MagicJack Pre-Announces, Easily Beats Estimates

Hmmm, I think magicJack VocalTec (NASDAQ:CALL, news, filings) is trying to get some attention from the markets. It’s not often that a company pre-announces in February that it will beat analyst estimates for Q1, and then pre-announces again after Easter weekend to confirm that it in fact probably has done so and intends to resume and accelerate its stock buyback program.  But then, magicJack has never been known for its humble approach to PR either.

MagicJack said today that revenues would come in at about $37.8M, from which they generated 7.8M in earnings – $0.37 per share or $0.27 per share after adjustments. Those aren’t final numbers yet, as revenue and earnings could still vary by 3% and 10% either way when all the data crunching is complete.  Yahoo Finance’s composite analyst estimate had projected Q1 revenue and EPS of $35.7M and $0.13, respectively, so clearly they had a very solid quarter even if the final numbers were at the low end.

Since going public through the acquisition of VocalTec, magicJack has been busy putting all the pieces in place for its next disruptive product line. A few weeks ago, magicJack said that a new chipset for its planned Wi-Fi product would turn the VoIP market on its head.  But for now, it’s the existing products that are bringing in profits – which gives them the time to get the new stuff right.

Just before Easter weekend, magicJack filed a $200M shelf registration with the FCC.  Today they clarified their intentions:  it’s just for future flexibility and they no plans to raise money right now, and in fact plan to move in the other direction and buy back stock.

If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!

Categories: Financials · Telecom Equipment · VoIP