Ziff Davis (ZD) 8-K Announces Share Repurchase Program

EXHIBIT 99.1

j2 Global Reports 2007 Year End Results

Announces Share Repurchase Program

LOS ANGELES—February 19, 2008—j2 Global Communications, Inc. [NASDAQGS:JCOM] today reported financial results for the fourth quarter and year ended December 31, 2007 and announced that its Board of Directors has authorized a five million share repurchase program to be open through the end of fiscal year 2010.

ANNUAL RESULTS

For fiscal year 2007, total revenues increased 22% to $221 million compared to $181 million in fiscal 2006.

Net earnings per diluted share for 2007, excluding non-cash stock-based compensation expense net of related tax benefit (“Non-GAAP EPS”), increased 29% to $1.45 compared to $1.12 in 2006. GAAP net earnings per diluted share for 2007 increased 30% to $1.35 compared to $1.04 in 2006.

Net earnings for 2007, excluding non-cash stock-based compensation expense net of related tax benefit (“Non-GAAP Earnings”), increased 29% to $74 million compared to $57 million in 2006. GAAP net earnings for 2007 increased 29% to $68 million compared to $53 million in 2006.

The Company ended the year with approximately $230 million in cash and investments as compared to $192 million as of December 31, 2006. Fiscal year 2007 year-end cash and investments reflects approximately $54 million of cash utilized to complete our previous common stock repurchase program and the acquisitions of YAC Limited and the RapidFAX business.

Key financial results for fiscal year 2007 versus fiscal year 2006 are as follows:

	2007	2006	% Increase
Revenues	$221 million	$181 million	22%
Non-GAAP EPS (1)	$1.45	$1.12	29%
Non-GAAP Earnings (1)	$74 million	$57 million	29%
Net Earnings (1)	$68 million	$53 million	29%
Net Earnings per Share (1)	$1.35	$1.04	30%

(1) For fiscal 2007 and fiscal 2006 the tax rate was approximately 28% and 27%, respectively.

FOURTH QUARTER 2007 RESULTS

Revenues for Q4 2007 increased 16% to $57 million compared to $49 million in Q4 2006.

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Non-GAAP EPS for Q4 2007 increased 20% to $0.36 compared to $0.30 in Q4 2006. GAAP net earnings per diluted share rose 17% to $0.34 compared to $0.29 in Q4 2006.

Non-GAAP Earnings for Q4 2007 increased 18% to $18 million compared to $16 million in Q4 2006. GAAP net earnings for Q4 2007 increased 14% to $17 million compared to $15 million in Q4 2006.

Key financial results for fourth quarter 2007 versus fourth quarter 2006 are as follows:

	Q4 2007	Q4 2006	% Increase
Revenues	$57 million	$49 million	16%
Non-GAAP EPS (1)	$0.36	$0.30	20%
Non-GAAP Earnings (1)	$18 million	$16 million	18%
Net Earnings (1)	$17 million	$15 million	14%
Net Earnings per Share (1)	$0.34	$0.29	17%

(1) For Q4 2007 and Q4 2006 the tax rate was approximately 28% and 26%, respectively.

SHARE REPURCHASE PROGRAM

Under the share repurchase program, the Company may make purchases in the public market or in off-market transactions of up to five million shares at any time or times through December 31, 2010. The timing and amounts of any purchases will be determined by the Company from time to time, depending on market conditions and other factors it deems relevant.

BUSINESS OUTLOOK

“2007 was an exciting year for j2 Global,” said Hemi Zucker, co-president and chief operating officer of j2 Global. “We more than doubled our voice-services customers and grew our paid DIDs by approximately 160,000 while implementing price increases to much of our existing customer base. In addition, we bolstered our international business with the continued expansion of our service offerings, which resulted in a more than 45% increase in international paid DIDs and revenues.”

2008 Guidance

For fiscal year 2008, j2 Global anticipates revenues between $240 million and $270 million and GAAP net earnings per diluted share between $1.45 and  $1.65.

The range of anticipated revenues takes into account both organic growth and acquisition related growth within the context of current volatile economic conditions.

The range of anticipated GAAP EPS guidance assumes revenues within the range discussed above and takes into consideration fluctuations in interest earned on cash balances, use of cash balances, stock-based compensation expense and taxes.

