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8x8 Inc. Message Board

  • surrealskiller surrealskiller Oct 4, 2013 9:13 AM Flag

    Cleaning up for buyout ?

    or something else .
    The least profitable division is sold for 3M with 1M going into this quarter books.
    Dedicated servers are just pain in the rear - it's expensive to maintain , you have to pay for datacenter rental, and it's the old tech anyway. That was a way to get customers before 'cloud' came. Going forward , margins should improve and extra cash is good thing too. It should add about 1 1/2 cents to earnings this quarter.
    Making company leaner and more efficient is good overall and it would make it more attractive to potential buyers. Especially those that already have their own datacenters (e.g. CenturyLink or Amazon)

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    • Not moving towards a buyout, rather removing business segments that don't mesh with the principal product line. This frees them from dedicating resources to a business they didn't specialize in. They will concentrate on expanding their capacity and pipeline in the telephony industry.

      The company is only beginning to grow. You get to watch the evolution of an industry segment. We are very far away from the "maturity" stage of this business. So enjoy your profitable ride.

      Sentiment: Strong Buy

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