8x8 sees record revenue in Q4, earnings rise 80%

Hosted VoIP provider 8x8, Inc. (NASDAQ:EGHT) said its fourth quarter revenue increased nearly 15 percent from a year ago to a record $18.2 million, just missing the $18.44 million analysts had expected, and it said earnings for the quarter were $2 million, an 80 percent increase from a year ago.

"We are pleased to report another record quarter and fiscal year, marked by a 24.4 percent year-over-year increase in revenue from business customers and the addition of a record number of new business customers through our inside sales force during the fourth quarter of fiscal 2011," said 8x8 Chairman and CEO Bryan Martin. "We'll be building on this momentum in fiscal 2012 with the expansion of our sales and distribution channels."

8x8 said it added 3,009 gross new business customers in the fiscal fourth quarter of 2011 and ended the period with 24,385 business customers in service, compared to gross business customer additions of 2,875 in the same period last year and 2,798 in the prior quarter. Business customer churn during the fourth quarter of fiscal 2011 was 2.3 percent, down from 2.7 percent for the same period last year and up slightly from 2.2 percent in the prior quarter.

"The leverage in our business model is becoming increasingly robust," said Martin. "Revenue grew approximately twice as fast as expenses in the fourth quarter, enabling us to deliver a 128.7 percent year-over-year increase in operating income and an 80.4 percent increase in net income."

8x8 said its full-year revenue was $70.2 million, up 10.7 percent from $63.4 million for fiscal 2010. Net income in fiscal 2011 was $6.5 million, or 10 cents per diluted share, a 67.4 percent increase over net income of $3.9 million, or 6 cents per diluted share, in fiscal 2010.        

For more:
- see this release

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