First Quarter 2012 Results Conference Call. All participants are at present in listen only mode. Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded, May 15, 2012. With us today from Perion, we have Joseph Mandelbaum, CEO and Yaacob Kaufmann, CFO.
I will now hand the call over to Brett Mas of Hayden IR for the Safe Harbor information. Mr. Mas, please go ahead.
Thank you. On today's call, management will be reviewing the financial results and business highlights for the Q1 of 2012. The press release detailing Q1 results is available on the company's website perion.com. Before we begin, I'd like to read the following Safe Harbor statement. Today's discussion will include forward looking statements.
These statements reflect the company's current views with respect to future events. These forward looking statements involve known and unknown risks, uncertainties to be materially different from any future results, performances or achievements anticipated or implied by these forward looking statements. The company does not undertake to revise any forward looking statements to reflect future events or circumstances. With that, I'll turn the call over to Joseph Mandelbaum, Chief Executive Officer. Joseph, the call is yours.
Thank you, Brett, and good morning, everyone. Today, I'd like to focus my comments on a review of our Q1 2012 results, followed by a few comments about the rest of 2012. I will then turn the call over to Yaacov for more details regarding the Q1 financial results and business metrics before opening up the call for questions. The Q1 was another great quarter for the company and the 25th consecutive quarter of growth on a year over year basis. We are extremely pleased with our results and accomplishments.
We made considerable progress on our long term strategy, invested in future growth, executed well throughout the quarter on a variety of fronts and are confident that we will deliver on and perhaps succeed our original 2012 guidance. Revenues in the Q1 increased by 30% year over year to $11,300,000 as a result of an increase in product and advertising revenues largely due to our Smartbox acquisition. This 30% revenue growth was achieved even though search revenue declined, mainly due to significant increase in media buying from competition, which impacted the monetization of our installed base. The good news is that our installed base grew from 12,300,000 to 13,300,000 users, demonstrating the strength of our product focused strategy, which gives us the ability to continue to communicate with our users and consequently increase their lifetime value. We have already begun to test and successfully implement new solutions to recapture our users' monetization.
We are confident search revenue will increase in the coming quarters and should provide us with a significant growth catalyst going forward. As I mentioned in our last earnings call, we are also very proud to report that Smilebox was cash flow positive and achieved a 14% EBITDA margin in the Q1. Operationally, our focus continues to be on broadening our product suite, addressing the needs of 2nd wave adopters, specifically on new platforms, while continuing to improve our back end systems and technology. 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 over time to answer the increasing penetration and demands of our target.
Based on market research, worldwide penetration of tablets is expected to
be over
250,000,000 by 2014, while smartphones will be well over $2,000,000,000 Paradoxically, 2nd wave adopters leapfrog with regard to tablet adoption, using it mainly for e mails, photo sharing and news consumption precisely what we offer and will offer in the most user friendly way. So far, our mobile product offerings include a photo email application, Smilebox Mobile, an application with over 5 100,000 downloads and PhotoJoy all available for download in the Apple App Store. We are working on additional exciting products to reinvent 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 SmartBox 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 Yaacov for more details on the financial results of the Q1. Yaacov?
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. Revenues this quarter were $11,300,000 similar to the previous quarter and up 30% from $8,700,000 in the Q1 of 2011. This quarter's revenues included $5,600,000 in search generated revenues, which were lower than in prior quarters as Joseph explained earlier.
This decrease was more than offset by the dramatic increase in product sales and other advertising revenues. Product and advertising revenues were $5,700,000 compared to $1,900,000 in the Q1 last year, prior the acquisition of Smilebox and even increased sequentially 18% from $4,800,000 in the Q4 of 2011. This demonstrates one of the strengths of our business having multiple revenue streams providing for consistent growth. As we mentioned last quarter, in the 1st year after the SmartBox acquisition, there will be a difference between GAAP and non GAAP revenues. This quarter, it amounted to $600,000 This difference will gradually decrease through the Q3 of 2012, 1 year post the closing of the acquisition.
