Perion Raises Sales Forecast on Smilebox as Profit Declines
Perion Network Ltd. (PERI), which posted a drop in second-quarter profit, raised its annual sales forecast as the digital media company expects growth at the photo-sharing unit it acquired last year.
Tel Aviv-based Perion revised its 2012 sales outlook to between $50 million and $52 million from as much as $50 million, according to a statement filed with the Tel-Aviv Stock Exchange yesterday. Chief Executive Officer Josef Mandelbaum attributed the revision to contributions from Smilebox Inc., which it acquired in August 2011.
“We’re expecting more from Smilebox which continues to be profitable,” Mandelbaum said in an interview with Bloomberg Television today.
Shares of Perion fell 2.4 percent, set for the biggest drop since June 19, to 20.30 shekels at 3:18 p.m. in Tel Aviv. Net income based on U.S. accounting standards fell 60 percent to $878,000, the company said.
Perion trades at 5.8 times estimated earnings, compared with 11 times for the benchmark TA-25 Index, according to data compiled by Bloomberg. The measure fell 0.2 percent.
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