MagicJack sees strong current quarter; shares up
(Reuters) - MagicJack Vocaltec Ltd (CALL.O) reported a fourth-quarter profit on strong sales of its devices to make and receive calls over the Internet, and said current-quarter adjusted profit will be higher compared to a year earlier.
The company's shares surged as much as 14 percent to $17 in extended trading, after closing at $14.95 on the Nasdaq.
"There was a large pickup from large sales of magicJack plus. The renewals also went up in December 2012 and January 2013," company officials said on a conference call.
Revenue from MagicJack's namesake devices, which allow phones to make calls using the Internet, rose 88 percent in the fourth quarter to $19.1 million. Total revenue increased 56 percent to $41.4 million.
The company recorded a net profit of $22.3 million, or $1.17 per share, in the quarter ended December 31, compared with a loss of $4.7 million, or 26 cents per share, a year earlier. Excluding one-time items, the company earned 91 cents per share.
MagicJack devices use a computer's USB port to connect phones to the Internet and make or receive calls. The company's new magicJack Plus models can be plugged directly into a router and don't need a computer.
(Reporting By Aditya Kondalamahanty in Bangalore,; Editing by Joyjeet Das, Sreejiraj Eluvangal)
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