Business Services Industry
8X8, Inc. Announces Results for Quarter Ended September 30, 1998
Business Wire, Oct 21, 1998
Santa Clara, Calif.--(BUSINESS WIRE)--Oct. 21, 1998--8x8, Inc. (NASDAQ: EGHT)--a leading supplier of visual communication technology and systems--today announced financial results for its second quarter of fiscal 1999, which ended September 30, 1998.
Net loss for the quarter was $3.7 million or $0.24 per diluted share, compared to net income of $95,000 or $0.01 per diluted share for the same period of fiscal 1998. Total revenues for the second quarter were $9.0 million, compared to $10.9 million for the same period of fiscal 1998. In the second quarter of fiscal 1999 product revenues, consisting of sales of visual communication semiconductors and videophone systems, were $8.4 million compared to $8.1 million for the same period of fiscal 1998. License and other revenues for the quarter were $600,000 compared to $2.8 million for the same period of fiscal 1998. Total revenue for the quarter was divided among visual communication semiconductors (39%), videophone systems (54%) and nonrecurring license, royalty and other revenue (7%). In the second quarter of fiscal 1998 total revenues were divided among visual communication semiconductors (45%), videophone systems (29%) and nonrecurring license, royalty and other revenue (26%).
"8x8 is focused on returning to profitability while continuing to invest in the operating resources necessary to grow our revenue," said Paul Voois, chairman and CEO. "Total revenue for the second quarter increased by 27%, and ViaTV videophone revenue increased by 44%, relative to the first quarter. While the VC105 set-top model remained our best-selling videophone, we diversified our product line with two new models: the VC150 desktop videophone, which contributed significantly to the quarter's revenue, and the RSM-1500 remote surveillance module, which entered volume production. On the technology side, we participated in the CableLabs' PacketCable development, which will specify the delivery of voice and video services over cable modems, and demonstrated our Via-IP broadband videophone running over cable modem equipment from several vendors. We continued shipping samples of our Enhanced Video Communication Processor, the VCPex, and expect to be in full production of that chip in the December quarter."
8x8's latest additions to its videophone product line include the VC150 and RSM-1500 models. The VC150 desktop videophone with LCD display, is now available throughout 8x8's retail channel, including Best Buy, CompUSA, Fry's Electronics, J&R Computer World and Staples. The RSM-1500 remote surveillance module, which won the best of show award at the most recent International Security Conference in New York City, is available through leading security distributors, ADI and Sprint North Supply.
About 8x8
8x8, Inc. is a manufacturer of visual communication systems, semiconductors and software. The company is headquartered at 2445 Mission College Blvd., Santa Clara, California 95054. For more information, call toll free 1-888-VIEW-8X8, or in London for European sales, 8x8, Ltd., Harleyford Estate, Marlow, Bucks, SL7 2DX England, 011-44-1628-402800, fax 011-44-1628-402829.
This press release contains forward-looking statements. 8x8's actual results may differ materially from the results discussed, implied or forecasted in the forward-looking statements due to factors including in particular: the uncertainty of future profitability, the lack of assurance of future license revenues, potential fluctuations in future operating results, dependence on key customers, the uncertainty of market acceptance of videophones, the limits of existing videophone technology, dependence on new product introduction, dependence on the video communication industry, need for additional capital and current and potential competition. Further information on these and other factors that could affect the actual results of 8x8 are included in 8x8's Report on Form 10-Q for the quarter ended September 30, 1998, which is on file with the Securities and Exchange Commission. 8x8 assumes no obligation to revise or update any forward-looking statements contained in this press release.
