Santa Clara, CA (US), May 2007 - WebEx Communications Inc., a leading provider of on-demand applications for collaborative business on the web, recently announced financial results for the first quarter of 2007. Net income on a GAAP basis was $16.3 million, a 79% increase over the $9.1 million net income from the first quarter of 2006. Revenue was $107.2 million, an increase of 21% compared to $88.5 million in the first quarter of 2006.
GAAP diluted earnings were $0.31 per share in the first quarter of 2007, a 63% increase from $0.19 per share in the first quarter of 2006.
For the first quarter of 2007, net income on a non-GAAP basis was $21 million, a 39% increase over the $15.1 million net income from the first quarter of 2006. Non-GAAP diluted earnings per share were $0.40 in the first quarter of 2007, a 29% increase from $0.31 per share in the first quarter of 2006. Non-GAAP EPS excludes the expense and tax impact of the SFAS 123R equity compensation rule, acquisition costs incurred related to the pending merger with Cisco Systems, Inc. and certain expenses associated with the acquisition of Intranets.com.
Cash and short-term investments at the end of the first quarter of 2007 were $396 million. Cash flow from operations was $30.6 million, partially offset by $2 million of capital expenditures, yielding a free cash flow of $28.6 million for the quarter ending March 31, 2007.
"WebEx is off to an excellent start in 2007, underpinned by record bookings", said Subrah Iyar, chairman and chief executive officer of WebEx. "Looking forward, we feel the pending combination of WebEx with Cisco will further extend our strategy of going deeper with web collaboration and wider with WebEx Connect." On 15 March 2007, WebEx announced that it had signed a definitive agreement under which Cisco has agreed to acquire WebEx.
