Hosted VoIP provider 8×8 Inc. (EGHT) came out ahead in its fiscal fourth quarter, and for the 12 months of its 2010 fiscal year. Chairman and CEO Bryan Martin said he thinks the company did well because, in a weak economy, more businesses turned to IP telephony.
In the quarter ended March 31, 8×8 reported net income of $1.1 million, compared to a net loss of $3.9 million a year earlier. Revenue grew just slightly from $15.8 million to $15.9 million. For the full year, the Sunnyvale, Calif.-based firm saw net income of $3.9 million – a new record, according to 8×8. That compared to a net loss of $2.5 million in fiscal 2009. Revenue dropped, although by just a smidge, from $64.7 million to $63.4 million.
Overall, 8×8 added 21 percent more business customers in fiscal 2010 – those subscribers contributed $48.7 million in revenue. Residential users accounted for the remaining $14.7 million, a 40 percent decline.
“We believe the impact of the current economic climate has been minimal” on 8×8, Martin said. “We expect this trend to continue…potentially enhanced through select acquisitions that can expand our product service offerings into our business customer base.”
8×8 jumpstarted its M&A activity earlier this month with the $1.6 million purchase of Central Host Inc. The transaction gives 8×8 new reach into cloud computing. 8×8 also sold its wholly owned French R&D subsidiary to privately held Stonyfish, invested $250,000 in the venture, and took 17 percent ownership.
Shares of 8×8 closed up 83 cents at $1.22.