SANTA CLARA, Calif., Oct. 30 /PRNewswire-FirstCall/ -- 8x8, Inc.
(Nasdaq: EGHT), provider of Packet8 (http://www.packet8.net) broadband
business, residential, video and mobile communications services, today
announced financial operating results for its second fiscal quarter ended
September 30, 2008.
Revenues for the second quarter of fiscal 2009 increased to $16.4 million,
compared with $14.8 million for the same period of fiscal 2008 and $16.3
million for the previous quarter. 8x8 Virtual Office revenue grew to 60% of
total revenue in the second quarter of fiscal 2009 compared with 47% of total
revenue in the same period of fiscal 2008 and 56% of total revenue in the
previous quarter. Sequentially, 8x8 Virtual Office revenue grew 41% from the
same period of fiscal 2008 and 8% from the previous quarter. Overall gross
margin for the second quarter of fiscal 2009 was 65%, compared with 52% for
the same period of fiscal 2008.
GAAP net income for the quarter was $44,000 or $0.00 per share, compared
with a net loss of $2.6 million, or ($0.04) per share, for the same period in
fiscal 2008 and net income of $1.2 million, or $0.02 per share, for the
previous quarter. The Company's cash and investments increased to $15.8
million in the second quarter of fiscal 2009 from $12.9 million in the same
period of fiscal 2008 and $14.8 million in the previous quarter.
During the second quarter of fiscal 2009, the Company increased its 8x8
Virtual Office base by 1,846 net new customers and now provides service to
more than 13,700 companies with its business communications solutions.
"8x8's money saving Virtual Office communications services are more
critical than ever to businesses," said 8x8 Chairman & CEO Bryan R. Martin.
"With nearly $16 million in cash and no debt, the Company remains well
positioned in its efforts to transition more and more small businesses away
from budget-wasting legacy phone solutions. The potential of our Virtual
Office service to cut fixed costs to businesses of any size and drive
increased efficiencies and capabilities into the telecommunications
infrastructure of these companies is more relevant than ever in this economic
environment and we are driving this message home to all prospective
customers."
Q2 FY'09 Business Highlights:
-- Added 1,846 net new businesses to end the quarter with over 13,700
companies subscribing to 8x8 Virtual Office services
-- Successfully transitioned approximately 1,000 former business customers
and a unified communications technology platform from Avtex, LLC to the 8x8
Virtual Office network
-- Added $938,000 in cash and investments quarter over quarter and $2.9
million year over year to the Company's balance sheet for the Company's sixth
consecutive quarter of increasing cash and investments
-- Working capital increased year to date by $2.2 million to $8.3 million
and stockholder equity increased by $2.1 million to $10 million over the same
period
-- Increased business services revenue to 60% of total revenue -- up from
47% in the year ago period
-- Introduced family of leading edge desktop IP phones and new Hosted Key
System services
-- Announced marketing partnership and technology certification with
Microsoft's Response Point small business phone system
-- Expanded headcount of inside direct sales force, which accounted for
80% of new business sales during the quarter, by more than 30%
-- Expanded indirect channel network to include more than 30 resellers and
VARs
Management will host a conference call to discuss these results and other
matters related to the Company's business today, October 30, 2008, at 4:30
p.m. ET. To access the call, dial 888-680-0878 (domestic) or 617-213-4855
(international), passcode 80066242. A digital replay of the call will be
available for one week following the live broadcast at 888-286-8010 (domestic)
or 617-801-6888 (international), passcode 69582458. A webcast of this
conference call will also be available for a limited time at the 8x8 Investor
Relations website at: http://investors.8x8.com.
About 8x8, Inc.