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A summary of this 2008 financial guidance as compared to 2007 actual results is set forth in the table below:

	FY 2008 Guidance	FY 2007 Actuals
Revenues	$240 million - $270 million	$221 million
GAAP EPS	$1.45 - $1.65	$1.35

About j2 Global Communications

Founded in 1995, j2 Global Communications, Inc. provides outsourced, value-added messaging and communications services to individuals and businesses around the world. j2 Global’s network spans more than 3,000 cities in 42 countries on five continents. The Company offers faxing and voicemail solutions, document management solutions, Web-initiated conference calling, and unified-messaging and communications services. j2 Global markets its services principally under the brand names eFax®, eFax Corporate®, eFaxDeveloperTM, Fax.comTM, Send2Fax®, eFax BroadcastTM, jBlast®, jConnect®, Onebox®, Onebox ReceptionistTM, RapidFAXTM, eVoice®, eVoice ReceptionistTM, YAC® and Electric Mail®.As of December 31, 2007, j2 Global had achieved 12 consecutive fiscal years of revenue growth and 6 consecutive fiscal years of positive and growing operating earnings. For more information about j2 Global, please visit www.j2global.com.

Contact: JeffAdelman j2 Global Communications, Inc. 323-372-3617  press@j2global.com

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this Press Release are “forward-looking statements” within the meaning of The Private Securities Litigation Act of 1995, particularly those contained in the “Business Outlook” portion (and specifically 2008 guidance). These forward-looking statements are based on management’s current expectations or beliefs and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: Subscriber growth and retention; variability of revenue based on changing conditions in particular industries and the economy generally; protection of the Company’s proprietary technology or infringement by the Company of intellectual property of others; the risk of adverse changes in the U.S. or international regulatory environments surrounding unified messaging and telecommunications, including but not limited to the imposition of additional taxation or regulatory-related fees; and the numerous other factors set forth in j2 Global’s filings with the Securities and Exchange Commission (“SEC”). For a more detailed description of the risk factors and uncertainties affecting j2 Global, refer to the 2006 Annual Report on Form 10-K filed by j2 Global on March 12, 2007, and the other reports filed by j2 Global from time-to-time with the SEC, each of which is available at www.sec.gov. The financial estimates provided in the “Business Outlook” portion of this press release (and specifically 2008 guidance) are based on limited information available to the Company at this time, which is subject to change. Although management’s expectations may change after the date of this press release, the Company undertakes no obligation to revise or update these financial estimates.

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j2 GLOBAL COMMUNICATIONS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

	THREE MONTHS ENDED DECEMBER 31,						YEAR ENDED DECEMBER 31,
	2007			2006			2007			2006
Revenues:
Subscriber	$	55,394		$	47,447		$	212,329		$	175,171
Other		1,436			1,457			8,368			5,908
Total revenue		56,830			48,904			220,697			181,079
Cost of revenues (including stock-based compensation of $177 and $668 for the three months and year ended December 31, 2007, respectively, and $13 and $316 for the three months and year ended December 31, 2006, respectively)		11,597			8,776			43,987			36,723
Gross profit		45,233			40,128			176,710			144,356
Operating expenses:
Sales and marketing (including stock-based compensation of $342 and $1,187 for the three months and year ended December 31, 2007, respectively, and $231 and $1,038 for the three months and year ended December 31, 2006, respectively)		10,098			8,294			38,768			30,792
Research, development and engineering (including stock-based compensation of $228 and $771 for the three months and year ended December 31, 2007, respectively, and $143 and $556 for the three months and year ended December 31, 2006, respectively)		3,099			2,808			11,833			8,773
General and administrative (including stock-based compensation of $1,368 and $4,788 for the three months and year ended December 31, 2007, respectively, and $709 and $3,782 for the three months and year ended December 31, 2006, respectively)		10,866			12,300			39,683			38,754
Total operating expenses		24,063			23,402			90,284			78,319
Operating earnings		21,170			16,726			86,426			66,037
Other income (expenses):
Interest and other income		2,567			3,278			9,272			7,269
Interest and other expense		(253	)		(5	)		(237	)		(74	)
Total other income and expenses		2,314			3,273			9,035			7,195
Earnings before income taxes		23,484			19,999			95,461			73,232
Income tax expense		6,628			5,168			27,000			20,101
Net earnings	$	16,856		$	14,831		$	68,461		$	53,131
Net earnings per common share	$	0.35		$	0.30		$	1.40		$	1.08
Net earnings per common share, assuming dilution	$	0.34		$	0.29		$	1.35		$	1.04
Weighted average common shares outstanding		48,652,001			49,020,695			48,953,483			49,209,129
Weighted average common shares outstanding, assuming dilution		50,268,781			50,979,088			50,762,007			51,048,995

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j2 GLOBAL COMMUNICATIONS, INC.

