Ziff Davis (ZD) 8-K Achieves Record Quarterly Revenues, EPS and EBITDA

EXHIBIT 99.1

j2 Global Reports Third Quarter 2012 Results

Achieves Record Quarterly Revenues, EPS and EBITDA

Raises Fiscal 2012 Non-GAAP EPS Guidance

Increases Quarterly Dividend by 2.3% to $0.225 Per Share

LOS ANGELES – November 1, 2012 – j2 Global, Inc. [NASDAQGS:JCOM] today reported financial results for the third quarter ended September 30, 2012, announced that it is increasing its fiscal 2012 non-GAAP EPS estimate and announced that its Board of Directors has declared an increased quarterly cash dividend of $0.225 per share.

j2 achieved several quarterly records, including the following:

• Revenues of $93.2 million

• Earnings per Diluted Share of $0.69

• EBITDA(4) of $50.5 million

• Cancel rate(6) of less than 2.3%

THIRD QUARTER 2012 RESULTS

Revenues increased 8.4% to a quarterly record $93.2 million compared to $86.0 million for Q3 2011.

Earnings per diluted share increased 27.8% to a quarterly record $0.69 compared to $0.54 for Q3 2011.

Non-GAAP earnings per diluted share(2) (3) increased 1.6% to $0.65 compared to $0.64 for Q3 2011.

EBITDA(4) increased to a record $50.5 million compared to $43.9 million for Q3 2011.

j2 ended the quarter with $470 million in cash and investments.

Key financial results for third quarter 2012 versus third quarter 2011 are set forth in the following table (in millions, except per share).  Reconciliations of non-GAAP earnings per diluted share, EBITDA and free cash flow to their nearest comparable GAAP financial measures are attached to this Press Release.

	Q3 2012	Q3 2011	% Change
Revenues	$93.2	$86.0	8.4%
Earnings per Diluted Share (1)	$0.69	$0.54	27.8%
Non-GAAP Earnings per Diluted Share (2) (3)	$0.65	$0.64	1.6%
EBITDA (4)	$50.5	$43.9	15.0%
Free Cash Flow (5)	$37.1	$37.2	(0.3)%

(1)	The estimated effective tax rate was approximately 19.9% for Q3 2012 and approximately 30.6% for Q3 2011.
(2)	For Q3 2012, Non-GAAP earnings per diluted share excludes share-based compensation and related payroll taxes, and additional income tax benefit from prior years, in each case net of tax. For Q3 2011, Non-GAAP earnings per diluted share excludes share-based compensation and related payroll taxes, certain transition-related costs, taxes associated with the sale of a trade name and the reversal of uncertain tax positions due to expired statutes of limitations, in each case net of tax.
(3)	The estimated Non-GAAP effective tax rate was approximately 28.1% for Q3 2012 and approximately 23.4% for Q3 2011.
(4)	EBITDA (earnings before interest, taxes, depreciation and amortization) as defined in the Indenture Agreement filed with the SEC as Exhibit 4.1 to a Current Report on Form 8-K dated July 26, 2012.
(5)	Free cash flow is defined as net cash provided by operating activities less purchases of property, plant and equipment, plus excess tax benefit (deficiency) from share-based compensation.
(6)	Cancel Rate is defined as cancels related to individual customer DIDs with greater than 4 months of continuous service (continuous service includes customer DIDs which are administratively cancelled and reactivated within the same calendar month), and DIDs related to enterprise customers beginning with their first day of service. Calculated monthly and expressed here as an average over the three months of the quarter.

“I’m very pleased with our continued high level of execution, both operationally and financially, as demonstrated by record low cancel rate and record Q3 quarterly revenues, earnings per share and EBITDA,” said Hemi Zucker, j2 Global’s chief executive officer. “Also, during Q3 we completed a $250 million debt offering and now have approximately $470 million of cash and investments available to support the growth of our business.  Our focus on operational excellence has allowed us to continue to achieve record results even in the face of current economic conditions.  As such, we are increasing our non-GAAP EPS guidance for the full year notwithstanding the increased interest expense associated with the Q3 debt issuance.”

DIVIDEND

j2’s Board of Directors has approved a quarterly cash dividend of $0.225 per common share, a 2.3% increase versus last quarter's dividend.  This is j2’s fifth consecutive quarterly dividend increase and represents a 12.5% increase versus its first quarterly dividend in September, 2011. The dividend will be paid on November 26, 2012 to all shareholders of record as of the close of business on November 12, 2012. Future dividends will be subject to Board approval.

