Shares of email software products developer and marketer IncrediMail, Ltd. (Nasdaq: MAIL) rose more than 17%, or $1.23 to $8.20.
There were no announcements released by the company. IncrediMail executive vice president Jeff Holzmann told SmallCapInvestor that he thinks the stock’s surge today can be attributed to the company’s robust earnings reported on August 14.
“Because we’re a small company, it takes a while for our stock to get on investors’ radar screens,” said Holzmann. “There’s a bit of a lag effect.”
For the second quarter ended June 30, IncrediMail last week said revenue rose 111% to $4.3 million, compared with $2.0 million in the prior year's second quarter; while net income increased 59% to $0.6 million, or $0.06 per diluted share. IncrediMail’s second quarter 2007 bottom line results compare with $0.4 million, or $0.04 per diluted share, for the second quarter last year. No analyst estimates were available.
Holzmann said the Israeli company is shifting toward becoming more of a content provider and is moving to generate revenue through subscriptions. Holzmann said the company hopes to pursue a growth strategy through mergers and acquisitions in the future.
IncrediMail earlier this month announced the debut of a closed beta version of the company's new instant messaging product under the code name “Project Messy.” Project Messy is intended to offer instant message users a wider range of “emoticons” for IM applications, such as sound effects, "winks" or nudges.
MAIL 1-yr chart