j2 Global Inc. (JCOM - Analyst Report) , the provider of cloud-based faxing services called “eFax”, has decided to explore the markets of Norway, Finland and Hungary. With this, eFax will now support 19 different languages across 49 countries. j2 Global delivers integrated communications services through its unique digital faxing and voice messaging systems. Several enterprises are now increasingly utilizing digital faxing services to reduce costs while improving security. This helps j2 Global’s corporate fax system to flourish during the economic downturn.
At present, j2 Global commands approximately 30% of the world’s cloud-based digital faxing system. j2 Global was able to reinvigorate sales from credit-sensitive clients, despite facing global macro-economic volatility. In the fourth quarter of 2012, the company added a net 17,000 paid DIDs (Dial-in-Demand). Production efficiencies, cost containment, and business process improvements resulted in record high quarterly revenue, earnings per share, EBITDA, and low churn rate in the last quarter.
j2 Global is more confident about its growth prospect buoyed by increasing demand for cloud based, value-added communication, messaging and data backup services. Consequently, management retained its revenue outlook for 2013. Full year 2013 revenue is projected within the range of $500–$525 million. Fiscal 2013 non-GAAP earnings per share are expected to be within the range of $2.65 - $2.85. Non-GAAP effective tax rate is estimated in the range of 25–27%.
Other Stocks to Consider
j2 Global currently has a Zacks Rank #2 (Buy). Besides j2 Global, other stocks in the Internet/Application software industry that are currently performing well include eGain Corp. (EGAN - Snapshot Report) , Radware Ltd. (RDWR - Snapshot Report) and Support.com Inc. (SPRT - Snapshot Report) . All three stocks currently carry a Zacks Rank #2 (Buy).