twice connect
careers

8x8 Reports Higher Sales, Reduced Q2 Loss

10/26/2006 11:57:00 AM Eastern

Santa Clara, Calif. — 8x8, provider of Packet8 broadband VoIP and videophone communications services, reported a 52 percent revenue gain but a net loss for its second fiscal quarter ended Sept. 30.

Revenues for the quarter increased to $13.2 million, compared to $7.1 million for the same period of last year.

The net loss for the quarter was $2.7 million, reduced from $5.6 million for the same period last year. The net loss, which improved by 52 percent, includes about $548,000 of employee stock-based compensation expense due to the adoption of new accounting standards. Excluding the impact of stock option expenses, the second quarter non-GAAP net loss was approximately $2.2 million.

“We are excited to see the Packet8 business nearing the turning point for cash flow and profitability, in line with our forecast of obtaining positive monthly cash flow during the quarter ending March 31, 2007,” said Bryan R. Martin, chairman/CEO. “The September quarter was the second best quarter ever in the history of the company with sales totaling $13.2M, exceeded only by the quarter ending Dec. 31, 1997, almost 9 years ago, when 8x8 posted total revenues of $15.1M from communication product sales.”

He added, “Our focus on the business space with Virtual Office affords 8x8 a sustainable and attractive business model. This is evidenced by our gross margins, which grew strongly to 52 percent for the quarter, and the decreasing customer churn we are seeing due to this segment of our service.”

Martin also noted, “We are pleased that our IP communication services have evolved to a point where they are yielding more than 50 percent gross margins. We continue to hear from our customers how much they value and appreciate our services, and we are eager to continue the growth of our financials, our technologies, and our IP communications services.”