Boston, MA 03/13/2014 (wallstreetpr) – magicJack VocalTec Ltd (NASDAQ:CALL) has literally come out with magical numbers to rule its day. The company, which is a provider of voice-over-protocol (VoIP) is roaring on the stock exchange with over 27% gain during the early phase of the trading session.
A Look At The Fourth Quarter Report
The company not only surpassed the revenue and EPS projections, but it exceeded these estimated by a wide margin. The earnings per share of the company stood a whopping 28 cents higher from the estimates at $0.69. Moreover, it also beats the revenue estimate by $2.27 million, which came in at $38.2 million. The whole upbeat in earnings this time is a result of $35 million one-time tax benefit that accrued to the company as per the accounting changes in the U.S. and operating losses in Israel.
The company noted during the call that its magicJack subscribers fell by 100,000 to 3.2 million in the fourth quarter as compared to the previous quarter. During the period of three months, a total of 216,000 subscribers was activated, lesser than the 273,000 subscribers in the third quarter. But then, its registered users for free calling app grew 23% quarter-over-quarter to nearly 6.9 million, during this period.
A robust fourth quarter is not all as the company went ahead posting an equally stronger guidance for the year. The revenue for the year 2014 is anticipated to fall in between $158-$163 million, which exceeds the estimate of $142 million. Moreover, the adjusted EBITDA guidance of $50 million is also above the market consensus of $46 million.
Aggressive Expansion Plans
Following a strong display of performance in the reported quarter, the company also announced its plans to expand its retail distribution through introducing national retail indirect platform. Stating in a separate press release, the company noted that the expansion will help it to penetrate in the main metro urban population centers throughout the United States, thereby, launching the company and its products to a whole new customer segment across the nation. New magicJack locations, or doors, will commence launching this month, with the aim of more than 10,000 incremental new doors to open this year. This will be an addition to its present 25,000 locations which includes Best Buy, Wal-Mart, CVs, Target, Radio shock and others.
