STRATEGIC INVESTMENT - Note 10

12 Months Ended

Mar. 31, 2012

Notes to Financial Statements

STRATEGIC INVESTMENT - Note 10

10. STRATEGIC INVESTMENT

In April 2010, the Company invested $250,000 cash, transferred its wholly-owned French research and development subsidiary, 8x8 Europe SARL, and granted a non-exclusive license to certain 8x8 technology, to Stonyfish, a privately-held company in Los Altos, California in exchange for a 17% interest in Stonyfish following its initial round of external fundraising.

The total investment in Stonyfish is as follows (in thousands):

Cash - 8x8, Inc.	$	250
Cash - 8x8 Europe SARL		65
Net tangible assets - 8x8 Europe SARL		41
Total investment	$	356

In February 2012, the Company reviewed the recoverability of its strategic investment due to a change in circumstances that indicated that the carrying value of the asset may not be recoverable. As the change in circumstance was deemed to be other-than-temporary, the Company has recorded an impairment charge and written the investment down to its fair value of $0.