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From: TechKim1/27/2012 12:00:18 AM
   of 1864
 
Hit a high of $4.55 today

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From: Savant3/12/2012 6:54:08 PM
   of 1864
 
Rang naz bell on the 5th, qtr hi on Friday, and took a hit today>> 8x8 Inc Cut To Neutral From Buy By B Riley >EGHT

Last Update: 3/12/2012 1:04:36 PM

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From: TechKim3/19/2012 11:02:02 PM
1 Recommendation   of 1864
 
8x8: A High-Value Cloud Takeover Target
March 19, 2012

http://seekingalpha.com/article/442791-8x8-a-high-value-cloud-takeover-target?source=yahoo

8x8, Inc. (EGHT) represents a unique opportunity for investors to participate in a potentially valuable takeover play in the cloud communications and cloud services space. While the company has been in business since 1987, in the most recent years investors have been able to publicly invest in what amounts to a unique "venture-type" start-up situation.

Unlike most venture start-ups, however, 8x8 is highly profitable and has a revenue run-rate which should be well above $120 million in the upcoming fiscal year (FY'13). We believe the current cloud space environment, intellectual property litigation, market dynamics, and competitive advantages of the company make it a high-value takeover target. We believe a near-term valuation of $8.50-$9.38 is likely in a potential bid (based only on FY'13 expectations). If you extrapolate out to FY'14 models, a value of $10.40-$11.38 is reasonable.

On January 18, 2012, 8x8 reported their Third Quarter Fiscal 2012 results of $23.3 million and net income of $2.6 million (a net income increase of 73%), or .04 per share. This represented a 31% increase compared to the same period last year and a 17% sequential increase compared to revenue of $19.8 million in the prior quarter. Total revenue from business customers grew 42% year over year. Churn rate (accounts canceled due to hardship or other reasons) decreased to 2.0%, their lowest on record. Cash on balance sheet increased to $21.9 million. These are incredible growth numbers and very consistent from the company over the past several quarters.

Background

In 1987, under the name Integrated Information Technology, 8x8 originally developed semiconductors for use in programmable multimedia silicon solutions. From 1987 to 2002, 8x8 was a supplier to telecom companies (many of whom have since gone out of business) in the videoconferencing and VoIP chip markets. It was not until 2002, that 8x8 transformed their business from an OEM, to a consumer focused company, selling directly to the end user.

In 2005, the company transitioned its entire business plan to focus specifically on the hosted (cloud) communications market for businesses. Shareholders should concentrate directly on the years 2005 through present to gain an appreciation of 8x8's growth trajectory.

Current Service Offerings

8x8 truly is unique in that investors are able to participate in a company with a solid balance sheet and current annualized revenues of nearly $100 million - but also invest in a company with potential rapid growth rates seen mostly in entities that are private and venture-stage. Their offerings extend well into the cloud sector, under a single umbrella. This enables 8x8 to "cross-sell" their products to existing and prospective clients, and have multiple entry points for new sales under one single source.

8x8's current "cloud" business services can be divided into three segments:

1. Unified Communications:

8x8's "gold standard" offering, in which they essentially own the SMB (small-to-medium business) market. This product represents the "cloud communications" segment of their portfolio of offerings. These are advanced business telephony services supplied to SMB, enterprise business market, and government and municipalities - all extremely user-friendly.

Virtual Office Pro: a superior business class phone service hosted entirely by 8x8. There is no need for a legacy-equipment PBX system, nor is there a need for an in-house IT person to install and service the PBX. This is truly a cloud-based communication. Enterprise customers can potentially save hundreds of thousands of dollars per year using this service.
Virtual Office Online: a web dashboard used to make calls, schedule meetings, send faxes, record calls, and much more, all from your computer or laptop.
Virtual Office Mobile: a high-powered application for your iPhone, iPad, or Android system with most of the functionality of a PBX system. In November of 2011, AT&T announced a partnership with 8x8, Inc. for AT&T's smartphone customers called AT&T Call International. AT&T will do all marketing, 8x8, Inc. will support and provide the service.
IP Trunking: if you already have a long term commitment with your current IP, PBX you can leverage your current system with 8x8's service, potentially saving a substantial amount of cost to a company's bottom line.
Virtual Meeting: online conferences with audio, video, and desktop sharing - this product essentially replaces any need for a company to outsource to WebEx or GoToMeeting.
Virtual Room: in collaboration with Polycom, 8x8, Inc. is providing enterprise-class video-conferencing services to enterprise and government customers using Polycom's VVX or HDX equipment.
We strongly highlight that, according to 8x8's Investor Presentations, their current customer set has extremely well known, large enterprise customers as well as large government agencies. Again, we suggest, as an investor, you pay attention to their ability to focus and rapidly penetrate the enterprise and government sectors. According to the company, their current enterprise customers (both communications and data) include: McKesson (MCK), New York Life, McLarens Young International, HomeAway (AWAY), RE/MAX, Aflac (AFL), Unisys (UIS), Allstate (ALL), Nationwide, Keller Williams, Adecco (AHEXY.PK), H&R Block, AOL (AOL), Intel (INTC), Ameriprise (AMP), Prometheus, State Farm Insurance, Farmers Insurance, among others.

