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MagicJack 2nd-qtr profit jumps on strong sales of new product
July 30, 2012 / 2:40 PM / 5 years ago

MagicJack 2nd-qtr profit jumps on strong sales of new product

* Q2 profit $10.3 mln vs $2.9 mln last year

* Q2 operating EPS $0.51 vs $0.08

* Q2 rev $38.60 mln vs $28.8 mln

* Shares rise more than 9 pct

July 30 (Reuters) - Israel-based MagicJack Vocaltec Ltd , a provider of internet-based phone services, reported a near four-fold rise in quarterly profit, helped by strong sales of its new MagicJack Plus product, sending its shares up more than 9 percent.

Second-quarter earnings rose to $10.30 million from $2.9 million in the same quarter last year.

MagicJack raised its estimates for the second quarter and the full year earlier this month, citing strong sales of MagicJack Plus, which allows users to directly connect to a home phone to make unlimited calls over the Internet.

The company also said on Monday that it had entered into a deal with Intellectual Ventures, giving it access to IV’s voice-over-internet-protocol patents. IV received cash and MagicJack shares, MagicJack said, without providing details.

Operating income rose to 51 cents per share from 8 cents per share a year earlier. Revenue rose 34 percent to $38.60 million.

MagicJack shares were up 8 percent at $21.90 in early trade on the Nasdaq.

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