Shares of business VoIP provider 8×8 Inc. soared on Wednesday after the company reported record quarterly sales and higher profit.
8×8 stock closed at $1.49 per share, a 5.67 percent increase, on news that the California-based IP services operator raked in $16.8 million in revenue during the first fiscal quarter of 2011, ended June 30. The number compared to $15.6 million a year earlier. 8×8 also boosted its net income, from $414,000 a year ago to $1 million.
“We continue to experience healthy demand for our hosted communications services from both the under-10 employee small business customer as well as larger SMBs and distributed enterprise organizations, and anticipate these adoption trends will continue to drive the top line revenue upwards in the coming quarters,” 8×8 Chairman and CEO Bryan Martin said in a prepared statement.
8×8 said it signed 32,896 new business lines and services, compared to 27,937 in the same period in 2009. On top of that, business customer churn decreased to 2.5 percent.
The company further added $36,000 in cash and cash equivalents to its stockpiles, ending the quarter with $18.1 million. Those coffers could signal more M&A activity for 8×8, which already has bought managed hosting and cloud computing company Central Host and invested in Internet voice and video platform provider Stonyfish, founded by two former 8×8 engineers.