NEW YORK (TheStreet) -- 8X8 (EGHT) stock is slipping after the IP and cloud computing company swung to a net loss in its fourth quarter despite posting revenue gains. An unadjusted net loss of 2 cents a share this quarter compared to net income of 2 cents a share in the year-ago quarter.
Excluding one-time charges, profits of 4 cents a share came in a penny higher than analysts surveyed by Thomson Reuters expected.
Total revenue over its March-ending quarter jumped 29% year on year to a record $35.8 million.
"As we continue to expand both domestically and internationally in fiscal 2015, we plan to increase revenue by approximately 25% and maintain our non-GAAP net income as a percentage of revenue in the high-single digit range," said CEO Vik Verma in a statement.
By midday, shares had tumbled 6.5% to $7.49.
TheStreet Ratings team rates 8X8 INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate 8X8 INC (EGHT) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."