, a provider of Packet8
broadband business, residential, video and mobile communications services, has announced today the financial operating results for its second fiscal quarter ended September 30, 2008.
The company was able to show growth in revenues for the second quarter of fiscal 2009 as the company showed an increase to $16.4 million, compared with $14.8 million for the same period of fiscal 2008, and $16.3 million for the previous quarter.
Revenue for 8x8 (News
) Virtual Office grew to 60 percent of total revenue in the second quarter of fiscal 2009 compared with 47 percent of total revenue in the same period of fiscal 2008. and 56 percent of total revenue in the previous quarter.
At the same time, 8x8 Virtual Office revenue grew 41 percent from the same period of fiscal 2008 and 8 percent from the previous quarter. There was also growth in overall gross margin for the second quarter of fiscal 2009 as it reached 65 percent, compared with 52 percent for the same period of fiscal 2008.
GAAP income for the quarter was $44,000, compared with a net loss of $2.6 million or ($0.04) per share in the same quarter in 2008. The previous quarter returned income of $1.2 million or $0.02 per share.
The company’s cash and investments increased to $15.8 million in the second quarter of fiscal 2009 from $12.9 million in the same period of fiscal 2008 and $14.8 million in the previous quarter.
During the second quarter of this fiscal year, 8x8 increased its Virtual Office base by 1,846 net new customers and now provides service to more than 13,700 companies with its business communications solutions.
"8x8's money saving Virtual Office communications services are more critical than ever to businesses," said 8x8 Chairman and CEO, Bryan Martin (News
), in a company statement. "With nearly $16 million in cash and no debt, the Company remains well positioned in its efforts to transition more and more small businesses away from budget-wasting legacy phone solutions.”
“The potential of our Virtual Office service to cut fixed costs to businesses of any size and drive increased efficiencies and capabilities into the telecommunications infrastructure of these companies is more relevant than ever in this economic environment and we are driving this message home to all prospective customers," Martin added.
Other highlights from this quarter for 8x8 include successfully transitioning roughly 1,000 former business customers and a unified communications technology platform from Avtex (News
) to the 8x8 Virtual Office network; increased business services revenue to 60 percent of total revenue; introduced family of IP phones and new Hosted Key System services; and announced a marketing partnership and technology certification with Microsoft’s (News
) Response Point small business phone system.
8x8 has been able to show measurable growth in an economic climate that is conducive to cost cutting, budget restraints, business closings and lay-offs. This performance demonstrates that the company is properly targeting its key market and operating efficiently to control costs versus revenues. Such an approach will help this player to continue to drive growth over the long term.
Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan's articles, please visit her columnist page.
Edited by Michelle Robart