8x8, Inc. Announces Third Quarter Fiscal 2011 Earnings

SUNNYVALE, Calif., Jan. 26, 2011 (GLOBE NEWSWIRE) -- 8x8, Inc. (Nasdaq:EGHT), provider of innovative business communications solutions, today announced financial operating results for the third quarter of fiscal 2011 ended December 31, 2010.

Total revenue for the third quarter of fiscal 2011 rose to a record $17.8 million, an increase of 12% compared to revenue of $15.9 million for the same period of fiscal 2010. Net income for the third quarter of fiscal 2011 was $1.5 million, or $0.02 per share, an increase of 48% compared to net income of $1 million, or $0.02 per share, for the same period last year. Net income results for the third quarter of fiscal 2011 included a one time $625,000 charge accrued during the quarter due to the previously disclosed settlement of a class action wage and hour lawsuit. The one-time charge had a $0.01 per share impact on the Company's earnings per share.

For the nine-month period ending December 31, 2010, total revenue was $52 million, compared to revenue of $47.5 million for the same period of fiscal 2010. Net income for the nine-month period ending December 31, 2010 was $4.5 million, or $0.07 per share, an increase of 62% compared to net income of $2.8 million, or $0.04 per share for the same period of fiscal 2010.

Business customer churn during the third quarter of fiscal 2011 was 2.2%, compared to a churn rate of 2.4% for the same period last year. The Company ended the quarter with 23,251 business customers, up from 19,407 customers a year ago.

Cash, cash equivalents and investments increased during the quarter by $2.6 million, as the Company generated approximately $2.7 million cash from operations and additionally received approximately $2.3 million cash from warrant and stock option exercises during the quarter. This was offset by the Company repurchasing 539,159 shares of its common stock during the quarter under its share repurchase program at an average share price of $2.30 and a total cost of $1,237,714. Total shares outstanding as of December 31, 2010 were 63.3 million. The Company ended the third quarter of fiscal 2011 with $20.5 million in cash, cash equivalents and investments.