The merger of VocalTec Communications Ltd., inventor of VOIP and the softphone, and YMAX Corp., the creator of magicJack and various products and services, resulted in an emerging entity with access to more than 30 patents. The company’s stated mission is to become the leading provider of global voice over many platforms.
VocalTec recently announced a stock repurchase program in which the company may purchase up to $12 million of its common stock through the next 12 months, bought with positive cash flow from operations and $40 million in cash and securities on hand.
The timing and actual number of shares repurchased, if any, are subject to a variety of factors including price, corporate and regulatory requirements, alternative uses of capital and other market conditions.
The company also announced initial guidance for the second quarter of 2010, with expectations of second-quarter revenues of approximately $30.5 million. The company said it believes net income will total more than $3 million before one-time charges related to merger expenses and before any gains or losses on marketable securities.
The VocalTec board of directors also approved the scheduling of a shareholders meeting to include voting on the possible 25 percent company ownership by CEO and director Daniel Borislow. According to the press release, Borislow may elect to make further investments of up to and then over 25 percent in the company if the increase in ownership gets shareholder approval.