magicJack CEO: Femtocell offering by Q1 2010

Dan Borislow, CEO of magicJack parent YMax, said in an interview the company has passed 4 million units sold, will do around $100 million in revenue this year and currently is hard at work developing a femtocell offering that, he said, could be ready as early as Q1 2010. "Sister company" Stratus Telecommunications' CEO Nathan Franzmeier said the femto offering [1] could cause the current $39.99 offering price to increase, but Borislow was optimistic that the device could be produced cheaply enough to keep the price constant.

With every metric trending through the roof, it's almost hard to imagine Borislow's early days with the company, when he said had to spend heavily before receiving a dime of revenue.

"I had $25 million in fixed costs before I sold my first magicJack," Borislow said. "Eighteen months ago, I didn't have a single customer. It's taken a while for those fixed, network costs to be covered by units sold, but we're really in a good place now with our cost structure."

Borislow said magicJack is "the fastest growing telecommunications company in history," which likely will be disputed, but Borislow thinks the femtocell offering could make his claim ironclad.

"If we move enough femtos out, I could mesh together 10 million end points into a WiFi network," Borislow said. "I tell my employees we're just limping along right now, and they need to get prepared for the most explosive thing ever in telecommunications."

For more:
- see the VoIP Planet article on the "FemtoJack" here [1]