[May 20, 2015] |
|
8x8, Inc. Reports Fourth Quarter and Full Year Fiscal 2015 Results
8x8, Inc. (NASDAQ:EGHT), a leading provider of cloud-based unified
communications and contact center solutions, today announced fourth
quarter and full year fiscal 2015 financial results for the period ended
March 31, 2015.
-
Q4 total revenue of $43.5 million, up 22% organically year-over-year.
-
Q4 GAAP net income of $183,000, or $0.00 per diluted share.
-
Q4 Non-GAAP net income of $4.9 million, or $0.05 per diluted share.
-
Fiscal 2015 revenue of $162.4 million, up 26% year-over-year and
approximately 20% organically.
-
Fiscal 2015 GAAP net income of $1.9 million, $0.02 per diluted share.
-
Full year fiscal 2015 non-GAAP net income of $16.2 million, or $0.18
per diluted share.
"8x8 ended another record quarter and fiscal year with 26% fiscal 2015
revenue growth and non-GAAP net income of 10% of revenue," said 8x8 CEO
Vik Verma. "We achieved these objectives while building a foundation for
growth with the expansion of our senior management team and investments
in R&D to capitalize on the significant and growing market opportunity
for cloud communications solutions that exists worldwide."
Mr. Verma added, "During fiscal 2015, 8x8 made great progress enhancing
our cloud communications offerings for the mid-market, solidifying
partnerships with industry leading resellers and VARs and rolling out
our services to large distributed organizations. As a result of our
dedicated focus on integrating our telephony and contact center
solutions, optimizing the security and reliability of our services,
expanding globally and providing outstanding deployment and support, we
believe we are ideally positioned to meet the communications
requirements of the highly sought after mid-size and enterprise segments
of the market."
Fourth Quarter and Year-to-Date Highlights:
-
New monthly recurring revenue (MRR) sold in the fourth quarter of
fiscal 2015 to mid-market customers and by channel sales teams
increased 35% year-over-year.
-
Service revenue from mid-market customers increased 34% year-over-year
and now represents 43% of total service revenue, compared with 39% in
the same year ago period.
-
Average monthly service revenue per business customer increased 11%
year-over-year to a record $320, compared with $287 in the same period
last year.
-
GAAP service margin was 81%, compared with 79% in the same period a
year ago; overall gross margin was 73%, compared with 70% in the same
year ago period.
-
Monthly business service revenue churn was 0.5%, compared with 1.2% in
the same period last year.
-
Cash, cash equivalents and investments was $177.1 million in the
fourth quarter of fiscal 2015, compared with $178.4 million in the
same period last year; cash flow from operating activities was $21.2
million year to date; spent $19.4 million on share repurchase.
-
Ended the quarter with 41,621 business customers, up 10% compared with
37,933 customers in the same period a year ago.
Additional Year-to-Date Business Highlights:
-
Introduced new "Enterprise Suite" of services consisting of Virtual
Office telephony and UC, Virtual Office Analytics, "Performance
Assured" SLA and "Elite Touch" customer support.
-
Completed senior management team with the addition of three key
executives: Mary Ellen Genovese (CFO), Enzo Signore (CMO) and Puneet
Arora (SVP Global Sales).
-
Expanded channel partner program with addition of Arrow Systems
Integration, Intelisys and CDW.
-
Announced technology milestone with awarding of 100th US
patent; 104 awarded patents to date.
-
Awarded the #1 ranking in the IHS Infonetics' Annual "Cloud UC Service
Provider North American Scorecard" report for the second consecutive
year.
"We are issuing our guidance for annual revenue of $193 million - $197
million in fiscal 2016, and we expect non-GAAP net income as a
percentage of revenue in the 6% - 9% range as we continue to invest in
our mid-market and enterprise growth," said Mr. Verma. "We look forward
to discussing 8x8's strategy and range of capabilities to address the
mid-market opportunity at our upcoming Analyst Day on June 4, 2015."
8x8 also reported, in accordance with NASDAQ Listing Rule 5635(c)(4),
that employment inducement awards were granted to 31 new employees in
connection with their recent hiring. The employees received restrictive
stock units for 271,654 shares of the Company's Common Stock and 229,000
options, subject to their continued employment and other conditions.
