MagicJack returns to 4Q profit as sales improve
Internet phone company MagicJack returns to 4th-qtr profit as sales grow; shares jump
WEST PALM BEACH, Fla. (AP) -- Internet phone company MagicJack VocalTec Ltd. said Tuesday it returned to a profit in the fourth quarter, and shares jumped nearly 12 percent in after-hours trading.
The company makes devices that route low-cost phone calls over the Internet, and it said revenue from magicJack and magicJack Plus grew 88 percent during the December quarter.
MagicJack reported net income of $22.3 million, or $1.17 per share. Excluding one-time gains and expenses the company said it earned 91 cents per share. A year ago it took a loss of $5.6 million, or 26 cents per share, after some dividend payments.
Revenue rose 56 percent, to $41.4 million from $26.6 million. In the latest quarter revenue from sales of magicJack and magicJack Plus totaled $19.1 million.
MagicJack said it earned $55.9 million, or $2.73 per share, in 2012. The company posted a loss of $1.8 million, or 8 cents per share, in 2011. Revenue rose 43 percent, to $158.4 million from $110.5 million.
The company also named Richard Harris to its board of directors. MagicJack said Harris is the founder and president of Harris & Associates, a consulting firm that advises telecommunications and technology companies.
Shares of magicJack rose 6.9 percent to close at $14.95 on Tuesday. They jumped $1.78, or 11.9 percent, to $16.73 in aftermarket trading.
