MagicJack VocalTec Ltd. (Nasdaq: CALL) has filed a draft prospectus with the US Securities and Exchange Commission (SEC) to raise up to $200 million in an offering of shares and/or warrants, exploiting the doubling of its market cap in the past year.
The company added that shareholders, whose names it did not disclose, will also try to sell up to five million shares, which would yield them a gross $104 million, at the current share price. MagicJack CEO Daniel Borislow is the largest shareholder, with a 24.8% stake. Other large shareholders are investment institutions.
MagicJack VocalTec lost $836,000 on $110.4 million revenue in 2011. In its guidance for the first quarter, it expects 23% revenue growth over the corresponding quarter to $37 million, and it expects GAAP-based earnings per share of $0.26, amounting to $6.3 million, almost quadruple the $1.8 million for the corresponding quarter. The company has $50 million and a record $117.8 million in deferred income.
The analysts' revenue consensus is $27.8 million, and a p/e ration of 16 - not cheap, but not very expensive either.
MagicJack VocalTec, a pioneer in VoIP, has become less and less an Israeli company since Israel's VocalTec merged with Ymax Inc. in 2010. Today, only 11 of the merged company's 66 employees are at its R&D center in Netanya.
Investor enthusiasm for the share is driven by its VoIP technology to replace telephony at the home and office. The company's MagicJack Plus solution costs $20-60 to install and can save users up to $1,000 a year.
MagicJack VocalTec's share price rose 2.4% on Friday to $20.81 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 8, 2012
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