Incredimail 2013 Annual Report Download - page 117

PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
NOTE 3:- ACQUISITIONS (Cont.)
Intangible assets:
In performing the purchase price allocation, the Company considered, among other factors, analysis of historical financial
performance, highest and best use of the acquired assets and estimates of future performance of SweetIM's products. The
fair value of intangible assets was based on market participant approach to valuation, performed by a third party valuation
firm using estimates and assumptions provided by management. The following table sets forth the components of
intangible assets associated with SweetIM acquisition:
(*) Will be determined upon completion of the development
The following unaudited condensed combined pro forma information for the years ended December 31, 2011 and 2012,
gives effect to the acquisition of SweetIM as if the acquisition had occurred on January 1, 2011. The pro forma
information is not necessarily indicative of the results of operations, which actually would have occurred if the acquisition
had been consummated on that date, nor does it purport to represent the results of operations for future periods. For the
purposes of the pro forma information, the Company has assumed that net income includes additional amortization of
intangible assets related to the acquisition of $ 6,484 and $ 6,345 in 2011 and 2012, respectively and related tax effects .
Fair value
Useful life
Technology
$
20,066
5 years
Logo
5,242
4 years
IP R&D
5,448
(*)
Total intangible assets
$
30,756
Year ended December 31,
2011
2012
Unaudited
Unaudited
Revenues
$
51,190
$
79,254
Net income
$
1,154
$
4,887
Basic earnings per share
$
0.12
$
0.48
Diluted earnings per share
$
0.12
$
0.47
F
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