This company has a very tight float.. Price / Volume action over the last week has rocketed.

Its up in after trading today at $35.45 ! New High

Any views?

Company behind magicJack to banish calling costs
Company behind magicJack banishes calling costs with new software



Peter Svensson, AP Technology Writer, On Friday August 13, 2010, 4:00 pm EDT
NEW YORK (AP) -- The company behind the magicJack, the Internet phone gadget heavily advertised on television, has another trick up its sleeve: free phone calls from computers, smart phones and iPads.

The cost of phone calls routed over the Internet has been on a long slide. There are already a multitude of programs that allow free calling between computers, and some that allow free, but short, calls to regular phone numbers. Another alternative, Google Voice, provides "free" calls to the U.S. and Canada, but you need a phone to use it, and if you're using a cell phone, it uses up minutes.

MagicTalk would go one better by eliminating fees for calling landline and cell phones in the U.S. and Canada, with no time limits on the calls.

The software will be available next week for Windows and Mac computers. Versions for the iPhone, iPad, BlackBerry and Android phones will follow in September or October, said Dan Borislow, the CEO of VocalTec Communications Ltd.

Each magicTalk user gets a phone number that's associated with the software. Users will also be able to move their existing phone numbers to the service, for a fee, a feature that will be extended to magicJack users soon as well.

The reason the calls can be free is that VocalTec operates as a phone company, so it can charge other phone companies for calls placed to magicTalk and magicJack numbers. It also charges its users who dial phone numbers abroad.

Still, magicTalk will likely have slimmer profit margins than magicJack, which costs $40 and comes with a year of free calling in the U.S. and Canada (an extra year costs $20).

Although magicTalk calls won't be limited in duration, Borislow said it's not intended for nonstop calls around the clock. The company hasn't quite decided if the smart-phone versions will run over "3G" cellular broadband or if it will be restricted to Wi-Fi for better sound quality.

Borislow said magicTalk won't be advertised on TV as the magicJack has been, nearly unavoidably. Slightly bigger than a matchbox, the magicJack plugs into a computer's USB port. A regular home phone can be plugged into it. MagicJack then routes the calls over the computer's Internet connection.

Borislow said the company is working on a standalone version of the magicJack, one that wouldn't need to be connected to a computer. That would make it similar to the Internet phone adapters sold by Vonage Holdings Corp. and some other companies.

The magicJack's sound quality can be shaky, and not all users are happy with it. In a few tests with magicTalk, however, the sound quality was excellent, even on an international call.

In January, Borislow showed off another prospective second act for the company: a small device that would connect wirelessly to cell phones in the home and route their calls over the Internet, without costing the user any minutes.

It was an audacious idea, because the devices used wireless spectrum owned by phone companies, who weren't likely to look kindly on gadgets that allowed their customers to call for free. The phone companies have their own devices that extend a wireless signal inside a home, known as "femtocells," and charge for their use.

Borislow said plans for the device are now on hold. The device had to use low signal power levels to get around legal restrictions on the use of licensed spectrum, but that also shortened the range and reduced sound quality. He's now looking for a carrier partner that would allow him to turn the power up.

Borislow launched the magicJack as the founder of YMax Corp., which was based in Palm Beach, Fla. It was privately held until July, when it merged with VocalTec, an Israeli company listed on the Nasdaq.

Formally, VocalTec was the acquirer, but in reality, YMax's owners contributed the majority of the equity and were left in control. This means shares of the company behind the magicJack are now publicly traded. It has market capitalization of about $300 million, and the combined company expects to have $110 million to $125 million in revenue this year.

VocalTec was the first company to release commercial PC-to-PC calling software, which it called Internet Phone, in 1995. However, many competitors soon followed, and the company wasn't able to parlay its technology into a success of the kind enjoyed by Skype SA, and even Skype doesn't make much money from it. More recently, VocalTec has been selling Internet calling services to businesses.

Online:

http://www.magicjack.com

CALL is now the symbol. This has been a solid horse lately.

WOW!

Merging With Magic Jack http://finance.yahoo.com/news/C-O-R-R-E-C-T-I-prnews-1812437132.html?x=0&.v=2

I watch both PKT and VOCL, surprised at both share prices, but it is what it is. Potential.

Good day, or was it?

Pretty large swings today, nit sure what story they tell. My target for now is in the 2.50 range, expected by February, although a quick move to 2.00 will probably have me get out sooner.

