Internet fax to email service provider j2 Global Communications Inc. (JCOM) has announced that its flagship eFax line of products will now be available in 3,500 cities across 46 countries. This indicates a growth of around 72% in the last three years. j2 Global delivers integrated communications services through its unique digital facsimile and voice messaging systems.
Individuals and corporates are now increasingly utilizing digital faxing services to reduce costs and improve security. This helps j2Global’s corporate fax system to flourish during the economic downturn. Digital facsimile system is widely used by financial services, insurance, and real estate companies throughout the world. Large enterprises are now focused on reducing hardware footprints and operating expenses. The company commands approximately 30% of the world digital faxing system, well ahead of its close rivals Captaris Inc. (CAPA), EasyLink Services Int. Corp. (ESIC), and Premiere Global Services Inc. (PGI).
j2 Global’s virtual PBX called “Onebox” will now provide mobile application support for the Research In Motion’s (RIMM) Blackberry and Apple Inc.’s (AAPL) iPhone platforms. Both of these platforms have extended the functionality of the web-based Onebox interface for mobile users adding message center access, voicemail display/playback, voice-to-text transcription display and Click-to-Call via SpeedDial list or phone-based contact lists.
We believe management is effectively executing the company’s businesses especially in a sluggish economic environment. j2 Global’s business is extremely sensitive to overall macroeconomic factors, particularly weakness in credit markets. The company has a vast majority of credit-sensitive customers from lending and mortgage industries and other financial institutions. According to our view, the company’s strong financial position and diversified products/services pipeline, in synergy with the long-term growth prospects for outsourced value-added messaging services, may drive valuation levels higher in the near future.
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