Their partnership with Level3 (LVLT) has allowed 8x8 to be a contractor on Networx and WITS 3 Contracts for the Federal Government and State and Local Government. Again, we strongly advise investors pay attention to 8x8's ability to expand rapidly into this potentially huge area of growth. Current list of contracts include: Federal Maritime Commission, U.S. China Commission, Administrative Conference of the U.S., Defense Nuclear Facilities Safety Board. State and Local Government includes: City of Garden Grove, CA., and Indiana Public Retirement Systems.

The ability of 8x8 to move "upscale" into the large enterprise and government services market is a testament to future growth potential. 8x8 currently dominates the SMB market (serving the 2- to 20-person company), however, in recent quarters, they have been able to quickly expand their service to the aforementioned entities, with seats of 100 to 1,400 persons. We expect 8x8 will further penetrate this enterprise and government market and continue to win bids against major market players such as Cisco (CSCO) and Avaya.

We expect, going forward, 8x8 to become one of the dominant players in this segment - competing on the same level of a Cisco Systems. Further, at the end of last quarter, 8x8 announced they have signed 54 distribution partners, including 3 strategic telecommunications providers now distributing call center services - many of these have yet to even start selling 8x8 services.

In an example of the market penetration 8x8 continues to have with large-enterprise and government sales efforts, the Indiana Public Retirement Systems, according to a recent 8x8 presentation, signed a contract with 8x8 for 360 phone lines, 40 call center seats, as well as cloud storage. All three services were ordered at "point of sale." We can estimate a phone line at $25/month, and a call-center seat at approx. $125/seat - or approximately $14,000/month, or $42,000/per quarter revenues from this one, single contract (model excludes cloud-storage).

Competition in this area would be Shortel, CBeyond, Vocalocity, Cisco, Avaya, among others. We believe 8x8 has a competitive advantage in pricing, the broad "one stop shopping" scope of their offerings, and the fact that 8x8 completely owns all of their patent and intellectual property (a strong part of our thesis of 8x8's attractiveness as a takeover from a multinational player in the industry).

Another potentially huge untapped area of growth for 8x8 is in the global markets. A development which 8x8 has yet to announce is their "Global Reach Initiative."

On February 1, 2012, Voxbone announced that is "providing geographical and toll-free numbers to help cloud communications provider 8x8 Inc. expand its international calling capabilities to serve larger business customers on a global scale. The new relationship with Voxbone enables 8x8 to provide geographical and toll-free numbers for business customers with offices outside of the United States."

Mehdi Salour, 8x8 Vice President of Network Operations, was quoted in Voxbone's PR as saying, "Along with the adoption of our communications services by larger-sized businesses, we are seeing an increased demand to provide 8x8 services and phone numbers outside of North America, particularly where the customer requires a follow-the-sun contact center support strategy. The addition of the Voxbone portfolio of numbers in conjunction with our expansion into data centers in Europe and Asia will greatly enhance our ability to satisfy these customers."

We eagerly anticipate hearing more about 8x8's "Global Reach Initiative" shortly, as this would provide a tremendous source of new and yet-to-be-forecast future revenue growth.

2. Hosting Solutions

Through the acquisitions of small private entities such as Zerigo and Central Host (which cost the company well under $5 million USD), 8x8 was able to expand their offerings into yet another strong area of growth: the Cloud Data Services Market. Rackspace (RAX), Amazon (AMZN), LiquidWeb, and Giganet are primary competitors in this segment of the market. 8x8 also acquired the VBlock Infrastructure for enterprise-grade and government contracts.

Cloud Servers: virtual private servers, hosted DNS, and professional hosted monitoring.
Managed Dedicated Servers: managed and monitored servers and operating systems 24/7.
Private Cloud Server Virtualization: dedicated servers and virtualization.
VBlock Hosting Solutions: IT functionality in partnership with Cisco, EMC and VMWare, the VBlock is a fully integrated storage platform. Enterprise-grade functionality.
A recent study from IDC predicts cloud related service revenues will grow 28% annually through 2014. IDC also predicts that revenues generated from cloud servers will reach $9.4b annually by 2015, with demand for cloud servers growing 21-22% annually over the next five years.

This is the segment of the company we feel is in the "venture," exponential growth rate stage. As previously mentioned, in 2005, 8x8's "Revenue from Business Customers" was ~$2.0 million/year. By March 31, 2011, 8x8's "Revenue from Business Customers" exceeded $60 million. This is an increase of nearly $60 million in 6 years. Assuming 8x8 can grow the "Hosted Solutions" in the same manner (at a minimum), in 5 years the company could also be reporting revenue of at least $60-$80 million in this segment of the company.

Bryan Martin, 8x8's CEO, was quoted as saying, "Over time it wouldn't surprise me to see a 50-50 split (between VOIP communications and Hosting Solutions) because hosting is growing so quickly and is so applicable to our customers." If we follow the CEO's comments, our estimates could be much too conservative.

