8x8, Inc. Announces Record First Quarter Fiscal 2012 Revenue

Record Revenue of $18.5 Million Increases 10% Year Over Year;

Net Income of $1.9 Million, or $0.03 Per Share; Record Low Churn of 2.1%

SUNNYVALE, Calif., July 20, 2011 (GLOBE NEWSWIRE) -- 8x8, Inc. (Nasdaq:EGHT),
provider of innovative business communications and cloud computing solutions,
today announced financial operating results for the first quarter of fiscal 2012
ended June 30, 2011.

Total revenue for the first quarter of fiscal 2012 grew to a record $18.5
million, a 10% increase over revenue of $16.8 million for the same period of
fiscal 2011. Gross margin for the first quarter of fiscal 2012 was 67%, compared
with 68% in the same period of fiscal 2011.

Operating income increased 91% to $1.6 million in the first quarter of fiscal
2012 from $842,000 in the prior year period. Net income for the first quarter of
fiscal 2012 was $1.9 million, or $0.03 per share, a 91% increase over net income
of $1.0 million for the same period last year.

"Fiscal 2012 got off to a tremendous start for 8x8 with the formal introduction
of our channel program and two new initiatives, the acquisition of Zerigo and
adoption of the VCE Vblock platform, intended to expand our capabilities in the
cloud computing sector," said 8x8 Chairman & CEO Bryan Martin. "At the same
time, revenue from our cloud communications offerings continued to grow while
customer churn from these services decreased even further to a record 2.1%.
Yesterday's announcement of the 8x8/Polycom Virtual Room video conferencing
solution rounds out our diverse portfolio of cloud-based voice, data, video and
call center solutions and we are excited to work with our new channel partners
and business customers to enable businesses of all sizes to experience the
benefits of cloud technologies."

During the first quarter of fiscal 2012, business customer churn decreased to a
record low of 2.1%, compared with a churn rate of 2.3% in the previous quarter
and 2.5% for the same period last year. 8x8 ended the first quarter of fiscal
2012 with 25,455 business customers.

On June 16, 2011, 8x8 acquired Zerigo, Inc, a Littleton, Colorado-based company
providing virtual private servers, managed DNS services, and monitoring tools
for cloud-based server operations.

"We are in the process of integrating the Zerigo acquisition into our existing
operations," Mr. Martin continued. "Zerigo's technologies bolster our
cloud-based server offering and we believe we will be able to cross-sell our
various cloud-based technologies, offering voice services to our server
customers and vice versa."

As of June 30, 2011, the Company had $18.9 million in cash, cash equivalents and
investments compared with $18.1 million on June 30, 2010 and $18.4 million on
March 31, 2011. During the first quarter of fiscal 2012, the Company repurchased
301,800 shares for a total of $888,964.

Q1FY'12 Business Highlights:

-- Grew top line revenue to $18.5 million, up 10% from $16.8 million for
the same period of fiscal 2011

-- Posted net income of $1.9 million, or $0.03 per share, compared with
$1.0 million or $0.02 per share for the same period last year

-- Reported operating income of $1.6 million compared with $842,000 in the
same period last year

-- Reported operating margins of 9% compared with 5% in the same period
last year

-- Increased average number of lines and services per new business customer
to approximately 12.6 compared with an average of approximately 11.7 in
the prior quarter

-- Acquired Zerigo, Inc., to enhance cloud computing portfolio with virtual
private servers, managed DNS services, and monitoring tools for
cloud-based server operations

-- Adopted VCE (VMware, Cisco, EMC) Vblock Infrastructure Platform to
accelerate deployment of cloud-based computing solutions to government,
enterprise customers and SMB customers

-- Added to the Russell 3000(R) Index on June 24, 2011

Management will host a conference call to discuss these results and other
matters related to the Company's business today, July 20, 2011, at 4:30 p.m.
EDT. The call is accessible via the following numbers and webcast links:

Dial In: (877) 843-0417, domestic
(408) 427-3791, international
Replay: (800) 642-1687; domestic (Conference ID 79702296)
(706) 645-9291; international (Conference ID 79702296)
Webcast: http://investors.8x8.com/

Supplemental financial slides will be presented through 8x8's Virtual Meeting
web conferencing portal, which can be accessed at:
http://virtualmeeting.8x8.com/Q1FY2012Earnings.

