Incredimail 2014 Annual Report Download - page 37

Breakdown of Revenues
Our search monetization solutions, advertising platforms and other, are distributed and sold throughout the world in more than 100
countries. The following table shows the revenues, presented in our statement of operations, generated by territory in the years ended December
31, 2012, 2013 and 2014. As explained in Item 5.A, as a result of the ClientConnect Acquisition, which closed on January 2, 2014, our 2014
financial statements includes ClientConnect's comparative numbers for 2012 and 2013.
In the two years preceding the ClientConnect Acquisition, we divided our revenue categories or sales regions somewhat differently, as set forth
below:
In 2013, legacy search-
generated including related advertising revenues and legacy product revenues in North America represented 35% and
86% of revenues, respectively, in Europe represented 47% and 10% of revenues, respectively, and in the rest of the world represented 18% and
4% of revenues, respectively.
In 2012, legacy search revenues and product revenues in the United States, Canada, United Kingdom and Australia represented 47% and 84% of
revenues, respectively, in France, Germany, Italy, Spain, Netherlands, Belgium and Switzerland represented 35% and 8% of revenues,
respectively, and in the rest of the world represented 18% and 8% of revenues, respectively.
Intellectual Property
Although we have a number of patents, copyrights, trademarks and trade secrets and confidentiality and invention assignment
agreements to protect our intellectual property rights, we believe that our competitive advantage depends primarily on our marketing, business
development, applications, know-
how and ongoing research and development efforts. Accordingly, we believe that the expiration of any of our
patents or patent licenses, or the failure of any of our patent applications to result in issued patents, would not be material to our business or
financial position.
Most of the components of our software products were developed solely by us. We have licensed certain components of our software
from third parties. Except for our agreements regarding anti-
spam software and some of our content licenses, most of these licenses entailed a
one-
time fee or are "freeware." We believe that these components are not material to the overall performance of our software and may be
replaced without significant difficulty.
We have six issued patents in the United States and one in Israel, as well as several patent applications pending in the United States,
Israel the European Union.
We enter into licensing arrangements with third parties for the use of software components, graphic, sound and multimedia content
integrated into our products.
We have registered: (i) "Perion" as a trademark in the United States, Israel and the European Community (a community trademark); (ii)
"IncrediMail" as a trademark in the United States, the European Community (a community trademark), China and Israel; (iii) "PhotoJoy" as a
trademark in the United States, the European Community (a community trademark) and China; (iv) "Smilebox Teeth Design" in the United
States; (v) "Smilebox" in Australia, Canada, China, France, Germany, Japan, Korea, United Kingdom and the United States; and (vi)
"SWEETPACKS" and "SWEETIM" in the United States; (vii) "Perion Lightspeed" registered in the European Community (a community
trademark) and a pending application in the United States; (viii) a pending application in the United States for the trademark "Codefuel"; and
(IX) "MakeMeReach" as a trademark in the European Community (a community trademark).
2012
2013
2014
Search
Revenue
Advertising
and Other
Search
Revenue
Advertising
and Other
Search
Revenue
Advertising
and Other
Tier 1
–
North America
84
%
88
%
70
%
78
%
78
%
73
%
Tier 2
–
Europe
12
%
12
%
23
%
20
%
17
%
18
%
Tier 3 - Other
4
%
-
7
%
2
%
5
%
9
%
Total
100
%
100
%
100
%
100
%
100
%
100
%
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