VoIP solutions developer VocalTec Communications Ltd. (Nasdaq:VOCL) has bought back its shares held by Cisco Systems International B.V., its largest shareholder.
VocalTec bought 1,673,549 of its shares from Cisco, which represented approximately 22.7% of the issued and outstanding share capital of the company. The shares were bought for $0.40 per share, for a total aggregate purchase price of approximately $669,000. The share price was $0.03 higher than its closing price on Friday.
Cisco owned the shares through its investment in Tdsoft, which later merged with VocalTec. Cisco invested $20 million in Tdsoft at the height of the high tech bubble, at a company value of $300 million. Eight years later, VocalTec bought back the shares for under $1 million.
VocalTec also reported revenue for the fourth quarter of 2008 of $1.5 million. Full year revenue was $6.1 million, an increase of 6% compared to revenues of $5.8 million in 2007.
Net profit on a GAAP basis for the fourth quarter was $500,000 or $0.07 per share, and net profit for the full year was $3.7 million, or $0.50 per share, compared with a net loss of $14.2 million, or $1.92 per share, in 2007.
On a non-GAAP basis, net income for the fourth quarter of 2008 was $4.7 million, or $0.64 per share, and for the full year was $9.4 million, or $1.27 per share, compared with a net loss of $7.0 million, or $0.95 per share, in 2007.
VocalTec has $15.5 million in cash and cash equivalents, mostly from the sale of 15 patents for a combined net $14.9 million.
VocalTec chairman Ilan Rosen said, “The purchase of shares from Cisco Systems reflects the strong vote of confidence and support of the company’s board of directors in the new management team and in VocalTec’s future.”
Shares in VocalTec were down over 10% in late morning trading on Nasdaq.
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2009
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