8x8, Inc., Financial Results for 1st Quarter 2006

Packet8 VoIP provider 8x8, Inc., announced financial results for its first quarter 2007—the period ending June 30, 2006.

The numbers look good for the three-month period, with total revenues of $12.3 million, a 19 percent increase from the previous quarter and a 104 percent increase over the same period of its fiscal 2006 year.

Net losses for the quarter were $5.7 million—($0.09) per share—a reduction of 14 percent from the previous quarter.

As of June 30, 2006, 8x8 reported a subscriber base of 151,000 (up from 133,000 on March 31). The company’s balance sheet (including cash and investments) added up to $17.8 million.

“The increased marketing focus on the Packet8 Virtual Office small business VoIP phone service, which now represents 19 percent of total subscriber lines and 23 percent of quarterly new line sales, has been instrumental in overall gross margin and bottom line improvements,” 8x8’s Chairman and CEO, Bryan Martin, said in a statement.

Revenue from Packet8 has set new records for ten consecutive quarters, the result of 8x8’s focus on controlling operating costs and managing customer acquisitions, Martin commented.

“Going forward, 8x8's priorities remain fixed on further improving gross margins, enhancing the Packet8 service with outstanding quality and differentiated features, and providing excellent customer support and service,” Martin added.

8x8’s CEO also noted that, during Q1 2007 the company implemented a new Customer Relationship Management system designed to improve scalability and reduce operating and telecom expenses.