Gross profits also continued to grow reaching $10,500,000 compared to $8,300,000 in the Q1
of 2011
$10,200,000 in the Q4 of 2011. The gross profit margin was high at 93% compared to 96% in the Q1 of 2011 prior to the Smilebox acquisition and 91% in the Q4 of last year after fully consolidating Smilebox. The $600,000 difference between GAAP and non GAAP revenues together with $300,000 in amortization of intangible assets provided for the $900,000 difference between GAAP and non GAAP gross profit in this quarter. Research and development expenses for the Q1 were $2,600,000 just above the $2,400,000 recorded in the Q4 of 2011 and compared to $1,900,000 in the Q1 of 2011. The increase year over year was primarily due to the acquisition of Smilebox and the development efforts related to its mobile products.
In addition, this also reflects the development of an e mail client app for the iPad recently begun and expected to be introduced in the latter part of this year. We expect R and D expenses as a percentage of sales to remain at the current level in coming quarters. Sales and marketing expenses in the Q1 of 2012 excluding customer acquisition costs were $1,400,000 compared to $800,000 in the Q1 last year prior to the SmartBox acquisition and $2,200,000 in the Q4 of 2011. The changes are primarily due to the sales and marketing expenses from Smilebox. Customer acquisition costs in the Q1 of 2012 were $2,600,000 compared to $700,000 in the Q1 of 2011 and $3,100,000 in the Q4 of 2011.
Since the Q3 of last year, we have been ramping up this expense, increasing it almost fourfold year over year in order to accelerate our growth. As we worked on our back end system to improve our ROI on this investment, we do back on the expenditure this quarter compared to the previous quarter. As we improve our systems, ensuring a good return on investment, we expect to further increase our spend fueling future growth. General and administrative expenses were $1,500,000 in the Q1 of 2012 compared to $1,400,000 in the first and Q4 of 2011. Our ability to maintain this level of G and A has reduced the G and A expense as a percentage of sales from 16% in the Q1 of 2011 to 13% in the Q1 of this year.
GAAP operating expenses in the Q1 of 2012 included $400,000 of share based compensation, $300,000 of acquisition related expenses and amortization of acquired intangible assets of $200,000 which were adjusted for in the non GAAP numbers. In the Q1 of 2011 prior to the Smilebox acquisition, these expenses totaled $300,000 attributable to share based compensation. EBITDA in the Q1 of 2012 was $2,600,000 compared to $3,700,000 in the Q1 last year and $1,400,000 in the last quarter. The change compared to prior periods was primarily attributable to the level of investment in customer acquisition. Net income in the Q1 of 2012 was $2,200,000 or $0.22 per diluted share compared to $2,900,000 or $0.29 per diluted share in the Q1 last year and $1,600,000 or $0.16 per diluted share in the Q4 of 2011.
In the Q1 of 2012, cash generated from operations totaled $2,500,000 up from $2,100,000 in the same quarter last year and $1,700,000 in the Q4 of 2011. As of March 31, 2012, we had cash and cash equivalents of approximately $13,500,000 Since closing the quarter, we paid the 2nd and we believe the last installment of our SmartBox acquisition, totaling approximately $7,000,000 as accrued on our books and we drew down $10,000,000 in long term bank financing at favorable rates so that our cash position has since increased. Before opening the call for questions, allow me to highlight some of the metrics driving our business. Total downloads this quarter were approximately $9,000,000 compared to only $2,500,000 in the same quarter last year before the ramp up in customer acquisition and the addition of SmartBox to our product portfolio. And the growth continues sequentially increasing from 6 point 4,000,000 downloads in the Q4 of 2011.
Our installed base has grown 45% year over year and 8% sequentially, reaching $13,300,000 at the end of this quarter compared to $9,200,000 at the same time last year and $12,300,000 at the end of the last quarter. And finally, since acquisition of Smilebox, the number of premium subscribers has increased to over 403,000 premium subscribers at the end of the quarter, compared to 158,000 the same time last year. We believe that this is a key indicator of the real and long term value of our strategy. With that, I would now like to open the call for questions. Operator?
Thank
you. The first question is from Jerry Schram of ROTH Capital. Please go ahead.
Good afternoon.
Hey, Jared.
So the EBITDA margin at Smilebox was 14% in the quarter. Looking at a year from now, where do you think the potential can be for the margin for Smilebox?