For information on ordering a ViaTV Phone please call toll free
Note to Editors: 8x8 and ViaTV are trademarks of 8x8, Inc. All other trademarks are property of their respective owners. -0-
8X8, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
September 30, September 30,
------------------ ----------------
1998 1997 1998 1997
------ ----- ---- ----
Product revenues $ 8,375 $ 8,103 $ 14,886 $ 13,056
License and other
revenues 628 2,791 1,217 9,453
-------- -------- -------- --------
Total revenues 9,003 10,894 16,103 22,509
Cost of product
revenues 5,863 3,987 10,253 6,531
Cost of license
and other revenues 50 550 50 550
-------- -------- -------- --------
Gross profit 3,090 6,357 5,800 15,428
-------- -------- -------- --------
Operating expenses:
Research and
development 2,753 2,982 5,365 6,195
Selling, general
and administrative 4,290 3,760 8,652 7,300
-------- -------- -------- --------
Total operating
expenses 7,043 6,742 14,017 13,495
-------- -------- -------- --------
Income (loss) from
operations (3,953) (385) (8,217) 1,933
Other income, net 303 480 596 580
-------- -------- -------- --------
Income(loss)before
(benefit)provision
for income taxes (3,650) 95 $ (7,621) 2,513
(Benefit) provision
for income taxes -- -- -- (1,000)
-------- -------- -------- --------
Net income (loss) $(3,650) $ 95 $(7,621) $ 3,513
======== ======== ======== ========
Net income (loss)
per share:
Basic $ (0.24) $ 0.01 $ (0.51) $ 0.36
Diluted $ (0.24) $ 0.01 $ (0.51) $ 0.25
======== ======== ======== ========
Shares used in per
share calculations:
Basic 14,939 13,682 14,866 9,738
Diluted 14,939 16,090 14,866 13,839
======== ======== ======== ========
8X8, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
September 30, March 31,
1998 1998
------------ ---------
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 18,366 $ 26,737
Accounts receivable, net 3,874 4,527
Inventory 13,311 12,758
Prepaid expenses and other assets 1,374 876
-------- --------
Total current assets 36,925 44,898
Property and equipment, net 1,857 1,370
Deposits and other assets 111 161
-------- --------
$ 38,893 $ 46,429
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,001 $ 2,625
Accrued compensation 1,516 1,445
Accrued warranty 1,324 1,461
Deferred revenue 2,176 2,447
Other accrued liabilities 1,911 1,923
-------- --------
Total current liabilities 8,928 9,901
-------- --------
Minority interest -- 85
-------- --------
Stockholders' equity:
Common stock 15 15
Additional paid-in capital 48,034 47,785
Notes receivable from stockholders (290) (893)
Deferred compensation (391) (744)
Unrealized loss on investments (107) (45)
Accumulated deficit (17,296) (9,675)
-------- --------
Total stockholders' equity 29,965 36,443
-------- --------
$ 38,893 $ 46,429
======== ========
- 5 Rules for Immediate Annuities
- Death in the Family: 12 Things to Do Now
- Dumbest Things You Do With Your Money
- 6 Online Networking Mistakes to Avoid
- 401(k) Mistakes to Avoid
- 5 Economic Scenarios to Keep You Up at Night
- The Real ‘Best Places to Retire’
- Best Credit Cards for You
- 12 Tough Questions to Ask Your Parents
- The Real ‘Best Colleges’
- Home Buyer Tax Credit: How to Cash In
- Why You Shouldn't Bash Cash
- 8 Phony 'Bargains' and Better Alternatives
- Danger: 3 Debit Card Scams to Avoid
- 6 Myths About Gas Mileage
- 29 Fees We Hate Most
- Quick and Easy Ways to Boost Returns
- Best Stocks to Buy Now
- Lower Your Taxes: 10 Moves to Make Now
- New Jobs: 8 Lessons from Real-Life Career Switchers
- The New Job Market: Who Wins and Who Loses?
- Health Care Reform's Public Option: Everything You Need to Know
- Volunteer Work When Unemployed: Should You Work for Free?
- Whose Recovery Is This?
- Long-Term-Care Insurance: 4 Biggest Risks to Avoid
Most Recent Business Articles
- Psyadon Pharmaceuticals, Inc. Announces Regulatory Milestones and the Initiation of a Clinical Trial of Ecopipam in Lesch-Nyhan Disease
- Emergence of “Femtomedicine” - New Frontier of Biomed Sciences - Reported at First Global Congress on Nano Medicine
- Research and Markets: Ethiopia Power Market Outlook to 2020
- Research and Markets: Orphan Drugs in Asia-Pacific: from Designation to Pricing, Funding & Market Access
- Research and Markets: Now You See It - TV Program Sponsorship & Product Placement in China
Most Recent Business Publications
Most Popular Business Articles
- 7 tips for effective listening: productive listening does not occur naturally. It requires hard work and practice - Back To Basics - effective listening is a crucial skill for internal auditors
- FHM Features Anna Benson, Baseball's Hottest Wife
- Building a DNA database: the federal government has just enacted two bills related to DNA. The first would drive the collection of DNA from all infants. The second would attempt to prevent the DNA that is collected from being misused
- America's most wanted j-o-b-s - 10 hottest employment opportunities
- Developmental sequence in small groups
Most Popular Business Publications
Content provided in partnership with
