8x8 Reports Q4

SANTA CLARA, Calif. -- 8x8, Inc. (Nasdaq: EGHT - message board), provider of Packet8 (http://www.packet8.net) business, mobile and residential communication services, today announced financial operating results for its fiscal fourth quarter and year ended March 31, 2008.

Total revenues for the fiscal year ended March 31, 2008 were $61.6 million, compared with $53.1 million for fiscal 2007, an increase of 16% year over year. Packet8 business service revenues grew 81% year over year to $29.1 million in fiscal 2008 from $16.1 million for all of fiscal 2007. GAAP net income grew to $30,000, or $0.00 per share, in fiscal 2008 from net losses of $9.9 million, or ($0.16) per share, and $23.3 million, or ($0.42) per share, in fiscal years 2007 and 2006, respectively.

Total revenues for the fourth quarter of fiscal 2008 were $16.3 million compared with $14.4 million for the same period of the prior year, an increase of 14%. Packet8 business service revenues for the fourth quarter grew 55% over the same period last year, and represented 50% of total revenue for the fiscal fourth quarter, compared with 37% of revenue for the same period last year.

GAAP net income for the fourth quarter of fiscal 2008 was $691,000 or $0.01 per share, compared with a loss of $2.9 million, or ($0.05) per share for the same period last year. Operating income for the fourth quarter of fiscal 2008 was $695,000, the company's first reported operating income since the inception of the Packet8 business. Operating cash flow for the fourth quarter of fiscal 2008 was $420,000 and $3 million for all of fiscal 2008. The company ended its 2008 fiscal year with no debt and cash and investments of $14.6 million, an increase of approximately $2.6 million from the end of fiscal 2007.

As of March 31, 2008, 11,011 companies subscribed to Packet8 business services, a 57% increase over the 7,003 companies subscribed at the end of fiscal 2007.

"I am very pleased to report 8x8's first fiscal year of GAAP net income since we launched the Packet8 service, as well as the growth of our business services to now represent 50% of our revenues," said 8x8 Chairman and CEO Bryan R. Martin. "I am also pleased to report continuing positive cash from operating activities for both the quarter and the fiscal year. 8x8 is at an exciting point in its history and we look forward to continued growth and progress both financially and operationally. In particular, we have several new business service and product launches planned for this year from which we anticipate additional revenue sources for the company. We are currently in beta testing with both a new family of IP phones that will complement and expand the functionality of our existing Packet8 Virtual Office services, and a new Virtual Trunking service that will target larger businesses who already have an existing PBX system."