8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report  (Date of earliest event reported)   August 5, 2009

j2 Global Communications, Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization) 0-25965 (Commission File Number) 51-0371142 (IRS Employer Identification No.)

6922 Hollywood Blvd.

Suite 500

Los Angeles, California  90028

(Address of principal executive offices)

(323) 860-9200

(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 and 7.01. Results of Operations and Financial Condition and Regulation FD Disclosure.

On August 5, 2009, j2 Global Communications, Inc. issued a press release announcing its financial results for the second quarter of fiscal 2009. In the press release j2 Global also reaffirmed its expected financial performance for fiscal 2009. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K. 

Also on August 5, 2009, at 5:00 p.m. Eastern time, j2 Global hosted its second quarter 2009 earnings conference call and Webcast. Via the Webcast, j2 Global presented its August 5, 2009 Investor Presentation, which contains a summary of j2 Global's financial results for the fiscal quarter ended June 30, 2009; a reaffirmation of the company’s expected financial performance for the fiscal year ending December 31, 2009; and certain other financial and operating information regarding j2 Global. A copy of this presentation is furnished as Exhibit 99.2 to this Form 8-K.

NOTE: This information is being furnished under both Item 2.02 (Results of Operations and Financial Condition) and Item 7.01 (Regulation FD Disclosure) of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits

Exhibit Number	Description
99.1	Press Release dated August 5, 2009.
99.2	August 5, 2009 Investor Presentation.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	j2 Global Communications, Inc. (Registrant)
Date:   August 5, 2009	By:	/s/ Jeffrey D. Adelman
		Jeffrey D. Adelman Vice President, General Counsel and Secretary

-2-

 INDEX TO EXHIBITS

Exhibit Number	Description
99.1	Press Release dated August 5, 2009.
99.2	August 5, 2009 Investor Presentation.

-3-

EX-99.1

EXHIBIT 99.1

j2 Global Reports Second Quarter 2009 Results

Record Quarterly Revenue and Non-GAAP EPS

LOS ANGELES—AUGUST 5, 2009—j2 Global Communications, Inc. [NASDAQGS:JCOM] today reported financial results for the second quarter ended June 30, 2009.

SECOND QUARTER 2009 RESULTS

Total revenues for Q2 2009 increased 3% to a new quarterly record of $62.5 million compared to $60.7 million in Q2 2008.

Subscriber revenues for Q2 2009 increased 3% to $61 million compared to $59.5 million in Q2 2008.

During Q2 2009, the Company improved its gross margin to 81.4% from 80.7% in Q2 2008 and its operating margin to 44.1% from 39.7% in Q2 2008.

Net earnings per diluted share on a Non-GAAP basis, which excludes share based compensation and a Q2 2009 impairment of auction rate and related securities, for Q2 2009 increased 20% to $0.48 compared to $0.40 in Q2 2008. SFAS 123(R) expense (expensing for share-based compensation) impacted Q2 2009 net earnings and net earnings per diluted share by approximately $2.0 million and $0.04, net of tax, respectively.

During Q2 2009, the Company recorded a non-recurring pre-tax impairment charge on auction rate and related securities of $9.2 million. This reduced net earnings and net earnings per diluted share by approximately $8.4 million and $0.19 net of tax, respectively.  As a result, GAAP earnings were $11.1 million and $16.7 million for Q2 2009 and Q2 2008 respectively.  GAAP net earnings per diluted share were $0.25 and $0.37 for Q2 2009 and Q2 2008, respectively.

Key financial results for second quarter 2009 versus second quarter 2008 are as follows:

	Q2 2009	Q2 2008	% Change
Subscriber Revenues	$61.0 million	$59.5 million	3%
Total Revenues	$62.5 million	$60.7 million	3%
Non-GAAP Earnings	$21.6 million	$18.1 million	19%
Non-GAAP Net Earnings per Diluted Share (1)	$0.48	$0.40	20%

(1)   The estimated effective tax rate was approximately 30% and 32% for Q2 2009 and Q2 2008, respectively.

