You know how passionate we are about Vonage (NYSE: VG)! We just can't let this company vanish from our radars. Recently, Vonage, the Internet telephony provider, announced its Q1 results. Vonage is fighting hard to stay competitive in the market. The company reported revenue of $225 million, up 5% from $195.9 million for the first quarter of last year, which was slightly more than expected.
Jeffrey Citron, Vonage Chairman, said, "We are pleased with our results this quarter, as we further strengthened relationships with existing customers and captured new subscribers through targeted marketing. Our business fundamentals are improving and for the second consecutive quarter we reported positive adjusted operating income. Additionally, we have taken a significant step toward restructuring our convertible debt."
Mr Citron added that they're confident about turning their business profitable, by delivering innovative products and services. However, Vonage attracted only 30,133 new customers during the quarter while in the previous quarter it added 56,016 new contracts.
Operating expenses were down to $229 million from $269 million in the previous year's quarter, though the company says the number could rise in the Q2.
The voice over IP provider recently announced a deal to resell Covad’s broadband service.
Vonage still has many hurdles to overcome. The Internet telephony market is becoming a battle field and Vonage will have to fight hard for its share. eBay, which owns Skype has recently unveiled unlimited international-call plans for Skype.
Another big wound for Vonage is its debt. Last month, Vonage announced that it has sign a non-binding letter of intent for $215 million in private debt financing.
Last time I checked, Vonage was trading at a price of $1.85.
References
http://vonage.com
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