magicJack Results Trump Insider Share Sales (CALL)

magicJack VocalTec, Ltd. (NASDAQ: CALL) is indicated higher after its earnings results, despite some insider selling into the news.  Just before the long weekend came word that insiders were selling up to 5 million shares.  The company has further announced that it sees all-time record revenues of $37.4 million and income of $7.8 million for the first quarter of 2012.  The company is also noting that it hopes to accelerate its own share buyback plan.

The revenue compares to $30.8 million with income of $1.8 million a year ago.

magicJack had a cash balance of $49.0 million and 23,076,112 shares outstanding at the end of the first quarter 2011 and noted: “Comparing first quarter 2011 cash balances to first quarter 2012 saw an increase of $11.5 million even after the Company bought back over 2 million shares in this time frame.”

The Company hopes to reach the upper limits of its previous expectations of 20% to 30% annual revenue growth in 2012 and also $1.25 to $1.50 in earnings per share.  Thomson Reuters has estimates of $1.14 EPS and $153.46 million in sales, but we would note that there are too few analysts to really count as a ‘consensus’ in normal stocks.

magicJack shares are indicated up 4% at $21.75 and the 52-week trading range is $9.49 to $28.22.

JON C. OGG