SANTA CLARA, Calif., May 21 /PRNewswire-FirstCall/ -- 8x8, Inc.
(Nasdaq: EGHT), provider of Packet8 (http://www.packet8.net) business, mobile
and residential communication services, today announced financial operating
results for its fiscal fourth quarter and year ended March 31, 2008.
Total revenues for the fiscal year ended March 31, 2008 were $61.6
million, compared with $53.1 million for fiscal 2007, an increase of 16% year
over year. Packet8 business service revenues grew 81% year over year to $29.1
million in fiscal 2008 from $16.1 million for all of fiscal 2007. GAAP net
income grew to $30,000, or $0.00 per share, in fiscal 2008 from net losses of
$9.9 million, or ($0.16) per share, and $23.3 million, or ($0.42) per share,
in fiscal years 2007 and 2006, respectively.
Total revenues for the fourth quarter of fiscal 2008 were $16.3 million
compared with $14.4 million for the same period of the prior year, an increase
of 14%. Packet8 business service revenues for the fourth quarter grew 55%
over the same period last year, and represented 50% of total revenue for the
fiscal fourth quarter, compared with 37% of revenue for the same period last
year.
GAAP net income for the fourth quarter of fiscal 2008 was $691,000 or
$0.01 per share, compared with a loss of $2.9 million, or ($0.05) per share
for the same period last year. Operating income for the fourth quarter of
fiscal 2008 was $695,000, the company's first reported operating income since
the inception of the Packet8 business. Operating cash flow for the fourth
quarter of fiscal 2008 was $420,000 and $3 million for all of fiscal 2008.
The company ended its 2008 fiscal year with no debt and cash and investments
of $14.6 million, an increase of approximately $2.6 million from the end of
fiscal 2007.
As of March 31, 2008, 11,011 companies subscribed to Packet8 business
services, a 57% increase over the 7,003 companies subscribed at the end of
fiscal 2007.
"I am very pleased to report 8x8's first fiscal year of GAAP net income
since we launched the Packet8 service, as well as the growth of our business
services to now represent 50% of our revenues," said 8x8 Chairman and CEO
Bryan R. Martin. "I am also pleased to report continuing positive cash from
operating activities for both the quarter and the fiscal year. 8x8 is at an
exciting point in its history and we look forward to continued growth and
progress both financially and operationally. In particular, we have several
new business service and product launches planned for this year from which we
anticipate additional revenue sources for the company. We are currently in
beta testing with both a new family of IP phones that will complement and
expand the functionality of our existing Packet8 Virtual Office services, and
a new Virtual Trunking service that will target larger businesses who already
have an existing PBX system."
Management will host a conference call to discuss these results and other
matters related to the Company's business today, May 21, 2008, at 9:00 a.m.
EDT. To access this call, dial 888-680-0894 (domestic) or 617-213-4860
(international). A replay of this conference call will be available for a
limited time at 888-286-8010 (domestic) or 617-801-6888 (international). The
replay passcode is 76637417. 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 and video Internet-based telephony
services for business and residential customers. Marketed under the Packet8
brand name, these hosted communications solutions enhance the value and
functionality of existing broadband Internet connections by delivering
advanced features and digital quality phone service at a fraction of the cost
of legacy, copper wire alternatives.
The Packet8 Virtual Office™ solution, 8x8's flagship offering currently
in use by over 11,000 companies, eliminates the need for traditional business
phone systems by delivering all telephony services over managed or unmanaged
Internet connections. This affordable, easy-to-use alternative to traditional
PBX systems or Centrex class services allows high-speed Internet users
anywhere in the world to be part of a virtual PBX that includes automated
attendants, conference bridges, extension-to-extension dialing and ring
groups, in addition to a rich variety of other business class features
normally found on dedicated PBX equipment.
8x8 also offers residential, video and mobile digital phone services. For
additional company information, visit 8x8's web site at http://www.8x8.com.
For information about Packet8 products and services, visit
http://www.packet8.net.
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 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.
NOTE: 8x8, the 8x8 logo, Packet8, the Packet8 logo, Packet8 Virtual
Office, Packet8 Softalk and Packet8 Tango are trademarks of 8x8, Inc. All
other trademarks are the property of their respective owners.
8x8, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts; unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
2008 2007 2008 2007
Service revenues $15,068 $12,414 $56,177 $45,046
Product revenues 1,264 1,974 5,469 8,084
Total revenues 16,332 14,388 61,646 53,130
Operating expenses:
Cost of service revenues 3,891 4,688 16,671 19,020
Cost of product revenues 1,552 1,974 6,762 8,074
Research and development 1,171 1,040 4,335 4,712
Selling, general and administrative 9,023 9,121 37,596 35,657
Total operating expenses 15,637 16,823 65,364 67,463
Income (loss) from operations 695 (2,435) (3,718) (14,333)
Other income (expense), net (48) 128 1,606 667
Income (loss) on change in fair
value of warrant liability 44 (603) 2,142 3,736
Net income (loss) $691 $(2,910) $30 $(9,930)
Net income (loss) per share:
Basic $0.01 $(0.05) $0.00 $(0.16)
Diluted $0.01 $(0.05) $0.00 $(0.16)
Weighted average number of shares:
Basic 62,019 61,605 61,897 61,365
Diluted 62,148 61,605 62,112 61,365
8x8, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
March 31, March 31,
2008 2007
ASSETS
Current assets
Cash and cash equivalents $11,185 $6,735
Short-term investments 3,382 5,197
Accounts receivable, net 1,807 736
Inventory 1,539 2,629
Other current assets 1,492 1,502
Total current assets 19,405 16,799
Property and equipment, net 2,010 2,840
Other assets 136 319
Total assets $21,551 $19,958
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $4,885 $4,919
Accrued compensation 1,048 825
Accrued warranty 314 323
Deferred revenue 3,139 1,488
Other accrued liabilities 3,872 3,386
Total current liabilities 13,258 10,941
Other liabilities 109 253
Fair value of warrant liability 335 3,387
Total liabilities 13,702 14,581
Total stockholders' equity 7,849 5,377
Total liabilities and
stockholders' equity $21,551 $19,958
SOURCE 8x8, Inc.
-0- 05/21/2008
/CONTACT: Investor Relations, Joan Citelli of 8x8, Inc., +1-408-687-4320,
jcitelli@8x8.com/
/Web site: http://www.8x8.com
http://www.packet8.net /
(EGHT)