magicJack VocalTec (NASDAQ: CALL ) reported results for the first quarter of 2014 after the market closed today. In after-hours trading, news of the mixed results erased much of the regular Monday session's strong gains.
The cloud-based communications expert saw sales fall 4.3% year-over-year, landing at $35.3 million. Analysts were looking for flattish revenue, near $37 million. On the bottom line, adjusted earnings fell 55% to $0.53 per diluted share. Here, the Street would have settled for $0.49 per share.
Looking ahead, magicJack expects about $160 million in full-year 2014 sales. Meeting that goal would top analyst projections, currently set at $158 million.
The company generated $12.8 million of positive free cash flows in the quarter. Down from $16.5 million in the year-ago quarter. magicJack now holds a $67.2 million balance of cash equivalents and short-term investments. There is no debt on the balance sheet.
"Our performance in the first quarter provides us with a stable position from which to manage our on-going transformation of magicJack," said CEO Gerald Vento in a prepared statement. "While we recognize that Q2 is a transition quarter, we are excited about the opportunity to renew growth in the second half of 2014."
A mildly volatile stock, magicJack shares have swung between $11 and $25 over the past year and currently sit near the middle of that wide trading range.