8x8 Nets $1.3M in Latest Quarter

Hosted VoIP provider 8x8 Inc. (EGHT) continued its winning streak in its second fiscal quarter, netting a profit of $1.3 million – a huge jump from the mere $44,000 of the same period a year earlier.

The results also outshone the company’s first-quarter 2010 results of $414,000 in profit.

Meanwhile, total revenue amounted to $16 million, up from $15.6 million in the first quarter but down from $16.3 million in 2009’s fiscal second quarter. Much of the second-half growth stemmed from new contracts from business users, said Bryan Martin, 8x8’s chairman and CEO.

“Revenue from business customers now accounts for nearly three-quarters of overall revenue,” he said in a prepared statement.

8x8 also is gaining traction among its peers. For example, on Oct. 1, the Sunnyvale, Calif.-based company signed a deal with wholesaler Level 3 Communications. The deal allows 8x8 to provision hosted voice services when Level 3 wins applicable federal government contracts through the Networx program.

Other agreements, such as the retail distribution partnership through OfficeMax, are helping 8x8 improve its numbers, too, as are lower operating expenses. On that front, costs fell from about $16.7 million in the same quarter last year to $14.6 million. Research and development outlay tapered off just a bit, as did selling, general and administrative charges.