“I am pleased with our continued execution against our business plan which emphasizes further improvement in our cost structure,” said Hemi Zucker, j2 Global’s chief executive officer. “The continued increase in our gross and operating margins, combined with our revenue growth, resulted in record quarterly non-GAAP operating income and earnings. In addition, we achieved record quarterly revenues and record six-month free cash flow. Our cash resources of nearly $200 million provide us ample financial flexibility to pursue multiple opportunities.”

BUSINESS OUTLOOK

For fiscal 2009, j2 Global maintains its anticipation of modest revenue and earnings growth (net of expenses related to share-based compensation and impairment charges for auction rate and related securities), inclusive of acquisitions, versus 2008 despite the ongoing global economic crisis. The Company remains well positioned to take advantage of changing customer and market conditions while continuing its focus on efficient marketing, optimizing its cost structure and deploying its cash resources into higher yielding investments such as acquisitions.

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 3,300 cities in 46 countries on six 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 eFax®, eFax Corporate®, Onebox®, eVoice® and Electric Mail®. As of December 31, 2008, j2 Global had achieved 13 consecutive fiscal years of revenue growth and seven consecutive fiscal years of positive and growing operating earnings. For more information about j2 Global, please visit www.j2global.com.

Contact:

Jeff Adelman

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 regarding the Company’s expected fiscal 2009 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

- 2 -

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 2008 Annual Report on Form 10-K filed by j2 Global on February 25, 2009, 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 regarding the Company’s expected fiscal 2009 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 financial estimates.

- 3 -

j2 GLOBAL COMMUNICATIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED, IN THOUSANDS)

	JUNE 30,		DECEMBER 31,
	2009		2008
ASSETS
Cash and cash equivalents	$	192,576	$	150,780
Short-term investments		21		14
Accounts receivable,
net of allowances of $3,104 and $2,896, respectively		13,905		14,083
Prepaid expenses and other current assets		8,497		6,683
Deferred income taxes		2,958		2,958
Total current assets		217,957		174,518
Long-term investments		2,207		11,081
Property and equipment, net		16,551		18,938
Goodwill		81,151		72,783
Other purchased intangibles, net		38,526		36,791
Deferred income taxes		9,008		7,787
Other assets		109		142
TOTAL ASSETS	$	365,509	$	322,040
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	17,675	$	16,915
Income taxes payable		1,451		1,800
Deferred revenue		13,168		13,680
Total current liabilities		32,294		32,395
Accrued income tax liability		41,996		38,643
Other long-term liabilities		881		1,022
Total liabilities		75,171		72,060
Commitments and contingencies		—		—
Total stockholders' equity		290,338		249,980
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	365,509	$	322,040

- 4 -

j2 GLOBAL COMMUNICATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

	THREE MONTHS ENDED JUNE 30,					SIX MONTHS ENDED JUNE 30,
	2009			2008		2009			2008
Revenues
Subscriber	$	61,049		$	59,537	$	120,689		$	116,752
Other		1,415			1,140		2,166			2,573
Total revenue		62,464			60,677		122,855			119,325
Cost of revenues (including share-based compensation of $331 and $612 for the three and six months of 2009, respectively, and $212 and $387 for the three and six months of 2008, respectively)		11,600			11,725		22,992			23,356
Gross profit		50,864			48,952		99,863			95,969
Operating expenses:
Sales and marketing (including share-based compensation of $484 and $861 for the three and six months of 2009, respectively, and $328 and $666 for the three and six months of 2008, respectively)		9,211			10,585		18,096			20,799
Research, development and engineering (including share-based compensation of $221 and $417 for the three and six months of 2009, respectively, and $191 and $405 for the three and six months of 2008, respectively)		2,880			3,011		5,823			6,158
General and administrative (including share-based compensation of $1,870 and $3,311 for the three and six months of 2009, respectively, and $1,243 and $2,543 for the three and six months of 2008, respectively)		11,209			11,292		21,915			22,449
Total operating expenses		23,300			24,888		45,834			49,406
Operating earnings		27,564			24,064		54,029			46,563
Other-than-temporary impairment losses		(9,193	)		—		(9,193	)		—
Interest and other income, net		315			563		457			1,891
Earnings before income taxes		18,686			24,627		45,293			48,454
Income tax expense		7,549			7,897		15,504			14,930
Net earnings	$	11,137		$	16,730	$	29,789		$	33,524
Basic net earnings per common share	$	0.25		$	0.38	$	0.68		$	0.73
Diluted net earnings per common share	$	0.25		$	0.37	$	0.66		$	0.71
Basic weighted average shares outstanding		43,762,333			44,142,748		43,695,076			45,700,933
Diluted weighted average shares outstanding		45,044,005			45,688,869		44,806,260			47,026,104