About 8x8, Inc.

8x8, Inc. (Nasdaq:EGHT), a pioneer in the development of cloud-based VoIP,
video, mobile, and unified communications solutions, leverages its patented
software technologies to deliver industry-leading SaaS applications to
businesses of any size with employees in any location. We offer integrated
business communications and cloud computing services that are designed to meet
the highest levels of availability, reliability and scalability. Increasingly,
businesses are finding they can reduce costs, improve productivity, and be
positioned competitively for the future by choosing 8x8 for their mission
critical, cloud-based communications and computing needs. For additional
information, visit www.8x8.com, or connect with 8x8 on Facebook and Twitter.

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,
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, customer acceptance and demand for our products
and services, the reliability of our services, the prices for our services,
customer renewal rates, customer acquisition costs, actions by our competitors,
including price reductions for their telephone services, potential federal and
state regulatory actions, compliance costs, potential warranty claims and
product defects, our needs for and the availability of adequate working capital,
our ability to innovate technologically, the timely supply of products by our
contract manufacturers, potential future intellectual property infringement
claims that could adversely affect our business and operating results, and our
ability to retain our listing on the NASDAQ Capital Market. 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.

NOTE: 8x8, the 8x8 logo, and 8x8 Virtual Office are trademarks of 8x8, Inc. All
other trademarks are the property of their respective owners.

8x8, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts;
unaudited)

Three Months Ended

June 30,
--------------------

2011 2010
--------- ---------
Service revenues $ 17,021 $ 15,363

Product revenues 1,486 1,471
--------- ---------

Total revenues 18,507 16,834
--------- ---------

Operating expenses:
Cost of service revenues 3,815 3,382
Cost of product revenues 2,270 2,026
Research and development 1,407 1,226
Selling, general and
administrative 9,409 9,358
--------- ---------

Total operating expenses 16,901 15,992
--------- ---------
Income from operations 1,606 842
Other income, net 20 22
Income on change in fair
value of warrant liability -- 158
--------- ---------
Income before provision for
income taxes 1,626 1,022
Provision (benefit) for
income taxes (321) 4
--------- ---------

Net income $ 1,947 $ 1,018
========= =========

Net income per share:
Basic $ 0.03 $ 0.02
Diluted $ 0.03 $ 0.02

Weighted average number of
shares:
Basic 62,264 63,438
Diluted 65,808 64,605

8x8, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)

June 30, March 31,

2012 2011
--------- ---------
ASSETS
Current assets
Cash and cash
equivalents $ 16,934 $ 16,474
Investments 1,942 1,927
Accounts receivable, net 1,070 863
Inventory 1,566 2,105

Other current assets 654 707
--------- ---------
Total current assets 22,166 22,076
Property and equipment,
net 2,393 2,398

Other assets 4,710 2,110
--------- ---------

Total assets $ 29,269 $ 26,584
========= =========

LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 3,448 $ 4,551
Accrued compensation 1,929 1,722
Accrued warranty 378 362
Deferred revenue 691 835
Other accrued
liabilities 4,178 3,214
--------- ---------
Total current
liabilities 10,624 10,684

Other liabilities 428 39
--------- ---------

Total liabilities 11,052 10,723
--------- ---------

Total stockholders'
equity 18,217 15,861
--------- ---------
Total liabilities
and stockholders'
equity $ 29,269 $ 26,584
========= =========

8x8, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)

