magicJack VocalTec Ltd. and its subsidiaries operate as a cloud communications company offering various devices, products and services. The company also provides additional products and services, which include voice apps on smart phones, as well as the magicJack PLUS, which is an updated magicJack device that has its own CPU and could connect a regular phone directly to the user’s broadband modem/router and function as a phone without using a computer. 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 and magicJack PLUS are VoIP devices weighing approximately one ounce 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 company offers the magicJack PLUS, which 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. In 2013, the company introduced 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. 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. Consumers that do not have a magicJack account could also download the magicJack APP and make telephone calls from anywhere in the world into the U.S. or Canada for free. Access Right Renewals Customers who own a magicJack device or magicJack service might 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 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 could purchase minutes on a prepaid basis. Marketing, Sales, and Distribution The company distributes the magicJack devices through retail outlets, including Walmart, RadioShack, Best Buy, Target, Walgreens, CVS, Fry’s, and others, as well as through direct sales. Research and Development The company’s research and development expenses were $5.7 million for the year ended December 31, 2013. Intellectual Property The company’s registered trademarks include VocalTec, MAGICJACK, MAGICJACK & Design, MAGICIN, MAGICOUT, MAGIC FIX, MAGICFIX & Design, MAGICJACK PLUS, MAGICJACK APP, and MAGICPAGE in the United States. A trademark application is pending for the MAGICJACK PC mark. Trademark applications for the MAGICJACK mark are pending in certain foreign countries, including Mexico, India, and Peru. Trademark applications for the MAGICJACK & Design mark are pending in Mexico and India. 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. The company owns eight issued utility patents and two issued design patents in the United States, and it is the licensee (in one case, the exclusive licensee) of various issued United States patents. The company has various pending U.S. and foreign patent applications in the United States (including one application that has been indicated by the European Patent Office as allowed or allowable), and other issued foreign patents. The patents owned by the company, and to the extent that patents issued from its pending applications in the future, would expire between October 2015 and April 2032. 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. The company is also licensed as a Competitive Local Exchange Carrier (CLEC) and is subject to extensive federal and state regulation applicable to CLECs. Competition The company’s major competitors include AT&T, Inc.; CenturyLink, Inc.; and Verizon Communications Inc. The company also competes with Cablevision Systems Corp.; Charter Communications, Inc.; Comcast Corporation; Cox Communications, Inc.; and Time Warner Cable (a division of Time Warner Inc.). In addition, the company competes with Apple, Samsung, Motorola, Vonage, Google Voice, and Skype, as well as America Online, Inc.; Yahoo!
magicjack vocaltec ltd (CALL:NASDAQ GM)
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.