8×8 Q1 09 Results

By: ispeculatornew
Date posted: 08.10.2008 (3:45 pm) | Write a Comment  (0 Comments)

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EGHT – 8×8 Inc. (NASDAQ) – (Closing Price on Friday 8/8/08 – $1.09)  

8×8 reported first quarter results for 2009 on July 31 and reported moderate results.

8×8 came in with revenue of 16.28 million and diluted EPS (earnings per share) of 0.02. Revenue was up 10% year over year but was essentially flat from the prior quarter. In the conference call it was mentioned that licensing revenue was impacted by licensing deals that were pushed into Q2. Diluted EPS increased by a penny both year over year and sequentially.

8×8 announced it added 1053 new business customers and that business service revenue grew to 56% of total revenue compared to just 44% last year. Business revenue continues to grow which is offsetting the decline in residential and video revenue.

8×8 also announced an agreement with Avtex calling for the migration of approximately 1,500 companies from Avtex’s subscriber base to 8×8’s Packet8 business service platform. This should benefit results in future quarters.

The flat growth in revenue from the prior quarter is somewhat disappointing but is understandable given the current weak economic conditions. Even with the flat growth in revenue 8×8 was able to report higher net income. 8×8 continues to make steady progress and I see no reason to sell. I would continue to hold your shares.

Disclaimer: I have no position in EGHT.

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