VoIP firms enter a profitable era

Voice over Internet Protocol (VoIP) provider 8x8 has announced it has recorded a profit for the first time since the launch of its Packet8 system.

The US firm said financial results for the first fiscal quarter ending June 30th showed a return of $508,000 (£249,306).

First launched in November 2002, the VoIP service is now finally delivering a profit, which although meagre, will be a big psychological boost for the firm and the industry as a whole.

Compared to the net loss of $2.9 million (£1.42 million) in the previous quarter, the profit is a major plus for 8x8, as chairman and chief executive Bryan Martin made clear.

"We are very proud to announce these results and to become the first major pure play VoIP service provider to generate positive cash from operating activities," he said.

Total revenues for the first quarter hit $14.4 million (£7.07 million), with over 8,000 businesses in the US now using the telecommunications system.

VoIP has become increasingly popular for many businesses, with the internet-based telephony facilitating cheaper and better integrated communications.

Infonetics Research said earlier this year that global sales of unified communications products increased by a fifth between 2005 and 2006, topping £191 million.

Posted on: 2007-08-08, in: General VoIP

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