September 06, 2012–MagicJack VocalTec Ltd. (CALL), the Israeli company whose founders invented the technology used for making phone calls over the Internet, is forecasting higher profits for 2013 as customers use its new mobile phone applications.
“Our apps have been very popular and we are going to monetize them,” Chief Executive Officer Daniel Borislow said yesterday by phone from West Palm Beach, Florida. “It also helps us cut our media costs,” as the tool will become popular through word-of-mouth publicity, he said.
The technology company surged 4.3 percent to $26.54 in New York yesterday, the highest level since March 21, after raising its 2012 earnings forecast for the second time in two months. MagicJack led gains on the Bloomberg Israel-U.S. equity index of the biggest Israeli companies traded in New York, which climbed to the highest level since May yesterday.
MagicJack forecast 2012 earnings of as much as $2 per share, compared with an earlier estimate of $1.50 to $1.80, according to a statement yesterday. Profitability will further improve in 2013 with revenue from the apps and a new product that will be used via WiFi technology, Borislow said yesterday. The company also plans to buy another 5 percent of outstanding shares, he added.
MagicJack’s jump sent valuations to 17.4 times estimated earnings. The ratio surpassed for the first time since May the average multiple of 17 for companies on the Nasdaq Composite Index, according to data compiled by Bloomberg…Read More>>