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) November 3, 2010

j2 Global Communications, Inc.
(Exact name of registrant as specified in its charter)

Delaware	0-25965	51-0371142
(State or other jurisdiction of	(Commission	(IRS Employer
incorporation or organization)	File Number)	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):

c	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
c	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
c	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
c	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 November 3, 2010, j2 Global Communications, Inc. issued a press release announcing its financial results for the third quarter of fiscal 2010. In the press release, j2 Global also reaffirmed its financial guidance for fiscal 2010 as follows: j2 Global targets revenue growth of 5% with a range of 3% to 7% compared to fiscal year 2009 revenues. Net earnings, excluding 123(R) non-cash compensation expense, are expected to approximate non-GAAP earnings in 2009 as the Company intends to reinvest its incremental operating income in initiatives designed to accelerate growth in 2011 and beyond. The range of anticipated revenues takes into account both organic growth and acquisition related growth within the context of current economic conditions. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.

Also on November 3, 2010, at 5:00 p.m. Eastern time, j2 Global hosted its third quarter 2010 earnings conference call and Webcast. Via the Webcast, j2 Global presented portions of its November 3, 2010 Investor Presentation, which contains a summary of j2 Global's financial results for the fiscal quarter ended September 30, 2010; a reaffirmation of the company’s financial guidance for the fiscal year ending December 31, 2010; 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 November 3, 2010.
99.2	November 3, 2010 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:	November 3, 2010	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 November 3, 2010.
99.2	November 3, 2010 Investor Presentation.

- 3 -

EX-99.1

j2 Global Reports Third Quarter 2010 Results

Adds over 76,000 Net Paid Telephone Numbers During the Quarter
Achieves Record $87.3M Nine Month Free Cash Flow

LOS ANGELES—November 3, 2010—j2 Global Communications, Inc. [NASDAQGS:JCOM] today reported financial results for the third quarter ended September 30, 2010.

THIRD QUARTER 2010 RESULTS

Total revenues for Q3 2010 were $62.8 million, which represents a growth of $1.0 million from $61.8 million in Q3 2009. The increase was primarily due to an increase in the Company’s subscriber base.

Subscriber revenues for Q3 2010 grew by $1.1 million to $62.1 million, compared to $61.0 million for Q3 2009.

For Q3 2010, the Company improved its gross margin to 82.9% versus 81.8% in Q3 2009 and its operating margin to 43.4% versus 43.1% in Q3 2009. Operating margin improvement was due primarily to increased revenues and reduced bad debt partially offset by planned increases in sales and marketing initiatives in the current period.

Net earnings per diluted share on a Non-GAAP basis, which excludes share-based compensation and related payroll taxes, was $0.47 for both Q3 2010 and Q3 2009. GAAP net earnings per diluted share was $0.43 for both Q3 2010 and Q3 2009.

The Company generated $26.7 million of free cash flow during the quarter and ended the quarter with $272.3 million in cash and investments, an increase of $7.4 million versus June 30, 2010 despite deploying approximately $19.8 million to purchase Venali, Inc. and Alban Telecom Ltd. during Q3 2010.

Key financial results for third quarter 2010 versus third quarter 2009 are as follows:

	Q3 2010	Q3 2009	% Change
Subscriber Revenues	$62.1 million	$61.0 million	1.8%
Total Revenues	$62.8 million	$61.8 million	1.6%
Non-GAAP Net Earnings per Diluted Share(1) (3)	$0.47	$0.47	0%
GAAP Net Earnings per Diluted Share (2)	$0.43	$0.43	0%
Free Cash Flow (4)	$26.7 million	$26.1 million	2.3%

(1)	The estimated non-GAAP effective tax rate was approximately 29% and 28% for Q3 2010 and Q3 2009, respectively.
(2)	The estimated effective tax rate was approximately 28% for both Q3 2010 and Q3 2009.
(3)	Share-based compensation and related payroll taxes impacted both Q3 2010 and Q3 2009 net earnings per diluted share by approximately $0.04, net of tax.
(4)	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. Excluding the impact of a $14.2 million payment in Q2 2010 to the IRS in settlement of an audit for transfer pricing covering tax years 2004 through 2008, which was fully accrued for in prior periods, for the nine month period ending September 30, 2010, the Company achieved the highest free cash flows for any nine month period in its existence.

"I am very pleased with our operational and financial performance this quarter,” said Hemi Zucker, j2 Global's chief executive officer. “We added over 76,000 net paying telephone numbers, of which approximately 50,000 came through acquisitions completed during the quarter. This is our largest quarterly growth since Q4 2000. We maintained our near record low cancel rate at 2.6%. In addition, we improved our year-over-year gross and operating margins and free cash flow, all while executing our acquisition strategy and adding new services and features to our existing product offerings.”

