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magicJack VocalTec Rallies on Outlook (CALL)

Shares of magicJack VocalTec (NASDAQ: CALL), a provider of voice-over-Internet-Protocol (VOIP), the softphone and the magicJack products, have risen sharply in pre-market trading today after the Israel-based company raised its outlook for the fourth quarter and full year 2012. The company also announced the appointment of new President and CEO.

CALL raised its estimates for the fourth quarter and full year 2012 as the saw lower telecom expense, higher receipts and a reduction in legal, advertising, media and other expenses. For the fourth quarter of 2012, the company now expects operating income of over $0.70 per share.

CALL said that at the end of the third quarter of 2012, it had 19.3 million shares outstanding and cash and investments of $34.3 million. The company noted that it has since reduced share count by approximately 500,000 and increased cash and investments by $6 million.

Dan Borislow, the current CEO of magicJack VocalTec, said that CALL’s results for 2012 will exceed expectations. Borislow said that the company will leave the year with little litigation and having added important new assets and its future goals have been established with the precise plans for achieving them for 2013.

CALL also announced today that it appointed Gerald T. Vento as its President and CEO, effective January 1, 2013. Vento, who is an experienced telecom executive, will replace current CEO Borislow. Borislow will lead new marketing and product development initiatives. CALL also announced that Donald Burns will assume the role of Chairman of the Board. Like Vento, Burns is also an experienced telecom executive.

Borislow said that Vento and Burns will be the best CEO and Chairman to maximize shareholder value and realize CALL’s vast potential.

CALL shares have risen sharply in pre-market trading today. At last check, the stock was trading 7.19% higher at $17.45.

 


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