Fiscal Q4 2012 Revenue from Business Customers Increases 44% Year
over Year;
Fiscal 2012 Revenue from Business Customers
Increases 30% and Non-GAAP Net Income Increases 46%
SUNNYVALE, Calif.--(BUSINESS WIRE)--
8x8, Inc. (Nasdaq: EGHT), provider of innovative cloud communications
and computing solutions, today announced operating results for the
fourth quarter and fiscal year ended March 31, 2012.
Fourth Quarter Fiscal 2012 Financial Results
-
Total revenue for the quarter increased 33% year over year to a record
$24.2 million.
-
Revenue from business customers increased 44% year over year to $22.8
million.
-
Average monthly revenue per business customer was $244, compared with
$204 in the same period last year.
-
Average number of services subscribed to per business customer grew to
9.8 from 8.0 in the same period last year.
-
Business customer churn was 2.0%, compared with 2.3% in the fourth
quarter of fiscal 2011; revenue churn was 1.6%.
-
Gross margin at 68.4%; service margin was 76.1%.
-
GAAP net income was $63.9 million, or $0.87 per diluted share,
compared with $2.0 million, or $0.03 per share, for the fourth quarter
of fiscal 2011 (includes a one-time non-cash income tax benefit of
$62.1 million associated with the release of a deferred tax asset
valuation allowance in the fourth fiscal quarter).
-
Non-GAAP net income (as outlined in the reconciliation table below)
was $3.0 million, or $0.04 per diluted share, compared with $2.3
million, or $0.03 per diluted share, in the same period last year.
-
Balance sheet grew by $2.4 million to end the quarter with $24.4
million in cash, cash equivalents and investments.
Full Year Fiscal 2012 Financial Results
-
Total revenue was a record $85.8 million, a 22% increase over revenue
of $70.2 million for fiscal 2011.
-
Revenue from business customers was $79 million, a 30% increase over
revenue of $61 million in fiscal 2011.
-
GAAP net income was $69.2 million, or $0.99 per diluted share,
compared with $6.5 million, or $0.10 per share, for fiscal 2011
(includes a one-time non-cash income tax benefit of $62.1 million
associated with the release of a deferred tax asset valuation
allowance in the fourth fiscal quarter).
-
Non-GAAP net income (as outlined in the reconciliation table below)
was $10.3 million, or $0.15 per diluted share, compared with $7.1
million, or $0.11 per diluted share, for fiscal 2011.
-
Gross margin as a percentage of sales in fiscal 2012 was 67.5%,
compared with 67.8% for fiscal 2011.
-
Net cash provided by operating activities grew to $9.2 million,
compared with $8.6 million in fiscal 2011.
-
Cash, cash equivalents and investments increased $6.0 million in
fiscal 2012; share repurchases totaled $2.9M for fiscal year 2012.
"8x8's strong results for fiscal 2012 reflect the continued success of
our core business model combined with solid execution of our new
strategic initiatives," said 8x8 Chairman and CEO Bryan Martin. "These
included a sharper focus on mid-market business customers, reflected in
our higher ARPU figures, the acquisition of Contactual, the addition of
cloud hosting services and the refinement of our customer service
methodology and procedures, which translated into decreasing churn
results during the course of the year."
"I'm very pleased to report that as a result of these investments, we
have increased revenue from business customers in the fourth quarter by
44% while maintaining very healthy margins, net income and an increasing
cash balance," said Martin. "In addition, we more than tripled our
fourth quarter revenue from our channel compared to last year and, while
still a small percentage of our revenue, this progress is key to the
successful execution of our mid-market growth strategy."
Martin continued, "I am excited about 8x8's prospects for growth in
fiscal 2013 and beyond which will be driven by greater awareness of the
benefits of cloud-based technologies, increased mid-market and
government adoption of our services, a growing and productive
third-party channel organization and the prospects for global expansion
we are currently pursuing with new and existing partners."
Additional Fourth Quarter and Full Year
Business Highlights:
-
Ended the quarter with 28,671 business customers, compared with 27,677
customers in the prior quarter.
-
Appointed former Trend Micro and IBM executive Eric Goffney Vice
President of Customer Support & Success.
-
Added to Russell 3000 Index and OceanTomo 300 Patent Index.
-
Acquired cloud contact center service provider Contactual Inc. and
cloud hosting service provider Zerigo.
-
Co-developed, launched and began operation of mobile international
calling app for AT&T.