- 5 -

j2 GLOBAL COMMUNICATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, IN THOUSANDS)

	Six Months Ended June 30,
	2009			2008
Cash flows from operating activities:
Net earnings	$	29,789		$	33,524
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization		7,363			6,340
Share-based compensation		5,201			4,001
Excess tax benefits from share-based compensation		(2,723	)		(443	)
Provision for doubtful accounts		593			1,614
Deferred income taxes		(1,221	)		(1,062	)
Loss on disposal of fixed assets		15			28
Gain on trading securities		(8	)		—
Other-than-temporary impairment losses		9,193			—
Decrease (increase) in:
Accounts receivable		(516	)		(1,134	)
Prepaid expenses and other current assets		436			1,576
Other assets		33			46
(Decrease) increase in:
Accounts payable and accrued expenses		579			5,106
Income taxes payable		189			(616	)
Deferred revenue		(777	)		(767	)
Accrued income tax liability		3,354			3,067
Other		14			(29	)
Net cash provided by operating activities		51,514			51,251
Cash flows from investing activities:
Sales of available-for-sale investments		—			36,170
Redemptions/Sales of held-to-maturity investments		—			27,883
Purchases of property and equipment		(938	)		(1,265	)
Acquisition of businesses, net of cash received		(11,910	)		(33,278	)
Proceeds from sale of assets		1,011			—
Purchases of intangible assets		(2,272	)		(1,664	)
Net cash (used in) provided by investing activities		(14,109	)		27,846
Cash flows from financing activities:
Repurchases of common stock		—			(97,336	)
Repurchase of restricted stock		(92	)		(82	)
Issuance of common stock under employee stock purchase plan		61			112
Exercise of stock options		802			973
Excess tax benefits from share-based compensation		2,723			443
Net cash provided by (used in) financing activities		3,494			(95,890	)
Effect of exchange rate changes on cash and cash equivalents		897			1,357
Net increase (decrease) in cash and cash equivalents		41,796			(15,436	)
Cash and cash equivalents at beginning of period		150,780			154,220
Cash and cash equivalents at end of period	$	192,576		$	138,784

- 6 -

j2 GLOBAL COMMUNICATIONS, INC.

UNAUDITED RECONCILIATION OF MODIFIED NET EARNINGS

THREE MONTHS ENDED JUNE 30, 2009 AND 2008

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

Modified net earnings are GAAP net earnings with the following modifications (i) elimination of share-based compensation expense for 2009 and 2008; (ii) elimination of income tax expense associated with share-based compensation expense. (iii) elimination of other-than-temporary impairment losses (iv) elimination of income tax expense associated with other-than-temporary impairment losses.  Modified net earnings and modified 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 are useful measures of operating performance because they exclude certain non-recurring transactions outside the ordinary course of the Company's business.

