magicJack Beats Quarterly Analyst Estimates After Just Two Months

VoIP innovator and cloud communications firm magicJack Vocaltec, Ltd. claims it may have already topped analyst estimates for Q2 2012 after just two months of the quarter. The firm believes that quarterly analyst estimates of both net income and earnings per share (EPS) have been surpassed in two months.

The company released the information due to the fact that the board has given the green light to a currently active buyback program, and so the firm is keeping the financial industry up to date on results as they become available.

Given the company’s latest revelations, it has revised estimates for the quarter. magicJack said that June results will be additive and its EPS results for the quarter may rise above $0.43 per share of operating income. The firm previously suggested an estimated 2012 EPS range of $1.25-1.50. However, magicJack is boosting high end of the range to $1.70.

It is too early to give a more precise estimate of total revenue for Q2. However, magicJack saysrevenue should rise surpass $36 million with overall weakness in the U.S. economy benefiting the firm as a whole.

There are a number of reasons for magicJack’s performance over the quarter; the firm’s latest product, the magicJack PLUS, is seeing strong sales, the company said. Efficiencies and scalability in magicJack’s media spend to acquire new customers has helped, as has the collection of more revenue and access revenue than anticipated.

The firm’s revenue from license renewal and bookings continues to grow annually, while a number of expenses are being reduced on an ongoing basis. The firm anticipates final totals will show the porting of more than 700,000 phone numbers over the last month, while additional ports will result in higher levels of future renewal.

The buyback program has resulted in the repurchase of stock at an average price of roughly $11 per share during Q1. That program is being fueled by positive cash flow, and the firm estimates it can lower the number of outstanding ordinary shares to 18-19 million within the next year, while keeping $40-60 million in cash and cash equivalents

magicJack had more than 24 million common shares outstanding at a certain point in 2011, a figure which has now been reduced to around 20 million.

Meanwhile, the firm last month revealed details of its loyalty plan, whereby it rewarded ordinary shareholders with one free share for every four shares owned in the light of Facebook’s (News - Alert) IPO.