Vonage Records $162 Million in Charges
AP , New York: Nov 8 2007
Made Popular Nov 8 2007

Internet phone company Vonage Holdings Corp. reported losses approaching $162 million Thursday as it settles patent suits from old-line phone companies, but said added subscribers in the third quarter in the face of cutbacks.

The Holmdel, N.J., company also said it had preliminarily agreed to settle a patent suit filed by AT&T Inc. for around $39 million. The suit is the last known major suit by a phone company against Vonage, which has settled with Verizon Communications Inc. and Sprint Nextel Corp.

Vonage reported a loss of $161.7 million, or $1.04 per share, for the quarter ended Sept. 30, including $132 million in charges for the lawsuit settlements. In the same quarter last year, it lost $62.1 million, or 40 cents a share.

Revenue rose 30 percent to $210.5 million from $161.8 million.

Analysts had expected losses of 13 cents per share, and revenue of $210 billion.

Vonage added 78,000 net subscriber lines during the quarter, up 37 percent from 57,000 in the second quarter 2007, and finished with more than 2.5 million lines in service.

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