8×8 Reports Skyrocketing Profit, Record Revenues

Net income at 8×8, Inc., the hosted VoIP provider focused on small and medium-sized businesses, more than quadrupled in the first quarter of its fiscal year.

In the period ending June 30, the Sunnyvale, Calif.-based company reported a profit of $8.6 million, or $0.12 per diluted share, an enormous increase over year-ago net income of $1.9 million or $0.03 per share.

Meanwhile, revenues rose 36 percent from $18.5 million in the year-ago quarter to a record $25.3 million.

Shares of 8×8 (NASDAQ: EGHT) closed the day at $4.62, up 4.29 percent.  

The company courted 1,242 business customers during the most recent quarter to end the period with nearly 30,000 business customers. Business customer churn, a metric that measures customer defections, fell to 1.7 percent from 2.1 percent in the year-ago quarter.

Year over year, 8×8’s reserve of cash, cash equivalents and investments has roughly doubled to $38.2 million compared to $18.9 million on June 30, 2011.

“With the $12 million influx to our balance sheet from our recent patent sale on top of our ongoing cash from operations, the company is experiencing its highest level of liquidity since it began operating as a service provider,” 8×8 Chairman and CEO Bryan Martin said, “and remains committed to executing its aggressive growth strategy in fiscal 2013 and beyond.”

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