	THREE MONTHS ENDED JUNE 30, 2009								THREE MONTHS ENDED JUNE 30, 2008
	Reported			Non-GAAP Entries			Non-GAAP		Reported		Non-GAAP Entries			Non-GAAP
Revenues
Subscriber	$	61,049		$	—		$	61,049	$	59,537	$	—		$	59,537
Other		1,415			—			1,415		1,140		—			1,140
Total revenue		62,464			—			62,464		60,677		—			60,677
Cost of revenues (1)		11,600			(331	)(1)		11,269		11,725		(212	)(1)		11,513
Gross profit		50,864			331			51,195		48,952		212			49,164
Operating expenses:
Sales and marketing (1)		9,211			(484	)(1)		8,727		10,585		(328	)(1)		10,257
Research, development and engineering (1)		2,880			(221	)(1)		2,659		3,011		(191	)(1)		2,820
General and administrative (1)		11,209			(1,870	)(1)		9,339		11,292		(1,243	)(1)		10,049
Total operating expenses		23,300			(2,575	)		20,725		24,888		(1,762	)		23,126
Operating earnings		27,564			2,906			30,470		24,064		1,974			26,038
Other-than-temporary impairment losses (3)		(9,193	)		9,193	(3)		—		—		—			—
Interest and other income, net		315			—			315		563		—			563
Earnings before income taxes		18,686			12,099			30,785		24,627		1,974			26,601
Income tax expense (2), (4)		7,549			1,668	(2), (4)		9,217		7,897		562			8,459
Net earnings	$	11,137		$	10,431		$	21,568	$	16,730	$	1,412		$	18,142
Diluted net earnings per share	$	0.25					$	0.48	$	0.37				$	0.40
Diluted weighted average shares outstanding		45,044,005						45,044,005		45,688,869					45,688,869
(1) Share-based compensation and related payroll
tax and employee compensation expenses
Cost of revenues				$	(331	)					$	(212	)
Sales and marketing					(484	)						(328	)
Research, development and engineering					(221	)						(191	)
General and administrative					(1,870	)						(1,243	)
				$	(2,906	)					$	(1,974	)
(2) Income tax adjustment, net impact of the items above				$	892							562
(3) Other-than-temporary impairment losses				$	9,193
(4) Income tax adjustment, net impact of the item above				$	776

- 7 -

j2 GLOBAL COMMUNICATIONS, INC.

UNAUDITED RECONCILIATION OF MODIFIED NET EARNINGS

SIX MONTHS ENDED JUNE 30, 2009 AND 2008

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

Modified net earnings are GAAP net earnings with the following modifications (i) elimination of share-based compensation expense for 2009 and 2008; (ii) elimination of income tax expense associated with share-based compensation expense. (iii) elimination of other-than-temporary impairment losses (iv) elimination of income tax expense associated with other-than-temporary impairment losses.  Modified net earnings and modified 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 are useful measures of operating performance because they exclude certain non-recurring transactions outside the ordinary course of the Company's business.

	SIX MONTHS ENDED JUNE 30, 2009								SIX MONTHS ENDED JUNE 30, 2008
	Reported			Non-GAAP Entries			Non-GAAP		Reported		Non-GAAP Entries			Non-GAAP
Revenues
Subscriber	$	120,689		$	—		$	120,689	$	116,752	$	—		$	116,752
Other		2,166			—			2,166		2,573		—			2,573
Total revenue		122,855			—			122,855		119,325		—			119,325
Cost of revenues (1)		22,992			(612	)(1)		22,380		23,356		(387	)(1)		22,969
Gross profit		99,863			612			100,475		95,969		387			96,356
Operating expenses:
Sales and marketing (1)		18,096			(861	)(1)		17,235		20,799		(666	)(1)		20,133
Research, development and engineering (1)		5,823			(417	)(1)		5,406		6,158		(405	)(1)		5,753
General and administrative (1)		21,915			(3,311	)(1)		18,604		22,449		(2,543	)(1)		19,906
Total operating expenses		45,834			(4,589	)		41,245		49,406		(3,614	)		45,792
Operating earnings		54,029			5,201			59,230		46,563		4,001			50,564
Other-than-temporary impairment losses (3)		(9,193	)		9,193			—		—
Interest and other income, net		457			—			457		1,891		—			1,891
Earnings before income taxes		45,293			14,394			59,687		48,454		4,001			52,455
Income tax expense (2), (4)		15,504			2,346	(2), (4)		17,850		14,930		1,158			16,088
Net earnings	$	29,789		$	12,048		$	41,837	$	33,524	$	2,843		$	36,367
Diluted net earnings per share	$	0.66					$	0.93	$	0.71				$	0.77
Diluted weighted average shares outstanding		44,806,260						44,806,260		47,026,104					47,026,104
(1) Share-based compensation and related payroll
tax and employee compensation expenses
Cost of revenues				$	(612	)					$	(387	)
Sales and marketing					(861	)						(666	)
Research, development and engineering					(417	)						(405	)
General and administrative					(3,311	)						(2,543	)
				$	(5,201	)					$	(4,001	)
(2) Income tax adjustment, net impact of the items above				$	1,570							1,158
(3) Other-than-temporary impairment losses				$	9,193
(4) Income tax adjustment, net impact of the item above				$	776

- 8 -

j2 Global Communications, Inc.

