IncrediMail Ltd. Q4 2009 Earnings Call Transcript

IncrediMail Ltd. Q4 2009 Earnings Call Transcript
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IncrediMail Ltd. (MAIL)

Q4 2009 Earnings Call Transcript

March 25, 2009 11:30 am ET

Executives

Rob Fink – KCSA Strategic Communications

Ofer Adler – Founder, CEO and CPO

Yacov Kaufman – CFO

Analysts

Mike Ungay [ph] – IBS Capital Management [ph]

Victor Halford [ph] – Halford Capital [ph]

Colin Gillis – BGC Financial

Bill Gibson [ph] – Wailuku Capital Advisors

Michael Prouting – 10K Capital

Daniel Zest [ph] – Zest Capital

Jess Summers [ph]

Russell Lastry [ph] – Curitai Capital [ph]

Question-and-Answer Session

Operator

Compare to:
Previous Statements by MAIL
» IncrediMail Ltd. Q4 2009 Earnings Call Transcript (Q&A Session)
» IncrediMail Ltd. Q3 2009 Earnings Call Transcript
» IncrediMail Ltd. Q2 2009 Earnings Call Transcript Introductory Remarks

Thank you. Ladies and gentlemen, at this time we will begin the question-and-answer session. (Operator Instructions) Your questions will be polled in the order that they are received. Please stand by while we poll for questions. The first question is from Mike Ungay [ph] from IBS Capital Management [ph]. Please go ahead.

Mike

Ungay

IBS Capital Management

Hi. My number one question is, have you looked into using Bing, Microsoft Bing, as a possible replacement to Google? Number two, have you ever thought of opening up your presentations via the CCSF [ph] from where a third party developers can leverage more user base as a developing act like on Facebook or in Google? And (inaudible) three questions.

Ofer Adler

First of all, about the hour game [ph], we can’t disclose any details regarding discussions we’re having with the other company at this point. And with regard to API, currently we don’t have any plans for opening API. But we do have plans of making IncrediMail compatible with a popular application such as Facebook, YouTube, Twitter, et cetera. And we started working honestly already.

Mike

Ungay

IBS Capital Management

Okay. Thank you.

Operator

The next question is from Victor Halford [ph] of Halford Capital [ph]. Please go ahead.

Victor Halford

Halford Capital

Hi, guys. They're actually good results despite this past behavior.

Ofer Adler

Thank you.

Victor Halford

Halford Capital

Question, I’m – I'm trying to understand what you’re trying – what you're saying about the – on the issues with Google. I really don’t understand. I’m not sure other people understand because there hasn't been as much debate [ph]. Can you elaborate and tell us what the potential problems would (inaudible) in the second half of 2010?

Ofer Adler

Yes. We have been told by Google that there may be a change of policy around how partners may offer the change of homepage and (inaudible) provider. We still don’t know even if one such chance will take place of working (inaudible) that they are considering this matter. Google has very different ideas that are not formulary specific. And they're still saying there may be no change. It is our understanding that that even if there are changes, they won’t affect us before the end of 2010. Other than that, we really don’t know too much.

Victor Halford

Halford Capital

I mean, what does this big change will do to (inaudible) that you did? Is it currently being done using – using your products? How is it going to make a difference? Do you know?

Ofer Adler

We still don’t know because they just informed us they are considering doing changes in the policy. But they didn’t say anything specific. They said that they're considering all kinds of things, but we really can’t tell what could be the possible change right now.

Victor

Halford

of

Halford

Capital

But you came with this announcement today. And especially think that this can be a negative change. But you don’t know if it's negative or not.

Ofer Adler

What we do now is that the change is around the reset homepage and their (inaudible) provider. This is obviously something that has a lot to do with adding new users for search our search asset. So if they will do any change around that, then this could have an effect on us. But we really don’t know if there will be any change there. And regarding around, there's a way that we offer to our users the homepage, and (inaudible) provider that are power players by Google.

Victor Halford

Halford Capital

That’s okay. So the proposed change will make this stage as what? I mean, what will be the difference?

Ofer Adler

We really don’t know. They just said they are considering changes around the way people, the partners they offered in the homepage and (inaudible) provider. We really don’t know more than that.

Victor Halford

Halford Capital

It is a shame that there – there is a – you have a very good results today and they were overshadowed by this. And certainly, which can be insignificant basically. But you warned us, in a way, that it sounds very uncertain and vague. This created much more certainty than maybe there is in my view.

Ofer Adler

Well, we want us to get – well (inaudible) natural ability as we have in order to be fully (inaudible). This is why we announced it.

Victor Halford

Halford Capital

Well, it should have been done probably a different way. But thank you.

Ofer Adler

We told you what we know.

Operator

The next question is from Colin Gillis of BC – BGC Financial. Please go ahead.

Col

in Gillis

BGC Financial

Yes. Hello, everybody.

Ofer Adler

Hi, Colin.

Col

in Gillis

BGC Financial

Just focusing that – on the business, setting the Google (inaudible) aside. What was the chance of monetization that you saw in the quarter?

Ofer Adler

Well, as you have seen in previous quarters before our search revenues growing. They were growing from whether decreased inquiry or the increased monetization of these queries, and as well as the fact that we are increasing our range to download. So we saw those revenues going up. And we also saw spending of the trend with regard to our product sales. So as far as monetization goes, actually going – coming towards the end of 2009, we actually – we saw very positive results.

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