Thanks for the question, Jack. We would expect it to actually come up to our profitability. So if our target is between 20%, 25% EBITDA, we would expect them to reach that.
Okay. And you threw out some numbers there on the premium users of Smilebox. At the end of the quarter, what percentage of Smilebox users were actually premium?
Well, the number that Jaco put out, they're all premium users. The 400,000 was a combined number for all premium users, most of which are on small box. As we mentioned before, that was a big jump we took in Q3 of last year. And basically that's the number that we didn't disclose and an installed base number for Smilebox and for other products. We have an overall installed base as Jaco mentioned of 13,300,000 of which we have 403,000 paying premium subscribers.
Okay. And turning to customer acquisition cost, it looks like you're getting a little more efficient there as far as the spend is concerned. Does it make sense to ramp this up even further given the fact you're getting better traction here with the downloads?
It's a good question. Pretty much what you're seeing, it's really and you see this in some of the numbers. It's a constant battle so to speak between balancing out what's going on around you with the competition, going on within the marketing channels you can invest in and the return you're looking for. So what Jaco mentioned earlier and I mentioned it in my comments as well is that we actually reduced the spend a little bit in Q1, because we were trying to hold firm on some of the ROI components that we're trying to make sure that we get a good return for not only ourselves as a company, but also shareholders. And when we look at the competition in Q1 for whatever reasons and there was a significant spike.
And when that happens in the marketplace overall, you have to look at is your spending going to be worthwhile on the ROI targets you have. So as we go forward, we're looking at a lot of things we can do to react to the market as we were having doing anyway in our back end systems as Jako mentioned as well as some things in the front end to increase our ability to maintain the ROI targets we have and grow the spend. So we have become more efficient and thank you for noticing that. We are looking to go forward to use that efficiency with some other things we're doing in the business to really try to increase that in Q2 and Q3 and Q4 especially.
And one last question here in customer acquisition. Were some channels performing better in that quarter it looks like? And could you kind of highlight what some of those were?
Sure. Basically, the 1st of all, the channels that usually perform the best in general today still are the PPC and affiliate channels. So PPC as you can imagine, it's one of the reasons why our friends from Google always do so well. It's a very efficient marketplace, right? You're buying what makes people click.
What we're doing is we're expanding our reach in terms of where we're able to buy. That's because the systems that Jakob mentioned. And as we get more efficient in that, we can expand the reach and get the higher ROI and that's actually doing well. It's harder to scale that in a bigger way than because you really have to do that incremental steps. But we are seeing some good responses there.
On the affiliate side, we're really we have some good progress there. What happens in affiliates and this is just the nature of the beast. You try out 10 different 20 different affiliates and some do really well and some don't. So it's really culling or pruning the tree so to speak in order to get that going. And I think we have a good base today and we're continuing to be testing out a lot more and going forward.
I think on the display advertising side, still remains relatively challenging for us. So it probably is the least performing of the ones that we have of the ones that we're doing now of those 3. We're doing okay, but it's harder to scale at the rates we need to get it. But we're still testing as many things as we can, because as you know Jared, the marketplace changes all the time. Obviously with the Facebook IPO coming out and Facebook potentially as we look at Bing and competition and Yahoo!
And so on and so forth, the world changes and could be the rates go down significantly in other places. And we're always looking for points where we can buy media and test it out. And if that's a good return, we will ramp up the spending.
And lastly, are there any acquisitions you're looking at right now that you find particularly attractive? Are you kind of content with building the brand of what you currently have?
So the answer is yes. We certainly I mean, we've been open. We continue to look at different opportunities. We have a corporate development team here that pretty much that's all they do all day long. And there certainly are some things we're looking at we think interesting.
Nothing I'd say that we're prepared to comment on at this point in time and mainly because as you probably know the way these things go, you can be you could be thinking really close then something happens and nothing happens. One of the things we're really focusing on I think this is a key differentiator for us going forward is, we're really focusing now on companies that have proven profitability that we think will be accretive from an EBITDA standpoint from day 1. As we look at growth over the next phase of the business, That's probably our main shift in terms of the filters. Everything else remains the same. We're looking for products or services or technologies that help us address and grow our businesses whether it's premium or search revenue focusing on the user base we're talking about, but really focusing more on profitability now as an initial filter.
