8x8, Inc. (EGHT) saw its loss narrow to $1.32 million, or $0.01 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $1.68 million, or $0.02 a share. On the other hand, adjusted net income for the quarter stood at $5.76 million, or $0.06 a share compared with $4.30 million or $0.05 a share, a year ago.
Revenue during the quarter grew 19.76 percent to $63.68 million from $53.17 million in the previous year period. Gross margin for the quarter expanded 465 basis points over the previous year period to 76.81 percent. Operating margin for the quarter stood at negative 2.67 percent as compared to a negative 4.72 percent for the previous year period.
Operating loss for the quarter was $1.70 million, compared with an operating loss of $2.51 million in the previous year period.
However, the adjusted operating income for the quarter stood at $5.33 million compared to $3.80 million in the prior year period. At the same time, adjusted operating margin improved 124 basis points in the quarter to 8.38 percent from 7.14 percent in the last year period.
"Our financial results for the third quarter of fiscal 2017 were very strong with solid revenue growth and increasing gross and non-GAAP net income margins. Adjusting for constant currency and the discontinued segment of our UK business which we previously reported, service revenue increased 28% and total revenue increased 24%," said 8x8 chief executive officer Vik Verma. "We are continuing to see enterprise customers transition their communications infrastructure to the cloud, evidenced this quarter by the addition of two new enterprise logos, including one Fortune 50 corporation."
For the fiscal year 2017, 8x8, Inc. expects revenue to be in the range of $251 million to $254 million. The company adjusted net income to be in the range of $18 million to $20 million.
Operating cash flow improves significantly
8x8, Inc. has generated cash of $22.22 million from operating activities during the nine month period, up 44.44 percent or $6.84 million, when compared with the last year period.
The company has spent $20.65 million cash to meet investing activities during the nine month period as against cash outgo of $35.64 million in the last year period.
The company has spent $0.89 million cash to carry out financing activities during the nine month period as against cash outgo of $9.30 million in the last year period.
Cash and cash equivalents stood at $33.46 million as on Dec. 31, 2016, up 40.19 percent or $9.59 million from $23.87 million on Dec. 31, 2015.
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