Boston, MA, 03/17/2014 – magicJack VocalTec Ltd (NASDAQ:CALL) plans to carry out a massive expansion of its retail distribution network through the launch of a national indirect channel. The expansion is aimed at bringing the chain store into more urban population centers throughout the US markets. The opening of the new locations will begin this month with the company expecting to open up to 10,000 doors in the current fiscal year adding to the 25,00 locations .
magicJack VocalTec Ltd (NASDAQ:CALL) caters for cash centric value seekers as well as other international callers and is the most productive in the wireless category. The company plans to merchandise the new locations in a bid of focusing its media plan to support the new channel. magicJack can now be found in any prepaid wireless consumer electronic and small based store as well as online. The expansion news went well with the company as it resulted in its shares clocking a high of $21.68 moving up by 23.70%.
magicJack Solid financial results
magicJack expansion comes at the back of it posting solid financial results for its fourth quarter that beat consensus estimates. The result caused the company’s stock to trade on a high of 9%. The company reported earnings per share of $0.69 against analysts’ estimates of $0.41.
magicJack VocalTec Ltd (NASDAQ:CALL) total revenue were up coming in at $38 million way above analysts’ estimates of $36 million. magicJack expects to post $160 million in total revenue for the current fiscal year compared to analysts’ projections of $142 million. The company’s adjusted EBITDA is expected to come in at $50 million against estimates of 446 million.
Strong demand of the company’s digital telephony has been cited as the main reason behind the strong positive results with the trend expected to continue in the current quarter as well as fiscal year. The quarter saw the company monthly churn rate clock in at 3.2% in line with estimates
magicJack VocalTec Ltd (NASDAQ:CALL) was up on Friday trading session closing the day at a high of $22.76 after moving up by 8.17%