BUSINESS OUTLOOK

For fiscal 2010, j2 Global reaffirms it targeted revenue growth of 5% with a range of 3% to 7% compared to fiscal year 2009 revenues. Net earnings, excluding 123R non-cash compensation expense, are expected to approximate non-GAAP earnings in 2009 as the Company intends to reinvest its incremental operating income in initiatives designed to accelerate growth in 2011 and beyond.

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

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. With offices in eight cities worldwide, j2 Global's network spans more than 4,200 cities in 49 countries on six continents. The Company's websites appear in numerous languages, including Dutch, French, German, Spanish, English and more. Payments are accepted in currencies that include the U.S. Dollar, British Pound, Canadian Dollar, Japanese Yen, Euro, Hong Kong Dollar and more. j2 Global provides live sales and customer service support in multiple languages, including English, Spanish, Dutch, German, French, Cantonese and more. j2 Global markets its services principally under the brands eFax®, eFax Corporate®, Onebox®, eVoice® and Electric Mail®. As of December 31, 2009, j2 Global had achi eved 14 consecutive fiscal years of revenue growth and eight 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 2010 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 indu stries 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 2009 Annual Report on Form 10-K filed by j2 Global on February 23, 2010, 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 2010 financial performance are bas ed 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 COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)

	SEPTEMBER 30,			DECEMBER 31,
	2010			2009
ASSETS
Cash and cash equivalents	$	212,700		$	197,411
Short-term investments		16,198			31,381
Accounts receivable,
net of allowances of $2,593 and $3,077, respectively		13,170			11,928
Prepaid expenses and other current assets		6,433			13,076
Deferred income taxes		2,657			2,657
Total current assets		251,158			256,453
Long-term investments		43,406			14,887
Property and equipment, net		11,413			13,366
Goodwill		113,130			81,258
Other purchased intangibles, net		44,848			39,091
Deferred income taxes		9,532			8,717
Other assets		517			229
TOTAL ASSETS	$	474,004		$	414,001
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	19,837		$	15,941
Income taxes payable		1,702			1,563
Deferred revenue		12,349			11,411
Total current liabilities		33,888			28,915
Liability for uncertain tax positions		36,088			46,820
Deferred income taxes		359			—
Other long-term liabilities		2,990			2,094
Total liabilities		73,325			77,829
Commitments and contingencies		—			—
Stockholders' Equity:
Preferred stock		—			—
Common stock		534			529
Additional paid-in capital		158,345			147,619
Treasury stock		(112,671	)		(112,671	)
Retained earnings		354,286			301,670
Accumulated other comprehensive income (loss)		185			(975	)
Total stockholders' equity		400,679			336,172
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	474,004		$	414,001

j2 GLOBAL COMMUNICATIONS, 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,
	2010		2009		2010		2009
Revenues
Subscriber	$	62,066	$	61,045	$	182,173	$	181,734
Other		712		756		2,196		2,922
Total revenue		62,778		61,801		184,369		184,656
Cost of revenues (including share-based compensation of
$304 and $963 for the three and nine months of 2010,
respectively, and $323 and $935 for the three and nine
months of 2009, respectively)		10,732		11,258		31,378		34,250
Gross profit		52,046		50,543		152,991		150,406
Operating expenses:
Sales and marketing (including share-based compensation
of $464 and $1,460 for the three and nine months of 2010,
respectively, and $477 and $1,338 for the three and nine
months of 2009, respectively)		10,878		9,347		32,327		27,443
Research, development and engineering (including share-based
compensation of $204 and $645 for the three and nine months
of 2010, respectively, and $217 and $634 for the three and nine
months of 2009, respectively)		3,008		2,862		8,810		8,685
General and administrative (including share-based compensation
of $1,805 and $5,699 for the three and nine months of 2010,
respectively, and $1,877 and $5,188 for the three and nine
months of 2009, respectively)		10,921		11,667		34,263		33,582
Total operating expenses		24,807		23,876		75,400		69,710
Operating earnings		27,239		26,667		77,591		80,696
Other-than-temporary impairment losses		—		—		—		(9,193	)
Interest and other income, net		491		20		1,750		477
Earnings before income taxes		27,730		26,687		79,341		71,980
Income tax expense		7,896		7,353		23,161		22,857
Net earnings	$	19,834	$	19,334	$	56,180	$	49,123
Basic net earnings per common share	$	0.44	$	0.44	$	1.26	$	1.12
Diluted net earnings per common share	$	0.43	$	0.43	$	1.23	$	1.09
Basic weighted average shares outstanding		44,716,366		44,126,038		44,488,561		43,840,308
Diluted weighted average shares outstanding		45,939,172		45,296,147		45,738,389		44,985,160

j2 GLOBAL COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED, IN THOUSANDS)

