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November 8, 2007
Bon Vonage
Vonage,
long beset by patent litigation, appears to be clawing its way out of a deep
hole: it settled with AT&T, the last company to hammer Vonage with its patents,
for $39 million. Vonage had previously put behind it, at considerable expense,
suits from Verizon ($120 million) and Sprint Nextel ($80 million).
Reporting financial status: while revenue climbed 30% to $210.5 million, Vonage reported a net loss of $161.8 million, or $1.04 a share. The results included $133 million for litigation costs.
Vonage now has 2.5 million customers, adding 77,763 customer lines for the quarter ending September. That was up from 2.4 million mid-year, and 2.06 million a year ago.
Customer turnover rose to 3%; churn was 2.6% a year ago. CEO Jeffrey Citron termed it unexpected and unacceptable.
The company predicts operating income to be in the black in 2008.
Posted by Patent Hawk at November 8, 2007 9:50 AM | Patents In Business