The folks at Smilebox certainly will have smiles on their faces after seeing the latest financial guidance from Perion. The Israeli technology company — which purchased the Redmond electronic greeting card company for up to $40 million in August — said today that the acquisition is exceeding expectations.
“The acquisition of Smilebox is surpassing our expectations and as a result will be the largest contributor to our growth in 2012,” said Perion CEO Josef Mandelbaum in a statement. “The realization of both revenue and cost synergies are the main contributors to the success of the acquisition to date.”
Perion indicated that the Smilebox product line will generate revenues of $15 million in 2012, up from $11.5 million last year.
The reason those results and comments might with Smilebox shareholders and its 50 employees is that the acquisition terms included a $15 million upfront cash payment, with another $15 million if milestones were met.
The latest financial report indicates that Smilebox CEO Andrew Wright — a GeekWire Newsmaker of the Year — is delivering. Smilebox’s service allows consumers to create interactive slide shows and greeting cards, using one’s own photos.
Overall, Perion said that it expects revenue of $48 million to $50 million in 2012, representing 30 percent growth. It also expects net income of $7 million to $8 million.