CONSOLIDATED BALANCE SHEETS

( IN THOUSANDS)

	DECEMBER 31,			DECEMBER 31,
	2007			2006
ASSETS
Cash and cash equivalents	$	154,220		$	95,605
Short-term investments		54,297			83,498
Accounts receivable, net of allowances of $1,378 and $1,105, respectively		15,365			11,989
Prepaid expenses and other		5,061			4,779
Deferred income taxes		1,724			2,643
Total current assets		230,667			198,514
Long-term investments		21,241			12,493
Property and equipment, net		23,511			18,951
Goodwill		39,452			30,954
Other purchased intangibles, net		29,220			21,400
Deferred income taxes		6,113			5,406
Other assets		205			442
TOTAL ASSETS	$	350,409		$	288,160
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	17,516		$	17,117
Income taxes payable		4,649			4,511
Deferred revenue		14,708			11,530
Current portion of long-term debt		—			149
Total current liabilities		36,873			33,307
Accrued income taxes		30,863			—
Other		59			112
Total liabilities		67,795			33,419
STOCKHOLDERS' EQUITY
Preferred stock		—			—
Common stock		543			535
Additional paid-in capital		121,503			144,935
Treasury stock, at cost		(4,662	)		(4,647	)
Retained earnings		162,281			112,735
Accumulated other comprehensive income		2,949			1,183
Total stockholders' equity		282,614			254,741
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	350,409		$	288,160

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j2 GLOBAL COMMUNICATIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

	FOR THE YEAR ENDED DECEMBER 31,
	2007			2006
Cash flows from operating activities:
Net earnings	$	68,461		$	53,131
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		10,134			8,228
Share-based compensation		7,414			5,692
Tax benefit of stock option exercises and vested restricted stock		—			1,586
Excess tax benefits from share-based compensation		(4,731	)		(1,458	)
Deferred income taxes		212			(1,961	)
Loss on disposal of fixed assets		229			130
Changes in assets and liabilities, net of effects of business combinations:
Decrease (increase) in:
Accounts receivable		(3,106	)		(2,463	)
Prepaid expenses and other current assets		(133	)		(1,394	)
Other assets		(201	)		(118	)
Increase (decrease) in:
Accounts payable and accrued expenses		(2,580	)		5,773
Income taxes payable		9,672			1,635
Deferred revenue		2,991			4,112
Accrued income taxes		5,898			—
Other liabilities		(53	)		112
Net cash provided by operating activities		94,207			73,005
Cash flows from investing activities:
Purchases of available-for-sale investments		(38,620	)		(144,803	)
Sales of available-for-sale investments		39,175			121,858
Purchases of held-to-maturity investments		(298,882	)		(36,705	)
Maturities of held-to-maturity investments		318,868			71,931
Purchases of property and equipment		(10,315	)		(7,199	)
Acquisition of businesses, net of cash received		(11,165	)		(7,351	)
Purchases of intangible assets		(6,038	)		(3,517	)
Proceeds from sale of investment		—			822
Proceeds from sale of property and equipment		—			10
Net cash used in investing activities		(6,977	)		(4,954	)
Cash flows from financing activities:
Repurchases of common stock and restricted stock		(42,427	)		(11,612	)
Issuance of common stock under employee stock purchase plan		266			472
Exercise of stock options and warrants		7,700			928
Excess tax benefits on stock option exercises		4,731			1,458
Repayments of long-term debt		(153	)		(599	)
Net cash used in financing activities		(29,883	)		(9,353	)
Effect of exchange rate changes on cash and cash equivalents		1,268			606
Net Increase in cash and cash equivalents		58,615			59,304
Cash and cash equivalents, beginning of year		95,605			36,301
Cash and cash equivalents, end of year	$	154,220		$	95,605

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j2 GLOBAL COMMUNICATIONS, INC.

UNAUDITED RECONCILIATION OF NON-GAAP NET EARNINGS

FOR THE THREE MONTHS ENDED DECEMBER 31, 2007 AND DECEMBER 31, 2006

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Non-GAAP net earnings are GAAP net earnings with the following modifications (i) elimination of stock-based compensation expense for 2007 and 2006; and (ii) elimination of income tax expense associated with stock-based compensation expense. Non-GAAP net earnings and non-GAAP net earnings per share are not meant as a substitute for measures determined under GAAP, but are solely for informational purposes.  The following table illustrates and reconciles the GAAP net earnings with the aforementioned exclusions.  The Company believes that this non-GAAP financial information provides a useful measure of operating performance.