-
Announced inclusion in GSA Schedule 70 and NASA SEWP IV government
contract vehicles.
-
Added three new executives, Mansour Salame, Eric Salzman and Vikram
Verma, to 8x8 Board of Directors.
Non-GAAP Measures
We have provided in this release financial information that has not been
prepared in accordance with Generally Accepted Accounting Principles
(GAAP). We use these non-GAAP financial measures internally in analyzing
our financial results and believe they are useful to investors, as a
supplement to GAAP measures, in evaluating our ongoing operational
performance. We believe that the use of these non-GAAP financial
measures provides an additional tool for investors to use in evaluating
our ongoing operating results and trends and in comparing our financial
results with other companies in our industry, many of which present
similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. Investors are encouraged to review the reconciliation of
these non-GAAP financial measures to their most directly comparable GAAP
financial measures below. A reconciliation of our non-GAAP financial
measures to their most directly comparable GAAP measures has been
provided in the financial statement tables included below in this press
release.
Non-GAAP net income and non-GAAP net income per
share
We have defined non-GAAP net income as net income for GAAP plus loss on
investment, non-cash tax adjustments, stock-based compensation,
amortization of acquired intangible assets, acquisition-related costs
and facility exit costs. We have excluded loss on a strategic investment
in another company because we consider it to have been an isolated
transaction and believe it is not reflective of our ongoing operations.
Non-cash tax adjustments represent the differences between the amount of
taxes we expect to pay and our GAAP tax provision each period. In the
fourth quarter of fiscal 2012, we released a $62.1 million deferred tax
valuation allowance that reflects tax deferrals accumulated over many
years. This $62.1 million release is very unlikely to recur in the
future and is a non-cash transaction. We have excluded stock-based
compensation expense because it relies on valuations based on future
events, such as the market price of our common stock, that are difficult
to predict and are affected by market factors that are largely not
within the control of management. Amortization of acquired intangible
assets is excluded because it is a non-cash expense that we do not
consider part of ongoing operations when assessing our financial
performance, as it relates to accounting for certain purchased assets.
We have excluded acquisition-related expenses, including expenses to
exit an acquired facility, because these expenses are difficult to
predict and are often one-time. We define non-GAAP net income per share
as non-GAAP net income divided by the weighted-average diluted shares
outstanding. We define non-GAAP net income percentage of revenue as
non-GAAP net income divided by revenue. The GAAP and non-GAAP weighted
average number of diluted shares to calculate GAAP and non-GAAP earnings
per share are the same. We believe that such exclusions facilitate
comparisons to our historical operating results and to the results of
other companies in the same industry, and provides investors with
information that we use in evaluating management's performance on a
quarterly and annual basis.
Conference Call Information
Management will host a conference call to discuss these results and
other matters related to the Company's business today, May 16, 2012, at
4:30 pm EDT. The call is accessible via the following numbers and
webcast links:
Participants should plan to dial in or log on ten minutes prior to the
start time. A telephonic replay of the call will be available three
hours after the conclusion of the call until midnight May 23, 2012. The
webcast will be archived on 8x8's website for a period of three months.
For additional information, visit http://investors.8x8.com.
About 8x8, Inc.
8x8, Inc. (NASDAQ: EGHT) is a leading provider of cloud communications
and computing solutions. With a portfolio of SaaS and IaaS solutions
encompassing hosted communications services, contact center, unified
communications, video web conferencing, managed dedicated hosting,
virtual private servers and more, 8x8 is uniquely positioned as a
business' one-stop shop for everything cloud. 8x8 has been delivering
cloud services since 2002 and has garnered a reputation for
technological excellence and outstanding reliability, backed by a
commitment to exceptional customer support. 8x8 customers include small
to medium sized businesses, distributed enterprise organizations and
government agencies. For additional information, visit www.8x8.com,
or connect with 8x8 on Facebook
and Twitter.
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.