Free Cash Flows

	Q1		Q2		Q3		Q4		YTD
2009
Net cash provided by operating activities	31,152		20,362							51,514
Less: Purchases of property and equipment	(721	)	(217	)						(938	)
Add: Excess tax benefit from share-based compensation	5		2,718							2,723
	30,436		22,863		—		—			53,299
2008
Net cash provided by operating activities	27,411		23,840		15,676		23,789			90,716
Less: Purchases of property and equipment	(469	)	(796	)	(937	)	(305	)		(2,507	)
Add: Excess tax benefit from share-based compensation	239		204		212		910			1,565
	27,181		23,248		14,951		24,394			89,774
2007
Net cash provided by operating activities	26,659		23,113		18,656		25,779			94,207
Less: Purchases of property and equipment	(529	)	(2,506	)	(2,940	)	(4,340	)		(10,315	)
Add: Excess tax benefit from share-based compensation	2,163		780		517		1,271			4,731
	28,293		21,387		16,233		22,710			88,623

- 9 -

EX-99.2

Investor Presentation

(Based upon Second Quarter 2009 Results)

August 5, 2009

1

  Future operating results

  Global economic conditions

  Subscriber growth, retention and usage levels

  Fax and voice service growth

  New products, services and features

  Corporate spending

  Intellectual property

  Liquidity

  Network capacity, coverage and security

  Regulatory developments

  Taxes

Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, particularly those contained in the slide “2009 Guidance.” These forward-
looking statements are based on management’s current expectations or beliefs as of August 5, 2009 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.  We undertake no obligation to revise or publicly release the results of any revision
to these forward-looking statements. Readers should carefully review the risk factors described in this presentation.
Such statements address the following subjects:

Safe Harbor for Forward-Looking Statements

All information in this presentation speaks as of August 5, 2009 and any distribution of
this presentation after that date is not intended and will not be construed as updating
or confirming such information.

2

Risk Factors

Inability to sustain growth in our customer base, revenue or profitability, particularly in light of the uncertain U.S. or
worldwide economy and the related impact on customer acquisitions, cancelations and credit card payment declines

Competition in price, quality, features and geographic coverage

Higher than expected tax rates or exposure to additional tax liability

Inability to obtain telephone numbers in sufficient quantities on acceptable terms in desired locations

Enactment of burdensome telecommunications or Internet regulations including increased taxes or fees

Reduced use of fax services due to increased use of email, scanning or widespread adoption of digital signatures

Inadequate intellectual property protection or violations of third party intellectual property rights

System failures or breach of system or network security and resulting harm to our reputation

Inability to adapt to technological change, or third party development of new technologies superior to ours

Loss of services of executive officers and other key employees

Inability to maintain existing or enter into new supplier and marketing relationships on acceptable terms

Other factors set forth in our Annual Report on Form 10-K filed on 02/25/2009, as amended on 03/05/2009 and the other
reports filed by us from time to time with the Securities and Exchange Commission

The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to
be materially adversely affected:

3

All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally.

Messaging/Communications as a Service

4

Core j2 Global Assets

1.275 M Paid DIDs

Global Advanced Messaging Network

3,300+ cities in 46 countries on 6 continents

19.5M unique DIDs worldwide in inventory

Intellectual Property

50+ issued patents and licensing programs designed to monetize the portfolio

Protection of brands and marks

Programs designed to effectively collect evidence to prosecute junk faxers

Expertise

Effective customer acquisition strategies and Web marketing

Breadth, depth and management of a complex network & architecture

Successful acquisition and integration of 22 businesses in 7 countries

Strong Financial Position

13 consecutive years of Revenue growth

7 consecutive years of positive and growing Operating Earnings

$22.9M of Free Cash Flow (Q2 2009)

