Record Quarterly Revenue and Non-GAAP EPS
LOS ANGELES, Aug. 5, 2009 (GLOBE NEWSWIRE) -- j2 Global Communications, Inc. (Nasdaq:JCOM) today reported financial results for the second quarter ended June 30, 2009.
SECOND QUARTER 2009 RESULTS
Total revenues for Q2 2009 increased 3% to a new quarterly record of $62.5 million compared to $60.7 million in Q2 2008.
Subscriber revenues for Q2 2009 increased 3% to $61 million compared to $59.5 million in Q2 2008.
During Q2 2009, the Company improved its gross margin to 81.4% from 80.7% in Q2 2008 and its operating margin to 44.1% from 39.7% in Q2 2008.
Net earnings per diluted share on a Non-GAAP basis, which excludes share based compensation and a Q2 2009 impairment of auction rate and related securities, for Q2 2009 increased 20% to $0.48 compared to $0.40 in Q2 2008. SFAS 123(R) expense (expensing for share-based compensation) impacted Q2 2009 net earnings and net earnings per diluted share by approximately $2.0 million and $0.04, net of tax, respectively.
During Q2 2009, the Company recorded a non-recurring pre-tax impairment charge on auction rate and related securities of $9.2 million. This reduced net earnings and net earnings per diluted share by approximately $8.4 million and $0.19 net of tax, respectively. As a result, GAAP earnings were $11.1 million and $16.7 million for Q2 2009 and Q2 2008 respectively. GAAP net earnings per diluted share were $0.25 and $0.37 for Q2 2009 and Q2 2008, respectively.
Key financial results for second quarter 2009 versus second quarter 2008 are as follows:
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Q2 2009 Q2 2008 % Change
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Subscriber Revenues $61.0 million $59.5 million 3%
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Total Revenues $62.5 million $60.7 million 3%
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Non-GAAP Earnings $21.6 million $18.1 million 19%
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Non-GAAP Net Earnings per
Diluted Share(1) $0.48 $0.40 20%
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(1) The estimated effective tax rate was approximately 30% and 32%
for Q2 2009 and Q2 2008, respectively.
"I am pleased with our continued execution against our business plan which emphasizes further improvement in our cost structure," said Hemi Zucker, j2 Global's chief executive officer. "The continued increase in our gross and operating margins, combined with our revenue growth, resulted in record quarterly non-GAAP operating income and earnings. In addition, we achieved record quarterly revenues and record six-month free cash flow. Our cash resources of nearly $200 million provide us ample financial flexibility to pursue multiple opportunities."
BUSINESS OUTLOOK
For fiscal 2009, j2 Global maintains its anticipation of modest revenue and earnings growth (net of expenses related to share-based compensation and impairment charges for auction rate and related securities), inclusive of acquisitions, versus 2008 despite the ongoing global economic crisis. The Company remains well positioned to take advantage of changing customer and market conditions while continuing its focus on efficient marketing, optimizing its cost structure and deploying its cash resources into higher yielding investments such as acquisitions.
About j2 Global Communications
Founded in 1995, j2 Global Communications, Inc. provides outsourced, value-added messaging and communications services to individuals and businesses around the world. j2 Global's network spans more than 3,300 cities in 46 countries on six continents. The Company offers faxing and voicemail solutions, document management solutions, Web-initiated conference calling, and unified-messaging and communications services. j2 Global markets its services principally under the brand eFax(r), eFax Corporate(r), Onebox(r), eVoice(r) and Electric Mail(r). As of December 31, 2008, j2 Global had achieved 13 consecutive fiscal years of revenue growth and seven consecutive fiscal years of positive and growing operating earnings. For more information about j2 Global, please visit www.j2global.com.
The j2 Global Communications, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3907
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this Press Release are "forward-looking statements" within the meaning of The Private Securities Litigation Act of 1995, particularly those contained in the "Business Outlook" portion regarding the Company's expected fiscal 2009 financial performance. These forward-looking statements are based on management's current expectations or beliefs and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: Subscriber growth and retention; variability of revenue based on changing conditions in particular industries and the economy generally; protection of the Company's proprietary technology or infringement by the Company of intellectual property of others; the risk of adverse changes in the U.S. or international regulatory environments surrounding unified messaging and telecommunications, including but not limited to the imposition of additional taxation or regulatory-related fees; and the numerous other factors set forth in j2 Global's filings with the Securities and Exchange Commission ("SEC"). For a more detailed description of the risk factors and uncertainties affecting j2 Global, refer to the 2008 Annual Report on Form 10-K filed by j2 Global on February 25, 2009, and the other reports filed by j2 Global from time-to-time with the SEC, each of which is available at www.sec.gov. The financial estimates provided in the "Business Outlook" portion of this press release regarding the Company's expected fiscal 2009 financial performance are based on limited information available to the Company at this time, which is subject to change.