		NINE MONTHS ENDED SEPTEMBER 30,
		2010			2009
Cash flows from operating activities:
	Net earnings	$	56,180		$	49,123
Adjustments to reconcile net earnings to net cash
provided by operating activities:
	Depreciation and amortization		10,973			10,990
	Amortization of discount or premium of investments		670			0
	Share-based compensation		8,767			8,095
	Excess tax benefits from share-based compensation		(164	)		(3,126	)
	Provision for doubtful accounts		1,542			1,710
	Deferred income taxes		(815	)		(924	)
	Other-than-temporary impairment losses		—			9,193
Decrease (increase) in:
	Accounts receivable		(1,354	)		(803	)
	Prepaid expenses and other current assets		1,097			(737	)
	Other assets		(262	)		(108	)
(Decrease) increase in:
	Accounts payable and accrued expenses		2,350			(723	)
	Income taxes payable		(11,426	)		(724	)
	Deferred revenue		(422	)		219
	Liability for uncertain tax positions		6,339			5,776
	Other		677			22
Net cash provided by operating activities			74,152			77,983
Cash flows from investing activities:
	Maturity of certificates of deposit		31,653			—
	Redemptions/sales of available-for-sale investments		9,019			—
	Purchases of available-for-sale investments		(52,921	)		—
	Purchases of certificates of deposit		—			(31,150	)
	Purchases of property and equipment		(1,273	)		(1,704	)
	Proceeds from sale of assets		—			1,340
	Acquisition of businesses, net of cash received		(36,546	)		(11,915	)
	Purchases of intangible assets		(6,953	)		(3,146	)
Net cash used in investing activities			(57,021	)		(46,575	)
Cash flows from financing activities:
	Repurchases of common stock and restricted stock		(4,175	)		(441	)
	Issuance of common stock under employee stock purchase plan		85			89
	Exercise of stock options		2,349			2,638
	Excess tax benefits from share-based compensation		164			3,126
Net cash (used in) provided by financing activities			(1,577	)		5,412
Effect of exchange rate changes on cash and cash equivalents			(265	)		750
Net increase in cash and cash equivalents			15,289			37,570
Cash and cash equivalents at beginning of period			197,411			150,780
Cash and cash equivalents at end of period		$	212,700		$	188,350

j2 GLOBAL COMMUNICATIONS, INC.
UNAUDITED RECONCILIATION OF MODIFIED NET EARNINGS
THREE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Modified net earnings are GAAP net earnings with the following modifications (1) elimination of share-based compensation expense for 2010 and 2009; (2) elimination of payroll taxes associated with share-based compensation and (3) elimination of income tax expense associated with share-based compensation and associated payroll taxes 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 transactions outside the ordinary course of the Company's business.

		THREE MONTHS ENDED SEPTEMBER 30, 2010								THREE MONTHS ENDED SEPTEMBER 30, 2009
		Reported		Non-GAAP Entries				Non-GAAP		Reported		Non-GAAP Entries				Non-GAAP
Revenues
	Subscriber	$	62,066	$	-			$	62,066	$	61,045	$	-			$	61,045
	Other		712		-				712		756		-				756
	Total revenue		62,778		-				62,778		61,801		-				61,801
Cost of revenues (1)			10,732		(304	)	(1)		10,428		11,258		(323	)	(1)		10,935
	Gross profit		52,046		304				52,350		50,543		323				50,866
Operating expenses:
	Sales and marketing (1)		10,878		(464	)	(1)		10,414		9,347		(477	)	(1)		8,870
	Research, development and engineering(1)		3,008		(204	)	(1)		2,804		2,862		(217	)	(1)		2,645
	General and administrative (1) (2)		10,921		(1,826	)	(1) (2)		9,095		11,667		(1,909	)	(1) (2)		9,758
	Total operating expenses		24,807		(2,494	)			22,313		23,876		(2,603	)			21,273
Operating earnings			27,239		2,798				30,037		26,667		2,926				29,593
Interest and other income, net			491		-				491		20		-				20
Earnings before income taxes			27,730		2,798				30,528		26,687		2,926				29,613
Income tax expense (3)			7,896		883		(3)		8,779		7,353		902		(3)		8,255
Net earnings		$	19,834	$	1,915			$	21,749	$	19,334	$	2,024			$	21,358
Diluted net earnings per share		$	0.43					$	0.47	$	0.43					$	0.47
Diluted weighted average shares outstanding			45,939,172						45,939,172		45,296,147						45,296,147
(1) Share-based compensation expense:
	Cost of revenues			$	(304	)						$	(323	)
	Sales and marketing			$	(464	)						$	(477	)
	Research, development and engineering			$	(204	)						$	(217	)
	General and administrative			$	(1,805	)						$	(1,877	)
				$	(2,777	)						$	(2,894	)
(2) Payroll taxes associated with share-based compensation				$	(21	)						$	(32	)
(3) Income tax adjustment, net impact of the items above
	Share-based compensation expense			$	877							$	893
	Payroll taxes associated with share-based compensation				6								9
				$	883							$	902