It's probably the biggest shift and we think we have some good opportunities there. These things take time and we'll see how they go.
Okay. Thank you very much.
The next question is from Ava Horowitz of Old School Partners. Please go ahead.
Hi, good afternoon. First of all, congratulations. I think you guys are really demonstrating the plan that you set out at the end of last year and beginning of this year. And I just want to congratulate you because you really executed very well.
Thank you.
Thank you, Ava. Sorry? Nice to hear you on the phone.
Thank you. Question for you. I mean, I won't get into the stock price right now, but there's a few issues here that I'd like to deal with. One is the payment obligation that appears on your balance sheet. Where does that stand today visavis the payment?
At what point will you have to pay this? Do you have to pay this? And when will this come off your balance sheet?
Well, as I mentioned earlier in my comments, there was a $6,900,000 or actually almost $7,000,000 accrual for the payment obligation. That actually was paid just a couple of days after the end of the quarter. So we already paid that down. And as I continued to mention, we drew down some $10,000,000 in bank debt at very favorable rates, both to finance that payment and to provide us the liquidity going forward.
Okay. Did you end the quarter with about $13,000,000 of cash?
That's correct, dollars 13,500,000
Okay. So in theory, you didn't really need it for that pay down, but Correct. Okay. The other thing is the deferred revenue that appears on the balance sheet, it looks a little bit different this quarter than it did on the comparison quarter. Any reason for that?
There are two reasons for that. The first reason is actually the consolidation of Smilebox. And as we go forward, we're accruing their deferral. As I mentioned also when we acquired the company and going forward, we didn't have the tail of deferred revenues when we acquired Swalovac that was taken off in the acquisition. And therefore, you're going to see that number growing as the quarters advance past the Smilebox acquisition.
So that's the first change. The second change and you it was a very astute the fact that you noticed it is that there is no longer long term deferred revenues. And that stems from the fact that we changed our product offering from a service offering to a product focused offering. And therefore, in the future, we will not be deferring some of our product revenues. And that's why we will we do not have any longer the long term deferred revenues and it's all in short term deferred revenues.
Okay. Now on a go forward basis, should we read anything into the short term number, the short term deferred revenue number? Is that meaningful at all?
The short term deferred revenue number is actually the revenues that we've accrued on subscriptions. That is, if you wish, already accounted for, meaning that it's a very good horizon for you to see how the revenues are developing going forward. It depends also on the product mix, but it's a good number. It will probably stabilize probably next quarter once we're 12 months beyond the Small Box acquisition.
Okay. So that number in theory, I should be watching that to see that grow every quarter?
Up until Q3 of this year.
Okay. Okay. Also just on a cash flow basis, can you give us a sense what the rest of the year should be looking like the next, I guess, 3 quarters, how you guys are seeing it?
I think there are 2 indicators. I think over the long term, you're going to find that the cash flow very closely follows as the high correlation between the cash flow and the EBITDA. The exception to that would be though with regard to Mediavine. Mediavine costs are very much forward looking and therefore you pay for them upfront. So to the extent we're spending we're wrapping up our media buying, You'll see that it will take off from the cash flow without and may not be at balance with regards to the EBITDA.
So can I assume roughly $2,000,000 $2,500,000 of free cash flow for the next three quarters each quarter?
Well, our EBITDA guidance for the year was about between $9,000,000 $11,500,000 I think we gave indication for cash flow between $7,000,000 $8,000,000 if I'm not mistaken.
Okay. Okay. Fair enough. One of the other things is that many of your competitors, if we can call them that, have either gone away or are in serious financial trouble. I'm wondering, Joseph, if you could give us a sense of the landscape out there visavis your current competitors, because there has been quite a bit of an issue since Google you had to renew Google and many of the other guys out there are having a lot of trouble continuing as a going concern.
I'm just wondering if you could give us a sense what you see there on the landscape?
