Who said this VoIP thing is easy? 8X8, the company behind Packet8 and its wonderful videophone is finding out that selling VoIP services costs a ton of money. The company saw its sales dip and losses increase in the most recent quarter. For the third quarter of fiscal 2005 were $3.0 million, compared with $3.3 million for the same period in fiscal 2004. The net loss for the quarter was $5.8 million, or $0.13 per share, compared with a net loss of $0.8 million or $0.02 per share for the same period last year. The good news if you can call that – the company’s customers almost doubled in the quarter – to about 40,000.

Mark Evans: The company has a market cap of $132-million. It means each subscriber is worth $3,300. If the same valuation is applied to Vonage, it works out to $1.3-billion. Is 8×8 over-valued, or is Vonage really worth this much, or is the market’s true value?