NEW YORK (TheStreet) -- Folks playing magicJack's (CALL) earnings saw profits disappear Monday evening. The stock climbed nearly 9% in advance of the Voice-Over-IP company's first quarter earnings report, released after the bell. But it immediately fell more than 6% in after-hours trading.
$CALL I feel sorry for all the call buyers before earnings. I was lucky to sit this one out.? John Doe (@stockgreens) May. 12 at 04:17 PM
MagicJack reported non-GAAP diluted EPS of $0.53 on $35.3 million in net revenues. Those results beat Wall Street's consensus EPS estimates for $0.49, but fell nearly $2 million shy of sales expectations.
$CALL 0.53 vs 0.49 & raises rev guidance. Miss on revs though.? Tutti (@Tutti) May. 12 at 04:07 PM
Management's promise to accelerate revenue growth in the back half of the year, and a deal that could fuel sales in South America, helped stem losses. MagicJack CEO Gerald Vento said that the company has strengthened the management team, balance sheet and deepened retail relationships in order to accelerate sales when magicJack releases new products.
"While we recognize that Q2 is a transition quarter, we are excited about the opportunity to renew growth in the second half of 2014," Vento said.
$CALL Maybe lower sales due to new product launch later this month. Will know after conf. call? Nemi (@nemi) May. 12 at 04:27 PM
MagicJack also announced a deal with Telefonica S.A. to sell magicJack's products in Latin America. "This agreement is a significant first step in implementing our International distribution strategy," said Vento in a press release.