Perion (PERI -9.4%) now expects 2014 revenue of $380M-$400M and net income of $80M-$90M, down sharply from a May forecast of $460M-$470M and $103M-$108M.
The company largely blames Google Chrome policy changes (previous) that require users to manually agree to the installation of plug-ins (such as Perion's search toolbars). A "technical matter" that has hurt search traffic is also taking a toll, but Perion expects the issue to be fixed soon.
CEO Josef Mandelbaum: "We're not going to spend as aggressively because we would be losing money, and we are preserving the profitability of the business." Perion is lowering its payouts to partners until monetization rebounds.
Costs/expenses fell to 20% of revenue in Q2 from 23% a year ago. Customer acquisition costs were 50% of revenue.
Q2 results, PR