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8x8, Inc.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
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(In thousands, except per share amounts; unaudited)
|
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|
|
|
|
|
|
|
|
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Three Months Ended
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Twelve Months Ended
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March 31,
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March 31,
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|
2012
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2011
|
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|
2012
|
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2011
|
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|
Service revenues
|
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$
|
22,148
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|
|
$
|
16,900
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|
|
|
$
|
78,382
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$
|
64,998
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Product revenues
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2,051
|
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|
|
1,284
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|
|
|
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7,421
|
|
|
|
5,165
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Total revenues
|
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24,199
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|
|
|
18,184
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|
|
|
|
85,803
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|
|
|
70,163
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|
|
|
|
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|
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Operating expenses:
|
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Cost of service revenues
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5,301
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|
|
|
3,718
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|
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|
|
18,065
|
|
|
|
14,508
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|
Cost of product revenues
|
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|
2,355
|
|
|
|
2,218
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|
|
|
|
9,822
|
|
|
|
8,115
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Research and development
|
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1,843
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|
1,191
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|
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6,745
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|
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4,819
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Sales and marketing
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10,904
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7,872
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37,980
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31,744
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General and administrative
|
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1,640
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|
|
|
1,152
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|
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|
|
6,012
|
|
|
|
4,733
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|
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Total operating expenses
|
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22,043
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|
|
|
16,151
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|
|
|
|
78,624
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|
|
|
63,919
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|
|
Income from operations
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2,156
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|
|
|
2,033
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|
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7,179
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|
|
|
6,244
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Other income (loss), net
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(363
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)
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26
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(305
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)
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|
305
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Income before provision for income taxes
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1,793
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|
|
2,059
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6,874
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6,549
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Provision (benefit) for income taxes
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(62,070
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)
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48
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(62,354
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)
|
|
|
55
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|
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Net income
|
|
$
|
63,863
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|
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$
|
2,011
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|
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$
|
69,228
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|
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$
|
6,494
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Net income per share:
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Basic
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$
|
0.91
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$
|
0.03
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$
|
1.04
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$
|
0.10
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Diluted
|
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$
|
0.87
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$
|
0.03
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$
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0.99
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$
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0.10
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Weighted average number of shares:
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Basic
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70,205
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62,655
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66,413
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63,087
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Diluted
|
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73,648
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65,956
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70,149
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65,873
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8x8, Inc.
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(In thousands, unaudited)
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|
|
|
|
|
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March 31,
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March 31,
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2012
|
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2011
|
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ASSETS
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Current assets
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Cash and cash equivalents
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$
|
22,426
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$
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16,474
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Investments
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|
1,942
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|
1,927
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Accounts receivable, net
