8x8, Inc., provider of Packet8 broadband telephone and videophone service, today announced financial results for its third quarter of fiscal 2006, ended Dec. 31, 2005.

 

The company’s revenues during the third quarter of fiscal 2006 were $8.5 million, compared with $7.1 million for the second quarter of fiscal 2006 and $3.0 million for the same period of the prior year.

 

The net loss for the quarter was $6.8 million or $0.12 per share, compared with a net loss of $5.6 million, or $0.10 per share for the second quarter of fiscal 2006 and a net loss of $5.8 million or $0.13 per share for the same period last year.

 

Total revenues for the nine-month periods ended December 31, 2005 and 2004, were $21.6 million and $7.6 million, respectively. Net losses for the nine month periods ended December 31, 2005 and 2004, were $17.5 million, or $0.32 per share, and $12.2 million, or $0.28 per share, respectively.

8x8 reported approximately 113,000 Packet8 subscriber lines in service as of Dec. 31, 2005. That number can be compared to approximately 93,000 subscribers as of September 30, 2005, a 22% increase.

 

The company reported that revenue and subscriber growth for the quarter were driven by favorable consumer response to promotional incentives for new Packet8 residential service subscribers as well as an increase in sales of the Packet8 Virtual Office business services.

 

Increased losses stemmed from expenses related to the network-wide provisioning of Packet 8's E911 service, the development and launch of private label versions of the Packet8 service and an increase in advertising, rebate and promotion expenditures.

At the end of the third quarter of fiscal 2006, 8x8's balance sheet, including cash and cash equivalents, short-term investments, and restricted cash, totaled $27.7 million as compared with $19.7 million on September 30, 2005 due to proceeds received from the $15 million common stock offering closed in December 2005. During the quarter, the Company spent $2.7 million on inventory purchases in anticipation of demand.

"8x8 revenues are up for the eighth consecutive quarter, and we closed the quarter with strong revenue growth and a healthy increase in our subscriber base," said Bryan R. Martin, 8x8's Chairman & CEO, in a press release. "We also announced the completion of our second major wholesale offering and met the FCC deadline for E911 provisioning throughout our services network.”

 

The company also announced that Dr. Barry Andrews has resigned as Vice Chairman and Director to pursue other opportunities.

About 8x8, Inc.

8x8, Inc. offers the Packet8 VoIP telephone and videophone communications service, the DV 326 Broadband VideoPhone, and the Packet8 Virtual Office. For additional company information, visit www.8x8.com.

 

 

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