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MagicJack's GAAP Third Quarter 2012 Quarterly Revenue And Income Highest Ever Even After Large Special Charges

Stocks in this article: CALL

WEST PALM BEACH, Fla., and NETANYA, Israel, Oct. 19, 2012 (GLOBE NEWSWIRE) -- magicJack VocalTec, Ltd. (Nasdaq:CALL) (the "Company"), the Voice Experts and cloud communications leader that invented voice over IP (VoIP) and sold over 10 million magicJacks ®, today announced record breaking GAAP financial results for the quarter ended September 30, 2012. Q3, 2012 revenue was $40.8 million and net income was $15.1 million. GAAP earnings per share (EPS) were $0.78 including various special charges. Excluding such charges, non-GAAP operating income per share was approximately $0.75 per share. There were 19.3 million shares outstanding as of September 30, 2012, 3.1 million shares less than the number of shares outstanding as of September 30, 2011.

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Q3 Results and 2012 GAAP EPS Guidance

Commenting on the Q3 results, magicJack CEO Dan Borislow stated, "magicJack's financial performance this quarter was outstanding. Take away some special charges and we would have had over $41 million in revenue and $0.75 in operating income per share. The special charges of $3.4 million included a large write down in chips we procured when we were in danger of not having enough inventory as a result of the Tsunami in Japan. There was also a large one-time accrual of a new employee bonus plan, based on the profits of the Company. We have a good chance to achieve over $2.00 GAAP EPS for full year 2012. This quarter serves as an example of the earnings power of the Company."

Business and Product Updates

Borislow also provided some insight into the Company's perspective on industry and product trends, "As the Telecom world is so rapidly changing, we are at the forefront of change being fortunate to invent new products that people love. Everybody wants to think this is a software driven world but it has become obvious to us, it's hardware first then software riding on the new hardware. Much of what used to be performed by software is in the logic of chips now. That being said, there is one piece of software that is becoming the most important in Telecom when using this incredible array of new hardware and hardware products we have not even seen yet. That is softphone software. This is what magicJack VocalTec invented in 1994 when it filed and received this foundational patent. With Voice over LTE, Wi-Fi and other high-speed connections, this technology and patent have recently become more vital, now and into the future. Further with limited resources available throughout the world, including phone numbers and wireless bandwidth, and with cost structure so important, magicJack has the technology and patents owned and filed to be the most relevant and innovative VoIP company ever. The latest system on a chip (SoC) we have developed has over 22 important functions contained in it. We already deployed servers using an incredible invention to preserve the phone number pool worldwide by using our form of magic. The bulk of what we invented and are building now will be on the market in 2013 in a highly visible way being used by tens of millions of people. Call it bragging, call it what you may, I am so proud of my people and the VocalTec people before me for being able to change Telecom forever, making it more reliable, easier to use, more robust, with better voice quality, available across many platforms and with the cost being inexpensive/free."

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