magicJack VocalTec Ltd., together with its subsidiaries, operates as a cloud communications company offering various devices, products and services. The company’s products and services allow users to make and/or receive free telephone calls to and from anywhere in the world where the customer has broadband access to the Internet, and allow customers to make free calls back to the United States and Canada from anywhere legally permitted in the world. The company owns a micro-processor chip design company, an appserver and session border controller company, a wholesale provider of voice-over-Internet-protocol (VoIP) services, a softphone company, and the developer and provider of the magicJack product line. The company also wholesales telephone service to VoIP providers and telecommunication carriers. Product and Service Offerings magicJack Devices The magicJack, magicJack PLUS and magicJack GO are VoIP devices weighing approximately 1ounce and include the access right that enables customers to use the company’s software to access its servers for the initial access right period. Customers receive free VoIP phone service for their home, enterprise or while traveling. The magicJack PLUS contains a SoC (System on a Chip) that connects either to a computer USB like the original magicJack or directly to a broadband modem/router. Similar to the original magicJack, the magicJack PLUS also has a plug to which a regular phone can be connected. These features and capabilities allow users to replace their home or enterprise phone services with the magicJack PLUS, or simply use it as a second phone line. The company offers the New magicJack PLUS. This new device has voice quality, expanded memory and enhanced processing power. The New magicJack PLUS includes a six-month right to access the company’s servers to make and receive telephone calls for free. In 2014, the company launched the magicJack GO, which includes a 12 month right to access the company’s servers. magicJack APP The magicJack APP is an application that allows users to make and receive telephone calls through the computer using a headphone or the computer's speakers and microphone or through their smart phones using their magicJack account. The magicJack APP is available for the iPhone, iPad, IPod Touch and Android smart phones. The company is beta testing an upgrade to its APP that would allow for texting to its U.S. customers. magicJack America APP Additionally, the company has begun marketing a mobile App subscription service in Mexico called magicJack America. magicJack America is a monthly subscription service that, in addition to App-to-App calling and messaging, allows subscribers in Mexico to make and receive unlimited calls to and from any phone in the United States and Canada. An Android and an iOS version of magicJack America are available to users in Mexico. Access Right Renewals Customers who own a magicJack device or magicJack service may purchase access rights for continued use of the software to access the company’s servers for additional years. The company offers users access right periods ranging from one month to five years. Other magicJack-Related Products The company offers customers other products related to their magicJack devices and services, such as insurance, custom or vanity phone numbers, Canadian phone numbers, and the ability to port their existing phone numbers to a magicJack device. Prepaid Minutes The company’s customers can purchase minutes on a prepaid basis. Access and Wholesale Charges The company generates revenues from access fees charged to other carriers, as well as wholesaling telephone service to VoIP providers and telecommunication carriers. Marketing, Sales and Distribution The company distributes the magicJack devices through retail outlets, including Walmart, RadioShack, Best Buy, Target, Walgreens, Fry’s, and others, as well as through direct sales. Research and Development For the year ended December 31, 2014, the company’s research and development expenses were $5.9 million. Intellectual Property The company’s registered trademarks include VocalTec, MAGICJACK, MAGICJACK & Design, MAGICJACK PLUS, MAGICJACK APP, MAGICJACK PC, MAGICIN, MAGICOUT, MAGICFIX, MAGICFIX & Design and MAGICPAGE are trademarks of magicJack VocalTec. Trademark applications for the MAGICJACK mark are pending in certain foreign countries, including Mexico and Peru. Trademark applications for the MAGICJACK & Design mark are pending in Mexico. Applications for the MAGICJACK APP, MAGICJACK PC and MAGICJACK PLUS marks are pending in Canada. Outside the United States, trademark registrations for the MAGICJACK mark have been obtained in Canada, China, the European Union, El Salvador, and Mexico, and for the MAGICJACK & Design mark have been obtained in Canada and Mexico. Competition Some of the company’s principal competitors are the traditional telephone service providers, such as AT&T, Inc., CenturyLink, Inc. and Verizon Communications Inc. The company also faces, or expects to face, competition from cable companies, such as Cablevision Systems Corp.; Charter Communications, Inc.; Comcast Corporation; Cox Communications, Inc.; and Time Warner Cable (a division of Time Warner Inc.), which have added or are planning to add broadband telephone services to their existing cable television, voice and broadband offerings. The company faces competition on magicJack device sales from Apple, Samsung, Motorola and other manufacturers of smart phones, tablets and other hand held wireless devices. Also, the company competes against established alternative voice communication providers, such as Vonage, Google Voice, and Skype. Governmental Regulations In the United States, the company is subject to federal regulation under the rules and regulations of the Federal Communications Commission (FCC) and various state and local regulations. The company provides broadband telephone services using VoIP technology and/or services treated as information services by the FCC.
magicjack vocaltec ltd
(CALL:Consolidated Issue listed on NASDAQ Global Market)
19 Hartom Street
Phone: 972 9 970 3888
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To contact MAGICJACK VOCALTEC LTD, please visit www.vocaltec.com. Company data is provided by Capital IQ. Please use this form to report any data issues.