If there’s any company out there this year in telecom that is fighting harder to get respect and still not getting it, it’s magicJack VocalTec (NASDAQ:CALL, news, filings). The VoIP upstart turned in yet another big quarter, coming in near the top of the guidance they just raised a few weeks ago.
Revenues of $41M and GAAP earnings per share of $0.78 were near the top of guidance, and easily beat analyst expectations of $40M and $0.60. Non-GAAP operating income per share, which excluded some charges and a one-time accrual of a new employee bonus plan, was a mere $0.75. In September they raised full year 2012 guidance to $1.70-2.00, and today CEO Dan Borislow qualified the current state of affairs as having ‘a good chance to achieve $2.00 GAAP EPS, which means they’re already looking toward the high end of guidance.
Operationally, magiJack also detailed its plans for expansion into new markets in 2013. The list includes a router/4G-hotspot Wi-Fi product, the integration of a new ‘Numbers’ invention into their softphones and apps, an entry into the SME market later in the year, and the conversion of their intellecutal property assets into cash. Quite a list as usual, but they’ve got some momentum after the first 9 months of this year.
Two weeks ago, magicJack’s stock took an unexplained 20% tumble back to the $20 level, demonstrating the market’s lack of faith in the company overall. Traders continue to bet on a major stumble. But anything near $2.00 for the full year will have their P/E heading toward 10 for a company that has grown revenues by leaps and bounds lately. Is it time yet to say that the VoIP business has come of age?
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Categories: Financials · VoIP
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As a Naysayer, I need to say you are full of crap. I tried to use the Magicjack website that never works. It is impossible to get this web site up, let alone log in. I bought MagicJack three weeks ago and have never been able to get on the site except once. I talked to a tech person name “Reyna” She could not answer questions and I don’t think she understood English. Her response English was not good. I still have not been able to log in or set up voicemail. When you try to log onto the magicJack Website you get this message:
“Magicjackwas unable to contact our registration server.
Please check your internet connection. If you can browse other web pages, it means our server is temporarily down. Please restart the phone again in a few minutes if it is not ready to call.”
This pop up message has been constant for 3 days,
We apologize for any inconvenience.
“If there’s any company out there this year in telecom that is fighting harder to get respect and still not getting it, it’s magicJack VocalTec (NASDAQ:CALL, news, filings). The VoIP upstart turned in yet another big quarter, coming in near the top of the guidance they just raised a few weeks ago.”
All Magicjack is good at is selling their little junk gadget. They have no customer service. The have no busines plan beyond selling their gadget. They have no support. And, in my opinion, they are a fraud. Eventually, their investors will quit getting paid and this will be another fake company that crashes and burns and takes their investors down with them.
But apart from that are they OK?
Well I’ve been using MJ for 3 years now…yes, THREE years….and never had a problem going on their website to pay my yearly fee of $29.95 (used to be 19.95).
If this is “fraud” then it’s fine with me! $30 a year for phone isn’t fraud in my book, however. And yes I also make calls to Europe and am on the phone 2 hours a day easily.