BUSINESS OUTLOOK

j2 is reaffirming its fiscal 2012 revenues guidance of between $345 million and $365 million. The Company is increasing its fiscal 2012 non-GAAP earnings per share guidance to now exceed, rather than equal, its 2011 results.

It is anticipated that the normalized tax rate for 2012 (exclusive of the release of reserves for uncertain tax positions) will be between 24% and 26%.

About j2

Founded in 1995, j2 Global, Inc. provides cloud services to individuals and businesses around the world. j2's network spans 49 countries on six continents. The Company offers Internet fax, voice and email solutions. j2 Global markets its services principally under the brand names eFax®, Onebox®, eVoice®, FuseMail®, Campaigner®, KeepItSafe® and CampaignerCRM™. As of December 31, 2011, j2 had achieved 16 consecutive fiscal years of revenue growth. For more information about j2, please visit www.j2global.com.

Contact:
	Laura Hinson
	j2 Global, Inc.
	800-577-1790
	laura.hinson@j2.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 Reform Act of 1995, particularly those contained in the “Business Outlook” portion regarding the Company's expected fiscal 2012 financial performance. 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 messaging and communications, including but not limited to the imposition or increase of taxes 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 2011 Annual Report on Form 10-K filed by j2 Global on February 28, 2012, 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 forward-looking statements provided in this press release and particularly those contained in the “Business Outlook” portion regarding the Company's expected fiscal 2012 financial performance 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 statements.

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED, IN THOUSANDS)

	SEPTEMBER 30,			DECEMBER 31,
	2012			2011
ASSETS
Cash and cash equivalents	$	287,514		$	139,359
Short-term investments		143,628			38,513
Accounts receivable,
net of allowances of $3,831 and $3,404, respectively		25,332			19,071
Prepaid expenses and other current assets		11,813			14,311
Deferred income taxes		2,472			1,643
Total current assets		470,759			212,897
Long-term investments		38,687			43,077
Property and equipment, net		13,938			14,438
Goodwill		293,687			279,016
Other purchased intangibles, net		101,560			98,067
Deferred income taxes		4,256			3,160
Other assets		2,321			516
TOTAL ASSETS	$	925,208		$	651,171
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	28,437		$	24,070
Income taxes payable		4,014			1,510
Deferred revenue		28,352			26,695
Liability for uncertain tax positions		5,523			5,523
Total current liabilities		66,326			57,798
Long-term debt		245,081			—
Liability for uncertain tax positions		31,092			24,554
Deferred income taxes		11,305			12,102
Other long-term liabilities		3,070			2,342
Total liabilities		356,874			96,796
Commitments and contingencies		—			—
Stockholders' Equity:
Preferred stock		—			—
Common stock		451			554
Additional paid-in capital		166,557			197,374
Treasury stock		—			(112,671	)
Retained earnings		404,862			472,595
Accumulated other comprehensive loss		(3,536	)		(3,477	)
Total stockholders' equity		568,334			554,375
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	925,208		$	651,171

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

	THREE MONTHS ENDED SEPTEMBER 30,					NINE MONTHS ENDED SEPTEMBER 30,
	2012			2011		2012			2011
Revenues
Subscriber	$	89,466		$	85,622	$	262,362		$	243,788
Other		3,780			405		7,001			1,299
Total revenues		93,246			86,027		269,363			245,087
Cost of revenues (including share-based compensation of $199 and $633 for the three and nine months of 2012, respectively, and $246 and $736 for the three and nine months of 2011, respectively)		16,303			15,002		48,354			45,952
Gross profit		76,943			71,025		221,009			199,135
Operating expenses:
Sales and marketing (including share-based compensation of $390 and $1,117 for the three and nine months of 2012, respectively, and $350 and $1,049 for the three and nine months of 2011, respectively)		15,190			15,073		43,910			44,929
Research, development and engineering (including share-based compensation of $111 and $344 for the three and nine months of 2012, respectively, and $110 and $367 for the three and nine months of 2011, respectively)		4,692			4,105		13,798			12,714
General and administrative (including share-based compensation of $1,703 and $4,757 for the three and nine months of 2012, respectively, and $1,542 and $4,532 for the three and nine months of 2011, respectively)		14,784			15,403		43,387			44,037
Total operating expenses		34,666			34,581		101,095			101,680
Operating earnings		42,277			36,444		119,914			97,455
Interest and other income (expense), net		(2,747	)		290		(2,657	)		262
Earnings before income taxes		39,530			36,734		117,257			97,717
Provision for income taxes		7,880			11,236		25,880			12,770
Net earnings	$	31,650		$	25,498	$	91,377		$	84,947
Basic net earnings per common share	$	0.69		$	0.55	$	1.97		$	1.84
Diluted net earnings per common share	$	0.69		$	0.54	$	1.96		$	1.81
Basic weighted average shares outstanding		45,002,565			45,993,328		45,590,160			45,498,763
Diluted weighted average shares outstanding		45,340,111			46,455,584		45,897,389			46,108,890

