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MagicJack posts 3Q profit, reversing loss

WEST PALM BEACH, Fla. -- Internet phone company MagicJack VocalTec Ltd. reported a third-quarter profit on Friday, reversing a small loss a year earlier, thanks to sharply higher revenue and lower expenses.

Israel-based MagicJack earned $15.1 million, or 78 cents per share, for the three months ended Sept. 30. That was up from a loss of $961,000, or 4 cents per share, in the same period last year.

Revenue jumped 64 percent, to $40.8 million from $24.9 million last year.

Operating costs dropped 16 percent, to $12.9 million from $15.4 million.

CEO Dan Borislow called the quarter's results "outstanding." He said the company has a "good chance" to report 2012 earnings above $2 per share.

The company, which makes devices that route low-cost phone calls over the Internet, said in September that it expects 2012 earnings of $1.70 to $2 per share.

Shares rose $.201, or 5.8 percent, to $21.66 in morning trading The stock has traded in the 52-week range of $10 to $28.22.