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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