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magicJack VocalTec Communications Ltd. (CALL)

  • Nov. 10, 2014, 4:54 PM
    • In spite of growing marketing spend, magicJack (NASDAQ:CALL) had an estimated 2.86M active VoIP subscribers at the end of Q3, nearly flat with the 2.9M it had at the end of Q2 and down from the 3.1M it had at the end of Q1. Monthly average churn was 3.1%.
    • Also: Monthly active unique users for magicJack's free VoIP calling apps were flat Q/Q at 3.4M.
    • While revenue fell 27% Y/Y, GAAP opex rose 60% to $17.1M, thanks in part to a 117% increase in marketing spend to $6.2M. Free cash flow was $3.2M.
    • magicJack ended Q3 with $75.2M in cash, and no debt. After accounting for the AH plunge, its market cap is now at $153M.
    • Q3 results, PR
    | Comment!
  • Nov. 10, 2014, 4:07 PM
    • magicJack VocalTec Communications (NASDAQ:CALL): Q3 EPS of $0.18 beats by $0.05.
    • Revenue of $25.81M (-27.4% Y/Y) misses by $1.67M.
    • Shares -2.29%.
    • Press Release
    | Comment!
  • Nov. 9, 2014, 5:35 PM
  • Aug. 11, 2014, 5:15 PM
    • magicJack (NASDAQ:CALL) saw a 200K Q/Q drop in active magicJack VoIP service subscribers in Q2 to 2.9M. Average monthly churn was 3.1%, down from Q1's 3.3%. Activations fell to 165K from 196K.
    • Notably, no guided is provided in the company's earnings release. magicJack guided in its Q1 report for 2014 revenue of $158M-$163M; consensus is currently at $147.5M.
    • Monthly active users for magicJack's VoIP mobile apps totaled 3.4M at the end of Q2. The company previously announced registered users (not the same as active users) totaled 8.4M at the end of Q1.
    • GAAP opex rose 31% Y/Y to $14.7M, thanks in part to a 70% increase in marketing spend to $4.7M.
    • magicJack had $72M in cash at the end of Q2 - a figure nearly equal to 1/3 of its market cap - and no debt.
    • CALL -3.5% AH. Q2 results, PR.
    | Comment!
  • Aug. 11, 2014, 4:12 PM
    • magicJack VocalTec Communications (NASDAQ:CALL): Q2 EPS of $0.31 in-line.
    • Revenue of $29.48M (-10.4% Y/Y) misses by $2.36M.
    • Press Release
  • Aug. 10, 2014, 5:35 PM
  • May. 12, 2014, 4:47 PM
    • magicJack (CALL) is reiterating guidance for 2014 revenue of $158M-$163M (above a $157.5M consensus) and adjusted EBITDA of $48M-$52M.
    • Registered users for magicJack's VoIP calling apps rose 21% Q/Q in Q1 to 8.4M. But active magicJack subscribers fell by 100K to 3.1M, with sub activations declining by 20K to 196K. Average monthly churn was at 3.3%.
    • Gross margin fell to 63.2% from 63.9% in Q4 and 69.6% a year ago. A 53% Y/Y increase in ad spend to $4.3M helped fuel a 39% increase in opex to $14.7M.
    • Access right renewal revenue rose 4% Q/Q to $15.4M (44% of revenue), and device sales totaled $12M. Free cash flow was $12.8M, +102% Y/Y and above net income of $9.4M.
    • Q1 results, PR
    | Comment!
  • May. 12, 2014, 4:11 PM
    • magicJack VocalTec Communications (CALL): Q1 EPS of $0.53 beats by $0.04.
    • Revenue of $35.31M (-4.3% Y/Y) misses by $1.87M.
    • Shares -2.5%  AH.
    • Press Release
    | 1 Comment
  • May. 11, 2014, 5:35 PM
  • Mar. 12, 2014, 5:04 PM
    • 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
    | Comment!
  • Mar. 12, 2014, 4:44 PM
    • magicJack VocalTec Communications (CALL): Q4 EPS of $0.69 beats by $0.28.
    • Revenue of $38.2M (-7.8% Y/Y) beats by $2.27M.
    • Press Release
    | Comment!
  • Nov. 13, 2013, 9:05 AM
    • In tandem with releasing its Q3 results, magicJack (CALL) has announced it's buying back $13M worth of shares from founder Daniel Borislow, and that it has reached a deal under which Borislow "will not have any ongoing involvement in the business or operations of the Company or any of its subsidiaries."
    • The deal also features a standstill provision that requires Borislow to "refrain from taking certain actions as a shareholder of the Company," or to compete against magicJack, for two years. Borislow has also agreed to assign magicJack certain IP rights.
    • In return, magicJack will be giving Borislow 300K new shares, and outsourcing "certain live chat customer care activities" to a company affiliated with him.
    • Borislow has been a controversial figure for some time. Earlier this year, SA contributor Copperfield Research noted Borislow has been sued for securities fraud, and suggested he has engaged in unethical behavior at multiple companies/organizations.
    • magicJack is guiding for 2013 revenue of $140M-$142M; that's less than the $150.3M forecast by the one analyst covering the company. The company ended Q3 with 3.3M active magicJack subs, down from 3.36M at the end of Q2. On the other hand, magicJack's registered app users rose to 5.61M from 4.37M.
    • Shares +10.1% premarket. CC transcript.
    | Comment!
  • Nov. 12, 2013, 4:44 PM
    • magicJack VocalTec Ltd (CALL): FQ3 EPS of $0.75 may not compare to the estimate of $0.42.
    • Revenue of $35.5M misses by $5.28M. (PR)
    | Comment!
  • Aug. 12, 2013, 8:41 AM
    • magicJack (CALL): Q2 EPS of $0.67 in-line.
    • Revenue of $34.9M beats by $1M. (PR)
    | Comment!
  • May. 9, 2013, 4:39 PM
    In tandem with its Q1 results, magicJack (CALL) announces Peter Russo is being replaced as CFO by Jose Gordo, who prior to recently joining the company co-founded an investment firm (but apparently left after two years). Russo will remain with the company as a consultant. magicJack is guiding for 2013 revenue of $155M-$160M, which compares with 2012 revenue of $158.4M - no consensus forecast exists. No proceeds were generated from put sales during Q1, but a $1M fair value loss was recorded on put option holdings. Shares -5.4% AH. (PR)
  • May. 9, 2013, 4:08 PM
    magicJack VocalTec (CALL): Q1 EPS of $0.78. Revenue of $36.9M. Shares +2.3% AH. (PR)
    | Comment!
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Company Description
MagicJack VocalTec Ltd provides cloud based communication services. Its services include VoIP services such as magicJack, magicTalk and MagicJack Plus. It also provides Carrier Solutions like infrastructure solutions, Essetra Solutions and applications.