Conference Call Information:
Management will host a conference call to discuss these results and
other matters related to the Company's business today, May 20, 2015, at
4:30 pm ET. The call is accessible via the following numbers and webcast
links:
Dial In:
|
(877) 843-0417, domestic
|
|
(408) 427-3791, international
|
Replay:
|
(855) 859-2056, domestic (Conference ID # 34784282)
|
|
(404) 537-3406, international (Conference ID # 34784282)
|
Webcast:
|
http://investors.8x8.com
|
|
|
Participants should plan to dial in or log on ten minutes prior to the
start time. A telephonic replay of the call will be available three
hours after the conclusion of the call until midnight May 26, 2015. The
webcast will be archived on 8x8's website for a period of one year. For
additional information, visit http://investors.8x8.com.
About 8x8, Inc.
8x8, Inc. (NASDAQ:EGHT) is the trusted provider of secure and reliable
cloud-based unified communications and virtual contact center solutions
to more than 40,000 businesses operating in over 40 countries across six
continents. 8x8's out-of-the-box cloud solutions replace traditional
on-premise PBX hardware and software-based systems with a flexible and
scalable Software as a Service (SaaS) alternative, encompassing cloud
business phone service, contact center solutions, and web conferencing.
For additional information, visit www.8x8.com,
or www.8x8.com/UK or connect with
8x8 on Google+, Facebook, LinkedIn and Twitter.
Non-GAAP Measures
The Company has provided in this release financial information that has
not been prepared in accordance with Generally Accepted Accounting
Principles (GAAP). Management uses these non-GAAP financial measures
internally in analyzing our financial results and believes they are
useful to investors, as a supplement to GAAP measures, in evaluating the
Company's ongoing operational performance. Management believes that the
use of these non-GAAP financial measures provides an additional tool for
investors to use in evaluating 8x8's ongoing operating results and
trends and in comparing financial results with other companies in the
industry, many of which present similar non-GAAP financial measures to
investors.
Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. Investors are encouraged to review the reconciliation of
these non-GAAP financial measures to their most directly comparable GAAP
financial measures below. A reconciliation of non-GAAP financial
measures to their most directly comparable GAAP measures has been
provided in the financial statement tables included below in this press
release.
Non-GAAP net income and non-GAAP net income per
share
We have defined non-GAAP net income as net income for GAAP plus non-cash
tax adjustments, stock-based compensation, amortization of acquired
intangible assets, acquisition-related costs, gain on patent sale, gain
on disposal of discontinued operations and management transition, loss
contingency reserve, and gain on escrow settlement. We have excluded
gain on patent sale, gain on disposal of discontinued operations, loss
contingency reserve and gain on escrow settlement because we consider
these to have been isolated transactions and believe these are not
reflective of our ongoing operations, and this reduces comparability of
periodic operating results when these are included. Non-cash tax
adjustments represent the differences between the amount of taxes we
expect to pay and our GAAP tax provision each period. We have excluded
stock-based compensation expense because it relies on valuations based
on future events, such as the market price of our common stock, that are
difficult to predict and are affected by market factors that are largely
not within the control of management. Amortization of acquired
intangible assets is excluded because it is a non-cash expense that we
do not consider part of ongoing operations when assessing our financial
performance, as it relates to accounting for certain purchased assets.
We have excluded acquisition-related expenses and management transition
expenses because these expenses are difficult to predict and are often
one-time. We define non-GAAP net income per share as non-GAAP net income
divided by the weighted-average diluted shares outstanding. We define
non-GAAP net income percentage of revenue as non-GAAP net income divided
by revenue. The GAAP and non-GAAP weighted average number of diluted
shares to calculate GAAP and non-GAAP earnings per share are the same.
We believe that such exclusions facilitate comparisons to our historical
operating results and to the results of other companies in the same
industry, and provides investors with information that we use in
evaluating management's performance on a quarterly and annual basis.
