A Polycom video phone, resold with 8x8 services. Source: 8x8.
Shares of Internet based telephony specialist 8x8 (EGHT -2.94%) jumped as much as 5.1% in after-hours trading on Wednesday, following the release of results for the first quarter of fiscal year 2015.
Sales jumped 30% year over year, landing at $37.9 million. Adjusted earnings came in at $0.03 per share, up from a $0.06 loss per share in the year-ago period.
The earnings figure was in line with analyst expectations, while 8x8 delivered a mildly positive revenue surprise.
Management issued full-year guidance, pointing to 25% year-over-year sales growth and adjusted net margins near 8% or 9%. These guidelines match up with current analyst projections.
8x8 added 1,400 net new business subscribers during the quarter, helped by low customer churn.
In a prepared statement, 8x8 CEO Vik Verma underscored the company's growing success in selling Internet telephony and video services to mid-sized and enterprise-level business customers.
"With a 94% year-over-year increase in new mid-market and channel sales and 41% of our service revenues coming from the mid-market, 8x8 is clearly expanding its leadership position in this valuable market segment," Verma said.
Coming into this report, 8x8 shares had plunged in recent months. Share prices declined by 31% over the previous three months.