Sure. I put our competitors and I'll define competitor in a second, but I put them in 2 categories. So a competitor in this case for people on the phone is really not a competitor for the user in terms of the actual product. To answer Abba's question specifically, you have to look at a competitor as anybody who has a downloadable application that has a business model that has a premium business model, meaning they take over search assets as well as a premium asset, anybody's a competitor. And then if you look at it that way, we have 2 camps.
I'd say you have the camps of people who actually since the Google changes and really starting in Q4 of last year and really in Q1 this year, other they have probably doubled and tripled their media buying activities, which has caused a major influx into market of a lot of new downloads. And that has caused, I think, for the other half of the group, people to have significant challenges in monetizing their base like they used to. If you go back 2 years ago, there wasn't that much competition. So you didn't have to be frankly on your toes every day every minute about things. And there wasn't 20,000,000 downloads a day of downloadable products trying to take over search assets.
Today, you're seeing the big guys are separating the men are separating from the mice. So there are some companies out there without naming names who are having serious problems because the Google impacted them both in terms of the rev share amount they were getting as well as the amount of ads they're able to monetize on a page. And when you get to a destabilization point for some of these people who only have media buying as the way of doing business, they can no longer make the arbitrage work. On the other hand, so therefore companies like us right now, I'd say we're probably in the upper middle of that group, right? I'm not in the big, big group yet, because that big group includes some major players who have 100 of 1,000,000 of revenue.
And they've really significantly increased their spend, I mean literally to $25,000,000 to $30,000,000 a quarter. We just spent $2,600,000 in this quarter, so 10x our spend. What they found is that because of the changing dynamics of things by them spending more money what they're doing is they're taking over from somebody else, I'll call the 2nd group and it's low hanging fruit for them. So that's why the separation is happening. Well, I think we'll see that continue frankly.
And I think for us specifically, we are doing a lot of things now frankly to be even more diligent about how we think about the download process, how we think about the user and making sure they're still front and center. But to be candid also more aggressive against competitors who are taking away our users, right? So I'll give you an example. Someone who downloaded Encreta Mail and using Encreta Mail, What we found in Q1 to some degree is they're still using IncrediMail, but all of a sudden one of my competitors took over the monetization of my IncrediMail user. The good news for us as I mentioned in my comments is they're still using IncrediMail.
So I have a connection to them that hopefully and we have some really good plans and the things we're implementing now successfully I might add that we think we can recapture the monetization for our users. There's a lot of companies out there in the second class I mentioned don't have the type of product to have the connection with the user, which makes it even more difficult for them to climb out of the hole. And that's where I think you're seeing those 2 camps go. And I think we'll see that over the next few quarters. So I think the competitions will still be fierce.
We have to be smarter and better about how we do it. We think we have some things we're doing and they'll be catalysts for us in the next few quarters. I also think as you mentioned, there'll be some companies who just don't survive the next year in some of the dynamics they're changing in the marketplace.
Okay. Fair enough. Very thorough answer. Just finally, I know you guys are probably frustrated yourselves by this, but a reflection of the current stock price certainly does not reflect the current value nor the cash flows nor the growth of the company. I'm just wondering currently if you could give us maybe a flavor of what you guys are doing to sort of get the word out.
I know it's not always up to you, but the feedback that you're getting from other investors or new investors and what you think can be done to enhance the value of the share price?
First of all, yes, we are frustrated. So probably as much as many of our shareholders. So I'll thank the shareholders for being patient. I wish you had a short easy magical solution. So I don't.
I'm not going to pretend that I have one. I think we have to do 2 things in my opinion. 1, continue to execute on the business. And a good example is what I just talked about. Even taking our eye off the ball for a couple of weeks in the heated up environment of the competition on some of the download market could cause us difficulty.
So and frankly, I think to some degree we caught ourselves that way and we're correcting it. So we need to make sure at the end of the day that we're executing on the business and focus on execution. And if the results continue to do what they do, I think eventually people will understand that. In terms of the outreach, we have working with a new IR firm called Hayden IR. We got recommended by many of our existing investors.
We thought it was time for a change. KCC did a great job for us. We were happy. But we think it was time for a change given some of the frustrations we all have in the marketplace. And we're excited to work with them, Brett and Miri and Jeff and we think they're going to do a great job for us.
