This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
IncrediMail Ltd. (NASDAQ: MAIL), a digital media company that builds downloadable consumer products, today announced financial results for the second quarter and six month period ended June 30, 2011.
Second Quarter Financial Highlights
Q2 revenues were $8.1 million, reflecting 12% year-over-year growth;
Q2 customer acquisition costs increased to $1.7 million;
Net income was $2.2 million for the quarter; and
Cash flow from operations in Q2 was $2.0 million.
Six-Month Financial Highlights
Revenues for the first six months increased 18% year-over-year, to a record $16.7 million;
Net income increased 23% year-over-year to $5.5 million, or $0.54 per diluted share; and
Cash flow from operations almost tripled year-over-year, to over $4.1 million.
Commenting on the results, Josef Mandelbaum, IncrediMail’s CEO, said, “We significantly improved our top line growth in the first half of 2011, as our year-over-year organic growth continued in the second quarter primarily driven by an increase in search revenues, which was a result of our successful execution of certain changes required by our search partner. Additionally, to further accelerate future growth, we increased our customer acquisition costs in a meaningful way. This is consistent with the strategy discussed in previous quarters, to ramp up our investment in organic growth, while maintaining a high level of profitability.”
Gross profits for the second quarter were $7.6 million, up 11% from $6.8 million in the second quarter of 2010. For the first six months of 2011 gross profits reached $15.9 million, increasing 18% compared to the first half of 2010.
Research and Development expenses in the second quarter of 2011 decreased year-over-year and, as a percentage of sales, R&D expenses were 18% in the second quarter of 2011, compared to 21% in the same period of last year.