Earnings News
FONT-SIZE Plus   Neg
Share SHARE

MagicJack VocalTec Shares Surge On Strong Q1 Expectations - Update

RELATED NEWS
Trade CALL now with 

Shares of VoIP services provider magicJack VocalTec Ltd. (CALL) jumped 12 percent Monday, after forecasting its first-quarter earnings will exceed the prior year level. The Israel-based company also said it hopes to reach the top end of its 2012 outlook.

Additionally, magicJack named long term Director Gerald Vento as its chairman, and also revealed plans to resume its share buyback program.

magicJack, which invented voice over IP, expects first-quarter 2012 net earnings of $7.8 million or $0.37 per share, and adjusted earnings of $0.26 per share. Revenue for the period is expected at $37.4 million. The company said the outlook may vary up or down by 10 and 3 percent for income and revenue respectively.

In the same quarter last year, magicJack reported net earnings of $1.8 million or $0.08 per share, and revenue of $30.8 million.

magicJack expects deferred revenue at the end of the first quarter 2012 to be about $137.5 million.

The company has appointed Gerald Vento chairman of the Board. Vento has been a Director with magicJack and is a veteran in cable, telephony and wireless businesses. Vento founded TeleCorp PCS Inc. in 1996, which was later sold it to AT&T Wireless in 2002. Independent Director Donald Burns will assume Vento's position on the Audit Committee of the Board.

magicJack expects to repurchase the maximum amount available under its current share buyback program, and is planning to seek approval to raise the buyback by $20 million.

The company said it hopes to scale the upper limit of its earlier outlook for the full year 2012, whereby it detailed expectations of 20 to 30 percent revenue growth and earnings of $1.25 to $1.50.

CALL is trading at $23.46, up $2.65 or 12.73%, on a volume of over 1 million shares on the Nasdaq. In the past year the stock ranged between $9.49 and $28.22.

Register
To receive FREE breaking news email alerts for magicJack VocalTec Ltd. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.