magicJack (CALL) expects 2014 revenue of $158M-$163M, well above a $147.2M consensus. Adjusted EBITDA, pressured by a marketing spend ramp, is expected to fall to $48M-$52M from a 2013 level of $58.2M.
Active magicJack subscribers fell by 100K Q/Q in Q4 to 3.2M. 216K subs were activated, down from 273.5K in Q3. However, registered users of magicJack's free calling app rose 23% Q/Q to 6.9M.
$13M was spent to repurchase 1.06M shares at an average price of $12.24. Opex rose 29% Y/Y to $14.5M, with R&D spend nearly tripling $2M.
With a full 40% of the float shorted as of Feb. 28, a short-squeeze is in play. Whitney Tilson definitely wouldn't mind.
Q4 results, PR