Analysts polled by Thomson Reuters most recently projected
earnings of 36 cents on revenue of $23.8 million.
Gross margin rose to 96% from 93%.
Write to Tess Stynes at Tess.Stynes@dowjones.com
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