8×8 announced that it’s back in black for its first quarter of fiscal year 2010. The company reported net income for the quarter of $414,000; that’s $0.01 a share. The previous quarter had logged a net loss of $3.9 million/$0.06 per share; 1Q 2009 the company had brought in net income of $1.2 million/$0.02 per share.
During the first quarter of fiscal 2010, 8×8 had new sales to 2,907 business customers, up from its previous record of 2,792 in the prior quarter (can we say “ramp?”) annnnd increased its business customer subscriber base by 1,253 net new business customers. Business customer churn is described as “stable sequentially at 2.7%” as compared to a churn rate of 3.2 percent in the same period last year.
All total, 8×8 ended the first quarter of FY 2010 with 17,266 business customers. Total revenue for 1Q 2010 was $15.6 million as compared to $16.3 million for 1Q FY 2009 and $15.8 million for the previous quarter. Revenues from business customers grew to 69 percent of total revenues in 1Q FY 2010 as compared to 68 percent the previous quarter and 56 percent in 1Q 2009.
Cash and investments are stable are at $15.5 million, down a bit from the previous quarters $16.4 million.
In addition to the good financial results, 8×8 announced it is going to buy back up to $2 million of its common stock over the next year, using available cash. Buying up stock will do the usual increase-shareholder-value bit and also boosts the value of the stock should 8×8 find someone worthy enough to acquire down the road; 8×8 has previously expressed an interest in buying someone, but haven’t found the right business fit yet.
Not mentioned in the press release is 8×8′s plan to enable G.722 service across its network sometime in the near future. When it happens, 8×8 will likely become the largest G.722 hosted VoIP provider in North America.