Mixed Results for j2 Global

• By Zacks Equity Research
• On 10:53 am EST, Tuesday November 10, 2009

j2 Global Communications, Inc. (NasdaqGS: JCOM - News) reported mixed financial results for its third quarter.  Total revenues of $61.8 million remained flat year over year, but were below the Zacks Consensus Estimate of $63 million. Subscriber Usage revenues were $61 million, up 0.8% year over year. Quarterly net income was $19.3 million or 43 cents per share, compared to $18.8 million or 42 cents per share in the year-ago quarter. EPS of 43 cents was above the Zacks Consensus Estimate of 42 cents.

 

Quarterly gross margin was 82.3%, compared to 81.5% in the year-ago quarter. This reflects the aggressive cost cutting measures taken by management during the past one year. Operating expenses, in the same quarter, were $23.9 million, compared to $24.7 million in the prior-year quarter. Management has streamlined the operating cost structure to improve productive efficiency.

 

At the end of the third quarter, j2 Global Communications had approximately $222.5 million of cash & marketable securities on its balance sheet compared to $151.8 million at the end of the prior-year quarter. The company had no outstanding debt.

j2 Global Communications generated $26.5 million cash from operation during the reported quarter compared to $13.7 million in the prior-year quarter. Quarterly free cash flow (cash flow from operation less capital expenditure) was $25.7 million, compared to $12.8 million in the year-ago quarter.

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