Recent large customer wins from 8x8 include The City of Garden Grove, CA (which uses the service as a cloud-based disaster recovery service), as well as EBMUD (a California public utilities company also using the service as a cloud-based disaster recovery solution for premise-based call center operation).

3. Contact Center/Virtual Call Center Solutions

In 2012, 8x8 acquired Contactual in a stock deal worth ~$27 million. At the time of acquisition, Contactual had annual revenues of ~$10 million and growing at an annual rate of ~20%. Virtual Call Center growth is expanding exponentially, and is replacing, once again, expensive on-premise based equipment. According to Contactual, "Dozens of Fortune 500 companies that could afford to spend millions on a call center solution selected Contactual over the traditional on-premise providers.

In addition, small businesses can finally experience the benefits of a fully-featured call center application that, until now, was financially beyond their means. Contactual's OnDemand Contact Center is the most innovative and flexible offering among call center providers and allows any organization to quickly and easily reinvent their customer interaction experience for all of their customer contact methods or for a single method such as email response management."

Enterprise customers which 8x8 acquired as of a result of the acquisition include AmericanExpress (AXP), Sony, Hitachi, General Electric (GE), Agilent (A), Schneider Electric, Walgreens (WAG), CORT, Olympus, Hewitt, Boston Market, and Savi, among others. In the mid-market, customers include NetSuite, Elance, SkinMedica, Dentisoft, Lumens, bytescribe, TradeCard, and Yale University, among others. We believe this acquisition will be a massive opportunity for cross-selling existing telephony and hosting services to these large enterprise and mid-market customers.

Again, this solution is the future of call centers: hosted, on-demand, virtual call centers - no more expensive legacy equipment. It is a high growth area and we expect 8x8 to have remarkable success growing the business, cross-selling the product with existing services, and further expansion into the large enterprise customer market. We believe 8x8 can grow this segment at much more than pre-acquisition rates of 20%, and view 20% as extremely conservative going forward.

Intellectual Property - A Potential Multimillion-Dollar Asset

8x8 currently has 79 patents with the USPTO. While we believe all of the patents have value, it is the intellectual property patents granted during the last several years that hold most of the potential. "Virtual Telephone Extension," "Communications Controller," "Arrangement and Method of Internet telephony," "Videoconferencing Arrangement Having Multi-Purpose Digital Still Camera," "Speech Processing," "Network Communications Having Endpoint Device with Automatic Connection to IPBX," "Voice Over Internet Processor," "Sensor-Controlled Telephone System," and several other notables including multiple patents related to videoconferencing are a large hidden asset at 8x8.

We believe 8x8 patents could hold value of up to $50 million for their entire patent portfolio. We also believe, after listening to company conference calls, that 8x8 consistently receives bids for some of their patent families. Should 8x8 decide to license or sell some or all of these assets, we believe it could add between $15-50 million as a hard asset on their balance sheet. It is our supposition that this is quite possible as evidenced by recent litigation in the technology space between several large multi-national corporations (Yahoo v. Facebook, Apple v. Motorola, ZTE v. Ericsson, HW Tech vs. Google et al, etc., and bidding wars over Nortel Network's patent family).

We believe the current share price of 8x8 does not even remotely represent the true value of the company due to very simple factors. First, current sell-side analyst coverage is minimal and the only coverage is from little known, third and fourth-tier firms. Some of the analysts covering the company, in our opinion, have very few followers and we highly question their industry respect. Their coverage was likely initiated after clients of their firm specifically requested coverage of the company because they had a vested position in the company.

Essentially, what shareholders are currently left with are reports from some of these firms, upgrading and downgrading the company after the stock moves in increments of $1.00 - $1.50. Further, the problem with having coverage from low-tier firms is that in many instances, upgrades and downgrades are done to "drum up" trading revenues in low volatility markets. Low-tier firms are struggling in today's environment and tend to "churn" ideas simply in an effort to boost trading revenues - all of the aforementioned, extremely unprofessional in our opinion.

8x8 has done a fair job at promoting the future of the company at first and second-tier investment banking firms at technology conferences. The sad reality about the lack of ethics on Wall Street is that most investment banking firms will not initiate coverage on a company, no matter how good, if the company is not paying banking fees to the firm, through either corporate financing or some other structured deal. So, unfortunately, 8x8 is left with a lackluster following of third and fourth-tier firms that add minimal to absolutely no client value.

Secondly, we would prefer 8x8 management to be a more dynamic team. Their current management team is good, but not outstanding or visionary. We would prefer a visionary as CEO, or, at the very least, to fill a vacant Director spot with a true technology visionary - a current or former star in the industry. 8x8 has done a decent job recently with replacing two Board members with Vikram Verma (currently President of Strategic Venture at Lockheed Martin), and Mansour Salame (former Founder of Contactual).

