Vonage loss narrows, but growth slows
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Internet telephone company Vonage Holdings Corp. on Thursday reported a much reduced loss for the second quarter as it scaled back marketing, but it also saw a drastic drop in new subscribers.
Cable company Comcast Corp. reported 3 million digital phone subscribers at the end of the second quarter, surpassing Vonage’s 2.45 million.
The Holmdel, N.J., company is struggling in court with Verizon Communications Inc. In March, a jury found that Vonage infringed three Verizon patents.
Vonage shares rose 22 cents to $2.42. The stock went public in May last year at $17 a share.
Vonage posted a net loss of $34 million, or 22 cents a share, for the April-June period, down from $74 million, or $1.16, a year earlier.
Excluding one-time charges, Vonage lost $18 million, or 12 cents a share, much better than the average analyst estimate compiled by Thomson Financial of a loss of 34 cents a share.
Revenue came to $206 million, $2 million short of analyst expectations but up 43% from $144 million in the second quarter of 2006.
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