Wall Street Transcript Interview with Josef Mandelbaum, CEO of Perion Network Ltd. (PERI)

Wall Street Transcript

67 WALL STREET, New York - August 3, 2012 - The Wall Street Transcript has recently published its Business and Application Software Report offering a timely review of the sector to serious investors and industry executives. This special feature contains in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Desktop and Server Virtualization; Cloud Computing, SaaS and PaaS; Advertisement and Carrier Spending; Application Software Consolidation Activity.

Companies include: Perion Network (PERI) and many others.

In the following excerpt from the Business and Application Software, expert analysists discuss the outlook for the sector and for investors.

TWST: Please begin with a brief introduction of Perion Network.

Mr. Mandelbaum: Perion is an Internet consumer software company. We create software products for consumers, specifically for what we call second-wave adopters. This is the fastest-growing segment online today. They are consumers who are not tech savvy. They are not the people who line up waiting to buy the new iPad 3 at 12 o'clock at night, but they are the people who use technology as a means of improving their everyday life.

What we have found is that there is a huge gap in companies creating software products tailored for this demographic, so at Perion we are creating a suite of products geared toward this audience that are simple, safe, easy to use, and hopefully make their online life a little bit more enjoyable.

TWST: What are the specific products Perion offers today?

Mr. Mandelbaum: We're just at the beginning. I just joined the company a little over a year and a half ago. We have two flagship products - IncrediMail and Smilebox. IncrediMail is an easy-to-use e-mail product that enables users to access multiple accounts, such as Yahoo! (YHOO), Gmail (GOOG) and others, all in one inbox. The graphics are designed for our demographic, as they are easier to read, slightly larger and designed for easy navigation. It's like Outlook (MSFT), meaning I don't give you an e-mail address, just an easier way to access your existing e-mail account with robust and simple organization and filtering of e-mails in a secure and safe environment.

Our second flagship product, Smilebox, is a photo-sharing/creativity product that let's you take photos and create slide shows, greeting cards, collages or scrapbooks with music and designer art. Those are the two main products we have.

And then, we've been investing in some new products as we go forward over the past year. One is a product called PhotoJoy, which is a desktop screensaver wallpaper product. But really the cool thing is it automatically takes photos from Facebook (FB) and your desktop, and when you open up your computer, it displays your photos with different themes. And we're adding on to the next phase, the ability to share that with other people so that you can see what's on someone else's desktop or family members.

For example, in my family, my wife has all the pictures on her PC, and I don't want to download them all. I'd like to access them so I can see them display on my screensaver and my wallpaper, and PhotoJoy enables this.

The last product we started a little while ago is something called Fixie, and it's really a product that helps make your PC move faster. A lot of us today have so much stuff on our PC, and we don't know how to get rid of it all. It just accumulates over time and what happens over time is it slows down your computer performance.

So the first of our products in the security, privacy, safety space is really one that just helps you make your PC run faster. We hope to, over the next couple of years, add a suite of products really helping our consumers, the second-wave adopter, make their life a little easier with regards to worrying about viruses, malware or other online threats.

TWST: Is there any indication as to the size of this marketplace of second-wave adopters, and what the growth curve may look like?

Mr. Mandelbaum: Today, in North America and Europe alone, there are approximately 300 million second-wave adopters. Many of them are Baby Boomers. Baby Boomers are still the largest generation in the past 100 years, and it is the fastest-growing generation online. This demographic is increasingly using Facebook, and while they have been relatively slow to utilize desktop PCs, compared to early adopters, they are really embracing smartphones, and especially tablets.

TWST: Are there specific platforms or computer companies that are Perion's primary partners as the company looks at its developments and new tools?

For more from this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers, and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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