Three Months Ended

June 30,
--------------------

2011 2010
--------- ---------
Cash flows from operating activities:
Net income $ 1,947 $ 1,018
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 364 273
Stock-based compensation 266 73
Change in fair value of warrant
liability -- (158)
Deferred income tax benefit (336) --
Other 60 29
Changes in assets and liabilities:
Accounts receivable, net (255) (147)
Inventory 527 143
Other current and noncurrent assets 60 (30)
Deferred cost of goods sold 5 (17)
Accounts payable (1,085) 1,464
Accrued compensation 207 190
Accrued warranty 16 25
Accrued taxes and fees 123 245
Deferred revenue (144) (253)
Other current and noncurrent
liabilities 385 (762)
--------- ---------
Net cash provided by operating
activities 2,140 2,093
--------- ---------

Cash flows from investing activities:
Purchases of property and equipment (185) (629)
Purchase of strategic investment -- (315)
Acquisition of businesses, net of cash
acquired (715) (998)
--------- ---------
Net cash used in investing
activities (900) (1,942)
--------- ---------

Cash flows from financing activities:
Capital lease payments (9) (9)
Repurchase of common stock (1,038) (120)
Proceeds from issuance of common stock
under employee stock plans 267 14
--------- ---------
Net cash used in financing
activities (780) (115)
--------- ---------
Net increase in cash and cash
equivalents 460 36

Cash and cash equivalents at the
beginning of the period 16,474 18,056
--------- ---------
Cash and cash equivalents at the end of
the period $ 16,934 $ 18,092
========= =========

8x8, Inc.

Selected Operating Statistics

------- ------- ------- ------- -------

FQ111 FQ211 FQ311 FQ411 FQ112

------- ------- ------- ------- -------
Gross business customer additions (1)
2,756 2,450 2,798 3,009 2,897
Gross business customer cancellations (less cancellations within 30

days of sign-up)
1,592 1,459 1,524 1,645 1,593
Business customer churn (less cancellations within 30 days of sign-up)

(2)
2.5% 2.2% 2.2% 2.3% 2.1%
Total business customers (3)
21,362 22,167 23,251 24,385 25,455

Business customer average monthly service revenue per customer (4) $
208 $ 209 $ 209 $ 204 $ 200

Overall service margin
78% 78% 77% 78% 78%
Overall product margin
-38% -57% -65% -73% -53%
Overall gross margin
68% 68% 68% 67% 67%

Business subscriber acquisition cost per service (5) $
109 $ 108 $ 99 $ 91 $ 89
Average number of services subscribed to per business customer
7.5 7.7 7.8 8.0 8.4
Business customer subscriber acquisition cost (6) $
818 $ 826 $ 768 $ 725 $ 743

(1) Includes 49 hosting customers acquired in the first quarter of fiscal
2011 from Central Host, Inc. ("Central
Host") and does not include customers of Virtual Office Solo or Zerigo,
Inc. ("Zerigo").
(2) Business customer churn is calculated by dividing the number of
business customers that terminated (after the
expiration of the 30 day trial) during that period by the simple average
number of business customers during the
period and dividing the result by the number of months in the period. The
simple average number of business
customers during the period is the number of business customers on the
first day of the period plus the number
of business customers on the last day of the period divided by two.

(3) Business customers are defined as customers paying for service.
Customers that are currently in the 30 day
trial period are considered to be customers that are paying for service.
Customers subscribing to Virtual Office
Solo or Zerigo services are not included as business customers.

(4) Business customer average monthly service revenue per customer is
service revenue from business customers in
the period divided by the number of months in the period divided by the
simple average number of business
customers during the period.

(5) Business subscriber acquisition cost per service is defined as the
combined costs of advertising, marketing,
promotions, commissions and equipment subsidies for business services sold
during the period divided by the
number of gross business services added during the period.

(6) Business customer subscriber acquisition cost is business subscriber
acquisition cost per service times the
average number of services subscribed to per business customer.

CONTACT: Investor Relations Contact:
Joan Citelli
jcitelli@8x8.com
(408) 654-0970