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, IN THOUSANDS)

	NINE MONTHS ENDED SEPTEMBER 30,
	2012			2011
Cash flows from operating activities:
Net earnings	$	91,377		$	84,947
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization		15,555			14,892
Accretion and amortization of discount and premium of investments		1,090			600
Amortization of financing costs and discounts		104			—
Share-based compensation		6,816			6,672
Excess tax benefit from share-based compensation		(1,016	)		(13,246	)
Provision for doubtful accounts		3,520			4,963
Deferred income taxes		(1,012	)		5,394
Decrease (increase) in:
Accounts receivable		(7,032	)		(7,074	)
Prepaid expenses and other current assets		(951	)		3,811
Other assets		(362	)		153
(Decrease) increase in:
Accounts payable and accrued expenses		168			(1,112	)
Income taxes payable		7,112			8,885
Deferred revenue		1,611			9,723
Liability for uncertain tax positions		6,538			(9,668	)
Other liabilities		(1	)		293
Net cash provided by operating activities		123,517			109,233
Cash flows from investing activities:
Maturity of certificate of deposit		8,000			—
Purchase of certificates of deposit		(34,674	)		(8,000	)
Sales of available-for-sale investments		64,581			20,127
Purchases of available-for-sale investments		(140,785	)		(50,192	)
Purchases of property and equipment		(3,746	)		(5,075	)
Purchases of intangible assets		(3,668	)		(2,616	)
Acquisition of businesses, net of cash received		(25,108	)		(3,244	)
Proceeds from sale of assets		—			4
Net cash used in investing activities		(135,400	)		(48,996	)
Cash flows from financing activities:
Issuance of long-term debt		245,000			—
Debt issuance costs		(1,342	)		—
Repurchases of common stock and restricted stock		(60,261	)		(1,273	)
Issuance of common stock under employee stock purchase plan		109			110
Exercise of stock options		4,865			7,001
Excess tax benefit from share-based compensation		1,016			13,246
Dividends paid		(29,940	)		(9,463	)
Net cash provided by financing activities		159,447			9,621
Effect of exchange rate changes on cash and cash equivalents		591			(420	)
Net increase in cash and cash equivalents		148,155			69,438
Cash and cash equivalents at beginning of period		139,359			64,752
Cash and cash equivalents at end of period	$	287,514		$	134,190

j2 GLOBAL, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

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

Non-GAAP net earnings are GAAP net earnings with the following modifications: (1) elimination of share-based compensation expense and the associated payroll taxes; (2) elimination of certain acquisition and related exit costs; (3) elimination of additional income tax benefit from prior years; (4) elimination of a change to our liability of uncertain tax position due to expiration of statues of limitations; (5) elimination of taxes related to trade name sale and (6) elimination of income tax provision associated with share-based compensation and associated payroll taxes and certain acquisition and related exit costs.