Also, 8x8 hired Kim Niederman, who now serves as President of 8x8 (formerly Sr. V.P. of Worldwide Sales at Polycom and other senior positions at Cisco Systems). We, however, still prefer a more dynamic visionary, at the very least, serving on the board. We feel this would greatly enhance shareholder value in the company.

Valuation

8x8 at a current market-cap of ~$270 million is not being valued properly in the market. It is undervalued in our opinion - plain and simple.

EGHT is currently trading well under 3x FY'13 revenues. The current enterprise value is ~$250 million. FY'12 Q4 income will be reported in the next couple of months and we fully expect, at a minimum, $25 million topline revenues. Our conservative model would suggest FY'13 (which begins in April, 2012) to have topline revenues of at least $125 million. FY'14 would suggest revenues of around $160 million.

When recently asked about operating margins, CFO Dan Weirich stated that they intend to aggressively "grow the topline well in excess of over 20%". We believe this is conservative, and highly attainable. Again, our projections of FY'13 and FY'14 are based on a conservative model. Further, we think it is a mistake for current analysts to rely too much on EPS forecasts as operating margins will likely bump around as they continue to aggressively grow the company.

It makes no sense whatsoever for a high growth company like 8x8 to focus too much on solely ramping up EPS, while not pursuing aggressive growth of the topline. For instance, if 8x8 simply decided to maintain status quo and pursue moderate growth, they could very easily achieve .05/EPS per quarter going forward. Even with increasing SG&A due to growth expansion, we still think it is quite possible EPS will increase exponentially.

Our thesis on our long position remains that the company is a high potential acquisition candidate based on its current revenues and growth trajectory in cloud computing/services, potential global outreach, developing partnerships and channels, and largely in part due to its wholly-owned intellectual property patent portfolio. Patent wars are heating up, and are not going to go away. Nor is the cloud-services space and hosted computing.

The sector is growing exponentially and the legacy telecom and cable providers, as well as premise-based telecom equipment makers will see further erosion to their markets as well as earnings. In 2010, Google purchased VoIP provider Global IP Solutions for $68.5 million or 6x revenues. In 2011, Microsoft paid 32x Skype's adjusted earnings in their acquisition of the company. Shortel (SHOR) recently acquired M5 for, we estimate, 4x revenues.

There has also been a flurry of private and public managed cloud services buyouts in the past year. In 2011, Verizon bought Terremark, a cloud services company, for $1.4 billion. Small private companies have also fetched high multiples in acquisitions. 4-6x revenues would not be out of the question, whatsoever, for 8x8.

Potential acquirers would be cable companies such as Comcast (CMCSA), large telcos such as AT&T (T) or Verizon (VZ), equipment makers such as Cisco or Avaya, large technology corporations such as Microsoft (MSFT), Google (GOOG), Apple (AAPL), Salesforce.com (CRM), and even social media corporations looking to broadly expand their business services, such as LinkedIn (LNKD) and Facebook.

Assuming a conservative 4.5x FY'13 revenue model, we could see 8x8 being acquired for $612 million (4.5x revs + $50 million for Intellectual Property), or approx. $8.50/share. At a higher multiple of 5x revenues, we derive $675 million (w/IP), or $9.38/share. Assuming a conservative FY'14 revenue model, 4.5x w/ IP equates to $770 million, or $10.40/share. At 5x revenues, $850 million, or $11.48/share. The point is, it will not get cheaper for a potential acquirer as time passes.

Even if our thesis that 8x8 is acquired does not come to pass, the company still should be trading inline with other SaaS providers out there. 8x8 should, at the very least, be trading between 3.5-4.0x FY'13 revenues, or $6.25-$7.14/share, conservatively. We maintain that 8x8 is extremely undervalued.
----------------------------------------

http://seekingalpha.com/article/442791-8x8-a-high-value-cloud-takeover-target?source=yahoo

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From: TechKim3/25/2012 10:54:40 PM
   of 1864
 
8x8 is at Enterprise Connect in Orlando this week. If you're coming to the show, please stop by and see us at booth #833!

Enterprise Connect: The Premier Enterprise Conference and Expo
www.enterpriseconnect.com

Enterprise Connect - The Leading Enterprise Communications Conference.

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From: TechKim3/26/2012 9:40:57 AM
   of 1864
 
8x8 Enhances Unified Cloud Communications Offering With New Calling, Chat and Web Conferencing Features
Date : 03/26/2012 @ 8:15AM
Source : GlobeNewswire Inc.
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8x8 Enhances Unified Cloud Communications Offering With New Calling, Chat and Web Conferencing Features
8X8 (MM) (NASDAQ:EGHT)

Today : Monday 26 March 2012

8x8, Inc. (Nasdaq:EGHT), provider of innovative business communications and cloud computing solutions, today announced the addition of numerous feature enhancements to its Virtual Office cloud PBX business phone service and integrated Virtual Office Pro unified communications solution, to be unveiled at the Enterprise Connect 2012 conference, March 26 – 29 in Orlando, Florida.
With the 8x8 Virtual Office unified cloud communications solution, businesses can access their core communications services from any location using an IP phone, PC and web browser or smart phone. The latest feature enhancements provide businesses with additional call handling capabilities and more intuitive web-based options, making day-to-day business communications simpler and more productive. They include:
4-Line Appearance Service – Virtual Office users now have the option to upgrade their Polycom IP phone to handle 4 calls simultaneously by using all 4 line keys to receive and transfer calls, place callers on hold, etc.- a great feature for receptionists or group administrators juggling many calls.


