8x8 2013 Annual Report Download - page 30

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On August 1, 2012, we sold 53,899 shares of common stock at $3.315 per share, and 94,951 shares of common stock at $3.774
per share to employee participants in our Employee Stock Purchase Plan, or ESPP. On February 1, 2013, we sold 98,256 shares
of common stock at $3.774 per share, and 54,197 shares of common stock at $4.65 per share to employee participants in our
ESPP. None of the shares sold in the transactions on these two dates were registered. Our ESPP was created pursuant to section
423 of the Internal Revenue Code and allows our eligible employees to purchase common stock through payroll deductions at a
price equal to 85% of the fair market value of a share of our common stock at the beginning of each two year offering period,
or the end of a six month purchase period, whichever is lower. The employees are allowed to completely withdraw all of their
payroll contributions prior to the applicable purchase date. Under our ESPP, the purchase dates are February 1 and August 1 of
each calendar year.
ITEM 6. SELECTED FINANCIAL DATA
2013 2012 2011 2010 2009
Total revenues $ 107,614 $ 85,803 $ 70,163 $ 63,396 $ 64,674
Net income (loss) $ 13,939 $ 69,228 $ 6,494 $ 3,879 $ (2,500)
Net income (loss) per share:
Basic $ 0.20 $ 1.04 $ 0.10 $ 0.06 $ (0.04)
Diluted $ 0.19 $ 0.99 $ 0.10 $ 0.06 $ (0.04)
Total assets $ 152,611 $ 130,733 $ 26,584 $ 23,712 $ 21,856
Fair value of warrant liability $ - $ - $ - $ 167 $ 21
Accumulated deficit $ (109,179) $ (123,118) $ (192,346) $ (198,840) $ (202,719)
Total stockholders' equity $ 137,033 $ 118,450 $ 15,861 $ 13,300 $ 9,030
(in thousands, except per share amounts)
Years Ended March 31,
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
OVERVIEW
We were founded in 1987 and completed an initial public offering of common stock in 1997. We develop and market
telecommunications services for Internet protocol, or IP, telephony and video applications as well as web-based conferencing
and unified communications services. We offer the 8x8 Virtual Office hosted PBX service, 8x8 Virtual Contact Center service,
the 8x8 Virtual Office Pro unified communications solution and 8x8 Cloud-Based Computing solutions. As of March 31,
2013, we had more than 32,500 business customers. Each business customer subscribes to a number of various lines and
services (e.g. physical phone extensions, contact center seats, virtual extensions, fax lines, toll free numbers, receptionist
software, unified communications services, etc.). Since fiscal 2004, substantially all of our revenues have been generated from
the sale, license and provision of VoIP products, services and technology. Prior to fiscal 2003, our focus was on our VoIP
semiconductor business.
CRITICAL ACCOUNTING POLICIES & ESTIMATES
Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United
States of America. Note 1 to the consolidated financial statements in Part II, Item 8 of this Report describes the significant
accounting policies and methods used in the preparation of our consolidated financial statements.
We have identified the policies below as some of the more critical to our business and the understanding of our results of
operations. These policies may involve a higher degree of judgment and complexity in their application and represent the
critical accounting policies used in the preparation of our consolidated financial statements. Although we believe our
judgments and estimates are appropriate, actual future results may differ from our estimates. If different assumptions or
conditions were to prevail, the results could be materially different from our reported results. The impact and any associated
risks related to these policies on our business operations is discussed throughout Management's Discussion and Analysis of
Financial Condition and Results of Operations where such policies affect our reported and expected financial results.