Vonage Holdings announced this morning Michael Snyder has resigned as CEO and from the Board of Directors. Jeffrey A. Citron, current Chairman and Chief Strategist was appointed interim CEO. He announced cost cutting plans of about $110 million from marketing expenses. Vonage said it plans to implement a hiring freeze and cut its workforce by around 10%. It will "immediately commence a search for Mr. Snyder's replacement." In a press release, Vonage forecast total revenue for the quarter ended March 31 of $195m, with gross subscriber line additions of 332,000 (net total: 166,000), average monthly churn of 2.4%, marketing cost per gross subscriber add at $275, and average monthly revenue per line of $28.17. Shares of Vonage were unchanged at $3 during normal trading yesterday and in pre-market activity at the time of publishing (on light volume of 21,200 shares, trading as high as $3.24 so far).
Sources: Press release
Commentary: Vonage Fighting on Two Fronts • Vonage: Court Grants Stay On Order Barring Signing Up New Users • Comcast Set To Pass Vonage As Top VoIP Provider
Stocks/ETFs to watch: Vonage Holdings (VG), Verizon Communications (VZ), Charter Communications (CHTR), Comcast (CMCSA)
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