	THREE MONTHS ENDED SEPTEMBER 30, 2012												THREE MONTHS ENDED SEPTEMBER 30, 2011
	GAAP			(1) Share-based Compensation			(3) Additional Income Tax Benefit from Prior Years			Non-GAAP			GAAP		(1) Share-based Compensation			(2) Acquisition and Exit Costs			(4) Uncertain Tax Position			(5) Trade Name Sale			Non-GAAP
Cost of revenues		16,303			(199	)		—			16,104			15,002		(246	)		(27	)		—			—			14,729
Operating expenses:
Sales and marketing		15,190			(390	)		—			14,800			15,073		(350	)		—			—			—			14,723
Research, development and engineering		4,692			(111	)		—			4,581			4,105		(110	)		(68	)		—			—			3,927
General and administrative		14,784			(1,717	)		—			13,067			15,403		(1,650	)		(17	)		—			—			13,736
Interest and other income (expense)		(2,747	)		—			—			(2,747	)		290		—			—			—			—			290
Income tax provision (6)	$	7,880			832			3,066		$	11,778		$	11,236		729			35			1,069			(3,892	)		9,177
Net earnings	$	31,650			1,585			(3,066	)	$	30,169		$	25,498		1,627			77			(1,069	)		3,892		$	30,025
Net earnings per share*:
Basic	$	0.69			0.04			(0.07	)	$	0.66		$	0.55		0.04			0.00			(0.02	)		0.08		$	0.64
Diluted	$	0.69			0.04			(0.07	)	$	0.65		$	0.54		0.03			0.00			(0.02	)		0.08		$	0.64

_________________________

* The reconciliation of Net earnings per share from GAAP to Non-GAAP may not foot due to rounding.

The Company discloses non-GAAP Earnings Per Share (EPS) as supplemental non-GAAP financial performance measure, as it believes it is useful metric by which to compare the performance of its business from period to period. The Company also understands that this non-GAAP measure is broadly used by analysts, rating agencies and investors in assessing the Company's performance. Accordingly, the Company believes that the presentation of this non-GAAP financial measure provides useful information to investors.

Non-GAAP EPS is not in accordance with, or an alternative to, Earnings Per Share and may be different from non-GAAP measures with similar or even identical names used by other companies. In addition, this non-GAAP measure is not based on any comprehensive set of accounting rules or principles. This non-GAAP measure has limitations in that they do not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.

Weighted average shares outstanding:
Basic	45,002,565	45,993,328
Diluted	45,340,111	46,455,584

j2 GLOBAL, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

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

Non-GAAP net earnings are GAAP net earnings with the following modifications: (1) elimination of the impact to revenues resulting from a change in estimate of deferred revenue; (2) elimination of share-based compensation expense and the associated payroll taxes; (3) elimination of certain acquisition and related exit costs; (4) elimination of gain on sale of certain investment; (5) elimination of additional income tax benefit from prior years; (6) elimination of a change to our liability of uncertain tax position due to expiration of statues of limitations; (7) elimination of taxes related to trade name sale and (8) elimination of income tax provision associated with the change in estimate of deferred revenue, share-based compensation and associated payroll taxes, certain acquisition and related exit costs and gain on sale of certain investment.

	NINE MONTHS ENDED SEPTEMBER 30, 2012																		NINE MONTHS ENDED SEPTEMBER 30, 2011
	GAAP			(2) Share-based Compensation			(3) Acquisition and Exit Costs			(4) Gain on Sale of Investment			(5) Additional Income Tax Benefit from Prior Years			Non-GAAP			GAAP		(1) Change in Estimate of Deferred Revenue		(2) Share-based Compensation			(3) Acquisition and Exit Costs			(6) Uncertain Tax Position			(7) Trade Name Sale			Non-GAAP
Revenues:
Subscriber	$	262,362			—			—			—			—		$	262,362		$	243,788	$	10,325		—			—			—			—		$	254,113
Cost of revenues		48,354			(633	)		(6	)		—			—			47,715			45,952		—		(742	)		(366	)		—			—			44,844
Operating expenses:
Sales and marketing		43,910			(1,117	)		(90	)		—			—			42,703			44,929		—		(1,055	)		(764	)		—			—			43,110
Research, development and engineering		13,798			(344	)		(5	)		—			—			13,449			12,714		—		(372	)		(731	)		—			—			11,611
General and administrative		43,387			(4,847	)		(48	)		—			—			38,492			44,037		—		(4,692	)		(1,421	)		—			—			37,924
Interest and other income (expense)		(2,657	)		—			—			(180	)		—			(2,837	)		262		—		—			—			—			—			262
Income tax provision (8)		25,880			2,275			34			(43	)		3,066			31,212			12,770		2,707		2,106			850			15,128			(3,892	)		29,669
Net earnings	$	91,377			4,666			115			(137	)		(3,066	)	$	92,955		$	84,947		7,618		4,755			2,432			(15,128	)		3,892		$	88,516
Net earnings per share*:
Basic	$	1.97			0.10			0.00			0.00			(0.07	)	$	2.00		$	1.84		0.17		0.10			0.05			(0.33	)		0.08		$	1.91
Diluted	$	1.96			0.10			0.00			0.00			(0.07	)	$	1.99		$	1.81		0.16		0.10			0.05			(0.33	)		0.08		$	1.89

_________________________

* The reconciliation of Net earnings per share from GAAP to Non-GAAP may not foot due to rounding.