Forward Looking Statements
This news release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and
Section 21E of the Securities Exchange Act of 1934. These statements
include, without limitation, information about future events based on
current expectations, potential product development efforts, near and
long-term objectives, potential new business, strategies, organization
changes, changing markets, future business performance and outlook. Such
statements are predictions only, and actual events or results could
differ materially from those made in any forward-looking statements due
to a number of risks and uncertainties. Actual results and trends may
differ materially from historical results or those projected in any such
forward-looking statements depending on a variety of factors. These
factors include, but are not limited to, market acceptance of new or
existing services and features, success of our efforts to target
mid-market and larger distributed enterprises, changes in the
competitive dynamics of the markets in which we compete, customer
cancellations and rate of churn, impact of current economic climate and
adverse credit markets on our target customers, our ability to scale our
business, our reliance on infrastructure of third-party network services
providers, risk of failure in our physical infrastructure, risk of
failure of our software, our ability to maintain the compatibility of
our software with third-party applications and mobile platforms,
continued compliance with industry standards and regulatory
requirements, risks relating to our strategies and objectives for future
operations, including the execution of integration plans and realization
of the expected benefits of our acquisitions, the amount and timing of
costs associated with recruiting, training and integrating new
employees, introduction and adoption of our cloud communications and
collaboration services in markets outside of the United States, and
general economic conditions that could adversely affect our business and
operating results. For a discussion of such risks and uncertainties,
which could cause actual results to differ from those contained in the
forward-looking statements, see "Risk Factors" in the Company's reports
on Forms 10-K and 10-Q, as well as other reports that 8x8, Inc. files
from time to time with the Securities and Exchange Commission. All
forward-looking statements are qualified in their entirety by this
cautionary statement, and 8x8, Inc. undertakes no obligation to update
publicly any forward-looking statement for any reason, except as
required by law, even as new information becomes available or other
events occur in the future.
|
8x8, Inc.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(In thousands, except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
Service revenue
|
|
$
|
40,009
|
|
$
|
32,545
|
|
|
$
|
148,208
|
|
|
$
|
116,607
|
Product revenue
|
|
|
3,521
|
|
|
3,241
|
|
|
|
14,205
|
|
|
|
11,990
|
Total revenue
|
|
|
43,530
|
|
|
35,786
|
|
|
|
162,413
|
|
|
|
128,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service revenue
|
|
|
7,655
|
|
|
6,866
|
|
|
|
29,701
|
|
|
|
22,445
|
Cost of product revenue
|
|
|
4,173
|
|
|
3,999
|
|
|
|
15,863
|
|
|
|
15,170
|
Research and development
|
|
|
4,348
|
|
|
3,332
|
|
|
|
15,118
|
|
|
|
11,633
|
Sales and marketing
|
|
|
21,508
|
|
|
18,038
|
|
|
|
80,667
|
|
|
|
60,906
|
General and administrative
|
|
|
5,794
|
|
|
3,924
|
|
|
|
18,182
|
|
|
|
15,368
|
Gain on patent sale
|
|
|
-
|
|
|
-
|
|
|
|
(1,000
|
)
|
|
|
-
|
Total operating expenses
|
|
|
43,478
|
|
|
36,159
|
|
|
|
158,531
|
|
|
|
125,522
|
Income (loss) from operations
