Poised To Disrupt the Quality Management
Market Aimed At Traditional Contact Centers and Dynamic
Lines-of-Business
8x8, Inc. (NASDAQ:EGHT), a leading provider of cloud-based
unified communications and contact center solutions, today
announced the company has agreed to purchase certain assets of
privately-held Quality Software Corporation (QSC), an innovative
developer of cloud-native quality management capabilities and
analytics, and two affiliated companies—including QSC’s proprietary
software and all associated intellectual property for $3 million in
cash and $1.3 million in stock compensation. The stock portion will
be paid out over four years assuming certain conditions are met.
The transaction is subject to customary closing conditions and is
expected to close this month.
QSC is one of the newest, most innovative players in the call
center performance and analytics marketplace based in Delray Beach,
Florida with a development center in Romania. QSC offers a modern,
web-based solution for the cloud, with a powerful set of monitoring
capabilities for high-touch interactions and a personalized
customer experience—including call recording, screen capture, live
monitoring, agent evaluations, speech transcription, reporting and
detailed analytics. 8x8 plans to unveil a new cloud-quality
management product for its Virtual Contact Center solution by the
end of 2015. As part of the transaction with QSC, 8x8 intends to
hire QSC’s Chief Executive Officer, Ryan Morrissey, as well as the
company’s development team in Romania. Morrissey will serve as
8x8’s new Senior Director of Product Strategy, Cloud Quality
Management Solutions, and be based at the company’s headquarters in
San Jose, California.
"8x8 is already the driving force behind the business
communications market disruption, and with the QSC integration, we
expect to lead the same level of disruption for quality management
in the enterprise," said Vik Verma, Chief Executive Officer of 8x8.
“Quality management and analytics are an integral part of our
customer experience strategy and are already demanded by most
larger contact centers today. With the agility of QSC’s cloud
solutions, these capabilities can be easily delivered to many other
groups beyond the call center, adding value to key
lines-of-business such as sales, help desks and other essential
customer engagement functions throughout the enterprise.”
“We are excited to be part of the 8x8 team as the company makes
its push into the enterprise and continues to grow in the
mid-market," said Ryan Morrissey, CEO at Quality Software
Corporation. “Traditionally, the quality management market has been
dominated by dated, on-premises solutions, so QSC’s cloud-based
innovations bring a new level of flexibility and ease of adoption.
Together, we look forward to targeting broader market opportunities
in the U.S. and internationally, as well as increasing our
engineering capacity in Romania to support major quality management
initiatives—with a keen focus on new workgroup and line-of-business
solutions for the enterprise.”
8x8 Completes DXI Acquisition
8x8 completed its previously announced acquisition of DXI Ltd on
May 29, 2015. The aggregate purchase price for DXI was
approximately $25.7 million, consisting of $22.6 million in cash
and $3.1 million in the company’s common stock (approximately
353,000 shares). The stock portion will be paid out over four years
assuming certain conditions are met. 8x8 funded the aggregate
cash purchase price from its cash and investments. DXI recognized
approximately $12 million in revenue in the trailing 12 months
ended March 31, 2015. The DXI integration brings an additional 81
employees to 8x8, based in London.
With the closing of both acquisitions, 8x8 believes that fiscal
2016 revenue will range from $202 million-$206 million,
representing approximately 24% - 27% year-over-year growth, and
that non-GAAP net income will be approximately 6% of revenue, at
the lower end of previously disclosed guidance of 6% - 9%.
Members of 8x8's management team will deliver a series of
presentations on the Company's vision, strategy, products,
technology, market trends and financial goals today at its Analyst
Day event beginning at 9:00 a.m. until 2:00
p.m. Pacific Time. A live audio webcast of the event and copy
of the presentation will be accessible from the Investor Relations
section of the company's website
at http://investors.8x8.com.
About 8x8, Inc.
