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The company does not undertake to revise any forward-looking statements to reflect future events or circumstances. Revenue and other financial estimates contained in this presentation have not been audited or reviewed by Perion’s independent auditors. And accordingly, they express no opinion or other form of insurance as to this information. The company provides no assurance that these preliminary results will not change following the completion of its financial audit of results of operations for the fiscal fourth quarter 2011, which are expected to be completed by March 2012.With that said, I’ll turn the call over to Josef Mandelbaum, Chief Executive Officer. Josef, the call is yours. Josef Mandelbaum Thank you, Todd, and happy and healthy New Year, everyone. Welcome to our 2012 guidance call. Today, I’d like to focus my comments on three items. First, a review of and progress update on our strategy; second, financial guidance for 2012; and third, an update on the Smilebox acquisition. After my prepared remarks, we will then open up the call for questions. These continue to be exciting times for our company as the strategy we have outlined over a year-ago comes to life with the execution of our plan. In the past 16 months, we have methodically and successfully executed the initially phases of our strategy and have positioned ourselves for significant growth in 2012 and beyond. The success of our mission is contingent on our further investing in and executing on four areas of growth. Infrastructure and consumer insight, building a robust product line, and consumer marketing and acquisitions. In the past year, there has been a tremendous upsurge of articles and media coverage on the power and importance of the 40 plus year old second wave adopters or SWAs. In particular, baby boomers. We view the amplified coverage of our market target as a strong validation of the strategy we set out over a year-ago. We have positioned Perion to be very well situated to be a leading application provider to this market.
As a reminder the 40 plus year-old SWA is the fastest growing segment online and can be broken down according to numerous traits, and age is certainly one of them. While SWAs come in all ages, our focus is on the needs of each subgroup and their different needs as they move through their natural lifecycle. Our investment in consumer research will help us better serve the needs of each of our users.As you can see, this is a very attractive large audience. In particular, baby boomers, still the largest generation in the past 100 years. With over 278 million online over the age of 40 in the US and Europe alone, we are confident in our ability to capture a similar but meaningful market share in certain consumer product verticals. While you will clearly take some investment, both short and long-term, the reward is very high. This audience is more loyal and has a higher lifetime value potential than any other audience online today. The fact that we have been focusing on this opportunity for the past year gives us an advantage going forward. There are many product verticals relevant to our consumer. However, our initial focus has been on the communications and photo verticals, and this year we plan to add a few products in the safety and security vertical as well. Regarding our communication vertical, research has constantly shown that email is still the most used activity online with over 99% of the people online participating in it aim for second wave adopters. The frequency of usage continues to grow. In addition, other forms of communication beyond Facebook, text or instant messaging, Twitter, VoIP continue to grow, largely supported by an advertising model. Advertising, and in particular, search based advertising continues to grow, and it’s today over a $15 billion industry online in the US. Communications will continue to be a fundamental activity consumers do online as they strive to connect and share the lives with friends and family. And one of the activities most utilized to share and connect with friends and family is photo sharing and creation. Read the rest of this transcript for free on seekingalpha.com