|
|
|
52
|
|
|
(373
|
)
|
|
|
3,882
|
|
|
|
3,075
|
Other income, net
|
|
|
210
|
|
|
140
|
|
|
|
833
|
|
|
|
742
|
Income (loss) from continuing operations before provision for
income taxes
|
|
|
262
|
|
|
(233
|
)
|
|
|
4,715
|
|
|
|
3,817
|
Provision for income taxes
|
|
|
79
|
|
|
1,738
|
|
|
|
2,789
|
|
|
|
2,219
|
Income (loss) from continuing operations
|
|
|
183
|
|
|
(1,971
|
)
|
|
|
1,926
|
|
|
|
1,598
|
Income from discontinued operations, net of income tax provision
|
|
|
-
|
|
|
19
|
|
|
|
-
|
|
|
|
320
|
Gain on disposal of discontinued operations, net of income tax
provision of $463
|
|
|
-
|
|
|
7
|
|
|
|
-
|
|
|
|
596
|
Net Income (loss)
|
|
$
|
183
|
|
$
|
(1,945
|
)
|
|
$
|
1,926
|
|
|
$
|
2,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share - continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.00
|
|
$
|
(0.02
|
)
|
|
$
|
0.02
|
|
|
$
|
0.02
|
Diluted
|
|
$
|
0.00
|
|
$
|
(0.02
|
)
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share - discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.00
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.01
|
Diluted
|
|
$
|
0.00
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.00
|
|
$
|
(0.02
|
)
|
|
$
|
0.02
|
|
|
$
|
0.03
|
Diluted
|
|
$
|
0.00
|
|
$
|
(0.02
|
)
|
|
$
|
0.02
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
88,950
|
|
|
88,184
|
|
|
|
89,071
|
|
|
|
78,310
|
Diluted
|
|
|
91,266
|
|
|
88,184
|
|
|
|
91,652
|
|
|
|
81,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts include stock-based compensation expense, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
Cost of service revenue
|
|
$
|
216
|
|
$
|
135
|
|
|
$
|
692
|
|
|
$
|
372
|
Cost of product revenue
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Research and development
|
|
|
446
|
|
|
333
|
|
|
|
1,495
|
|
|
|
967
|
Sales and marketing
|
|
|
1,128
|
|
|
817
|
|
|
|
3,748
|
|
|
|
2,217
|
General and administrative
|
|
|
1,068
|
|
|
1,065
|
|
|
|
3,412
|
|
|
|
4,039
|
|
|
$
|
2,858
|
|
$
|
2,350
|
|
|
$
|
9,347
|
|
|
$
|
7,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8x8, Inc.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
March 31,
|
|
|
|
2015
|
|
|
2014
|
ASSETS
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
53,110
|
|
$
|
59,159
|
Short-term investments
|
|
|
123,984
|
|
|
47,181
|
Accounts receivable, net
|
|
|
6,642
|
|
|
5,503
|
Inventory
|
|
|
704
|
|
|
811
|
Deferred tax assets
|
|
|
4,454
|
|
|
2,065
|
Other current assets
|
|
|
2,702
|
|
|
2,214
|
Total current assets
|
|
|
191,596
|
|
|
116,933
|
Long-term investments
|
|
|
-
|
|
|
72,021
|
Property and equipment, net
|
|
|
10,248
|
|
|
7,711
|
Intangible assets, net
|
|
|
12,260
|
|
|
15,095
|
Goodwill
|
|
|
36,887
|
|
|
38,461
|
Non-current deferred tax asset
|
|
|
43,169
|
|
|
47,797
|
Other assets
|
|
|
1,464
|
|
|
1,185
|
Total assets
|
|
$
|
295,624
|
|
$
|
299,203
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
7,775
|
|
$
|
6,789
|
Accrued compensation
|
|
|
6,183
|
|
|
4,583
|
Accrued warranty
|
|
|
339
|
|
|
660
|
Deferred revenue
|
|
|
1,768
|
|
|
1,857
|
Other accrued liabilities
|
|
|
5,765
|
|
|
4,232
|
Total current liabilities
|
|
|
21,830
|
|
|
18,121
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
1,583
|
|
|
2,904
|
Total liabilities
|
|
|
23,413
|
|
|
21,025
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
272,211
|
|
|
278,178
|
Total liabilities and stockholders' equity
|
|
$
|
295,624
|
|
$
|
299,203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8x8, Inc.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
March 31,
|
|
|
|
2015
|
|
|
|
2014
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
