IncrediMail Ltd. ( MAIL) Q2 2011 Earnings Conference Call August 15, 2011 10:00 AM EST Executives Josef Mandelbaum – CEO Yacov Kaufman – CFO Analysts Nick Halen – Sidoti & Company Jay Kumar – Midsouth Question-and-Answer Session Operator
Nick Halen – Sidoti & CompanyOkay. Now, like you said, that seems to have a very strong presence in the US; I believe you said about 80% of revenues within the US. I was just wondering what outside of the US, where they currently have some operations, and I guess where do you expect to be able to market this and grow out these products internationally? Josef Mandelbaum Yes, so – a great question. In the research – here is the good news, I mentioned before. It is like 220 million people who use photos in some fashion online every week or every month. I think today they have UK, Germany, and France, if I’ve not mistaken, they just started some of that, so it’s really fledging at this point in time. One of the things we think we can bring to the table with our expertise I would expect to go into countries that have strong Internet presence. Obviously a presence of a large portion of our audience is online. Again, Western Europe is a good example, where the demographics is such that it’s an aging population which fits into us very nicely. And a lot of people are getting online now faster, because broadband penetration in Europe has accelerated over the past couple of years. So we’ll try to make it push that over time. I would say it’s not the first thing we’re going to be doing, because we do want to make sure that we do this right and we help Smilebox to accomplish their immediate goals and then we’ll look to plan with them, having leverage IncrediMail footprints on one side and how we’re going to leverage their US presence for IncrediMail and search on the other side. Nick Halen – Sidoti & Company Okay. And then, just lastly, I was just – can you give us a little bit of an update on how your existing product lines have been performing? I mean, obviously, revenues are growing and everything like that, but I was wondering any products in particular, any of your existing portfolios that are shown from previous trend recently.
Josef MandelbaumSo, I mean, the – only one we really – recently launched since in the past is really PhotoJoy. IncrediMail itself is still holding its zone. The install base – the overall install base is one up a little bit; I think 6.8 million from the 6.6 million. As – to remind everybody, we stopped talking about HiYo, which was the previous product that we discounted. So that’s going okay. And on PhotoJoy what we’re seeing so far is that the usage of PhotoJoy is actually exceeding our expectations. And as Yakov said earlier in the call, we’re still really monitoring the revenue generation on a ROI positive basis as we spent to media around PhotoJoy’s top ownership [ph] and also measuring it. It’s really too early to tell from that standpoint. I mean we’re making money obviously – revenues on it, but really as it grows, well hopefully, by Q3, have more information as Yakov said is going to be really telling quarter for us in terms of how fast we can scale PhotoJoy with regards to getting a positive return on our marketing spending. Photojoy, today, although we’re making some additions is not viral like IncrediMail is or the Smilebox is as a matter of fact as well. We’re adding some components in the next quarter to PhotoJoy to allow you to share via email, share via Facebook and other social network, or could via a mobile and iPad version of PhotoJoy that will be coming out. So we’re really investing a little bit into – to get it to the next level and we hope that we’ll be able to leverage that. And ideally overtime, the Smilebox audience and the Photojoy audience, and two both photo-centric products hopefully will be able to cross-market overtime now. It’s not immediately we’re going to be doing, but we’re certainly looking at that in the future. Read the rest of this transcript for free on seekingalpha.com