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Vonage Posts Quarterly Loss

8/09/2007 10:22:00 AM Eastern

Holmdel, N.J. — Vonage narrowed its quarterly loss and announced progress on developing workaround technology to the ones at issue in the Verizon patent dispute.

The VoIP provider posted a net loss of $34 million in the second quarter vs. $74 million in the year-ago quarter. Revenues for the quarter were up 43 percent from the year-ago period to $206 million thanks to customer growth and a boost in average revenue per line, the company said.

In a statement released with the earnings report, Vonage CEO Jeffrey Citron announced that the company had “substantially completed the deployment of workarounds for the two name-translation patents and have completed the development of the wireless-patent workaround.”

During the second quarter, Vonage added roughly 57,000 net subscribers, ending the quarter with a total of 2.4 million subscribers.

Though marketing expenses were cut 62 percent vs. the year-ago quarter, Vonage boosted marketing costs per gross subscriber line addition to $287 vs. $239 in the second quarter of 2006. Customer churn clocked in at 2.5 percent, up from 2.4 percent in the first quarter.