Vonage reported its 2Q loss narrowed to $33.6 million, or $0.22/share, compared to -$74.1M, or -$1.16 last year, beating analyst expectations of -$0.34/share. Sales growth of 40% to $205.9M came up short of analysts' average estimate of $208.1M. Vonage added around 57,000 new subscribers, missing some analyst forecasts and significantly trailing last year's same quarter gain of 256,000. Vonage now has 2.45 million total subscribers, more than rival Time Warner, which added 241,000 during the quarter for 2.3M total, but less than Comcast, which gained 671,000 for more than 3.0M. Cost-cutting including head count reduction and lower advertising expenses are said to be ahead of schedule. Vonage Chairman Jeffrey Citron said the company has "made a significant step toward moving ahead with business in the wake of the Verizon [patent infringement] litigation," by completing the deployment of workarounds. Vonage gained 4.8% to $2.20 on Wednesday and is untraded so far in Thursday's pre-market.
Sources: Press release, Bloomberg
Commentary: Vonage: The Trend Certainly Is Not Their Friend • Vonage Requests Lower Court Retrial, Cites Supreme Court Patent Decision • Telecom Meets Web 2.0 - Who Wins?
Stocks/ETFs to watch: VG. Competitors: TWX, CMCSA, T, VZ, Q
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