UPDATE: magicJack Posts Upbeat Q4 Earnings, But Revenue Misses Views

reported better-than-expected earnings for the fourth quarter, but the company's revenue missed analysts' estimates. The Jerusalem, Israel-based company posted a quarterly net loss of $(3.8) million, or $0.21 per share, versus a year-ago profit of $45.3 million, or $2.50 per share. Non-GAAP earnings came in at $0.15 per share for the fourth quarter. Its total net revenue declined to $25.7 million from $38.2 million. However, analysts were expecting earnings of $0.12 per share on revenue of $27.12 million. Its net revenue from the sales of magicJack devices came in at $3.0 million, while access rights renewal revenue came in at $17.2 million. Prepaid minute revenue were $2.1 million in the quarter, while access and wholesale charges came in at $2.1 million. Adjusted EBITDA climbed to $6.8 million in the fourth quarter, up from $4.1 million in the third quarter of 2014. As of December 31, 2014, the company had cash and cash equivalents of $75.9 million and no debt. During the quarter, magicJack activated 169,000 subscribers. The company also announced a new $20 million share buyback program. "While our fourth quarter results were slightly lower than expected, the company more than doubled the number of active magicJackGO subscribers and generated solid adjusted EBITDA," said Gerald Vento, President and CEO of magicJack VocalTec. "2014 was a pivotal year for the Company as we successfully managed our transformation, as evidenced by the product and brand refreshes, deepened relationships with our key retail partners, reached an agreement with Telefonica to start international expansion, and significantly strengthened our balance sheet." magicJack shares fell 3.06% to $7.92 in after-hours trading.