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|
|
2,279
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|
|
|
863
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Inventory
|
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|
|
581
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|
|
|
2,105
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Deferred tax assets
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7,730
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-
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Other current assets
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928
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707
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Total current assets
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35,886
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22,076
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Property and equipment, net
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3,820
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2,398
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Intangible assets, net
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11,622
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|
|
214
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Goodwill
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25,150
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1,210
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Deferred tax assets, non-current
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53,977
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|
-
|
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Other assets
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|
|
278
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|
|
686
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Total assets
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|
$
|
130,733
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$
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26,584
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities
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|
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Accounts payable
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|
$
|
5,476
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|
|
$
|
4,551
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|
Accrued compensation
|
|
|
|
3,105
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|
|
|
1,722
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|
Accrued warranty
|
|
|
|
387
|
|
|
|
362
|
|
Deferred revenue
|
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|
|
891
|
|
|
|
835
|
|
Other accrued liabilities
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|
|
|
2,356
|
|
|
|
3,214
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Total current liabilities
|
|
|
|
12,215
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|
|
|
10,684
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|
|
|
|
|
|
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Other liabilities
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|
|
|
68
|
|
|
|
39
|
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Total liabilities
|
|
|
|
12,283
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|
|
|
10,723
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Total stockholders' equity
|
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|
118,450
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|
|
|
15,861
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Total liabilities and stockholders' equity
|
|
|
$
|
130,733
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|
|
$
|
26,584
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|
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8x8, Inc.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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|
(In thousands, unaudited)
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|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2012
|
|
|
2011
|
|
Cash flows from operating activities:
|
|
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|
|
|
|
|
|
Net income
|
|
|
$
|
69,228
|
|
|
$
|
6,494
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
1,535
|
|
|
|
1,235
|
|
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Amortization
|
|
|
|
788
|
|
|
|
94
|
|
|
Stock-based compensation
|
|
|
|
1,506
|
|
|
|
458
|
|
|
Change in fair value of warrant liability
|
|
|
|
-
|
|
|
|
(167
|
)
|
|
Deferred income tax benefit
|
|
|
|
(62,422
|
)
|
|
|
-
|
|
|
Other
|
|
|
|
561
|
|
|
|
84
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
(1,059
|
)
|
|
|
(358
|
)
|
|
Inventory
|
|
|
|
1,535
|
|
|
|
29
|
|
|
Other current and noncurrent assets
|
|
|
|
489
|
|
|
|
75
|
|
|
Deferred cost of goods sold
|
|
|
|
1
|
|
|
|
(16
|
)
|
|
Accounts payable
|
|
|
|
(1,214
|
)
|
|
|
916
|
|
|
Accrued compensation
|
|
|
|
128
|
|
|
|
278
|
|
|
Accrued warranty
|
|
|
|
25
|
|
|
|
31
|
|
|
Accrued taxes and fees
|
|
|
|
(356
|
)
|
|
|
24
|
|
|
Deferred revenue
|
|
|
|
(197
|
)
|
|
|
(475
|
)
|
|
Other current and noncurrent liabilities
|
|
|
|
(1,337
|
)
|
|
|
(113
|
)
|
|
Net cash provided by operating activities
|
|
|
|
9,211
|
|
|
|
8,589
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
(2,300
|
)
|
|
|
(2,057
|
)
|
|
Restricted cash decrease
|
|
|
|
28
|
|
|
|
-
|
|
|
Purchase of investment
|
|
|
|
-
|
|
|
|
(2,000
|
)
|
|
Purchase of strategic investment
|
|
|
|
-
|
|
|
|
(315
|
)
|
|
Acquisition of businesses, net of cash acquired
|
|
|
|
(713
|
)
|
|
|
(998
|
)
|
|
Sale of property and equipment
|
|
|
|
-
|
|
|
|
6
|
|
|
Net cash used in investing activities
|
|
|
|
(2,985
|
)
|
|
|
(5,364
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Capital lease payments
|
|
|
|
(275
|
)
|
|
|
(38
|
)
|
|
Repurchase of common stock
|
|
|
|
(2,934
|
)
|
|
|
(7,662
|
)
|
|
Buyback of employee stock options
|
|
|
|
-
|
|
|
|
(539
|
)
|
|
Proceeds from exercise of warrants
|
|
|
|
-
|
|
|
|
880
|
|
|
Proceeds from (cost of) issuance of common stock
|
|
|
|
(60
|
)
|
|
|
278
|
|
|
Proceeds from issuance of common stock under employee stock plans
|
|
|
|
2,995
|
|
|
|
2,274
|
|
|
Net cash used in financing activities
|
|
|
|
(274
|
)
|
|
|
(4,807
|
)
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
5,952
|
|
|
|
(1,582
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period
|
|
|
|
16,474
|
|
|
|
18,056
|
|
|
Cash and cash equivalents at the end of the period
|
|
|
$
|
22,426
|
|
|
$
|
16,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8x8, Inc.
|
|
Selected Operating Statistics
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
2011
|
|
June 30,
2011
|
|
Sept. 30,
2011
|
|
Dec. 31,
2011
|
|
March 31,
2012
|
|
Gross business customer additions (1)
|
|
|
3,009
|
|
|
|
|
2,897
|
|
|
|
|
3,176
|
|
|
|
|
2,836
|
|
|
|
|
2,892
|
|
|
Gross business customer cancellations (less cancellations within 30
days of sign-up)
|
|
|
1,645
|
|
|
|
|
1,593
|
|
|
|
|
1,620
|
|
|
|
|
1,642
|
|
|
|
|
1,697
|
|
|
Business customer churn (less cancellations within 30 days of
sign-up) (2)
|
|
|
2.3
|
%
|
|
|
|
2.1
|
%
|
|
|
|
2.1
|
%
|
|
|
|
2.0
|
%
|
|
|
|
2.0
|
%
|
|
Total business customers (3)
|
|
|
24,385
|
|
|
|
|
25,455
|
|
|
|
|
26,727
|
|
|
|
|
27,677
|
|
|
|
|
28,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business customer average monthly service revenue per customer (4)
|
|
$
|
204
|
|
|
|
$
|
200
|
|
|
|
$
|
207
|
|
|
|
$
|
239
|
|
|
|
$
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall service margin
|
|
|
78
|
%
|
|
|
|
78
|
%
|
|
|
|
77
|
%
|
|
|
|
77
|
%
|
|
|
|
76
|
%
|
|
Overall product margin
|
|
|
-73
|
%
|
|
|
|
-53
|
%
|
|
|
|
-45
|
%
|
|
|
|
-24
|
%
|
|
|
|
-15
|
%
|
|
Overall gross margin
|
|
|
67
|
%
|
|
|
|
67
|
%
|
|
|
|
66
|
%
|
|
|
|
68
|
%
|
|
|
|
68
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business subscriber acquisition cost per service (5)
|
|
$
|
91
|
|
|
|
$
|
89
|
|
|
|
$
|
101
|
|
|
|
$
|
92
|
|
|
|
$
|
99
|
|
|
Average number of services subscribed to per business customer
|
|
|
8.0
|
|
|
|
|
8.4
|
|
|
|
|
9.0
|
|
|
|
|
9.4
|
|
|
|
|
9.8
|
|
|
Business customer subscriber acquisition cost (6)
|
|
$
|
725
|
|
|
|
$
|
743
|
|
|
|
$
|
906
|
|
|
|
$
|
867
|
|
|
|
$
|
965
|
|
(1) Includes 250 customers acquired directly from our acquisition in the
second fiscal quarter of 2012 from Contactual, Inc. and does not include
customers of Virtual Office Solo or Zerigo, Inc. ("Zerigo").
