This has been quite a year for MagicJack on the financial front. Today the VoIP protagonist did what is becoming a familiar thing, pre-announcing a stronger than expected quarter and raising its guidance for both revenue and earnings per share.
I say familiar because they have done something similar four times since Christmas. In this case, they now expect third quarter revenue and GAAP earnings per share to fall in the ranges of $40-41M and $0.55-0.80, respectively. That will once again easily beat analyst expectations, which according to Yahoo Finance were $39.4M and $0.39. Full year estimates were also raised to 35-45% revenue growth and earnings per share of $1.70-2.00.
However, they also said they would take a one-time write-down for chip inventory they bought during the supply chain disruption that followed the disastrous Japanese tsunami that may be as much as $0.15 per share. Seeing as that hit is one-time and less than the amount they raised guidance by, the street can’t really complain. And they aren’t, as the stock is up 4% today.
MagicJack also offered some metrics for its improving cost structure. After netting termination revenue, they say it costs them only $1/year or less per user in opex, and it would be $0/year if they were able to count access charges that are held up in court.
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