Anyone else holding this?

Acquisition of Outsmart completed; while it sounds good, I saw comments on other boards bashing this step (figuring that VOCL itself is still struggling with its profitability). Sometimes you have to spend money to make money

---
December 10, 2009 01:30 AM Eastern Time

VocalTec Acquires the Business of Outsmart

HERZLIA, Israel--(BUSINESS WIRE)--VocalTec Communications Ltd. (NASDAQ:VOCL) (“VocalTec”), a global provider of carrier-class multimedia and voice-over-IP solutions for communication service providers, today announced that it has acquired substantially all of the assets of Outsmart, a pioneer and provider of telecommunications convergence solutions.

The Outsmart assets acquired by VocalTec included Outsmart's technology and intellectual property, as well as its primary customer and partner contracts. The engagement by VocalTec of certain Outsmart personnel is intended to enable the continued development and support and an uninterrupted transition to all Outsmart customers and partners.

Outsmart’s mobile VoIP and Intelligent Network products are a strategic addition to VocalTec’s existing portfolio of VoIP solutions. The combined portfolio positions VocalTec as a provider of VoIP solution and applications to both fixed line and mobile service providers.

"Fixed & Mobile carriers are repeatedly forced to lower their rates. The competitive field is becoming so crowded that the only solution they have is to “go IP” in order to lower their cost. VocalTec is a dominant player providing VoIP end-to-end solutions to service providers," said Ilan Rosen, Chairman of the Board of Directors at VocalTec. "The acquisition of Outsmart will enable VocalTec to get a strong foothold in the Value Added Services area for the service providers, hence accelerate the growth of its business."

"Outsmart’ products have been recognized by Tier-1 mobile service providers as most innovative and leading the upcoming – unavoidable – revolution in providing cross-geography services," said Jacob Bros, CEO of Outsmart. "VoIP technology will play a major role in this paradigm shift and as such teaming up with VocalTec will position the technology of Outsmart in the forefront of the industry."

"We are excited about this acquisition, which allows us to better address the requirements of mobile service providers and is aligned directly with our strategy. Mobile service providers are looking for innovative services that combine VoIP and IN based services so that they are better positioned, given the new competition they face from Skype® and other cross-geography services,” said Ido Gur, President and CEO of VocalTec. “Acquiring Outsmart's assets is a natural step forward that will enable VocalTec to better position itself in the mobile and converged Telecom market.” He continued, “We are committed to Outsmart's technology and believe that the synergies between our respective solutions will enable us to expand our offering and better serve both Outsmart's and VocalTec's customers. We are pleased to welcome Outsmart's employees to the VocalTec team."

About VocalTec

VocalTec Communications (NASDAQ:VOCL) is a global provider of carrier-class multimedia and voice-over-IP solutions for communication service providers. A pioneer in VoIP technology since 1994, VocalTec provides proven trunking, peering and residential/enterprise VoIP application solutions that enable flexible deployment of next-generation networks (NGNs). Partnering with prominent system integrators and equipment manufacturers, VocalTec serves an installed base of dozens of leading carriers. VocalTec is led by a management team comprised of respected industry veterans. www.vocaltec.com

About Outsmart

Founded in 2001, Outsmart is a leading mobile solutions provider of convergence technologies. The Company offers its flagship product, the Plug ‘n Talk™ solution that allows mobile operators to reach out across national borders to tap into new user segments. Based on its Smart Convergence Platform, Outsmart enables operators to converge between mobile and VoIP. This ensures an opportunity to broaden their reach with new revenue generating services for both residential and business users. Visit us on www.outsmarttelecom.com.

Anyone following this stock? Can't believe the price drop, am buying at 1.60 (watched this go up 30% from 1.70 earlier this year and am sure the same will happen again). If only I knew what caused the drop in the first place, probably just a profit taking rush...

Post no.1 was communicated today to VocalTec for their comments. John

Here is a company with $12.3 million in cash and 5,685,697 shares
= $ 2.15 per share cash. However. company in its latest report said it had only 1.79 per share apparently basing this on the old share number of 7.4 mil shares. A mistake?

In any event what we have here is a cash rich company with a 50 cent stock which is losing money at 1.5 mil per quarter.Management says they expect to reduce the losses. There was no talk of a profit. Management to best benefit the shareholders needs to liquidate immediately. Failure to do so means they are seeking to preserve their jobs at our expence. John