The Company discloses non-GAAP Earnings Per Share (EPS) as supplemental non-GAAP financial performance measure, as it believes it is useful metric by which to compare the performance of its business from period to period. The Company also understands that this non-GAAP measure is broadly used by analysts, rating agencies and investors in assessing the Company's performance. Accordingly, the Company believes that the presentation of this non-GAAP financial measure provides useful information to investors.

Non-GAAP EPS is not in accordance with, or an alternative to, Earnings Per Share and may be different from non-GAAP measures with similar or even identical names used by other companies. In addition, this non-GAAP measure is not based on any comprehensive set of accounting rules or principles. This non-GAAP measure has limitations in that they do not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.

Weighted average shares outstanding:
Basic	45,590,160	45,498,763
Diluted	45,897,389	46,108,890

j2 GLOBAL, INC.

NET EARNINGS TO EBITDA RECONCILIATION

THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

(UNAUDITED, IN THOUSANDS)

The following table sets forth a reconciliation of EBITDA to net earnings, the most directly comparable GAAP financial measure.
	THREE MONTHS ENDED SEPTEMBER 30,
	2012			2011
Net earnings	$	31,650		$	25,498
Fixed charges		3,760			41
Provision for income taxes		7,880			11,236
Depreciation and amortization and other non-cash items (1)		7,755			7,064
Non-recurring (gains) losses		(526	)		15
EBITDA	$	50,519		$	43,854
(1) Other non-cash items currently represent share-based compensation.

EBITDA is defined in the Indenture Agreement as earnings before fixed charges, taxes, depreciation and amortization and all other non-cash items and all non-recurring gains and losses. We disclose EBITDA as a supplemental non-GAAP financial performance measure, as we believe it is a useful metric by which to compare the performance of our business from period to period. We understand that measures similar to EBITDA are broadly used by analysts, rating agencies and investors in assessing our performance. Accordingly, we believe that the presentation of EBITDA provides useful information to investors.

EBITDA is not in accordance with, or an alternative to, net earnings, and may be different from non-GAAP measures used by other companies. In addition, EBITDA is not based on any comprehensive set of accounting rules or principles. This non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the company’s results of operations determined in accordance with GAAP.

j2 GLOBAL, INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

	Q1			Q2			Q3			Q4			YTD
2012
Net cash provided by operating activities	$	38,942		$	46,382		$	38,193					$	123,517
Less: Purchases of property and equipment		(1,159	)		(1,631	)		(956	)					(3,746	)
Add: Excess tax benefit (deficit) from share-based compensation		286			821			(91	)					1,016
Free cash flows	$	38,069		$	45,572		$	37,146		$	—		$	120,787
2011
Net cash provided by operating activities	$	38,153		$	42,398		$	28,682		$	41,515		$	150,748
Less: Purchases of property and equipment		(625	)		(1,860	)		(2,590	)		(1,769	)		(6,844	)
Add: Excess tax benefit from share-based compensation		679			1,443			11,124			315			13,561
Free cash flows	$	38,207		$	41,981		$	37,216		$	40,061		$	157,465

The Company discloses non-GAAP Free Cash Flows as supplemental non-GAAP financial performance measure, as it believes it is a useful metrics by which to compare the performance of its business from period to period. The Company also understands that this non-GAAP measure is broadly used by analysts, rating agencies and investors in assessing the Company's performance. Accordingly, the Company believes that the presentation of this non-GAAP financial measure provides useful information to investors.

Free Cash Flows is not in accordance with, or an alternative to, Cash Flows from Operating Activities, and may be different from non-GAAP measures with similar or even identical names used by other companies. In addition, the non-GAAP measure is not based on any comprehensive set of accounting rules or principles. This non-GAAP measure has limitations in that it do not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.