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Total net revenues of $25.4 million, access rights renewal revenues were $16.5 million
magicJack VocalTec Ltd. (Nasdaq:CALL), a leading VoIP cloud-based communications company, today announced financial results for the second quarter ended June 30, 2015.
“Our second quarter results were driven by progress with all of our key strategic initiatives, highlighted by the lowest churn rate in several years as well as strong free cash flow generation,” said Gerald Vento, President and CEO of magicJack VocalTec. “We remain focused on maximizing cash flow from our core business while pursuing ongoing growth initiatives, including the recent launch of the magicApp and international sales.”
Second Quarter 2015 Financial Highlights:
Net revenues: Total net revenues for the second quarter of 2015 were $25.4 million. Net revenues from the sales of magicJack devices were $4.2 million and access rights renewal revenues were $16.5 million, and accounted for 65% of total net revenues. Prepaid minute revenues were $2.1 million and access and wholesale charges were $1.3 million during the quarter. Other revenue contributed the remaining $1.1 million of total net revenues during the second quarter of 2015.
– Operating income: GAAP operating income for the second quarter of 2015 was $6.4 million.
– Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2015 was $10.1 million.
– Net income: GAAP net income for the second quarter of 2015 was $7.0 million or $0.39 GAAP diluted net income per share based on 17.7 million weighted-average diluted ordinary shares outstanding.
– Non-GAAP net income: Non-GAAP net income for the second quarter of 2015 was $6.8 million or $0.38 non-GAAP net income per share based on 17.7 million weighted-average diluted ordinary shares outstanding.
– Cash and free cash flow: As of June 30, 2015, magicJack VocalTec had cash and cash equivalents of $82.3 million and no debt. During the second quarter of 2015, the company generated $6.1 million in free cash flow.
A reconciliation of GAAP to non-GAAP measures, as well as the calculation of free cash flow has been provided in the tables included below in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Measures.”
Additional Second Quarter 2015 and Recent Highlights:
– As of June 30, 2015, magicJack had an estimated 2.62 million active MJ subscribers, which are defined as device users that are under an active subscription contract.
– magicJack activated 150,000 subscribers during the second quarter of 2015. Activations are defined as devices that become activated on to a subscription contract during a given period.
– During the quarter ended June 30, 2015, magicJack’s average monthly churn was 2.8%.
– During the quarter ended June 30, 2015, magicJack VocalTec Ltd. repurchased 645,919 shares of common stock at an average price of $7.97 per share as part of its stock repurchase program.
– Taking into account shares repurchased subsequent to the end of the quarter, the company has repurchased a total of over 1.3 million shares at an average price of $7.52 or approximately $10 million to date.
