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Johanne Torres[January 28, 2005]

8x8 Reports Multi-Million Dollar Loss

BY JOHANNE TORRES


VoIP ( define - news - alert) service provider 8x8 announced its over five million dollars loss or 13 cents per share on sales of $2.96 million in the third quarter of its fiscal year 2005 ended Dec. 31, 2004.




The company also reported losses back in 2003, when it reported a net loss of $754,000 or 2 cents per share on sales of $3.29 million. As the company reached the end of the most recent quarter it had 40,000 Packet8 subscriber lines in service, almost double from its 26,000 at the end of its second quarter, a 54 percent increase.

8x8 seems to be re-inventing itself by launching new services and promoting new products. Just recently, the company announced that its Packet8 Broadband VideoPhone was being used in some of this season’s popular television shows including the spy drama, Alias.

The company also announced earlier this month the availability of a specially packaged retail version of the Packet8 Virtual Office business class phone system designed to meet the requirements of traditional storefront merchants.

8x8 has been striking reseller deals to stay afloat, such as a recent distribution agreement with WYNIT, Inc., a national distributor of computer peripherals and consumer electronics. WYNIT serves a broad spectrum of large retail outlets as well as small specialty resellers across the country. Under terms of the agreement, WYNIT will distribute the Packet8 DTA broadband phone adapter, the standalone DV326 consumer VideoPhone as well as the Virtual Office small business phone system.

“8x8’s partnership with WYNIT is yet another step forward in the effort to make Packet8 VoIP solutions available to residents and businesses throughout the country,” said 8x8 VP of Sales & Marketing Huw Rees about the deal. “With an organization as experienced and pervasive as WYNIT supporting the Packet8 brand, we feel comfortable that our unique VoIP products and services will be communicated loud and clear.”

It has been a sketchy new year for VoIP product and services providers in the ranks of 8x8. VoIP-based product and services provider Level 3 also announced it reached red numbers, resulting in a recent massive lay off. We are yet to see how companies make out during this year’s first quarter as the industry shapes up a promising future for the technology.


Johanne Torres is contributing editor for TMCnet.com and Internet Telephony magazine. Previously, she was assistant editor for EContent magazine in Connecticut. She can be reached by e-mail at [email protected].

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