VocalTec (NASDAQ:VOCL): MagicJack Going Public ..6.5 Million Units Sold Since 2008

First time I heard the real story behind MagicJack I was sitting in a sauna in West Palm talking with some friends sweating my ass off. The founder of MagicJack is based in West Palm Beach Florida and travels in local circles, he also has an interesting background on Wall Street. This is not his first rodeo..we will be covering the MagicJack story and add them as part of the World Market Media MicroCap Index.

VocalTec Communications Ltd., the inventor of VOIP including the softphone, and YMAX Corp., the creator of magicJack and other products and services have successfully merged and will be traded on the Nasdaq.

VocalTec stock will cease trading using the symbol (Nasdaq:VOCL) after close of business today July,16th 2010. It will commence trading using the symbol (Nasdaq:CALL) on Monday, July 19th, 2010. The parties believe that the combined company has an enterprise value of $245 million and a per share value at least $17.50 on Monday, July 19, 2010 on a split adjusted basis.

The previous holders of VocalTec will have 1,173,294 shares of common stock following the merger. VocalTec expects to have revenues ranging from $110 million to $125 million this year. With over $40 million cash/securities on hand and no debt, VocalTec expects to show a profit in the current quarter.

YMAX brings the success of the magicJack in the form of brand equity, distribution and advertising across many outlets and over 6,500,000 magicJacks sold since 2008. The largest reaching CLEC (Competitive Local Exchange Carrier) in the United States in terms of area codes available and certification in number of states, it has its own chip development and application server/softswitch company. VocalTec also adds softswitch, application servers and the softphone to the mix. The combined company will have cost reductions through different synergies.