8x8, Inc. (Nasdaq: EGHT) offers voice, video and mobile communications
solutions for business and residential customers. These solutions leverage
existing broadband Internet connections and cellular networks to deliver
advanced features and digital quality phone service at a fraction of the cost
of legacy, copper wire alternatives. Businesses of any size, configuration or
geographic location can benefit from the cost, performance and operational
advantages of VoIP technology by selecting the solution that best fits their
needs, whether it's the Virtual Office Hosted iPBX phone system, Complete
Contact Center, Virtual Trunking IP dial tone solution, Hosted Key System
service or Microsoft Response Point/8x8 small business phone system. All 8x8
communications solutions carry little or no upfront investment, no maintenance
or upgrade fees and no change in user behavior. For additional company
information, visit 8x8's web site at http://www.8x8.com.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 and Section 21E of the
Securities Exchange Act of 1934. These statements include, without limitation,
information about future events based on current expectations, potential
product development efforts, near and long-term objectives, potential new
business, strategies, organization changes, changing markets, future business
performance and outlook. Such statements are predictions only, and actual
events or results could differ materially from those made in any
forward-looking statements due to a number of risks and uncertainties. Actual
results and trends may differ materially from historical results or those
projected in any such forward-looking statements depending on a variety of
factors. These factors include, but are not limited to, customer acceptance
and demand for our VoIP products and services, the reliability of our
services, the prices for our services, customer renewal rates, customer
acquisition costs, actions by our competitors, including price reductions for
their telephone services, potential federal and state regulatory actions,
compliance costs, potential warranty claims and product defects, our needs for
and the availability of adequate working capital, our ability to innovate
technologically, the timely supply of products by our contract manufacturers,
potential future intellectual property infringement claims that could
adversely affect our business and operating results, and our ability to retain
our listing on the NASDAQ Capital Market. For a discussion of such risks and
uncertainties, which could cause actual results to differ from those contained
in the forward-looking statements, see "Risk Factors" in the Company's reports
on Forms 10-K and 10-Q, as well as other reports that 8x8, Inc. files from
time to time with the Securities and Exchange Commission. All forward-looking
statements are qualified in their entirety by this cautionary statement, and
8x8, Inc. undertakes no obligation to update publicly any forward-looking
statement for any reason, except as required by law, even as new information
becomes available or other events occur in the future.
8x8, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts; unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
2008 2007 2008 2007
Service revenues $14,903 $13,272 29,922 $26,683
Product revenues 1,522 1,496 2,784 2,827
Total revenues 16,425 14,768 32,706 29,510
Operating expenses:
Cost of service revenues 4,022 4,430 7,836 8,416
Cost of product revenues 1,673 2,652 3,105 4,035
Research and development 1,299 1,026 2,491 2,083
Selling, general and
administrative 9,667 10,050 18,418 18,969
Total operating expenses 16,661 18,158 31,850 33,503
Income (loss) from operations (236) (3,390) 856 (3,993)
Other income, net 107 161 192 293
Income on change in fair
value of warrant liability 190 671 259 1,650
Income (loss) before
provision for income taxes 61 (2,558) 1,307 (2,050)
Provision for income taxes 17 - 75 -
Net income (loss) $44 $(2,558) 1,232 $(2,050)
Net income (loss) per share:
Basic $0.00 $(0.04) $0.02 $(0.03)
Diluted $0.00 $(0.04) $0.02 $(0.03)
Weighted average
number of shares:
Basic 62,278 61,870 62,187 61,822
Diluted 62,361 61,870 62,277 61,822
8x8, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
September 30, March 31,
2008 2008
ASSETS
Current assets
Cash and cash equivalents $15,772 $11,185
Short-term investments - 3,382
Accounts receivable, net 710 1,807
Inventory 1,753 1,539
Other current assets 1,521 1,492
Total current assets 19,756 19,405
Property and equipment, net 1,770 2,010
Other assets 18 136
Total assets $21,544 $21,551
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $3,769 $4,885
Accrued compensation 1,168 1,048
Accrued warranty 298 314
Deferred revenue 3,646 3,139
Other accrued liabilities 2,559 3,872
Total current liabilities 11,440 13,258
Other liabilities 66 109
Fair value of warrant liability 75 335
Total liabilities 11,581 13,702
Total stockholders' equity 9,963 7,849
Total liabilities and
stockholders' equity $21,544 $21,551
SOURCE 8x8, Inc.
-0- 10/30/2008
/CONTACT: Joan Citelli, Investor Relations of 8x8, Inc., +1-408-687-4320,
jcitelli@8x8.com/
/Web site: http://www.8x8.com /
(EGHT)
CO: 8x8, Inc.
ST: California
IN: CPR MLM MEN
SU: ERN
AR-AE
-- AQTH025 --
7963 10/30/2008 16:00 EDT http://www.prnewswire.com