$195M of cash & investments to fund growth/ Nominal debt related to holdback ( at 6/30/09)

5

Individuals

Targeted marketing (search, online media and radio)

Sold through: eFax.com, Onebox.com, PhonePeople.com, Fax.com, j2.comand other brand
Websites

Use of proprietary Life Cycle Management

Advertising, Up-selling, and Calling-Party-Pays revenue supports the Free base

Small to Mid-Sized Businesses (SMBs)

Sold through: eFax Corporate, OneboxReceptionist and eVoice Receptionist Websites

Supported by Chat and Telesales groups in U.S. and Europe (in multiple languages)

Self-service Web-based broadcast fax engine at jblast.com

Outsourced email, spam & virus protection and archiving

Use of proprietary Life Cycle Management (i.e. feature up-sell)

Enterprise (SMEs)/Large Enterprise/Government

Direct sales force in U.S. and Europe

Marketed through Web and traditional direct selling methods

Designed for > 150 DID accounts

Subscriber Acquisition

6

Eight Drivers for Paid DID Additions

Subscribers coming directly to the Company’s Websites/Telesales

Brand awareness driven by demand-generation programs and “word of mouth”

Search engine discovery

Accounts for 40%+ of monthly paid DID signups

Free-to-Paid subscriber upgrades

Life Cycle Management

eFax Corporate SMB sales

Hybrid Website and human interaction (i.e. Telesales)

Direct SME/Enterprise/Government

Through the outside Corporate Sales team

Direct domestic marketing spend for paid subscribers

Targeted marketing program across various media

International marketing programs

Cross-sell

Offer additional services to existing customers

Acquisitions

Paid Subscription Drivers

7

Financial Highlights

8

⁽¹⁾          Excludes SFAS 123(R) non-cash compensation expense.

⁽²⁾          Excludes SFAS 123(R) non-cash compensation expense and auction rate securities impairment charge and related tax impact (see slide 18 for
             a GAAP/non-GAAP reconciliation.

⁽³⁾          See slide 17 for computation of free cash flow.

⁽⁴⁾          Includes auction rate securities impairment charge.

Non-GAAP Results

Revenues

$62.5M

Gross Profit/Margin ⁽¹⁾

$51.2M

82.0%

Operating Profit/Margin ⁽¹⁾

$30.5M

48.8%

Non-GAAP EPS ⁽²⁾

$0.48/Share

Free Cash Flow ⁽³⁾

$22.9M

Cash and Investments ⁽⁴⁾

$195M

$

Margin

Q2 2009

9

Operational & Strategic Overview

10

Fax

Continued to see success of lower priced brands for individuals & SMB

Fully deployed searchable fax

Corporate success continues in selling big deals – 4 in Q2 + 2

Usage stable for several months/cancel rate declined from March peak

Voice

Went  to  market  11  quarters  ago        ~200,000 DIDs

Seeing good uptake in Europe (rolled out French and Dutch)

Continuing growth in US despite economy, customer education, brand

Educate market and increase interest in the space

Email

Continue seeing M&A opportunities

Hosted Exchange alternative to launch soon – functionality for half price

Operations Update

11

Current Outlook

Fax

Continue ROI-based marketing spend

Take advantage of the economy to promote Corporate value proposition

Selective  M&A  to  acquire  customers/brands       focus on international

New geographic markets

Voice

Emphasis on ROI-based  marketing + spend for educational awareness

Continue to increase marketing in Europe

Pursue M&A opportunities in domestic and international markets

Roll out additional features

Email

Target 20 – 2,000 seat corporate email outsourcing

Expand cross-selling opportunities

Additional features for upgrading account

Build revenue base through acquisition and organic growth

Operational

Continued focus on expense control and margin enhancement

Watch for economic inflection points

Deploy cash into new opportunities

12

Strengths/Expertise to Exploit

Leverage Our Core Strengths

Messaging and communications space

Business services to business people

Purchase driven by productivity, mobility and lower TCO

High value add/stickiness/create brand leadership

Functionality delivered as virtual services

Subscription  based  business model     high fixed component

Organic  path  SOHO    SMB    SME/Corporate customers

Leverage online/telesales marketing expertise

Intellectual property opportunity

Enhanced Applications for the Evolving/Increasing Regulatory Environment

Healthcare

Banking and finance

eDiscovery laws

13

2009 Guidance

Maintains Modest Increase in Revenues and Non-GAAP EPS

14

Supplemental Information

15

(1)

Free cash flow is defined as net cash provided by operating activities plus excess tax benefit from share based compensation less purchases of property & equipment.  Free cash flow amounts are not meant as a substitute for GAAP, but are solely for informational purposes.