We do go a lot of conferences. We do non deal roadshows. I think the other thing that we need to do, Ava, is candidly and you've said this to me before, the SmartBox acquisition is performing well now. We need another quarter of good performance, gained more credibility. Our revenues need to continue to do that.
And we need some catalysts, some of which we mentioned in the call, which are the search, we're talking about the premium revenues. And frankly some of our mobile exciting things we're doing are exciting may not bring in a lot of revenue to mobile stuff in the short term, but we think it's exciting and really helps us plan the long term future, which I think will address some of the concerns I've heard over time, what's the sustainability of the business. And clearly our whole strategy is around making it more sustainable. And I think we're showing over time we're doing that. And I hope that by executing and doing our job and increasing the revenues and the profits and addressing the sustainability, which we have been doing and the small box acquisition proving itself out with the combination of that plus the Hayden IR team and ourselves going out to the market and getting new interest, I would hope that the stock would ultimately reflect the true value of what we think we have here.
Okay. Appreciate it. Thank you. And again, great job guys. Thank you.
The next question is from Kenneth Miller of Nokomis Capital. Please go ahead.
Hello, gentlemen. Thanks for taking my question. Just digging more into the decline in search revenue. How quickly do you expect that to turn around? Normally, I think you'd be facing a tough couple of quarters of seasonal declines, but I know that you're putting some things in place to reverse the decline.
How quickly do you expect that to kind of improve? How long will it take your changes in strategy to take effect?
So the short answer to that question Kenny is we think we internally will start seeing that in Q2 a little bit. And if we're lucky, maybe more than a little bit. And in Q3, we should see a significant improvement.
Okay. And can you give us any more detail on what you're doing to combat these this more competitive marketplace? Or is it more of a competitive secret you'd like to keep to yourself?
That is absolutely correct. We are not planning on disclosing that. As I mentioned, it is very competitive.
Okay. Can you also give me a sense for the magnitude of the customer acquisition spending increases you're talking about for the next couple 2 to 3 quarters?
Well, as we discussed when we gave the guidance, our guidance is based on the fact that we'll spend we're about $14,000,000 this year. That was our assumption.
Which now we think we're going to track to. So we did $2,600,000 in the Q1. You'd expect us to do roughly 11 $1,000,000 to $12,000,000 more throughout the rest of the year. And I think to go to add on to what someone else's question was earlier to your question now Kenny, a lot of that as we said will ramp up as we see some of the solutions working and we are doing the testing now and it seems to be working that will ramp up linearly to that, right? So as we see these solutions working, we'll ramp up the spending accordingly.
Okay. And back to the search business, have you rolled out search to the Smilebox user base yet and you expect that to provide a bump in revenues?
So what we've done on the Smilebox user base is to all new installs on Smilebox, we have rolled it out already. On the existing installed base to Small Box, we have not rolled out search at this point in time yet. It is something we are working on. It is a little complicated and we actually frankly we want to be very careful in terms of how we do that in the most efficient way and frankly user friendly way. So we're not feeling pressure to say, well, I want to gain X dollars, so let's do it.
We're really looking at the consumer first and saying, how do we do it in a way that makes sense for them?
Are new smile box users a significant percentage of the search revenue or is it still pretty small to date?
It's relatively small to date. I mean it's growing, but it's relatively small to date.
Okay. Thanks very much. That's all I had.
Thank you, Kenny.
There are no further questions at this time. Before I ask Mr. Mandelbaum to go ahead with his closing statement, I would like to remind participants that a replay of this call will be available in 3 hours on the company website at www.perion.com. Mr. Mandelbaum, would you like to make your concluding statement?
Thank you. In closing, our business is strong. The SmartBox acquisition has proven to be successful and we have numerous growth catalysts in the next few quarters. 1, the implementation of new solutions to increase monetization from our installed base 2, the introduction of new mobile and tablet products and 3, a good pipeline of profitable acquisition opportunities. I'd like to thank the entire Perion team in Tel Aviv in Seattle for another successful quarter and extend my sincere thanks to all of our customers for their continued support.
Thank you very much and have a nice day.
Thank you. This concludes the Perion First Quarter 2012 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.