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LogMeIn to surf Android-based tablet wave

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CIOL Bureau
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BANGALORE, INDIA: LogMeIn Inc, which helps users access their desktops from other devices, expects a boost in sales from the impending launch of a slew of iPad-like devices based on Google's Android operating system.

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The software maker, which went public in one of the most successful IPOs last year, has already seen great success with its application for Apple - Ignition - that helps iPhone and iPad users access remote desktops.

LogMeIn recently launched a version of the Ignition application for Android, which powered a third of all smartphones sold in the United States in the April-June quarter.

"It is an area we are very bullish on because according to Apple, about 3.2 million tablets were shipped in the second quarter," CEO Michael Simon said by phone.

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A bulk of the company's 2009 annual revenue of $74.4 million came from its LogMeIn Pro application, which is used to remotely access a desktop from another computer.

However, the company is betting on the wave of upcoming tablet launches and expects to boost its sales and marketing spend on the Ignition product for Android-based tablets in the third and fourth quarters.

Strong demand for the iPad is attracting developers to tablets and every large consumer electronics firm has announced or is rumored to be working on rival devices.

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The Ignition application, which emerged as one of the 25 top grossing applications for the iPad, notched up sales of more than $1 million in the last quarter, Simon said.

The product is priced at $29 and is available through Apple's online store. LogMeIn receives $21 from Apple for every Ignition product sold.

The company's shares, which have risen 50 percent since their debut, fell last month when it indicated that Intel could terminate a service and marketing agreement a year early.

Despite the possible loss of the Intel deal, which adds $1.3 million to LogMeIn's revenue per quarter, the company expects to keep growing by 25-30 percent in 2011.

The company's software, which mainly targets small businesses and consumers, competes with products from companies like Citrix Systems Inc, VMware Inc, WebEx and Microsoft Corp.

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