(2)

Free cash flow schedule has been revised for an immaterial correction to Q3 and Q4 2008 free cash flow.

Computation of Free Cash Flow

($ in millions)

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Net cash from operating activities

$18.656

$25.779

$27.411

$23.840

$15.676

$23.789

$31.152

$20.362

Purch. of property & equipment

($2.940)

($4.340)

($0.469)

($0.796)

($0.937)

($0.305)

($0.721)

($0.217)

Excess tax benefit from share based compensation

$0.517

$1.271

$0.239

$0.204

$0.212

$0.910

$0.005

$2.718

Free Cash Flow

(1) (2)

$16.233

$22.710

$27.181

$23.248

$14.951

$24.394

$30.436

$22.863

17

GAAP Reconciliation

         ⁽¹⁾     Stock-based compensation is as follows: for Q2, Cost of revenues is $331K, Sales and Marketing is $484K, R&D is $221K, and G&A is $1,870K, for YTD 2009, Cost of revenue is $612K,
                 Sales and Marketing is $861K, R&D is $417K, and G&A is $3,311K.

         ⁽²⁾     Impairment charge for auction rate securities in Q2 is $9,193K.

         ⁽³⁾     Income tax expense adjusted for the net impact of item 1 above is $892K for Q2 and $1,570K for YTD 2009.

         ⁽⁴⁾     Income tax expense adjusted for the net impact of item 2 above is $776K.

Reported

Non-GAAP

Reported

Non-GAAP

Revenues

Subscriber

61,049

$         

-

$               

61,049

$      

120,689

$      

-

$         

120,689

$        

Other

1,415

-

1,415

2,166

-

2,166

Total revenue

62,464

-

62,464

122,855

-

122,855

Cost of revenues

(1)

11,600

(331)

(1)

11,269

22,992

(612)

(1)

22,380

Gross profit

50,864

331

51,195

99,863

612

100,475

Operating expenses:

Sales and marketing

(1)

9,211

(484)

(1)

8,727

18,096

(861)

(1)

17,235

Research, development and engineering

(1)

2,880

(221)

(1)

2,659

5,823

(417)

(1)

5,406

General and administrative

(1)

11,209

(1,870)

(1)

9,339

21,915

(3,311)

(1)

18,604

Total operating expenses

23,300

(2,575)

20,725

45,834

(4,589)

41,245

Operating earnings

27,564

2,906

30,470

54,029

5,201

59,230

Other-than-temporary impairment losses

(3)

(9,193)

9,193

(3)

-

(9,193)

9,193

(3)

-

Interest and other income, net

315

-

315

457

-

457

Earnings before income taxes

18,686

12,099

30,785

45,293

14,394

59,687

Income tax expense

(2), (4)

7,549

1,668

(2), (4)

9,217

15,504

2,346

(2), (4)

17,850

Net earnings

11,137

$         

10,431

$         

21,568

$      

29,789

$        

12,048

$   

41,837

$         

Diluted net earnings per share

0.25

$              

0.48

$           

0.66

$            

0.93

$              

Diluted weighted average shares outstanding

45,044,005

45,044,005

44,806,260

44,806,260

SIX MONTHS ENDED JUNE 30, 2009

Non-GAAP Entries

j2 GLOBAL COMMUNICATIONS, INC.

UNAUDITED RECONCILIATION OF MODIFIED NET EARNINGS

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

Non-GAAP Entries

THREE MONTHS ENDED JUNE 30, 2009

THREE AND SIX MONTHS ENDED JUNE 30, 2009

18

Usage of Corporate and Web High Volume Users

19