Streamlined Dialing – Phone numbers stored in a user's Virtual Office Online contact list can be pre-configured to automatically navigate an auto attendant or retrieve voicemail by including pauses, # and * symbols in the contact numbers.


Call Handling – Call forwarding rules can now be assigned on a group basis, rather than individually, to select many numbers such as those with a specific area code.


Online Chat – Chat session windows can be pulled out of the Virtual Office Online browser and placed onto the user's desktop in a freestanding, resizable browser window for more efficient handling and usage. Users have the option to automatically bring a chat window to the front whenever an incoming message is received.


Presence Management – Users have an option to sort personal and corporate directory contacts by presence to readily identify who's available and who's not.


Web Conferencing – Virtual Meeting users can now instantly schedule a web conference by typing a simple sentence such as "Sales Recap every Wed at 11am."


Whiteboard – A new whiteboard feature allows Virtual Meeting and Virtual Room video conferencing users to enhance collaboration with a blank page and a palette of drawing tools.


Content Sharing Annotation – Virtual Meeting and Virtual Room users can highlight, draw and make notes on content being shared to visually enhance a presentation. Users can save the annotated screen as a PNG file.


Chat Initiated Web Conference – Users can now quickly initiate a Virtual Meeting web conference from within a chat window by simply clicking "Start Meeting."


Video Conferencing – Users can pop out the video panel of a Virtual Meeting or Virtual Room to expand the content sharing area. Users can now rearrange video and content sharing panels to be side-by-side or stacked for better visibility.
"We are very pleased to roll out these new productivity enhancing features to our cloud communications platform," said Debbie Jo Severin, 8x8 chief marketing officer. "Many of these upgrades were driven by the valuable input we receive from our customers who are rapidly becoming proficient, web-based communications users. It's great to see the adoption of these technologies grow and the subsequent benefits they are delivering to our business customers. We look forward to maintaining an open dialogue with our customers so that we can continue to offer the most innovative and powerful cloud communications solutions on the market."
8x8's Virtual Office Pro unified cloud communications solution offers enterprise class phone service with unlimited calling and a wide array of PBX calling features plus unlimited web conferencing with video, call recording and archiving, chat, Internet fax, presence and voicemail management and a Virtual Office mobile app for iPhone, iPad and Android devices for less than $50 per user.
For additional information on 8x8's latest unified communications enhancements, go to 8x8.com. For information on all 8x8 cloud communications solutions, go to 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.
CONTACT: Joan Citelli
8x8, Inc.
(408) 654-0970
jcitelli@8x8.com


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From: TechKim4/11/2012 9:40:45 AM
   of 1864
 
Leading Transportation Industry Software Provider TMW Systems Chooses 8x8 Virtual Office Cloud Communications Services
Date : 04/11/2012 @ 8:15AM
Source : GlobeNewswire Inc.
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Leading Transportation Industry Software Provider TMW Systems Chooses 8x8 Virtual Office Cloud Communications Services

8X8 (MM) (NASDAQ:EGHT)

