magicJack climbs after naming CEO, saying 2012 will top expectations

theflyonthewall.com

magicJack (CALL), which develops phones that make calls using the Internet, is advancing after the company estimated that it would report higher than expected revenue for its fourth quarter. The company predicted that its operating income for the fourth quarter would be 70c per share. One analyst had forecast that the company's operating income per share would be 51c, but that estimate may not compare directly to magicJack's outlook. magicJack also announced that it had named Gerald Vento as its CEO, effective January 1. The founder of wireless services company TeleCorp PCS, Vento has been serving as magicJack's chairman. During Vento's tenure as CEO of TeleCorp PCS, that company's annual revenue reached $1.1B, and it was sold to AT&T (T) for $5.7B in 2002, according to magicJack. magicJack board member Donald Burns, who has also been "an experienced and successful public telecom company founder and CEO," will become chairman of magicJack, the company added. In mid-morning trading, magicJack rose 91c, or 5.59%, to $17.19.

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