(2) Business customer churn is calculated by dividing the number of
business customers that terminated (after the expiration of the 30 day
trial) during that period by the simple average number of business
customers during the period and dividing the result by the number of
months in the period. The simple average number of business customers
during the period is the number of business customers on the first day
of the period plus the number of business customers on the last day of
the period divided by two.
(3) Business customers are defined as customers paying for service.
Customers that are currently in the 30 day trial period are considered
to be customers that are paying for service. Customers subscribing to
Virtual Office Solo or Zerigo services are not included as business
customers.
(4) Business customer average monthly service revenue per customer is
service revenue from business customers in the period divided by the
number of months in the period divided by the simple average number of
business customers during the period.
(5) Business subscriber acquisition cost per service is defined as the
combined costs of advertising, marketing, promotions, commissions and
equipment subsidies for business services sold during the period divided
by the number of gross business services added during the period.
(6) Business customer subscriber acquisition cost is business subscriber
acquisition cost per service times the average number of services
subscribed to per business customer.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8x8, Inc.
|
|
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
|
|
AND NON-GAAP NET INCOME PER SHARE
|
|
(In thousands, except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
March 31,
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
2012
|
|
|
2011
|
|
Net income
|
|
|
$
|
63,863
|
|
|
$
|
2,011
|
|
|
|
|
$
|
69,228
|
|
|
$
|
6,494
|
|
|
Loss on investment
|
|
|
|
356
|
|
|
|
-
|
|
|
|
|
|
356
|
|
|
|
-
|
|
|
Non-cash tax adjustments
|
|
|
|
(62,086
|
)
|
|
|
-
|
|
|
|
|
|
(62,422
|
)
|
|
|
-
|
|
|
Amortization
|
|
|
|
357
|
|
|
|
26
|
|
|
|
|
|
788
|
|
|
|
94
|
|
|
Stock-based compensation expense
|
|
|
|
493
|
|
|
|
230
|
|
|
|
|
|
1,506
|
|
|
|
458
|
|
|
Acquisition-related expense
|
|
|
|
12
|
|
|
|
-
|
|
|
|
|
|
739
|
|
|
|
10
|
|
|
Facility exit expense
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
140
|
|
|
|
-
|
|
|
Non-GAAP net income
|
|
|
$
|
2,995
|
|
|
$
|
2,267
|
|
|
|
|
$
|
10,335
|
|
|
$
|
7,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
73,648
|
|
|
|
65,956
|
|
|
|
|
|
70,149
|
|
|
|
65,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per share - Diluted
|
|
|
$
|
0.87
|
|
|
$
|
0.03
|
|
|
|
|
$
|
0.99
|
|
|
$
|
0.10
|
|
|
Loss on investment
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
0.01
|
|
|
|
-
|
|
|
Non-cash tax adjustments
|
|
|
|
(0.84
|
)
|
|
|
-
|
|
|
|
|
|
(0.89
|
)
|
|
|
-
|
|
|
Amortization
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
0.01
|
|
|
|
-
|
|
|
Stock-based compensation expense
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
|
|
0.02
|
|
|
|
0.01
|
|
|
Acquisition-related expense
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
0.01
|
|
|
|
-
|
|
|
Facility exit expense
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
Non-GAAP net income per share - Diluted
|
|
|
$
|
0.04
|
|
|
$
|
0.03
|
|
|
|
|
$
|
0.15
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income percentage of revenue
|
|
|
|
264
|
%
|
|
|
11
|
%
|
|
|
|
|
81
|
%
|
|
|
9
|
%
|
|
Loss on investment
|
|
|
|
1
|
%
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
Non-cash tax adjustments
|
|
|
|
-257
|
%
|
|
|
-
|
|
|
|
|
|
-73
|
%
|
|
|
-
|
|
|
Amortization
|
|
|
|
2
|
%
|
|
|
-
|
|
|
|
|
|
1
|
%
|
|
|
-
|
|
|
Stock-based compensation expense
|
|
|
|
2
|
%
|
|
|
1
|
%
|
|
|
|
|
2
|
%
|
|
|
1
|
%
|
|
Acquisition-related expense
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
1
|
%
|
|
|
-
|
|
|
Facility exit expense
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
Non-GAAP net income percentage of revenue
|
|
|
|
12
|
%
|
|
|
12
|
%
|
|
|
|
|
12
|
%
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8x8, Inc.