Today : Wednesday 11 April 2012

8x8, Inc. (Nasdaq:EGHT), provider of innovative business communications and cloud computing solutions, today announced it has been chosen by TMW Systems, Inc., a leading supplier of technology solutions covering the transportation services sector, to provide cloud-based hosted PBX and unified communications services to its 500+ employees in seven U.S. and Canadian locations.
TMW's enterprise management software is designed to assist surface transportation providers with such concerns as logistics management, fuel efficiency, truck profitability, and fleet maintenance. With offices in Ohio, North Carolina, Indiana, Texas, British Columbia, Tennessee and Oklahoma, TMW currently serves more than 1,800 customers managing over 400,000 power units and maintaining more than 1.2 million assets worldwide, including North America, Europe, Asia and Latin America.
"TMW's mission is to help our customers serving the transportation industry succeed by providing them with customized technology solutions that enhance their competitiveness through improved operational efficiencies and bottom line results," said Ron Godine, director of IT for TMW. "Ours is a very customer service-focused business that relies heavily on a highly efficient and reliable phone system. Unfortunately, our existing on-premise PBX system didn't always live up to this and utilized a lot of IT resources, so we decided to transition to a hosted solution that offered greater flexibility and freedom while also giving us the redundancy and reliability we needed."
After careful analysis of the escalating costs and management requirements, along with the feature, flexibility and disaster recovery limitations associated with TMW's premise-based phone system, Godine decided to implement 8x8's Virtual Office cloud-based PBX and unified communications solution. The initial 425-extension deployment quickly grew to over 500 extensions and soon after, Godine added unified communications capabilities such as web conferencing, Internet fax and call recording.
"One of the primary reasons we chose the 8x8 solution was the built-in disaster recovery capabilities it offered," Godine added. "There is no longer one single point of failure in our phone system because the 8x8 service architecture offers multiple redundancy and re-routing capabilities. Plus, if there is a power failure or Internet outage, our employees can simply unplug their phones, plug them into their home network and continue interacting with customers as if they were still in the office."
Godine also cited the ability to rapidly deploy new extensions and office locations using a "cookie-cutter approach" as a key factor in the company's decision to adopt the 8x8 solution.
"The simplicity of change management using the 8x8 solution was eye opening," Godine said. "Previously, we had to involve substantial internal IT resources plus hire outside consultants to make simple moves, adds or changes. With 8x8 services, someone on my IT staff can quickly and easily execute all of these changes online. This enables us to focus our attention on the tasks that are core to our business rather than our back office functions."
In addition to enhanced functionality and performance, there are major financial advantages companies like TMW and other distributed enterprises realize when deploying a hosted solution across multiple regional offices. With the hosted solution, there's no need for expensive equipment to be installed and managed in each location as the service is delivered via the business' existing Internet connection. "We expect to see significant six figure cost savings using the 8x8 solution on both a capex and opex basis," said Godine. "Not having to purchase PBX hardware for each location and pay traditional local and long distance calling rates cuts this line item expense in half."
With the 8x8 Virtual Office cloud-based solution, businesses can access their core communications services from any location using an IP phone, PC and web browser or smart phone. In addition to enterprise class phone service with unlimited calling and a wide array of PBX calling features, the service offers unlimited web conferencing with video, call recording and archiving, chat, Internet fax, presence and voicemail management and a Virtual Office mobile app for iPhone, iPad and Android devices for less than $50 per user.
For additional information on 8x8 cloud communications solutions, go to 8x8.com.
About 8x8, Inc.
8x8, Inc. (Nasdaq:EGHT), a pioneer in the development of cloud-based VoIP, video, mobile, and unified communications solutions, leverages its patented software technologies to deliver industry-leading SaaS applications to businesses of any size with employees in any location. We offer integrated business communications and cloud computing services that are designed to meet the highest levels of availability, reliability and scalability. Increasingly, businesses are finding they can reduce costs, improve productivity, and be positioned competitively for the future by choosing 8x8 for their mission critical, cloud-based communications and computing needs. For additional information, visit www.8x8.com, or connect with 8x8 on Facebook and Twitter.
About TMW Systems
TMW Systems is the leading provider of enterprise software to transportation and logistics companies. TMW's solutions address every aspect of for-hire and not-for-hire, asset and non-asset based operations. Customers include for-hire fleets, brokers, 3PLs and private fleets along with heavy-duty vehicle service centers. With offices in Cleveland, Dallas, Indianapolis, Nashville, Oklahoma City, Raleigh, and Vancouver, TMW currently serves more than 2,000 customers managing over 500,000 power units and maintaining more than 1.7 million assets worldwide, including North America, Europe, China and Latin America. For more information, visit www.tmwsystems.com or call (800) 401-6682.
CONTACT: Joan Citelli
8x8, Inc.
(408) 654-0970
jcitelli@8x8.com

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From: TechKim4/18/2012 9:38:37 AM
   of 1864
 
8x8 Announces GSA Schedule 70 and NASA SEWP IV Contract Agreements to Provide Cloud Services to U.S. Government Agencies
Date : 04/18/2012 @ 8:15AM
Source : GlobeNewswire Inc.

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8x8 Announces GSA Schedule 70 and NASA SEWP IV Contract Agreements to Provide Cloud Services to U.S. Government Agencies

