Perion Network's CEO Discusses Q4 2011 Results - Earnings Call Transcript

For us in particular what we are seeing is there is on the tablet side and the research we are doing, our consumers in particular are adopting tablets at a much higher rate in terms of usage and they were smartphones. So, we are putting a lot more emphasis there and in terms of R&D and focus in terms of product managers and marketing, we are probably spending I don’t know exact percentage is, but I’d say 20% of the people in the company are now focused on trying to build great applications, looking to understand the industry better and how we can really relate to our consumers better for products on this platform.

Jared Schramm - Roth Capital Partners

Okay. And with the launch of PhotoJoy and Fixie recently could you describe what customer reaction has been like to that versus your expectations originally?

Josef Mandelbaum

Sure. The reaction to PhotoJoy overall has been actually positive, the challenge with PhotoJoy we have been having is monetizing it as effectively as we would like. Right now it's only an advertising search driven model, and the industry and the advertising the search driven model as people are following it is competitive. And PhotoJoy is a bigger download and we are working on trying to solve that. So, that the take rate is little bit lower than we would like in terms of the completion rate when you started which effects the lifetime value and the cost per acquisition. So, economically, on PhotoJoy we are struggling a little bit to make it really work, so we haven’t we deemphasized a little bit in terms of our marketing on that until we get it right. But the consumer reaction to PhotoJoy is actually been very positive. And that’s why we launched an iPad 2, it just started on iPad but really on the desktop, I think whoever has it, they really like the application. So, we know we have a nice product. We are trying to figure out how to really accelerate it through a monetization. Until we really understand that, we are going to be conservative with that.

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