[May 21, 2012] 8x8 Reports Financial Results for Fourth Quarter and Full-Year Fiscal 2012 Tweet May 21, 2012 (Close-Up Media via COMTEX) -- 8x8, a provider of cloud communications and computing solutions, announced operating results for the fourth quarter and fiscal year ended March 31. in a release on May 16, the Company noted that fourth quarter fiscal 2012 financial results include: -Total revenue for the quarter increased 33 percent year over year to a record $24.2 million. -Revenue from business customers increased 44 percent year over year to $22.8 million. -Average monthly revenue per business customer was $244, compared with $204 in the same period last year. -Average number of services subscribed to per business customer grew to 9.8 from 8.0 in the same period last year. -Business customer churn was 2.0 percent, compared with 2.3 percent in the fourth quarter of fiscal 2011; revenue churn was 1.6 percent. -Gross margin at 68.4 percent; service margin was 76.1 percent. -GAAP net income was $63.9 million, or $0.87 per diluted share, compared with $2.0 million, or $0.03 per share, for the fourth quarter of fiscal 2011 (includes a one-time non-cash income tax benefit of $62.1 million associated with the release of a deferred tax asset valuation allowance in the fourth fiscal quarter). -Non-GAAP net income (as outlined in the reconciliation table below) was $3.0 million, or $0.04 per diluted share, compared with $2.3 million, or $0.03 per diluted share, in the same period last year. -Balance sheet grew by $2.4 million to end the quarter with $24.4 million in cash, cash equivalents and investments. Full Year Fiscal 2012 Financial Results -Total revenue was a record $85.8 million, a 22 percent increase over revenue of $70.2 million for fiscal 2011. -Revenue from business customers was $79 million, a 30 percent increase over revenue of $61 million in fiscal 2011. -GAAP net income was $69.2 million, or $0.99 per diluted share, compared with $6.5 million, or $0.10 per share, for fiscal 2011 (includes a one-time non-cash income tax benefit of $62.1 million associated with the release of a deferred tax asset valuation allowance in the fourth fiscal quarter). -Non-GAAP net income (as outlined in the reconciliation table below) was $10.3 million, or $0.15 per diluted share, compared with $7.1 million, or $0.11 per diluted share, for fiscal 2011. -Gross margin as a percentage of sales in fiscal 2012 was 67.5 percent, compared with 67.8 percent for fiscal 2011. -Net cash provided by operating activities grew to $9.2 million, compared with $8.6 million in fiscal 2011. -Cash, cash equivalents and investments increased $6.0 million in fiscal 2012; share repurchases totaled $2.9M for fiscal year 2012. "8x8's strong results for fiscal 2012 reflect the continued success of our core business model combined with solid execution of our new strategic initiatives," said 8x8 Chairman and CEO Bryan Martin. "These included a sharper focus on mid-market business customers, reflected in our higher ARPU figures, the acquisition of Contactual, the addition of cloud hosting services and the refinement of our customer service methodology and procedures, which translated into decreasing churn results during the course of the year." "I'm very pleased to report that as a result of these investments, we have increased revenue from business customers in the fourth quarter by 44 percent while maintaining very healthy margins, net income and an increasing cash balance," said Martin. "In addition, we more than tripled our fourth quarter revenue from our channel compared to last year and, while still a small percentage of our revenue, this progress is key to the successful execution of our mid-market growth strategy." Martin continued, "I am excited about 8x8's prospects for growth in fiscal 2013 and beyond which will be driven by greater awareness of the benefits of cloud-based technologies, increased mid-market and government adoption of our services, a growing and productive third-party channel organization and the prospects for global expansion we are currently pursuing with new and existing partners." Additional Fourth Quarter and Full Year Business Highlights: -Ended the quarter with 28,671 business customers, compared with 27,677 customers in the prior quarter. -Appointed former Trend Micro and IBM executive Eric Goffney Vice President of Customer Support & Success. -Added to Russell 3000 Index and OceanTomo 300 Patent Index. -Acquired cloud contact center service provider Contactual Inc. and cloud hosting service provider Zerigo. -Co-developed, launched and began operation of mobile international calling app for AT&T. -Announced inclusion in GSA Schedule 70 and NASA SEWP IV government contract vehicles. -Added three new executives, Mansour Salame, Eric Salzman and Vikram Verma, to 8x8 Board of Directors. 8x8 is a provider of cloud communications and computing solutions. More information: www.8x8.com ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]