magicJack VocalTec Ltd. Falls Back on Mixed First-Quarter Results

Digital voice service specialist magicJack VocalTec beat some analyst targets in the first quarter, but missed others.

May 12, 2014 at 5:25PM
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Source: magicJack VocalTec.

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.

Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days.

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