magicJack Communication LTD (CALL) Tops Q1 EPS by 4c; Entes Framework Agreement with Telefonica (TEF)

magicJack Communication LTD (NASDAQ: CALL) reported Q1 EPS of $0.53, $0.04 better than the analyst estimate of $0.49. Revenue for the quarter came in at $35.3 million versus the consensus estimate of $37.18 million.

magicJack Communication LTD sees FY2014 revenue of $158-163 million, versus the consensus of $157.5 million. Adjusted EBITDA for the full year 2014 is projected to be in the range of $48 and $52 million.

magicJack VocalTec Ltd. also announced that it has entered into a Strategic Commercial Agreement with Telefonica, S.A. (NYSE: TEF), a leading global telecommunications company. The agreement provides a framework under which magicJack products and services, including the magicJack device and the magicJack APP, can be sold in multiple countries throughout Latin America.

The agreement is subject to the completion of a country-specific agreement for each market. magicJack is currently working on a pilot to be launched in the second half of 2014. If the pilot yields positive results, magicJack plans to implement an accelerated rollout of magicJack offerings backed by aggressive marketing efforts in Central and South America towards the end of 2014 and into the beginning of 2015. The offerings will be co-branded with magicJack, with specific branding strategies to be set on a country-by-country basis.

Telefonica, S.A. has approximately 185 million mobile customers and 25 million landline customers in Latin America, and generated approximately $58 billion in consolidated annual revenues in 2013.

"This agreement is a significant first step in implementing our international distribution strategy," said magicJack VocalTec President and CEO Gerald Vento. "Through our longstanding relationship with senior leadership at Telefonica, we have the opportunity to significantly accelerate the near-term adoption of our device and APP in key markets in Latin America. Our focus is now squarely on making sure we finalize plans for the pilot. While it is too early to project financial results, based on our assessment of the markets so far, we are confident that we and Telefonica can introduce strong offerings into the marketplace at compelling price points."

For earnings history and earnings-related data on magicJack Communication LTD (CALL) click here.

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