Omniture Inc., the provider of research on consumer usage of Web sites for EBay Inc. and Walt Disney Co., expects the proliferation of wireless devices will drive sales for the company, its chief financial officer said.
"We've really embraced the realization that mobile is the next big growth area in North America when it comes to actual online interactions," said Michael Herring, CFO of the company, based in Orem, Utah, in an interview Thursday. "It definitely will be a driver and an increasing part of our business in coming years."
Omniture will spend $30 million to $32 million, or 10 percent to 11 percent of projected sales, on research and development in 2008, Herring said.
"A big portion of that has been focused on developing functionality to enable customers to track their business on mobile devices," he said.
In Japan about 50 percent of Omniture's revenue comes from analyzing mobile traffic because wireless devices account for half of all online traffic, Herring said. That pattern is likely to migrate to the U.S. through the increased use of wireless devices with Internet access such as Apple Inc.'s iPhone.
Revenue in the U.S. from wireless data may increase at a rate of 16 percent annually, to more than $100 billion in 2017 from $24 billion in 2007, according to a study released Thursday by research firm SNL Kagan.
About 10 percent of the online transactions worldwide Omniture now tracks and analyzes comes from wireless devices, Herring said.
Omniture estimates 2008 revenue before some adjustments of $308 million to $313 million and profit before some items of 41 cents to 46 cents a year. Second-quarter sales more than doubled to $71.6 million, the company reported on July 23.
Omniture rose 17 cents, or 1 percent, to $17.35 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares fell 48 percent this year before Thursday.