In case you missed it last week, MagicJack parent YMAX and VoIP firm VocalTec Communications merged, and are now trading on the Nasdaq under the ticker CALL. (Check out our feature on MagicJack from last summer.)
How’s the stock doing? Pretty well today: Shares are up 12% after the company issued guidance and announced it would start buying back stock.
Specifically, VocalTec says it expects 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.
And the company’s board has authorised a $12 million stock buyback.
And it’s holding a meeting to include voting on whether CEO Daniel Borislow, who came over from YMAX, can increase his holdings to over 25% of the company.
If Borislow’s name sounds familiar, that’s because it should be. In the Web 1.0 days, he led Tel-Save, which made an exclusive deal with AOL to market long-distance service to its users. That led to a bunch of AOL “portal” deals, which were big money makers for the company.
YMAX has sold more than 6.5 million MagicJacks since 2008, and the combined company expects sales between $110 million and $125 million this year.
The company boasts about its patent portfolio and calls itself “the inventor of VoIP and the softphone,” suggesting there may be some legal confrontations ahead.