magicJack Reports Second Quarter 2018 Financial Results

magicJack VocalTec (NASDAQ:CALL) announced its financial results for the second quarter ending June 30, 2018.

The company, a leading VoIP cloud based communications said that its total revenues for the second quarter were US$20 million while GAAP operating income were US$4.8 million.

As quoted in the press release:

Second Quarter 2018 Financial Highlights:

Net revenues: Net revenues from the sales of magicJack devices were $1.8 million and access rights renewal revenues were $12.4 million, and accounted for 62% of total net revenues. Prepaid minute revenues were $1.0 million and access and wholesale charges were $0.7 million during the quarter. Broadsmart Global, Inc. contributed $2.8 million in revenues to the second quarter of 2018. Other revenue items contributed the remaining $1.3 million of total net revenues during the second quarter of 2018.

Operating Income: GAAP operating income for the second quarter of 2018 was $4.8 million, which included $0.6 million in charges primarily related to non-recurring professional and legal costs and severances expenses.

Additional Second Quarter 2018 Highlights:

• As of June 30, 2018, magicJack had an estimated 1.85 million active MJ subscribers, which are defined as device users that are under an active subscription contract.

• magicJack activated 72,000 subscribers during the Second quarter of 2018. Activations are defined as devices that become activated on to a subscription contract during a given period.

• During the quarter ended June 30, 2018, magicJack’s average monthly churn was 2.0%.

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