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8x8 Posts Revenue Gains, Raises Rates

2/01/2007 10:19:00 AM Eastern

Santa Clara, Calif. — VoIP provider 8x8 increased its earnings by 56 percent in its fiscal third quarter vs. the year-ago period, the company announced today.

Revenues for the third quarter of fiscal 2007, ended Dec. 31, 2006, were $13.2 million vs. $8.5 million for the year-ago quarter.

The company posted a net loss of $3.1 million for the quarter vs. a $6.8 million loss a year ago. Gross margins improved from 21 percent in the prior quarter to 52 percent, an increase 8x8 credited to a focus on its higher-cost Virtual Office business service.

The company also sent a notice to subscribers that the rate plans for most of its residential calling services would increase by $2. The Packet8 Freedom Unlimited plan will rise from $19.99 a month to $21.99 a month, as does the Unlimited Videophone plan.

The company’s Business 2000 plan will increase from $34.99 a month to $36.99 a month, while the company’s PC-based Softalk premium service sees the largest increase, from $5.99 to $9.99 a month.

The company’s annual plan is unchanged at $199.

In the letter to subscribers, the company said that rates had not been raised since 2003.