MagicJack, the popular VoIP gadget you’ve probably seen on TV or for sale at your local drugstore, is now part of a public company, via a merger last week with VoIP firm VocalTec Communications. (Trading on the Nasdaq as ticker CALL.)
So what’s next for the company? We just got off the phone with VocalTec CEO Daniel Borislow, who was previously with MagicJack parent YMAX.
He tells us…
MagicJack is still planning to come out with its “femtocell” product this year. This is basically a micro-cell tower version of the MagicJack that works with a mobile phone, and not a typical landline phone. AT&T currently offers a micro-cell device, but wants $200 for it. MagicJack’s should be super cheap.
But instead of doing it alone, MagicJack may market the femtocell with a strategic partner, Borislow tells us — specifically, a wireless carrier. He wouldn’t tell us more, but we assume the partner could be at the “value” end of the U.S. wireless business — potentially T-Mobile, Sprint, Virgin Mobile, MetroPCS, Cricket, Tracfone, etc. It still sounds like you’ll be able to use any mobile phone with the device. But we don’t know any more details.
MagicTalk, a new “softphone” service, will be coming out in the next month or so. This will put MagicJack in more direct competition with Skype, and will take MagicJack more global. (The USB-powered MagicJack is only for sale in the U.S. or Canada, but as of last summer, about 20% of its subscribers were overseas — ex-pats or foreigners who want to make cheap calls with America.) MagicTalk will open up cheap calling for anyone with a computer.
MagicJack iPhone, iPod touch, iPad, Android, and BlackBerry apps are in the plans. But the company will focus on wi-fi and 4G calling, primarily, because Borislow is not happy with the voice quality of VoIP over 3G. He was never really excited about mobile apps until the new version of Apple’s iOS came out, which allows for VoIP calls in the background.
As for the company, now that it’s public, we’ll be able to see how it’s doing on a quarterly basis.
Yesterday, the company said it expected Q2 sales of about $30.5 million and believes net income could be more than $3 million, before one-time merger expenses and before gains and losses from investments. (MagicJack represents basically all of VocalTec’s business.) The combined company expects sales between $110 million and $125 million this year.
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