Seeking Alpha
Profile| Send Message| ()  

Shares of Vonage Holding Corp. traded higher Thursday after the company reported third-quarter results and announced it is close to settling its final major patent dispute. The company reported a loss of $161.8 million ($1.04/share), wider than last year's loss of $62.2 million ($0.40/share). Excluding litigation costs and other items, Vonage would have lost $0.10/share, better than the $0.13/share analysts had expected it to lose. Revenue jumped 30% to $211 million, slightly ahead of estimates of $210 million. Chairman Jeffrey Citron said, "We are acquiring customers more effectively and running the business at an improved cost structure... Our primary focus today is to improve the customer experience to reduce churn." The company has been taking steps to improve customer service, but its churn rate, the percentage of subscribers who terminate subscriptions, increased to 3% from 2.5% last quarter. Vonage also announced it is close to settling its last patent suit with AT&T. In principal, the agreement will have Vonage pay AT&T $39 million over five years. Vonage traded as much 12% higher early Thursday, and is up 5.0% to $2.30 in midday trading.

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.

Source: Vonage Reports Jump in Revenue and Settlement