Net income at Internet company and email developer Incredimail quadrupled in the second quarter rising to $2.4 million.

"Our second quarter results demonstrate the success of our growth strategy coupled with our ability to increase profitability," said Ofer Adler, IncrediMail's CEO. "This quarter, our strong growth more than offset the historically seasonal effect on sales, providing for yet another record quarter. The effective management of our costs, pushed this revenue growth straight to the bottom line."

Total revenue for the second quarter of 2009 rose $1.5 million, or 29%, to $6.7 million, from $5.2 million in the same quarter in 2008. Net income for the second quarter of 2009 was $2.4 million, or $0.26 per diluted share, compared to $0.6 million, or $0.07 per diluted share in the same quarter last year.

Gross profit increased 33% to $6.4 million in the second quarter of 2009, from $4.8 million reported for the second quarter last year, as a result of the higher revenues and an increase in gross profit margin to 95%, from 92% in the second quarter of 2008. The increased profitability was due to the growing portion of search related revenues, which have no associated direct costs, and accounted for over 75% of revenues this quarter.

Total operating expenses for the second quarter of 2009 were $3.2 million, down $1.0 million, or 24%, from the second quarter of 2008.

R&D expenses decreased 29%, to $1.3 million in the second quarter of 2009 from $1.9 million in the same quarter last year. Sales and Marketing expenses were $1.2 million in the second quarter of 2009, decreasing by $0.4 million, or 25%. These decreases were primarily a result of a successful reorganization and shifting focus towards search related revenues.

"Looking ahead, we believe we can sustain this level of sales with high profits. Although the third quarter is expected to be effected by seasonality, we expect this to be more than offset in the fourth quarter," said Adler. "We believe that the introduction of IncrediMail 2 during the third quarter of 2009, together with other initiatives we have taken, should provide us with the momentum to attain record results again in the fourth quarter."