1,926
|
|
|
$
|
2,514
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
|
3,540
|
|
|
|
2,567
|
|
Amortization of intangible assets
|
|
|
2,232
|
|
|
|
1,643
|
|
Amortization of capitalized software
|
|
|
341
|
|
|
|
147
|
|
Net Accretion of discount and amortization of premium on
marketable securities
|
|
|
896
|
|
|
|
114
|
|
Gain on disposal of discontinued operations
|
|
|
-
|
|
|
|
(596
|
)
|
Gain on escrow settlement
|
|
|
-
|
|
|
|
(565
|
)
|
Stock-based compensation
|
|
|
9,347
|
|
|
|
7,595
|
|
Tax benefit from stock-based compensation
|
|
|
(151
|
)
|
|
|
(142
|
)
|
Deferred income tax provision
|
|
|
2,390
|
|
|
|
2,266
|
|
Other
|
|
|
256
|
|
|
|
650
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
(1,529
|
)
|
|
|
(1,575
|
)
|
Inventory
|
|
|
52
|
|
|
|
(276
|
)
|
Other current and noncurrent assets
|
|
|
(196
|
)
|
|
|
(488
|
)
|
Deferred cost of goods sold
|
|
|
(207
|
)
|
|
|
163
|
|
Accounts payable
|
|
|
605
|
|
|
|
(1,035
|
)
|
Accrued compensation
|
|
|
1,632
|
|
|
|
488
|
|
Accrued warranty
|
|
|
(321
|
)
|
|
|
208
|
|
Accrued taxes and fees
|
|
|
490
|
|
|
|
276
|
|
Deferred revenue
|
|
|
(1,065
|
)
|
|
|
681
|
|
Other current and noncurrent liabilities
|
|
|
1,002
|
|
|
|
282
|
|
Net cash provided by operating activities
|
|
|
21,240
|
|
|
|
14,917
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(5,826
|
)
|
|
|
(2,853
|
)
|
Acquisition of business, net of cash acquired
|
|
|
-
|
|
|
|
(18,474
|
)
|
Cost of capitalized software
|
|
|
(724
|
)
|
|
|
(755
|
)
|
Proceeds from disposition of discontinued operations, net of
transaction costs
|
|
|
-
|
|
|
|
3,000
|
|
Proceeds from maturity of investments
|
|
|
63,546
|
|
|
|
-
|
|
Sales of investments - available for sale
|
|
|
36,764
|
|
|
|
24,219
|
|
Purchase of investments - available for sale
|
|
|
(106,021
|
)
|
|
|
(141,604
|
)
|
Net cash used in investing activities
|
|
|
(12,261
|
)
|
|
|
(136,467
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Capital lease payments
|
|
|
(149
|
)
|
|
|
(85
|
)
|
Repurchase of common stock
|
|
|
(19,371
|
)
|
|
|
(489
|
)
|
Tax benefit from stock-based compensation
|
|
|
151
|
|
|
|
142
|
|
Proceeds from issuance of common stock, net of issuance costs
|
|
|
-
|
|
|
|
125,750
|
|
Proceeds from issuance of common stock under employee stock plans
|
|
|
4,455
|
|
|
|
5,167
|
|
Net cash (used in) provided by financing activities
|
|
|
(14,914
|
)
|
|
|
130,485
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
(114
|
)
|
|
|
(81
|
)
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(6,049
|
)
|
|
|
8,854
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period
|
|
|
59,159
|
|
|
|
50,305
|
|
Cash and cash equivalents at the end of the period
|
|
$
|
53,110
|
|
|
$
|
59,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8x8, Inc.
|
Selected Operating Statistics
|
|
|
Three Months Ended
|
|
|
March 31, 2014
|
|
June 30, 2014
|
|
Sept. 30, 2014
|
|
Dec. 31, 2014
|
|
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
Total business customers (1)
|
|
|
37,933
|
|
|
39,340
|
|
|
40,434
|
|
|
41,051
|
|
|
41,621
|
Business customer average monthly service revenue per customer (2)
|
|
$
|
287
|
|
$
|
293
|
|
$
|
299
|
|
$
|
305
|
|
$
|
320
|
Monthly business service revenue churn (3)
|
|
|
1.2%
|
|
|
0.4%
|
|
|
0.9%
|
|
|
1.0%
|
|
|
0.5%
|
|
|
|
|
|
|
|
|
|
|
|
Overall service margin
|
|
|
79%
|
|
|
80%
|
|
|
79%
|
|
|
80%
|
|
|
81%
|
Overall product margin
|
|
|
-23%
|
|
|
-9%
|
|
|
-8%
|
|
|
-11%
|
|
|
-19%
|
Overall gross margin
|
|
|
70%
|
|
|
71%
|
|
|
72%
|
|
|
72%
|
|
|
73%
|
|
|
|
|
|
|
|
|
|
|
|
(1) Business customers are defined as customers paying for service.