|
|
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
|
|
AND NON-GAAP NET INCOME PER SHARE
|
|
(In thousands, except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
June 30,
2011
|
|
|
|
Sept. 30,
2011
|
|
|
|
Dec. 31,
2011
|
|
|
|
March 31,
2012
|
|
Net income
|
|
$
|
1,947
|
|
|
|
$
|
832
|
|
|
|
$
|
2,586
|
|
|
|
$
|
63,863
|
|
|
Loss on investment
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
356
|
|
|
Non-cash tax adjustments
|
|
|
(336
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(62,086
|
)
|
|
Amortization
|
|
|
26
|
|
|
|
|
48
|
|
|
|
|
357
|
|
|
|
|
357
|
|
|
Stock-based compensation expense
|
|
|
266
|
|
|
|
|
329
|
|
|
|
|
418
|
|
|
|
|
493
|
|
|
Acquisition-related expense
|
|
|
7
|
|
|
|
|
479
|
|
|
|
|
241
|
|
|
|
|
12
|
|
|
Facility exit expense
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
140
|
|
|
|
|
-
|
|
|
Non-GAAP Net income
|
|
$
|
1,910
|
|
|
|
$
|
1,688
|
|
|
|
$
|
3,742
|
|
|
|
$
|
2,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
65,808
|
|
|
|
|
67,759
|
|
|
|
|
73,214
|
|
|
|
|
73,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per share - Diluted
|
|
$
|
0.03
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.04
|
|
|
|
$
|
0.87
|
|
|
Loss on investment
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Non-cash tax adjustments
|
|
|
(0.01
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(0.84
|
)
|
|
Amortization
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Stock-based compensation expense
|
|
|
0.01
|
|
|
|
|
-
|
|
|
|
|
0.01
|
|
|
|
|
0.01
|
|
|
Acquisition-related expense
|
|
|
-
|
|
|
|
|
0.01
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Facility exit expense
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Non-GAAP net income per share - Diluted
|
|
$
|
0.03
|
|
|
|
$
|
0.02
|
|
|
|
$
|
0.05
|
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income percentage of revenue
|
|
|
11
|
%
|
|
|
|
4
|
%
|
|
|
|
11
|
%
|
|
|
|
264
|
%
|
|
Loss on investment
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1
|
%
|
|
Non-cash tax adjustments
|
|
|
-2
|
%
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-257
|
%
|
|
Amortization
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1
|
%
|
|
|
|
2
|
%
|
|
Stock-based compensation expense
|
|
|
1
|
%
|
|
|
|
2
|
%
|
|
|
|
2
|
%
|
|
|
|
2
|
%
|
|
Acquisition-related expense
|
|
|
-
|
|
|
|
|
3
|
%
|
|
|
|
1
|
%
|
|
|
|
-
|
|
|
Facility exit expense
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1
|
%
|
|
|
|
-
|
|
|
Non-GAAP net income percentage of revenue
|
|
|
10
|
%
|
|
|
|
9
|
%
|
|
|
|
16
|
%
|
|
|
|
12
|
%
|
Investor Relations Contact:
8x8, Inc.
Joan Citelli,
408-654-0970
Joan.citelli@8x8.com
Source: 8x8
News Provided by Acquire Media