8X8 (MM) (NASDAQ:EGHT)
Intraday Stock Chart
Today : Wednesday 18 April 2012

8x8, Inc. (Nasdaq:EGHT), provider of innovative cloud communications and computing solutions, today announced it has been added to the U.S. General Services Administration (GSA) Schedule 70 and NASA Solutions for Enterprise-Wide Procurement (SEWP IV) contract schedules from which Federal, state and local government agencies procure IT products and services.
Through its partnership with immixGroup, Inc., 8x8 cloud-based voice (VoIP PBX, contact center, SIP Trunking), unified communications (fax, web conferencing, call recording) and cloud hosting (SaaS, IaaS, hosted vBlock) services are now available to the government on the IT 70 GSA Multiple Award Schedule (GS-35F-0265X) and the NASA SEWP IV Contract (NNG07DA20B and NNG07DA64B).
"8x8 is pleased to partner with immixGroup to broaden visibility and accessibility of our cloud solutions within the government sector," said Kim Niederman, president of 8x8. "The placement of our service offerings on these key contract schedules speaks volumes about the quality and reliability of our technology, and we look forward to working closely with public sector organizations of all sizes to assist with the transition to cloud technologies that is occurring under the Federal government's CloudFirst policy."
GSA Schedule 70 is the largest and most widely used acquisition vehicle in the federal government providing direct access to products and services from over 5,000 certified industry partners. NASA SEWP IV is a Government-wide Acquisition Contract (GWAC) that offers a wide range of IT products and solutions to all Federal agencies, including the Department of Defense.
"We are pleased to support 8x8's expansion into the public sector," said Art Richer, president of immixGroup. "Government customers will now be able to purchase 8x8's cloud-based suite of services through the contract vehicles they prefer."
The 8x8 VoIP services offered through GSA Schedule 70 and NASA SEWP contracts are bundled with Polycom IP phones and Phybridge POE solutions to further simplify deployment while providing added cost savings. For more information about 8x8 government solutions go to www.8x8.com/gov.
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, 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.
About immixGroup, Inc.
immixGroup helps technology companies do business with the government. The company's four divisions deliver a unique combination of services for software and hardware manufacturers, their channel partners, and government agencies at the federal, state, and local levels. Since 1997, immixGroup has helped hundreds of large and emerging companies grow and manage their public sector business while providing its government customers with reliable access to leading commercial technologies through the contract vehicles and partners they prefer. For more information, contact immixGroup, Inc. at 703.752.0610 or via email at info@immixgroup.com, or on the Web at www.immixgroup.com.
CONTACT: Joan Citelli
8x8, Inc.
(408) 654-0970
jcitelli@8x8.com

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From: TechKim5/10/2012 8:48:11 AM
   of 1864
 
8x8 Executives to Present at May Financial Conferences
Date : 05/10/2012 @ 8:15AM
Source : Business Wire
Stock : 8x8 (EGHT)
http://ih.advfn.com/p.php?pid=nmona&article=52358113&symbol=EGHT


8x8 Executives to Present at May Financial Conferences

Today : Thursday 10 May 2012
8x8, Inc. (Nasdaq: EGHT), provider of innovative cloud communications and computing solutions, today announced that Chairman and Chief Executive Officer Bryan Martin and Chief Financial Officer Dan Weirich will present at the following investor conferences during the month of May 2012:
May 23, 2012 - 9:00 am PT
B. Riley & Co. 13th Annual Investor Conference
Loews Santa Monica Beach Hotel
Santa Monica, California

May 30, 2012
9th Annual Craig-Hallum Institutional Investor Conference
Marriott City Center
Minneapolis, Minnesota

May 31, 2012
Benchmark Company, LLC One-on-One Investor Conference
The Pfister Hotel
Milwaukee, Wisconsin
8x8’s presentation at the B. Riley & Co. 13th Annual Investor Conference will include a review of recent business and financial highlights, followed by a brief question and answer session and a series of one-on-one investor meetings throughout the course of the day. The Company’s participation at the Craig Hallum Institutional Investor Conference and Benchmark Company Investor Conference will consist of one on one meetings requested by attending investors.
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.

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From: Savant5/16/2012 5:57:24 PM
   of 1864
 
8x8, Inc. Announces Record Financial Results for Fourth Quarter and Full-Year
Fiscal 2012

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., May 16, 2012 (BUSINESS WIRE) -- 8x8, Inc. (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:
Dial In:(877) 843-0417, domestic
(408) 427-3791, international
Replay:(855) 859-2056, domestic (Conference ID #74768290)
(404) 537-3406, international (Conference ID #74768290)
Webcast:http://investors.8x8.com
Additional materials:http://virtualmeeting.8x8.com/Q4FY2012Earnings


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
investors.8x8.com.

About 8x8, Inc.

8x8, Inc. (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 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.

8x8, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts; unaudited)
Three Months EndedTwelve Months Ended
March 31,March 31,
--------------------------------------------------
2012201120122011
--------------------------------------
Service revenues$22,148$ 16,900$78,382$ 64,998
Product revenues2,0511,2847,4215,165
--------------------------
Total revenues24,19918,18485,80370,163
--------------------------
Operating expenses:
Cost of service revenues5,3013,71818,06514,508
Cost of product revenues2,3552,2189,8228,115
Research and development1,8431,1916,7454,819
Sales and marketing10,9047,87237,98031,744
General and administrative1,6401,1526,0124,733
--------------------------
Total operating expenses22,04316,15178,62463,919
--------------------------
Income from operations2,1562,0337,1796,244
Other income (loss), net(363)26(305)305
------- ---------------- ---------
Income before provision for income taxes1,7932,0596,8746,549
Provision (benefit) for income taxes(62,070)48(62,354)55
------- ---------------- ---------
Net income$63,863$2,011$69,228$6,494
==========================
Net income per share:
Basic$0.91$0.03$1.04$0.10
Diluted$0.87$0.03$0.99$0.10
Weighted average number of shares:
Basic70,20562,65566,41363,087
Diluted73,64865,95670,14965,873