Customers that are currently in the 30-day trial period are
considered to be customers that are paying for service. Customers
subscribing to Virtual Office Solo, DNS or Cloud VPS services are
not included as business customers.
|
|
(2) Business customer average monthly service revenue per customer
is service revenue from business customers in the period divided by
the number of months in the period divided by the simple average
number of business customers during the period.
|
|
(3) Business customer service revenue churn is calculated by
dividing the service revenue lost from business customers (after the
expiration of 30-day trial) during the period by the simple average
of business customer service revenue during the same period and
dividing the result by the number of months in the period.
|
|
8x8, Inc.
|
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP NET INCOME
|
AND NON-GAAP NET INCOME PER SHARE
|
(In thousands, except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
March 31,
|
|
|
March 31,
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
Net income (loss)
|
|
$
|
183
|
|
|
$
|
(1,945
|
)
|
|
$
|
1,926
|
|
|
$
|
2,514
|
|
Gain on patent sale
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,000
|
)
|
|
|
-
|
|
Gain on escrow settlement
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(565
|
)
|
Gain on disposal of discontinued operations
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
(596
|
)
|
Non-cash tax adjustments
|
|
|
(54
|
)
|
|
|
2,179
|
|
|
|
2,390
|
|
|
|
2,266
|
|
Amortization of acquired intangible assets
|
|
|
545
|
|
|
|
569
|
|
|
|
2,232
|
|
|
|
1,643
|
|
Stock-based compensation expense
|
|
|
2,858
|
|
|
|
2,350
|
|
|
|
9,347
|
|
|
|
7,595
|
|
Acquisition related expenses
|
|
|
132
|
|
|
|
26
|
|
|
|
132
|
|
|
|
841
|
|
Loss contingency reserve
|
1,200
|
|
|
|
-
|
|
|
|
1,200
|
|
|
|
-
|
|
Management transition
|
|
|
-
|
|
|
|
104
|
|
|
|
-
|
|
|
|
441
|
|
Non-GAAP net income
|
|
$
|
4,864
|
|
|
|
3,276
|
|
|
$
|
16,227
|
|
|
$
|
14,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
88,950
|
|
|
|
88,184
|
|
|
|
89,071
|
|
|
|
78,310
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
91,266
|
|
|
|
91,525
|
|
|
|
91,652
|
|
|
|
81,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per share - Diluted
|
|
$
|
0.00
|
|
|
$
|
(0.02
|
)
|
|
$
|
0.02
|
|
|
$
|
0.03
|
|
Gain on patent sale
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.01
|
)
|
|
|
-
|
|
Gain on escrow settlement
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.01
|
)
|
Gain on disposal of discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.01
|
)
|
Non-cash tax adjustments
|
|
|
-
|
|
|
|
0.02
|
|
|
|
0.03
|
|
|
|
0.03
|
|
Amortization of acquired intangible assets
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.02
|
|
Stock-based compensation expense
|
|
|
0.03
|
|
|
|
0.03
|
|
|
|
0.10
|
|
|
|
0.09
|
|
Acquisition related expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
Loss contingency reserve
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
-
|
|
Management transition
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
Non-GAAP net income per share - Diluted
|
|
$
|
0.05
|
|
|
$
|
0.04
|
|
|
$
|
0.18
|
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) percentage of revenue
|
|
|
0
|
%
|
|
|
-5
|
%
|
|
|
1
|
%
|
|
|
2
|
%
|
Gain on patent sale
|
|
|
-
|
|
|
|
-
|
|
|
|
-1
|
%
|
|
|
-
|
|
Gain on escrow settlement
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Gain on disposal of discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-1
|
%
|
Non-cash tax adjustments
|
|
|
-
|
|
|
|
6
|
%
|
|
|
2
|
%
|
|
|
2
|
%
|
Amortization of acquired intangible assets
|
|
|
1
|
%
|
|
|
2
|
%
|
|
|
1
|
%
|
|
|
1
|
%
|
Stock-based compensation expense
|
|
|
7
|
%
|
|
|
6
|
%
|
|
|
6
|
%
|
|
|
6
|
%
|
Acquisition related expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
%
|
Loss contingency reserve
|
|
|
3
|
%
|
|
|
-
|
|
|
|
1
|
%
|
|
|
-
|
|
Management transition
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Non-GAAP net income percentage of revenue
|
|
|
11
|
%
|
|
|
9
|
%
|
|
|
10
|
%
|
|
|
11
|
%
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150520006505/en/
[ Back To TMCnet.com's Homepage ]
|