8X8 Posts Fifth Consecutive Profitable Quarter, Brings in More SMB, Government

Posting its fifth consecutive profitable quarter, business communications provider 8x8 (News - Alert), Inc. today announced its financial operating results for the first quarter of fiscal 2010, which ended June 30.

“In May 2010, we brought on new business customers for the company’s managed hosting services, and see a growing pipeline of new prospects for these services based on the number of outstanding quotes for managed hosting and cloud-based computing services,” said Bryan Martin (News - Alert), CEO and chairman of the board of 8X8. Martin attributed 8X8’s growth in part to the company’s enterprise sales team that was assembled earlier this year to bring larger SMB and government customers on board while creating the processes and procedures necessary to win and maintain that business.

The first quarter of fiscal 2011

During the first quarter of fiscal 2011, 8x8 added 32,896 new business lines and services, compared to 29,985 in the prior quarter and 27,937 in the same period last year. Business customer churn decreased to 2.5 percent, Martin said, compared to a churn rate of 2.7 percent in the previous quarter and 2.7 percent for the same period last year. 8x8 ended the first quarter of fiscal 2011 with 21,362 business customers.

“We believe attributes such as service maturity, reliability and breadth of feature set combined with 8x8’s proprietary technology, customer support advantage and overall financial stability are the qualities these enterprise customers are seeking and are what set us apart from competitive business VoIP service providers,” Martin said.

He also said that 8X8 recently made enhancements to its installation and configuration workflows and Web portals used to provision voice services to new business customers.

“We believe that these new improvements will positively impact the 30-day return rates of new business voice customers, as it will now be substantially quicker and easier to activate our IP phones and configure the base functionality of our phone services,” Martin said.