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8x8 Inc Reports Operating Results (10-Q)

October 26, 2012 | About:
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10qk

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8x8 Inc (EGHT) filed Quarterly Report for the period ended 2012-09-30.

8x8, Inc. has a market cap of $421.4 million; its shares were traded at around $6.88 with a P/E ratio of 45.6 and P/S ratio of 4.9.

Highlight of Business Operations:

The cost of service revenue primarily consists of costs associated with network operations and related personnel, telephony origination and termination services provided by third party carriers and technology license and royalty expenses. Cost of service revenue for the three months ended September 30, 2012 increased over the comparable period in the prior fiscal year primarily due to a $1.2 million increase in third party network service expenses, a $0.3 million increase in payroll and related costs, a $0.2 million increase in amortization expenses due to intangibles acquired in acquisition of businesses, and a $0.2 million increase in depreciation expense. The increase in expense was partially offset by a $0.2 million reduction in expensed license and fees.

Cost of service revenue for the six months ended September 30, 2012 increased from the comparable period in the prior fiscal year primarily due to a $2.2 million increase in third party network service fees, a $0.6 million increase in payroll and related costs, a $0.4 million increase in amortization expenses due to intangibles acquired in acquisition of businesses, a $0.3 million increase in depreciation expense, and a $0.2 million increase in consulting and outside service expenses. The increase in expense was partially offset by a $0.2 million reduction in expensed license and fees.

Sales and marketing expenses consist primarily of personnel and related overhead costs for sales, marketing, and customer service. Such costs also include outsourced customer service call center operations, sales commissions, as well as trade show, advertising and other marketing and promotional expenses. Sales and marketing expenses for the three months ended September 30, 2012 increased over the same quarter in the prior fiscal year primarily because of a $1.7 million increase in payroll and related costs, a $0.1 million increase in third party sales commissions, a $0.1 million increase in amortization of customer relationship intangibles, a $0.1 million increase in bad debt expenses, and a $0.2 million increase in other miscellaneous sales and marketing expenses. The increase in expense was partially offset by a $0.3 million reduction in other advertising expenses.

Sales and marketing expenses for the first six months of fiscal 2013 increased over the same period in the prior fiscal year primarily because of a $3.4 million increase in payroll and related costs, a $0.2 million increase in third party sales commissions, a $0.2 million increase in amortization of customer relationship intangibles, a $0.1 million increase in bad debt expense, a $0.1 million increase in sales promotion expenses, a $0.1 million increase in telephone expenses, a $0.1 million increase in travel and meal expenses and a $0.3 million increase in other sales and marketing expenses. The increase in expenses was partially offset by a $0.2 million reduction in temporary personnel, consulting and outside service expenses.

General and administrative expenses for the first six months of fiscal 2013 increased over the same period in the prior fiscal year primarily because of a $0.7 million increase in temporary personnel, consulting and outside service expenses, a $0.4 million increase in payroll and related costs, a $0.1 million increase in recruiting expenses, a $0.1 million increase in sales and use tax expense and a $0.1 million increase in accounting and tax expenses, although legal expenses declined in the recent period.

Read the The complete Report

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10qk
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