	THREE MONTHS ENDED DECEMBER 31, 2007							THREE MONTHS ENDED DECEMBER 31, 2006
	Reported		Non-GAAP Entries			Non-GAAP		Reported		Non-GAAP Entries			Non-GAAP
Revenues:
Subscriber	$	55,394	$	—		$	55,394	$	47,447	$	—		$	47,447
Other		1,436		—			1,436		1,457		—			1,457
Total revenue		56,830		—			56,830		48,904		—			48,904
Cost of revenues (1)		11,597		(177	) (1)		11,420		8,776		(13	) (1)		8,763
Gross profit		45,233		177			45,410		40,128		13			40,141
Operating expenses:
Sales and marketing (1)		10,098		(342	) (1)		9,756		8,294		(231	) (1)		8,063
Research, development and engineering (1)		3,099		(228	) (1)		2,871		2,808		(143	) (1)		2,665
General and administrative (1), (2), (3)		10,866		(1,368	) (1)		9,498		12,300		(709	) (1)		11,591
Total operating expenses		24,063		(1,938	)		22,125		23,402		(1,083	)		22,319
Operating earnings		21,170		2,115			23,285		16,726		1,096			17,822
Other income and expenses:
Interest and other income and expenses, net (1)		2,314		126			2,440		3,273		—			3,273
Total other income and expenses:		2,314		126			2,440		3,273		—			3,273
Earnings before income taxes		23,484		2,241			25,725		19,999		1,096			21,095
Income tax expense (4)		6,628		664	(2)		7,292		5,168		292	(2)		5,460
Net earnings	$	16,856	$	1,577		$	18,433	$	14,831	$	804		$	15,635
Net earnings per common share, assuming dilution	$	0.34				$	0.36	$	0.29				$	0.30
Weighted average common shares outstanding, assuming dilution		50,268,781					50,517,395		50,979,088					51,329,088
(1) Stock-based compensation and related payroll tax and employee compensation expenses
Cost of revenues			$	(177	)					$	(13	)
Sales and marketing				(342	)						(231	)
Research, development and engineering				(228	)						(143	)
General and administrative				(1,368	)						(709	)
Interest and other expense				(126	)						—
Total			$	(2,241	)					$	(1,096	)
(2) Income tax adjustment, net impact of the items above			$	664						$	292

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j2 GLOBAL COMMUNICATIONS, INC.

UNAUDITED RECONCILIATION OF NON-GAAP NET EARNINGS

FOR THE YEARS ENDED DECEMBER 31, 2007 AND DECEMBER 31, 2006

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Non-GAAP net earnings are GAAP net earnings with the following modifications (i) elimination of stock-based compensation expense for 2007 and 2006; and (ii) elimination of income tax expense associated with stock-based compensation expense. Non-GAAP net earnings and non-GAAP net earnings per share are not meant as a substitute for measures determined under GAAP, but are solely for informational purposes.  The following table illustrates and reconciles the GAAP net earnings with the aforementioned exclusions.  The Company believes that this non-GAAP financial information provides a useful measure of operating performance.

	YEAR ENDED DECEMBER 31, 2007							YEAR ENDED DECEMBER 31, 2006
	Reported		Non-GAAP Entries			Non-GAAP		Reported		Non-GAAP Entries			Non-GAAP
Revenues:
Subscriber	$	212,329	$	—		$	212,329	$	175,171	$	—		$	175,171
Other		8,368		—			8,368		5,908		—			5,908
Total revenue		220,697		—			220,697		181,079		—			181,079
Cost of revenues (1)		43,987		(668	) (1)		43,319		36,723		(316	) (1)		36,407
Gross profit		176,710		668			177,378		144,356		316			144,672
Operating expenses:
Sales and marketing (1)		38,768		(1,187	) (1)		37,581		30,792		(1,038	) (1)		29,754
Research, development and engineering (1)		11,833		(771	) (1)		11,062		8,773		(556	) (1)		8,217
General and administrative (1), (2), (3)		39,683		(4,788	) (1)		34,895		38,754		(3,782	) (1)		34,972
Total operating expenses		90,284		(6,746	)		83,538		78,319		(5,376	)		72,943
Operating earnings		86,426		7,414			93,840		66,037		5,692			71,729
Other income and expenses:
Interest and other income and expenses, net		9,035		126	(1)		9,161		7,195		—			7,195
Total other income and expenses:		9,035		126			9,161		7,195		—			7,195
Earnings before income taxes		95,461		7,540			103,001		73,232		5,692			78,924
Income tax expense (2)		27,000		2,213	(2)		29,213		20,101		1,584	(2)		21,685
Net earnings	$	68,461	$	5,327		$	73,788	$	53,131	$	4,108		$	57,239
Net earnings per common share, assuming dilution	$	1.35				$	1.45	$	1.04				$	1.12
Weighted average common shares outstanding, assuming dilution		50,762,007					51,009,299		51,048,995					51,330,932
(1) Stock-based compensation and related payroll tax and employee compensation expenses
Cost of revenues			$	(668	)					$	(316	)
Sales and marketing				(1,187	)						(1,038	)
Research, development and engineering				(771	)						(556	)
General and administrative				(4,788	)						(3,782	)
Interest and other expense				(126	)						—
Total			$	(7,540	)					$	(5,692	)
(2) Income tax adjustment, net impact of the items above			$	2,213						$	1,584

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