As an example, we have decided to make investments in mobile and tablet, a priority for us, to ensure long-term success. We will develop and offer a range of iPhone, iPad, android and windows mobile products overtime, to answer the increasing penetration and demands of our target.

Based on market research, worldwide penetration of tablet is expected to be over 250 million by 2014, while smartphones will be well over 2 billion. Paradoxically, second wave adopters leapfrogged with regard to tablet adoption using in mainly for e-mails, photo sharing and news consumption, precisely when we offer and will offer in a more user-friendly way.

So far our mobile product offerings include a photo email application; Smilebox mobile, an application with over 500,000 downloads and PhotoJoy, all available for download in the Apple App Store. We are working on additional exciting products to reinvest e-mail communications as well as expand and enhance our photo offering on mobile platforms.

Looking ahead to the rest of the year, we expect premium and advertising revenues to continue to provide a solid base for growth and revenue diversification, generating approximately half of total revenues, up from 31% in 2011. As mentioned earlier, we also expect to see significant growth in our search generated revenue by improving the monetization of our growing user base.

In addition, based on the successful integration performance of our Smilebox acquisition, we continue to actively search for more companies to accelerate growth. We have a strong pipeline of opportunities with one of our prime criteria now being proven profitability.

Now, I'd like to turn the call over to Yacov, for more details on the financial results for the first quarter.

Yacov Kaufman

Thank you, Joseph. As mentioned on our last call, we will be analyzing our results on a non-GAAP basis, which better conveys operational state of the business. There is a detailed reconciliation to GAAP results in the financial tables of the earnings press release.

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