Perion Network Expects 80 Percent Growth and Revenues in Excess of $110 Million in 2013

Andrew Klips |

Consumer internet company Perion Network Ltd. (PERI) released revenue estimates Tuesday morning for 2012 and guidance for 2013 that shows the company expects to experience strong growth again this year.

The owner of IncrediMail, Smilebox and SweetIM said it expects fourth-quarter 2012 revenue to total $21 million, a more than 100 percent increase from the year prior quarter.  Combined with the other three quarters of 2012, non-GAAP revenue should reach $61 million for the year, a 64 percent increase from $37 million in 2011.  The total also exceeds the company’s prior guidance of $55 million in revenue for 2012.

Final earnings are expected to be released by Perion early in March.

In November, the company reported third-quarter revenue of $16.3 million, an 81 percent improvement from Q3 2011.  Net income totaled $2.6 million, or 26 cents per share, topping the year prior period by 46 percent.

Looking ahead, Perion expects another 80 percent growth during 2013 with estimated revenues in excess of $110 million.  Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) are predicted to be at least $26 million.  Non-GAAP income is predicted to be at least $20 million, or $1.61 per share based upon the 12.4 million shares outstanding.

During the fourth quarter, Perion completed its acquisition of SweetPacks, the owner of SweetIM and other free applications.  Perion paid $10 million in cash upfront and 1.99 million PERI shares in the transaction.  An additional $7.5 million is due within 12 months of the closing and a conditional $7.5 million is due in 18 months if certain milestones are met.

“Since 2010, Perion will have more than tripled its revenues, enriched its product portfolio, developed strong back-end systems and moved onto mobile platforms, while maintaining robust EBITDA margins,” said Josef Mandelbaum, chief executive at Perion in today’s statement. “This year, as in previous years we also expect strong cash flow from operations, closely tracking our non-GAAP net income.”

Shares of PERI closed up by 2.5 percent at $9.45 on Monday.  In 2012 shares trekked northward from $4 to as high at $10.50 before ending December at $9.00 for a yearly appreciation of 125 percent.

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