8x8 2006 Annual Report Download - page 30

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27
are not able to comply with the requirements of Section 404 in a timely manner or with adequate compliance, we
might be subject to sanctions or investigation by regulatory authorities, such as the Securities Exchange Commission
or the Nasdaq Capital Market. Further, if our independent auditors are not satisfied with our internal control over
financial reporting or with the level at which it is documented, designed, operated or reviewed, they may decline to
attest to management's assessment or may issue a qualified report identifying a material weakness in our internal
controls. Any such action could adversely affect our financial results and could cause our stock price to decline.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Our principal operations are located in an approximately 47,000 square foot facility in Santa Clara, California that is
leased through August 2009. Design, testing, research and development, sales and marketing, shipping, customer
service and administrative activities are performed in this facility. We also lease office space for our research and
development operation in Sophia-Antipolis, France. We believe that our existing facilities are adequate to meet our
current and foreseeable future needs. For additional information regarding our obligations under leases see Note 8 to
the consolidated financial statements contained in Part II, Item 8 of this Report.
ITEM 3. LEGAL PROCEEDINGS
We are involved in various legal claims and litigation that have arisen in the normal course of our operations. While
the results of such claims and litigation cannot be predicted with certainty, we believe that the final outcome of such
matters will not have a significantly adverse effect on our financial position, results of operations or cash flows.
However, should we not prevail in any such litigation, our operating results, financial condition or cash flows could
be adversely impacted.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth quarter of fiscal 2005.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED SECURITY HOLDER
MATTERS
We completed our initial public offering on July 2, 1997 under the name 8x8, Inc. From that date through April 3,
2000, our common stock was traded on the NASDAQ National Market (the NASDAQ) under the symbol "EGHT."
From April 4, 2000 through July 18, 2001, our common stock was traded on the NASDAQ under the symbol
"NTRG." Since July 19, 2001 our common stock has traded under the symbol "EGHT." In July 2002, our listing was
transferred to the Nasdaq Capital Market. We have never paid cash dividends on our common stock and have no
plans to do so in the foreseeable future. We did not repurchase any of our equity securities during the fourth quarter
of fiscal 2006. As of May 26, 2006, there were 307 holders of record of our common stock.
The following table sets forth the range of high and low sale prices for each period indicated:
Period Hi
g
hLow
Fiscal 2006:
First
q
uarte
r
$ 2.49 $ 1.03
Second
q
uarte
r
$ 2.50 $ 1.45
Third
q
uarte
r
$ 3.39 $ 1.21
Fourth
q
uarte
r
$ 2.16 $ 1.55
Fiscal 2005:
First
q
uarte
r
$ 3.54 $ 2.25
Second
q
uarte
r
$ 3.84 $ 1.38