j2 GLOBAL COMMUNICATIONS, INC.
UNAUDITED RECONCILIATION OF MODIFIED NET EARNINGS
NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Modified net earnings are GAAP net earnings with the following modifications (1) elimination of share-based compensation expense for 2010 and 2009; (2) elimination of payroll taxes associated with share-based compensation; (3) elimination of certain acquisition costs; (4) elimination of other-than-temporary impairment losses and (5) elimination of income tax expense associated with share-based compensation and associated payroll taxes, certain acquisition costs and 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 becau se they exclude certain transactions outside the ordinary course of the Company's business.

	NINE MONTHS ENDED SEPTEMBER 30, 2010								NINE MONTHS ENDED SEPTEMBER 30, 2009
	Reported		Non-GAAP Entries				Non-GAAP		Reported			Non-GAAP Entries				Non-GAAP
Revenues
Subscriber	$	182,173	$	-			$	182,173	$	181,734		$	-			$	181,734
Other		2,196		-				2,196		2,922			-				2,922
Total revenue		184,369		-				184,369		184,656			-				184,656
Cost of revenues (1)		31,378		(963	)	(1)		30,415		34,250			(935	)	(1)		33,315
Gross profit		152,991		963				153,954		150,406			935				151,341
Operating expenses:
Sales and marketing (1)		32,327		(1,460	)	(1)		30,867		27,443			(1,338	)	(1)		26,105
Research, development and engineering (1)		8,810		(645	)	(1)		8,165		8,685			(634	)	(1)		8,051
General and administrative (1) (2) (3)		34,263		(6,073	)	(1) (2) (3)		28,190		33,582			(5,237	)	(1) (2)		28,345
Total operating expenses		75,400		(8,178	)			67,222		69,710			(7,209	)			62,501
Operating earnings		77,591		9,141				86,732		80,696			8,144				88,840
Other-than-temporary impairment losses (4)		-		-				-		(9,193	)		9,193		(4)		-
Interest and other income, net		1,750		-				1,750		477			-				477
Earnings before income taxes		79,341		9,141				88,482		71,980			17,337				89,317
Income tax expense (5)		23,161		2,849		(5)		26,010		22,857			3,255		(5)		26,112
Net earnings	$	56,180	$	6,292			$	62,472	$	49,123		$	14,082			$	63,205
Diluted net earnings per share	$	1.23					$	1.37	$	1.09						$	1.41
Diluted weighted average shares outstanding		45,738,389						45,738,389		44,985,160							44,985,160
(1) Share-based compensation expense:
Cost of revenues			$	(963	)							$	(935	)
Sales and marketing			$	(1,460	)							$	(1,338	)
Research, development and engineering			$	(645	)							$	(634	)
General and administrative			$	(5,699	)							$	(5,188	)
			$	(8,767	)							$	(8,095	)
(2) Payroll taxes associated with share-based compensation			$	(169	)							$	(49	)
(3) Acquisition costs			$	(205	)							$	-
(4) Other-than-temporary impairment losses			$	-								$	9,193
(5) Income tax adjustment, net impact of the items above
Share-based compensation expense			$	2,738								$	2,463
Payroll taxes associated with share-based compensation				51									16
Acquisition costs				60									-
Other-than-temporary impairment losses				-									776
			$	2,849								$	3,255

j2 GlobalCommunications, Inc.
Free Cash Flows

	Q1		Q2		Q3		Q4		YTD
2010
Net cash provided by operating activities	34,688		12,317		27,147				74,152
Less: Purchases of property and equipment	(86	)	(495	)	(692	)			(1,273	)
Add: Excess tax (deficiency) benefit from share-based compensation	(406	)	374		196				164
Add: IRS settlement*	-		14,223		-				14,223
	34,196		26,419		26,651		-		87,266
* Free cash flow of $26.4 million is before the effects of our IRS settlement. In the secondquarter, we successfully settled our audit for transfer pricing for the years of 2004 to 2008 for $14.2 million, which was fully accrued for in prior periods. Taking this settlement into consideration, our free cash flow for the quarter was $12.2 million.
2009
Net cash provided by operating activities	31,152		20,362		26,469		23,850		101,833
Less: Purchases of property and equipment	(721	)	(217	)	(767	)	(1,546	)	(3,251	)
Add: Excess tax benefit (deficiency) from share-based compensation	5		2,718		403		(63	)	3,063
	30,436		22,863		26,105		22,241		101,645
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

EX-99.2