magicJack Announces Combined Q4 2011 and Q1 2012 One-Time Revenue Net Adjustments Positive $500k

magicJack VocalTec, Ltd. (Nasdaq: CALL) today announced that its Board of Directors has approved the hiring of Andrew MacInnes as President of the Company. magicJack also announced it will host an investor conference call on Tuesday, February 28, 2012, at 2:30 p.m. ET. magicJack's previously announced estimates for Q4 2012 have not changed. Audited full-year 2011 results (10K) are expected to be filed with the U.S. Securities and Exchange Commission the week of March 12, 2012. The company will also participate in the upcoming Oppenheimer Cloud Computing/Services Conference .In the Q4 2011 and Q1 2012 quarters combined, the net impact of one-time gains and losses to income are relatively modest if adjustments don't change. The combined net gain to revenue is approximately $500,000. These numbers will be reflected in the GAAP results for these two periods. As a result of these adjustments, the GAAP revenue numbers for Q1 2012 may be over $37 million and GAAP earnings per share may be over 26 cents per share, unless any new one-time adjustments are recorded in Q1. The Company may give further updates.In Q1 2012, the Company now expects a large gain to revenue and income of approximately $3.2 million based upon the implementation of pre-paid billing rules in this period.In our Q4 2011 results, we expect one-time downward adjustments to revenue and income of approximately $2.7 million for access charge collection and provisions to reserves. The Company in 2011 had less than 4 percent of revenues attributed to these billings. Fortunately, the Company expects to collect a much greater percentage of these billings in the future, albeit at lower tariff rates. These expectations are based on Federal Communications Commission ("FCC") access charge reforms that were announced on November 18, 2011, and became effective at the beginning of 2012.In Q4 2011, the Company ironically will have a one-time charge to income, instead of a gain, for the successful repurchase of our preferred or mezzanine-like securities at a premium to the estimated redemption value reflected in our financial statements of $955,000, based upon a repurchase price of $15.35 per common share, considerably below the current price of our common shares today. This is ironic because the share repurchase may contribute to increased positive EPS in the future. Finally, Q4 results will include a non-cash charge of approximately $500,000 for the write down of certain chips and components in inventory and a one-time gain of $766,000 for the successful settlement of certain litigation.