8x8, Inc. (NASDAQ:EGHT) is the trusted provider of secure
and reliable enterprise cloud communications solutions to more than
40,000 businesses operating in over 40 countries across six
continents. 8x8's out-of-the-box cloud solutions replace
traditional on-premises PBX hardware and software-based systems
with a flexible and scalable Software as a Service (SaaS)
alternative, encompassing cloud business phone service, contact
center solutions, and conferencing. For additional information,
visit www.8x8.com, or www.8x8.com/UK or connect with
8x8
on Google+, Facebook, LinkedIn and Twitter.
Non-GAAP net income
We have defined non-GAAP net income as net income for GAAP
before non-cash tax adjustments, stock-based compensation,
amortization of acquired intangible assets, acquisition-related
costs, gain on patent sale, gain on disposal of discontinued
operations and management transition, loss contingency reserve, and
gain on escrow settlement. We have excluded gain on patent sale,
gain on disposal of discontinued operations, loss contingency
reserve and gain on escrow settlement because we consider these to
have been isolated transactions and believe these are not
reflective of our ongoing operations, and this reduces
comparability of periodic operating results when these are
included. Non-cash tax adjustments represent the differences
between the amount of taxes we expect to pay and our GAAP tax
provision each period. We have excluded stock-based compensation
expense because it relies on valuations based on future events,
such as the market price of our common stock, that are difficult to
predict and are affected by market factors that are largely not
within the control of management. Amortization of acquired
intangible assets is excluded because it is a non-cash expense that
we do not consider part of ongoing operations when assessing our
financial performance, as it relates to accounting for certain
purchased assets. We have excluded acquisition-related expenses and
management transition expenses because these expenses are difficult
to predict and are often one-time. We define non-GAAP net income
percentage of revenue as non-GAAP net income divided by
revenue.
Forward Looking
Statements
This news release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
and Section 21E of the Securities Exchange Act of 1934. These
statements include, without limitation, estimates for fiscal 2016
revenue and non-GAAP net income, as well as other information about
future events based on current expectations, potential product
development efforts, near and long-term objectives, potential new
business, strategies, organization changes, changing markets,
future business performance and outlook. Such statements are
predictions only, and actual events or results could differ
materially from those made in any forward-looking statements due to
a number of risks and uncertainties. Actual results and trends may
differ materially from historical results or those projected in any
such forward-looking statements depending on a variety of factors.
These factors include, but are not limited to, market acceptance of
new or existing services and features, success of our efforts to
target mid-market and larger distributed enterprises, changes in
the competitive dynamics of the markets in which we compete,
customer cancellations and rate of churn, impact of current
economic climate and adverse credit markets on our target
customers, our ability to scale our business, our reliance on
infrastructure of third-party network services providers, risk of
failure in our physical infrastructure, risk of failure of our
software, our ability to maintain the compatibility of our software
with third-party applications and mobile platforms, continued
compliance with industry standards and regulatory requirements,
risks relating to our strategies and objectives for future
operations, including the execution of integration plans and
realization of the expected benefits of our acquisitions, the
amount and timing of costs associated with recruiting, training and
integrating new employees, introduction and adoption of our cloud
communications and collaboration services in markets outside of the
United States, compliance with international regulations, and
general economic conditions that could adversely affect our
business and operating results. For a discussion of such risks and
uncertainties, which could cause actual results to differ from
those contained in the forward-looking statements, see “Risk
Factors” in the Company’s reports on Forms 10-K and 10-Q, as well
as other reports that 8x8, Inc. files from time to time with the
Securities and Exchange Commission. All forward-looking statements
are qualified in their entirety by this cautionary statement, and
8x8, Inc. undertakes no obligation to update publicly any
forward-looking statement for any reason, except as required by
law, even as new information becomes available or other events
occur in the future.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150604005407/en/
for 8x8, Inc.Press ContactJodi Guilbault,
415-987-4970jguilbault@comcast.netorInvestor contact:Joan
Citelli, 408-654-0970Joan.citelli@8x8.com
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