Wednesday, April 11, 2007

Vonage Announces Cut Backs, CEO Resigns

Michael Snyder resigned his position as CEO of Vonage. Jeffrey A. Citron, the company's Chairman, has been appointed interim CEO while the company undertakes a search for a permanent replacement.

Vonage issued the following preliminary estimate of its operating and financial results for the quarter ended March 31, 2007:

  • Total Revenue (in millions): $195

  • Gross Subscriber Line Additions: 332,000

  • Net Subscriber Line Additions: 166,000

  • Average Monthly Customer Churn: 2.4%

  • Marketing Cost per Gross Subscriber Line Addition: $275

Vonage also announced cost cutting measures focused on reducing its ongoing losses from operations. The company plans to reduce its marketing expense by approximately $110 million. As a result, Vonage expects marketing expenditures of roughly $310 million for 2007. The company also announced plans to reduce its G&A by $30 million through the remainder of 2007 through consolidation of operations and workforce reduction.

See also