8x8, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
March 31,March 31,
20122011
------------------
ASSETS
Current assets
Cash and cash equivalents$22,426$16,474
Investments1,9421,927
Accounts receivable, net2,279863
Inventory5812,105
Deferred tax assets7,730-
Other current assets928707
------------------
Total current assets35,88622,076
Property and equipment, net3,8202,398
Intangible assets, net11,622214
Goodwill25,1501,210
Deferred tax assets, non-current53,977-
Other assets278686
------------------
Total assets$130,733$26,584
==================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable$5,476$4,551
Accrued compensation3,1051,722
Accrued warranty387362
Deferred revenue891835
Other accrued liabilities2,3563,214
------------------
Total current liabilities12,21510,684
Other liabilities6839
------------------
Total liabilities12,28310,723
------------------
Total stockholders' equity118,45015,861
------------------
Total liabilities and stockholders' equity$130,733$26,584
==================

8x8, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Twelve Months Ended
March 31,
-------------------------------
20122011
-------------------------
Cash flows from operating activities:
Net income$69,228$6,494
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation1,5351,235
Amortization78894
Stock-based compensation1,506458
Change in fair value of warrant liability-(167)
Deferred income tax benefit(62,422)-
Other56184
Changes in assets and liabilities:
Accounts receivable, net(1,059)(358)
Inventory1,53529
Other current and noncurrent assets48975
Deferred cost of goods sold1(16)
Accounts payable(1,214)916
Accrued compensation128278
Accrued warranty2531
Accrued taxes and fees(356)24
Deferred revenue(197)(475)
Other current and noncurrent liabilities(1,337)(113)
------- ---------- ----
Net cash provided by operating activities9,2118,589
-------------
Cash flows from investing activities:
Purchases of property and equipment(2,300)(2,057)
Restricted cash decrease28-
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 plans2,9952,274
-------------
Net cash used in financing activities(274)(4,807)
------- ---------- ----
Net increase (decrease) in cash and cash equivalents5,952(1,582)
Cash and cash equivalents at the beginning of the period16,47418,056
-------------
Cash and cash equivalents at the end of the period$22,426$ 16,474
=============

8x8, Inc.
Selected Operating Statistics
Three Months Ended
---------------------------------------------------------------------------
March 31,June 30,Sept. 30,Dec. 31,March 31,
20112011201120112012
----------------------------------------------------
Gross business customer additions (1)3,0092,8973,1762,8362,892
Gross business customer cancellations (less cancellations within 301,6451,5931,6201,6421,697
days of sign-up)
Business customer churn (less cancellations within 30 days of2.3 %2.1 %2.1 %2.0 %2.0 %
sign-up) (2)
Total business customers (3)24,38525,45526,72727,67728,671
Business customer average monthly service revenue per customer (4)$204$200$207$239$244
Overall service margin78 %78 %77 %77 %76 %
Overall product margin-73 %-53 %-45 %-24 %-15 %
Overall gross margin67 %67 %66 %68 %68 %
Business subscriber acquisition cost per service (5)$91$89$101$92$99
Average number of services subscribed to per business customer8.08.49.09.49.8
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 EndedTwelve Months Ended
March 31,March 31,
-----------------------------------------------------
2012201120122011
--------------------------------------------
Net income$63,863$2,011$69,228$6,494
Loss on investment356-356-
Non-cash tax adjustments(62,086)-(62,422)-
Amortization3572678894
Stock-based compensation expense4932301,506458
Acquisition-related expense12-73910
Facility exit expense--140-
--------------------------
Non-GAAP net income$2,995$2,267$10,335$7,056
==========================
Weighted average number of shares:
Diluted73,64865,95670,14965,873
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 expense0.01-0.020.01
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 revenue264 %11 %81 %9 %
Loss on investment1 %---
Non-cash tax adjustments-257 %--73 %-
Amortization2 %-1 %-
Stock-based compensation expense2 %1 %2 %1 %
Acquisition-related expense--1 %-
Facility exit expense----
--------------------------
Non-GAAP net income percentage of revenue12 %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,Sept. 30,Dec. 31,March 31,
2011201120112012
-----------------------------------------
Net income$1,947$832$2,586$63,863
Loss on investment---356
Non-cash tax adjustments(336)--(62,086)
Amortization2648357357
Stock-based compensation expense266329418493
Acquisition-related expense747924112
Facility exit expense--140-
-------------------------
Non-GAAP Net income$1,910$1,688$3,742$2,995
=========================
Weighted average number of shares:
Diluted65,80867,75973,21473,648
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 expense0.01-0.010.01
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 revenue11 %4 %11 %264 %
Loss on investment---1 %
Non-cash tax adjustments-2 %---257 %
Amortization--1 %2 %
Stock-based compensation expense1 %2 %2 %2 %
Acquisition-related expense-3 %1 %-
Facility exit expense--1 %-
------------------ -----------
Non-GAAP net income percentage of revenue10 %9 %16 %12 %
====== ========== ========== =========== ====


SOURCE: 8x8

Investor Relations Contact:
8x8, Inc.
Joan Citelli, 408-654-0970
Joan.citelli@8x8.com

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To: Savant who wrote (1766)5/17/2012 10:52:37 AM
From: D. K. G.
   of 1864
 
Another solid Q. Sooner or later the true value of EGHT will be realized with this type of execution.

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