8x8 Announces 1Q09 Results, gets Knocked for Service Outage

As 8x8 was announcing its 1Q09 results, the company was blogged on a service outage to some customers.

Revenues for the first quarter of 8x8's 1Q09 results (ending June 30, 2008) were $16.3 million, up from $14.7 at the same time last year and $16.3 million for the previous quarter. Packet8 business services revenues grew to 56 percent of total revenue in the first quarter, as compared to 44 percent in 1Q08 and 50 percent of the total revenues last quarter.  Business services grew by 12 percent from the last quarter and 41 percent compared to 1Q08. 

On the downside, residential and video revenues declined 6 percent from the previous quarter and 12 percent from 1Q08. Overall gross margin for 1Q09 was 68 percent. Under GAAP, net income for the quarter increased to $1.2 million, as compared to $508,000 at 1Q08. During 1Q09, the company added 1,053 net new customers and now serves more than 12,000 businesses with Packet8 services.

Over at TMCnet, blogger Tom Keating reported a "major outage" at Packet8 followed by various updates and clarifications. It appears Packet8 had a service interruption on the residential side of 1 hour and 15 minutes, with business customers "fallover"-ed immediately; residential customers were supposed to fall over after 15 minutes or if they rebooted their VoIP devices.

For more:
- IT News Online carriers 8x8 1Q09 results [1]
- TMCnet blog on Packet8 service outage [2]

Related articles:
8x8 jumps into SIP trunking [3]
SPOTLIGHT: 8X8 Inc moves into profit [4]