8x8 2002 Annual Report Download - page 4

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PART I
ITEM 1. BUSINESS
OVERVIEW
Statements contained in this Report on Form 10-
K regarding our expectations, beliefs, estimates, intentions or
strategies are forward-
looking statements within the meaning of Section 27A of the Securities Act and Section 21E of
the Exchange Act and include statements regarding our plans to conduct trials of our IP voice telephony service
offering with follow-
on video capabilities; our research and development plans for our various product groups; our
expectation concerning the adequacy of our facilities; our estimates of litigation exposure and our beliefs about the
sufficiency of our manufacturing arrangements. All forward-
looking statements included in this Report are based on
information available to us on the date hereof, and we assume no obligation to update any such forward-
statements. You should not place undue reliance on these forward-
looking statements. Actual results could differ
materially from those anticipated in these forward-
looking statements as a result of a number of factors, including a
shifting of internal research and development focus based on changes in the market or adequacy of funding; a failure of
customers to adopt iPBX systems due to concerns about VoIP technology or advances in competing systems; our
business may grow in an unanticipated manner causing us to require different types of facilities; ordinary course
litigation may cause a greater than anticipated impact due to factual matters or issues beyond our control; and our
ability to source our products may be interrupted if our manufacturers cease operations or no longer desire to do
business with us. Please also see the section entitled "Factors That May Affect Future Results" for additional risks that
may impact our business.
8x8, Inc., or 8x8, and its subsidiaries (collectively, the Company) develop and market telecommunication technology
for Internet Protocol, or IP, telephony and video applications. The Company has three product lines: voice and video
semiconductors and related software; software that implements the functionality of a private branch exchange, or PBX,
over data networks; and videophones, telephones and communication services that work over broadband networks. The
Company has two primary subsidiaries, Netergy Microelectronics, Inc., or Netergy, and Centile, Inc., or Centile, that
comprise two of its three product lines. In February 2002, we announced that we were beginning a new effort to add
video capabilities to Netergy's existing family of voice-over-
IP, or VoIP, semiconductors, along with software and
systems support for the latest compression standards for video.
Netergy, formed in December 2000, provides voice and video semiconductors and related communication software to
original equipment manufacturers, or OEMs, of telephones, terminal adapters, and other endpoint communication
Part III.
Item 10. Directors and Executive Officers of the Registrant 67
Item 11. Executive Compensation 67
Item 12. Security Ownership of Certain Beneficial Owners and Management 67
Item 13. Certain Relationships and Related Transactions 67
Part IV.
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K 68
Signatures
69